16-82 - OrCo�'
January 20, 2017
VIA CERTIFIED MAIL,
RETURN RECEIPT REOUESTED
Town of Prosper, Texas
P.O. Box 307
Prosper, Texas 75078
Attention: Robyn Battle, Town Secretary
RECEIVED
JAN 2 4 2011
TOWN OF PROSPER
TOWN SECRETARY'S OFFICE
RE: CoSery Electric Franchise; Ordinance No. 16-82
CoSery Electric hereby accepts and agrees to the terms and conditions of Ordinance No. 16-
82, a copy of which is attached hereto as Exhibit A.
DENTON COUNTY ELECTRIC COOPERATIVE,
INC., d/b/a COSERV ELECTRIC
J
By:
oe R. Forman
Vice President — Corporate Relations
7701 S Stemmons o Corinth, TX 76210-1842 o Phone (940) 321-7800 m CoServ.com
COS 5027
ExAi bi + A
TOWN OF PROSPER, TEXAS
ORDINANCE NO. 16-82
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS, GRANTING TO
DENTON COUNTY ELECTRIC COOPERATIVE, INC., D/B/A COSERV
ELECTRIC, AND ITS SUCCESSORS AND ASSIGNS, THE NON-EXCLUSIVE
RIGHT TO USE AND OCCUPY RIGHTS-OF-WAY WITHIN THE TOWN OF
PROSPER, TEXAS, FOR THE CONSTRUCTION AND OPERATION OF AN
ELECTRIC TRANSMISSION AND DISTRIBUTION SYSTEM; PRESCRIBING
CONDITIONS GOVERNING THE USE OF THE PUBLIC RIGHTS-OF-WAY;
PROVIDING FOR COMPENSATION THEREFORE, PROVIDING FOR AN
EFFECTIVE DATE AND A TERM OF SAID FRANCHISE, PROVIDING FOR
WRITTEN ACCEPTANCE OF THIS FRANCHISE; FINDING THAT THE
MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE
PUBLIC; AND PROVIDING FOR SEVERABILITY.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
SECTION 1. DEFINITIONS
For the purpose of this Ordinance the following terms, phrases, words, abbreviations and
their derivations shall have the meaning given herein. When not inconsistent with the context,
words used in the present tense include the future tense, words in the plural number include the
singular number, and words in the singular number include the plural number.
A. "Town" shall mean the home rule municipal corporation designated as the Town
of Prosper, Texas, and includes the territory that currently is or may in the future
be included within the boundaries of the Town. Any territory that may be
disannexed in the future shall not be included within the boundaries of the Town
upon the effective date of the disannexation.
B. "CIAC" shall mean all payments received by Cooperative for contributions in aid
of construction performed within the boundaries of the Town, including but not
limited to System Benefit Charges and Facilities Charges, on contracts entered
into after the Effective Date.
C. "Cooperative" shall mean Denton County Electric Cooperative, Inc., d/b/a CoSery
Electric, a Texas electric cooperative corporation, and its successors and assigns.
D. "Effective Date" shall be the date specified in Section 22 of this Ordinance.
E. "Electric Distribution System" or "System" shall mean the Cooperative's system of
cables, wires, lines, poles, towers, anchors, guy wires, insulators, transformers,
substations, conduits, ducts, and any associated equipment, or plant, or other
facilities designed and constructed for the purpose of producing, transmitting or
distributing electricity to or from customers or locations within the Town, as the
same now exists and may from time to time be placed, removed, constructed,
reconstructed, extended and maintained.
F. "Governmental or Regulatory Authority" means any court, tribunal, arbitrator,
authority, agency, commission, official or other instrumentality of the United States,
or any state, county, municipality or other political subdivision.
G. "Gross Revenues" shall mean the operating revenue for electric services provided
by the Cooperative to its customers within the corporate boundaries of the Town
pursuant to the accounting principles established by the Rural Utilities Service of
the U. S. Dept. of Agriculture in 7 CFR 1767, including specifically 1767.26,
Accounts 440-456, as amended, except as modified herein, including:
H.
J
(1) all operating revenues received by the Cooperative from the sale of
electricity to all classes of customers within the Town;
(2) all operating revenues derived from the Cooperative's service fees as
defined in CFR 1767.26, Accounts 440-456, including, but not limited to,
the following:
(a) charges to connect, disconnect, or reconnect service within the
Town;
(b) charges to handle returned checks from consumers within the
Town; and
(c) such other service charges and charges as may, from time to time,
be authorized in the rates and charges of the Cooperative; and
(3) franchise fees collected from the Cooperative's customers located within
the corporate boundaries of the Town.
