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HomeMy WebLinkAbout02670 ORD - 01/10/1950AN ORDINANCE EXTENDING AN ORDINANCE AND FRANCHISE FINALLY PASSED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI AND APPROVED BY THE MAYOR ON THE 18TH DAY OF JULY, A. D., 1935, AND AMENDED BY ORDI- NANCE FINALLY PASSED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI AND APPROVED BY THE MAYOR ON THE 17TH DAY OF OCTOBER, A. D., 1939, GRANTING TO CENTRAL POWER AND LIGHT COMPANY, ITS SUCCES- SORS AND ASSIGNS, AN ELECTRIC LIGHT, HEAT AND POWER FRANCHISE, AND AMENDING SAID ORDINANCE AND FRAN- CHISE TO CHANGE THE CONSIDERATION AND COMPENSATION TO BE PAID TO THE CITY BY THE GRANTEE THEREUNDER. WHEREAS, the Central Power and Light Company, a corpora- tion duly incorporated under the laws of the State of Texas, now owns and holds and is operating in the City of Corpus Christi, Texas, under an electric light, heat and power franchise granted to Central Power and Light Company, its successors and assigns, by an ordinance finally passed by the City Council of the City of Corpus Christi and approved by the Mayor on the 18th day of July, A. D., 1935, and amended by ordinance finally passed by the City Council of the City of Corpus Christi and approved by the Mayor on the 17th day of October, A. D., 1939, which said ordinance and franchise are for a term extending until July 1, A. D., 1965; and WHEREAS, said Central Power and Light Company has filed an application for the extension of said ordinance and franchise so that it will remain in effect for an additional period of four- teen (14) years and five (5) months and until December 1, 1979, and for amendment thereof to change and make more favorable to the City the provision thereof as to the consideration and-com- pensation to be paid to the City under said franchise by the Grantee, and, in connection with said application has pointed out various additional revenues, savings and other advantages that will be realized by the City and its inhabitants if said ex- tension and amendment are granted; and WHEREAS, it appears that the granting of said franchise extension and amendment will make it feasible for the holder there- of to finance and make improvements and extensions in its electric �L" TO distribution system and facilities that will aid in the beauti- fication of the City, in making service more dependable, and in making the City safer, that the City will receive and realize additional revenues and other savings and advantages and that it is to the best interest of the City of Corpus Christi and the in- habitants and citizens thereof to grant said franchise exten- sion and amendment to said Central Power and Light Company, its successors and assigns, NOW, TIEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. That the ordinance heretofore finally passed by the City Council of the City of Corpus Christi and approved by the Mayor on the 18th day of July, A. D., 1935, and amended by ordinance finally passed by the City Council of the City of Corpus Christi and approved by the Mayor on the 17th day of October, A. D., 1939, granting to Central Power and Light Com- pany, its successors and assigns, an electric light, heat and power franchise, and the franchise granted thereby, be, and the same are, extended to cover an additional period of four- teen (14) years and five (5) months so as to remain in effect until December 1, 1979, and amended so as to change the pro- vision thereof with respect to the consideration and compen- sation to be paid to the City by the Grantee thereunder, and be and read hereafter as follows: "SECTION 1. There is hereby granted to Central Power and Light Company, its successors and assigns, (herein called "Grantee ") the right, privilege and franchise un- til December 1, A. D., 1979, to construct, install, main- tain, repair and operate in the present and future streets, alleys, public places and ways of the City of Corpus Christi, as the limits of said City now exist and as they may here- after be extended, and its successors, electric light and power lines, with all necessary and /or desirable appurte- nances, including without limitation thereby, underground -2- conduits, poles, towers, wires, transmission lines and com- munication lines for its own use, for the purpose of sup- plying electricity to the said City and the inhabitants thereof and persons and corporations in and beyond the limits thereof, for light, heat, power and any other purposes for which electricity may be used. For and as full consideration and compensation for this franchise and the rights, privileges and easements granted and conferred thereby and as rental for the use of the streets, alleys and other public areas within or that may hereafter be within said City, the Grantee shall pay said City each year on July 1 the sum of $5,000.00, and in addi- tion thereto, each year, during and for the remainder of the term of this franchise from and after this extension and amendment thereof becomes effective under and by opera- tion of law and if and so long as Grantee is the only opera- tor of an electric distribution system providing electric energy available to the general public, and the only sub- stantial supplier of electric energy at retail within the limits of the City of Corpus Christi, whichever is the greater, either $80,000.00 or 2% of the Grantee's gross re- ceipts during the year from the sale of electric energy in and for use within the corporate limits of the City of Corpus Christi, in semi - annual installments, as followa: Grantee, within one (1) month of March 31st and September 30th of each year, shall file with the City Secretary a report sworn to by its Auditor or Treasurer showing its gross receipts for the six (6) months preceeding March 31st or September 30th, as the case may be, from the sale of electric energy in and for use within the corporate limits of the City of Corpus Christi, and the amount of the additional consideration to be paid hereunder will be based up- on said reports and will be paid in semi - annual in- stallments on or before April 30 and October 31, re- spectively; that is, the April 30th semi - annual in- stallment will be, whichever is the greater, either $40,000.00, being one -half of the additional annual payment as mentioned herein, or 2% of the Grantee's gross receipts from the sale of electric energy in and for use within the corporate limits of the City of Corpus Christi; and the October 31st semi - annual payment will be any remaining unpaid portion of the