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ORDINANCE NO. 2012 - 32 <br />AN ORDINANCE OF THE CITY OF SAN MARCOS, TEXAS, GRANTING TO THE <br />PEDERNALES ELECTRIC COOPERATIVE, INC., ITS LEGAL REPRESENTATIVES, <br />SUCCESSORS AND ASSIGNS, CERTAIN RIGHTS -OF -WAY PRIVILEGES AND A NOW <br />EXCLUSIVE FRANCHISE TO CONSTRUCT, MAINTAIN, OPERATE AND USE A <br />TRANSMISSION AND DISTRIBUTION SYSTEM WITHIN A PORTION OF THE CITY OF <br />SAN MARCOS TO PROVIDE ELECTRIC UTILITY SERVICE; SETTING FORTH THE <br />TERMS AND CONDITIONS OF THE FRANCHISE; PROVIDING A PROCESS FOR <br />RESOLVING VIOLATIONS OF THE ORDINANCE; PROVIDING A SAVINGS CLAUSE <br />AND AN EFFECTIVE DATE. <br />WHEREAS, in Ordinance 1990 -52, the City granted a non - exclusive franchise to PEC to <br />provide electric utility service in the City which was renewed and amended in Ordinance 2000- <br />53; and <br />WHEREAS, by letter dated October 19, 2001, PEC notified the City that PEC would not <br />implement the flat fee calculation agreed to in Ordinance 2000 -53 and that PEC would continue <br />with the two percent calculation contained in 1990 -52 until the law required PEC to <br />compensate all cities according to the statutory flat fee formula; and <br />WHEREAS, in Resolution 2001 -187R the City approved PEC's Letter Request to delay the <br />implementation of the change in methodology for determining the franchise fee payments until <br />such time as PEC began to offer retail customer choice in its service area; and <br />WHEREAS, as of the date of this Franchise, PEC has not adopted customer choice; <br />WHEREAS, by letter dated April 8, 2010, the City elected not to renew its franchise with <br />PEC; and <br />WHEREAS, PEC has requested a renewal of the franchise; and <br />WHEREAS, by letter agreements the City and PEC agreed to extend the term of the <br />existing franchise from the end of its term until the effective date of this ordinance and <br />WHEREAS, the City is willing to grant a franchise for a period of five (5) years to PEC; and <br />WHEREAS, the City Council hereby finds that it is to the mutual advantage of both the <br />City and PEC to grant a franchise establishing the conditions under which PEC will operate in the <br />City; and <br />1 <br />