The term "Gross Revenues" shall not include:
(1) the revenue of any person including, without limitation, an affiliate of the
Cooperative, to the extent that such revenue is also included in Gross
Revenues of the Cooperative;
(2) other than Franchise Fees, any taxes or fees required to be remitted to a
third party including the Town;
(3) any interest income earned by Cooperative;
(4) all monies received from the lease or sale of real or personal property;
(5) any amounts billed or collected from Cooperative's members for refundable
membership fees and deposits;
(6) amounts derived from CIAC or any franchise fee assessed on CIAC;
(7) sales of energy or electric service for resale or to wholesale customers;
(8) reimbursements for damage to or relocation of any part of the System;
(9) amounts billed or collected by the Cooperative from its customers for
charitable contributions such as Operation Roundup®;
(10) revenues billed but not ultimately collected or received by the Cooperative;
(11) Pole Attachment Revenue or any franchise fee assessed on Pole
Attachment Revenue; and
(12) State or federal grants or reimbursements.
"Laws" shall mean any and all federal, state and local statutes, constitutions,
ordinances, resolutions, regulations, judicial decisions, rules, tariffs, administrative
orders, certificates, orders, or other requirements of the Town or other
governmental agency having joint or several jurisdiction over the parties to the
Franchise granted herein, in effect either as of the Effective Date or at any time
during the term of the Franchise granted herein.
"Pole Attachment Revenue" shall mean the amount calculated by dividing the total
amount of pole attachment revenue received by the Cooperative in a calendar year
by the total number of Cooperative's meters in service as of December 31 of such
calendar year, and multiplying that result by the number of Cooperative's meters
in service within the corporate boundaries of the Town as of December 31 of such
calendar year.
"Public Right -of -Way" shall mean all present and future public streets, public
thoroughfares, highways and alleys owned by Town, and all present and future
public utility easements located on property owned by the Town that allow the use
of Cooperative's facilities. This term shall not include county, state, or federal
rights of way or any property owned by any person or agency other than the Town,
Ordinance No.16-82, Page 2
except as provided by applicable Laws or pursuant to an agreement between the
Town and any such person or agency.
K. "Public Utility Commission of Texas" or "PUC" shall mean that agency as presently
constituted by the laws of the State of Texas or any successor agency.
L. "Tariff' shall mean the Tariff for Electric Service for Cooperative, effective as of
June 21, 2012, and as subsequently revised or amended.
SECTION 2. GRANT OF AUTHORITY.
A. There is hereby granted to Cooperative and its successors and assigns, the right,
privilege and franchise to construct, re -construct, extend, maintain, repair, remove and operate
in, along, under and across the Public Rights -of -Way of Town an Electric Distribution System
consisting of electric power lines, with all necessary or desirable appurtenances and
communications cables, equipment, devices and other equipment (including underground
conduits, poles, towers, wires, transmission lines and other structures, and telephone and
communication lines for its own internal and non-commercial use), for the purposes of supplying,
operating, managing, controlling, optimizing, and maintaining electric service to the Town, the
inhabitants thereof, and persons, firms and corporations beyond the corporate limits thereof, and
operating, managing, controlling, and maintaining local and regional distribution and/or
transmission systems, for the term set out in Section 13 ("Franchise"). The Franchise granted
herein does not grant to the Cooperative the right, privilege, or authority to engage in any other
business within the Town requiring the grant of a right, privilege or authority by the Town, other
than the provision of electric utility service.
B. The Franchise granted herein does not establish any priority for the use of the
Public Rights -of -Way by Cooperative or by any present or future recipients of franchise
agreements, franchisees, or other permit holders. In the event of any dispute as to the priority of
use of the Public Rights -of -Way, the first priority shall be to the public generally, the second priority
to the Town, the third priority to the State of Texas and its political subdivisions in the performance
of their various functions, and thereafter, as between recipients of franchise agreements,
Cooperative and other permit holders, as reasonably determined by the Town in the lawful
exercise of its powers, including the police power and other powers reserved to and conferred on
it by the State of Texas.
C. Cooperative acknowledges that by this Ordinance it obtains only the non-exclusive
right to use the Public Rights -of -Way that is expressly granted herein. Cooperative acknowledges
and accepts at its own risk that Town may make use of the Public Rights -of -Way in a manner that
is inconsistent with Cooperative's placement and use of its Electric Distribution System located in
the Public Rights -of -Way, and in that event Cooperative shall not be entitled to compensation
from Town except to the extent Town is obligated to compensate Cooperative under applicable
Laws.
D. Cooperative shall have the right to lease, license or otherwise grant to a party other
than Cooperative the use of its facilities within the Town's Public Rights -of -Way, provided that
prior to the date of the initial attachment of the facilities of a new lessee, licensee, or user to
Cooperative's facilities, Cooperative shall notify the Town of the name of the lessee, licensee, or
user, the type of service(s) intended to be provided through the facilities, and the name and
telephone number of a contact person associated with such lessee, licensee, or user. This
authority to lease facilities within the Public Rights -of -Way shall not affect any such lessee,
licensee, or user's obligation, if any, to pay franchise fees to the Town.
