07151981 Emergency Meeting - Laserfiche WebLink

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repair as before, at the expe~]se of the Lo~er Colorado River Authority. The rights herein granted are subject to the authority, of the City of San Marcos to require the Lower Colorado River Authority, at its own expense to relocate its facilities to permit the widening, or straightening of streets by the City's giving 30 days' notice and specifying the new location for the facilities along the right-of-way of the street or streets. II. The Lower Colorado River Authority agrees to pay to the City of San [4arcos 4% of its gross receipts from sales of elec- tricity to residents of the City of San Marcos as a franchise fee. Under the Lower Colorado River AuthOrity's presently effective tariffed rates, 2%, or 1/2 of the 4% franchise fee is included in the Lower Colorado River Authority's retail rates over and above the Lower Colorado River Authority's cost of service. The remaining 2%, or 1/2 of the 4% franchise .fee, shall be collected as a separately identified surcharge to the bills of the residents of the City of San Marcos. It is the intention of the parties to this Franchise Agree- ment that the rates to be charged by the Lower Colorado River Authority for electric service within the city limits of the City of San ~4arcos shall always be sufficient to recover the Lower COlorado River Authority's cost of service within the City of San Marcos, plus the 4% franchise fee agreed to herein. Should the collection pattern outlined in the imme- diately preceding paragraph be changed during the term of this Franchise Agreement by any regulatory authority with putative po%~er to do so, the City of San ~4arcos and the Lower Co%orado River Authority agree to negotiate with each other to establish a mutually satisfactory means, meeting the requirements of this - 2 -