additional annual payment herein provided for. -3- Payments under this provision shall not prevent the levy or assessment by the City of any gross receipts charge or other rental for the use of the streets, alleys and public areas permitted by law, but payments hereunder for each year shall be applied and credited upon any such gross re- ceipts charges or other rental imposed by the City for the use of its streets, alleys and public areas for said year. SECTION 2. Poles or towers shall be so erected as not to unreasonably interfere with traffic over streets and alleys. The location of all poles and towers or conduits shall be fixed under the supervision of the street and al- ley committee of the City of Corpus Christi, or the suc- cessors to the duties of that committee, but not so as to unreasonably interfere with the proper operation of said lines. SECTION 3. The property of Grantee shall be maintained in good order during the life of this grant, and the ser- vice furnished hereunder to said City and its inhabitants shall be first class in all respects and at reasonable rates, and shall be subject to such reasonable rules and regulations as the Grantee may make from time to time. This franchise may be forfeited in a Court of competent juris- diction by the City of Corpus Christi for failure of the Grantee to furnish efficient service at reasonable rates and/or to maintain the property in good order throughout the life of this grant. The Grantee may require reasonable security for thepayment of its bills. SECTION 4. Upon the termination of this grant, the grant as well as the property, if any, of the Grantee in the streets, avenues and other public places, in the then city limits of the City of CorpusChristi, shall thereupon, upon a fair val- uation thereof being paid to the Grantee,be and become the property of the City of Corpus Christi, and the Grantee shall never be entitled to any payment or valuation because of any value derived from the franchise or the fact that it is or may be a going concern duly installed and operated, provided, �4- however, it shall be optional with the City of Corpus Christi whether or not it acquired title to said prop- erties in said manner. The mode of ascertaining the fair value of the grant and the property of Grantee in the streets, avenues and other public places of the City of Corpus Christi shall be as follows: City of Corpus Christi shall appoint one compe- tent electrical engineer who has had not less than five years actual experience in appraising electric public utility properties, and the Grantee shall ap- point an engineer of like qualifications, or may, at its option, appoint its Chief Engineer, which two said engineers shall make an actual examination of the properties and report their agreement of the fair value to the City and the Grantee, and in case the said engineers are unable to agree as to a fair value, they shall jointly select a third electrical engineer of like qualifications, and a majority of the three so appointed may report a value which shall be binding upon both the City Of Corpus Christi and the Grantee. If the two engineers selected as above outlined by the City of Corpus Christi and the Grantee are unable to agree upon the fair valuation and are unable to agree upon a third engineer to act with them, then and in that event the Judge of the United States District Court of the Southern District of Texas shall appoint a third engineer. SECTION 5. The Grantee shall hold the City harmless from all expense or liability for any act or neglect of the Grantee hereunder. SECTION 6. This franchise is in lieu of and supersedes and cancels any and all franchises heretofore granted to Central Power and Light Company and /or its predecessors in title, except: (a) A special franchise granted to the Gulf Coast Power Company on the 10th day of March, 1922, to lay and construct a pipe line under and across Water Street from the East lisle of Lot No. 2,in Block No. 15, Beach Portion of the City of Corpus Christi, to the Western line of Lot 2, in Water Block No. 1, and acrosssaid lot Into and under the waters of Corpus Christi Bay; and (b) A franchise granted to Texas Central Power Com- pany on the 16th day of July, 1926, for the purpose of constructing a pipe line from its power plant across Water Street and Arroyo, and along the Municipal Wharf, into Corpus Christi Bay, andof building and erecting a -5- pumping plant and house on the end of said Municipal Wharf for the purpose of drawing water therefrom to be used in connection with said power plant, and to construct any ditches and lay any pipes necessary along said route for such purposes; which shall remain in full force and effect for the purposes therein named. SECTION 7. This franchise is not exclusive, and nothing herein contained shall be construed so as to prevent the City from granting other like or similar rights and privi- leges to any other person, firm or corporation." Section 2. The Grantee shall file its written acceptance of this extension and amendment within 60 days after same becomes "ef - fective under and by operation of law. The foregoing ordinance was read the first time and passed to the second reading on the day of December, A. D., 1949, by the following vote: Leslie Wasserman Jack DeForrest Barney Cott Sydney E. E. Herndon George L. Lowman /J The foregoing ordinance was read the second time and passed to the third reading on the _�_ day of January, A. D., 1950, by the following vote: Leslie Wasserman 'a* Jack DeForrest � Barney Cott t Sydney E. Herndon George L. Lowman a(� J d/ The foregoing ordinance was read the third time and finally passed and approved on the /d day of January, A. D., 1950, by -6- the following vote: Leslie Wasserman Jack DeForrest i(��✓ . Barney Cott Sydney E. Herndon libu George L. Lowman APPROVED, this the /I /� day of January, A. D., 1950. -Mayor o thee C� orp s Christ�- R. tg Secretary APPROVED AS W LEGAL FORM; City Attor5�y THE STATE OF TEXAS ¢ Q COUNTY OF NUECES ¢ Q CITY OF CORPUS CHRISTI ¢ I, C. W TTERS, duly a of the Cit of Corp Christi foregoing i a true and rec and approve by the City Coun,' on the day of Januarys' i record in Vo ume at a� ntedd and acti g City Secretary xak, do hereby certify that the opy of an Ord - finally passed of the City o Corpus Christi 1950, qt;h ame appears of rdinance an d Re- solution Re ords of t e City of Corpus C sti, Texas. TO CER H, witne ❑yy hand and as f said city, this the day of January, . D., 1950. city Secretary of the City of Corpus Christi, Texas. atfgv -7-