Ordinance No. 16-82, Page 3
SECTION 3. PURPOSE.
The provisions set forth in this Ordinance represent the terms and conditions under which
Cooperative shall construct, re -construct, extend, repair, remove, operate and maintain the
System within the Public Rights -of -Way of the Town. Except as otherwise provided in this
Ordinance, the Town does not in any manner surrender or waive its regulatory or other rights and
powers under and by virtue of the Constitution and statutes of the State of Texas as the same
may be amended, nor any of its rights and powers under or by virtue of present or future charters
or ordinances of the Town. Not included in the Franchise granted herein are any facilities
(including any equipment attached in any way to Cooperative's facilities, whether owned by the
Cooperative or not) that provide data delivery, cable service, telephone service, and/or any other
service or product unrelated to the Cooperative's transmittal and delivery of electricity.
SECTION 4. OPERATION, CONSTRUCTION AND
MAINTENANCE OF ELECTRIC DISTRIBUTION SYSTEM.
A. Cooperative's System shall be initially constructed so as not to unreasonably
interfere with any existing publicly -owned or publicly -franchised water and wastewater lines, gas
lines, storm sewer lines, open drainage areas, cable, fiber optic cable, roadways, sidewalks,
alleys, traffic control devices, public signs, or any other publicly -owned or publicly -franchised
facility. The Town shall have the right at any time to order and require Cooperative to remove
and abate any part of its Electric Distribution System that is unnecessarily dangerous to life or
property, and in case Cooperative, after notice, fails or refuses to act within a reasonable time,
the Town shall have the power to remove or abate the same at the expense of Cooperative, all
without compensation or liability for damages to Cooperative.
B. Permits
1. Cooperative's facilities shall interfere as little as reasonably possible with
Town -owned public works facilities and with vehicular and pedestrian use
of Public Rights -of -Way.
2. Cooperative shall not be required to submit a permit application for the
placement of facilities outside of the Public Rights -of -Way, however,
Cooperative shall provide detailed drawings, in accordance with
Cooperative's customary practice, reflecting Cooperative's installations on
private property so that Town may verify compliance with Town ordinances
related to zoning, development, building regulations, and setbacks, and for
easement verification.
3. Cooperative shall submit a permit application to Town for the placement of
new facilities, for upgrade or augmentation of existing facilities, or for
replacement of existing facilities in the Public Rights -of -Way. Such permit
application shall include:
(a) complete plans and detailed drawings reflecting compliance with all
applicable zoning, development, and building requirements of the
Town; and
(b) all additional information requested by Town reasonably related to
the permit request.
4. Except as otherwise provided in this Section 4(B), following the submission
of a permit application described herein, notice of Town's approval or denial
of Cooperative's request for a permit shall be provided in accordance with
Town's usual procedures for processing of permit applications.
Ordinance No. 16-82, Pape 4
5. Town shall endeavor to complete its review of Cooperative's application
within thirty (30) business days after Town's receipt of the permit
application. Prior to the expiration of the said thirty (30) business day
period, City shall request any additional information that is necessary to
complete its review of Cooperative's application. City shall issue a decision
regarding Cooperative's permit application within fifteen (15) business days
of receipt of the additional information. If the additional information is not
sufficient to complete the review of Cooperative's application, the City may
request additional information. City shall issue a decision regarding the
application within fifteen (15) business days of receipt of all additionally
requested information.
6. If Town has not approved or denied Cooperative's request for a permit
within:
(a) Thirty (30) business days after receipt by Town of the permit
application (if no additional information was requested by Town), or
(b) The timeline established in Section 4(B)(5) after receipt by Town of
all additional information requested by Town reasonably related to
the permit request,
then upon written request by Cooperative, the Town's Department Director
in charge of the permit process shall, within fifteen (15) days after such
written request, approve (and issue) the permit or deny the permit
application in question.
7. Cooperative may proceed with the placement of the facilities described in
its permit application if written notice of Town's approval or denial of
Cooperative's request for a permit is not provided within the timeline
pursuant to Section 4(B)(6) above.
8. A permit application for new overhead facilities not directly associated with
a line extension for new electric service, or for overhead facilities to
augment, upgrade, replace, or repair facilities within a Public Right -of -Way
on existing poles (existing pole lines) containing overhead facilities, may
not be denied for aesthetic reasons.
9. A permit application approved by the Town may be valid for a period of time
consistent with the amount of time reasonably required and submitted in
the permit application for the Cooperative to perform the work described in
the permit application. City shall grant an extension for such time as
reasonably required to complete such work upon Town's receipt of
Cooperative's request in writing for such an extension, but in no case shall
the extended period exceed six (6) months from date of such written
request.
