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I ORDINANCE NO. 2007- 39 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS ESTABLISHING A FRANCHISE AGREEMENT BETWEEN THE CITY OF SAN MARCOS AND CENTERPOINT ENERGY RESOURCES CORP., DBA CENTERPOINT ENERGY TEXAS GAS OPERATIONS., ITS SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVILEGE AND FRANCHISE FOR A PERIOD OF FIVE (5) YEARS FOR THE CONSTRUCTION, MAINTENANCE AND OPERATION OF NATURAL GAS DISTRIBUTION SYSTEM IN THE CITY OF SAN MARCOS, HAYS COUNTY, TEXAS; PROVIDING CONDITIONS CONTROLLING THE USE BY CENTERPOINT ENERGY RESOURCES CORP. DBA CENTERPOINT ENERGY TEXAS GAS OPERATIONS OF PUBLIC PROPERTY ESTABLISHING STANDARDS OF SERVICE; PROVIDING FOR PAYMENT OF FRANCHISE FEES BY CENTERPOINT ENERGY RESOURCES CORP., DBA CENTERPOINT ENERGY TEXAS GAS OPERATIONS TO THE CITY; PROVIDING FOR ACCEPTANCE; PROVIDING FOR SEVERABILITY; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND DECLARINGAN EFFECTIVE DATE. I RECITALS: 1. In Ordinance No. 1990-84, the City Council of the City of San Marcos, Texas, granted to the CenterPoint Energy Resources Corp., DBA CenterPoint Energy Texas Gas Operations predecessor, a non-exclusive franchise (the "Franchise") to provide gas utility service in the City. 2. CenterPoint Energy Resources Corp., DBA CenterPoint Energy Texas Gas Operations 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 to be renewed automatically every five years unless terminated by either party. 3. The entire text of this ordinance was published in a newspaper of general circulation in the City on Apri119 , 2007. 4. The City Council conducted a public hearing on the proposed renewal on June 19 ,2007. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: I