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~- ~ >-V> Q~ ~ 0::8 ~;;; u LJ.J2 lLI~ ,.-l O::c ~-o 0J UCQ LJ.J 0') ~ CI)_ === ~~ - -- \ :< c:,;)~ 155. ORDINANCE NO. 2000- 53 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, RENEWING THE EXISTING FRANCHISE AGREEMENT BETWEEN THE CITY AND THE PEDERNALES ELECTRIC COOPERATIVE, INC.; REVISING THE METHODOLOGY FOR DETERMINING FRANCHISE FEE PAYMENTS; PROVIDING FOR WRITTEN ACCEPTANCE TO BE FILED BY THE PEDERNALES ELECTRIC COOPERATIVE; AND PROVIDING AN EFFECTIVE DATE. RECITALS: 1. In Ordinance 1990-52, the City Council of the City of San Marcos, Texas, granted to the Pedemales Electric Cooperative, Inc. ("PEC") a non-exclusive franchise (the "Franchise") to provide electric utility service in the City. 2. PEC has requested that the Franchise be renewed, and the City is willing to grant a renewal of the Franchise for a period of five years. 3. The City and PEC have agreed that the methodology in the franchise for determining franchise fee payments should be updated in accordance with changes in state law. 4. The entire text of this ordinance was published in a newspaper of general circulation in the City on June 25 , 2000. 5. The City Council conducted a public hearing on the proposed renewal on June 26 , 2000. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: SECTION 1. The renewal of the Franchise for a period of five years is approved, subject to all of the existing terms and conditions of the Franchise, with the exception that Sections 1 and 9 are amended as follows (added text is shown by underlining and deleted text is shown by overstrike): SECTION 1: Term. This Agreement and Franchise shall be in force and effect for a period of five ill tca(1 0) years from and after its effective date herein provided. All rights and duties are herein granted and acknowledged for such term subject to the provisions of this ordinance. This Agreement and Franchise shall automatically renew thereafter for successive five (5) year terms unless one party notifies the other in writing of its intention not to renew this Agreement and Franchise at least six (6) months in advance of a respective renewal date. ************* SECTION 9. Cash Consideration. From and after the effective date of this ordinance PEC shall pay to the City for its supervision of this Agreement, for annual inspection fees, for service charges, and for the use of its streets, alleys, sidewalks, rights-of-way, and other public places during the term of this Agreement an amount (in no event to be less than twenty-five thousand dollars ($25,000) annually) equal to: Before January L 2002: Two percent of the gross receipts for the preceding year received by PEC from the rendition of electric utility services within the corporate limits of the City, as it now exists or as it may be changed by annexation or deannexation ordinance; and On and after January L 2002: $.001018 for each kilowatt hour delivered byPEC during the preceding year within the corporate limits of the City, as it now exists or as it may be later changed by annexation or deannexation. This rate per kilowatt hour delivered represents the total electric franchise fee revenue due the City from PEC for the calendar year 1998 divided by the total kilowatt hours delivered within the City during 1998 by PEC. Provided that if PEC at any time before January 1, 2002 pays a higher percentage of its gross