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94 RESOLUTION 1989-28R A RR~OLTTTTON OF THE CITY COUNCIL OF THE CITY OF SAN HARCOS, TEXAS, URGING THE TEXAS LEGISLATURE TO RAISE THE LIMIT ON STREET USE CHARGES FOR ELECTRIC, GAS AND WATER UTILITY FRANCHISEES AND DECLARING AN EFFECTIVE DATE. WHEREAS, Texas cities and towns grant gas and electric utility companies the privilege of using City property and rights-of-way as the most effective way to provide services to end user customers; and, WHEREAS, without such privilege, gas and electric companies could not provide such services and realize profits; and, WHEREAS, Texas cities and towns may charge a fee for the use of their property under the laws of the State of Texas, and may not constitutionally make a gift or lend its credit to a private person or entity; and, WHEREAS, in 1941, the Texas Legislature restricted the amount of the street use fee a city or town could charge to an electric or gas utility within the city, limiting the total charges to two percent (2%) of gross receipts of the public utility from the sale of gas or electricity within the city, absent an agreement with the gas or electric company that would allow a higher charge; and, WHEREAS, since 1941 the cost of providing such right-of-way by cities and towns has increased such that through the passage of time the two percent (2%) cap compels Texas cities and towns to provide valuable property rights to gas and electric companies contrary to the Texas Constitution, thereby compeling local taxpayers to subsidize the business operations of the utility companies; and, WHEREAS, the federal Cable Franchise Policy and Communications Act of 1984 authorizes a franchise fee of up to five percent (5%) of gross receipts for the operation of a cable television system within a city; and, WHEREAS, several utility companies located in the state have voluntarily agreed to pay a street use charge in excess of the 1941 cap for electric and gas utilities; and, WHEREAS, bills have been filed in the House and Senate (HB 2155 and SB 1040, respectively) which, if passed, would allow cities to be more fairly compensated for the use of their properties and rights-of-way by gas and electric franchisees; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: PART 1. That the City Council hereby strongly urges the Texas Legislature to amend Section 182.025(b) of the Texas Tax Code to allow Texas cities and towns to charge a fee for the use of City streets, alleys, or public ways by a public utility of up to five percent (5%) of the gross receipts of the public utility for the sale of gas, electricity or water within the City. PART 2. That the City Council urges the Texas Legislature to pass either HB 2155 or SB 1040 relating to this issue. PART 3. That this resolution shall be forwarded to the Governor, Lieutenant Governor, Speaker of the Texas House of Representatives, and all members of the local State Legislative delegation representing the City. PART 4. That this Resolution shall be in full force and effect from and after its passage. ADOPTED this 27 (fIA . ~ Morris ~tt st: ~ -1/') / ~ .. ~ .; . . íJ.ftü-,,' - f)/ ß~ J nis K. Womack Ci ty Secretary