% In determining the location of the Cooperative's new facilities within the
Town, the Cooperative shall minimize interferences with then -existing or
documented planned underground structures of the Town or with the
existing facilities of other users of the Public Rights -of -Way. In determining
the location of the facilities of the Town and other utility franchisees and
other users of the Public Rights -of -Way within the Town, the Town shall
take reasonable steps to minimize the interference with existing facilities of
the Cooperative and shall require other utility franchisees or users of the
Public Rights -of -Way to minimize interference with existing facilities of the
Cooperative.
Ordinance No. 16-82, Page 5
C. Cooperative's property and operations within the Public Rights -of -Way of the Town
shall be subject to such reasonable and lawful rules and regulations of the Town or other
Governmental or Regulatory Authority as may be authorized by applicable law from time to time
for the protection of the public health, safety and welfare. This Ordinance shall in no way affect
or impair the rights, obligations or remedies of the parties under the Texas Public Utility Regulatory
Act, or other state or federal law. Nothing herein shall be deemed a waiver, release or
relinquishment of either party's right to contest, appeal, or file suit with respect to any action or
decision of the other party, including ordinances adopted by the Town that Cooperative believes
are contrary to applicable Laws.
D. Cooperative shall construct, re -construct, extend, repair, remove, maintain,
operate and replace its facilities in accordance with its Tariff and in conformance with the
applicable provisions of the National Electric Safety Code or such comparable standards as may
be adopted by the Cooperative, provided such comparable standards are not in conflict with the
National Electric Safety Code. Cooperative shall comply with applicable Laws and standards.
E. Town may request that Cooperative place new facilities underground, provided
that, if Cooperative otherwise would, pursuant to its Tariff, construct those facilities overhead, the
Town or property developer shall (a) bear the cost differential between overhead and underground
construction and facilities and (b) specify and provide, in compliance with the Cooperative's
reasonable specifications and requirements, a location for such underground facilities.
F. Cooperative and Town have agreed that Cooperative shall not be obligated to
provide maps identifying all Cooperative facilities within the Town boundaries, provided however,
that Cooperative agrees to provide reproducible copies of maps showing the location of all
Cooperative primary electric lines within the Public Rights -of -Way at least annually upon request
by Town. The maps shall be provided in electronic digital format, if available. In addition, upon
request, Cooperative shall cooperate with the Town by identifying and locating, at locations
specified by the Town, Cooperative's existing facilities such as underground conduits, manholes
to access such underground conduits, and other appurtenances and by providing information to
the Town regarding Cooperative's plans for future facilities. Maps provided to Town by
Cooperative shall be maintained as confidential by the Town as provided in Section 15 hereof.
Upon request, the Town shall cooperate with the Cooperative by identifying and locating, at
locations specified by the Cooperative, Town's existing facilities such as water and sewer lines,
storm drains, communications lines, and appurtenances.
G. Any and all excavations and obstructions in and upon the Public Rights -of -Way
and other public places in the Town caused by the Cooperative's operations under the Franchise
granted herein shall be repaired and removed as quickly as is reasonably possible, under the
circumstances. All excavations shall be repaired in a good and workmanlike manner and restored
to at least the condition that existed prior to the excavation. All utilities, irrigation equipment, utility
equipment, and any other improvements located in the Public Rights -of -Way and disturbed by the
Cooperative's operations under the Franchise granted herein shall likewise be restored within a
reasonable time to as good a condition as existed before the commencement of the work to the
satisfaction of the Town. Replacement of sod is to be of like kind, smoothed, shaped, rolled and
compacted for proper landscape maintenance. Cooperative warrants that any such restoration
work performed in the Public Rights -of -Way shall be in satisfactory condition for a period of two
(2) years after completion of restoration, to the extent that such restoration work has not been
disturbed by others. In the event that the Cooperative fails to repair or restore an excavation site
within fourteen (14) calendar days after receipt of written notice from the Town of a deficiency,
the Town may, at its option, perform the needed repair or restoration and the Cooperative shall
promptly reimburse the Town for the cost of such repair or restoration.
Ordinance No. 16-62, Page 6
H. Town shall have the right to inspect all reconstruction or installation work and to
make such tests as it deems necessary to ensure compliance with the terms of this Ordinance,
or other applicable Town ordinances or pertinent provisions of law.
I. The public shall be protected by barriers and lights placed, erected, marked and
maintained by the Cooperative in accordance with standards set forth in the current Texas Manual
on Uniform Traffic Control Devices as well as any other applicable local, state and federal
requirements. Except for repairs, day-to-day maintenance, or in cases of emergency conditions,
work conducted within the Public Rights -of -Way shall require an approved permit issued by the
Town prior to commencement of work. In no instance shall Cooperative be required to pay fees
or post bonds related to its use of the Public Rights -of -Way.
J. Cooperative shall have the authority to trim or remove trees and vegetation upon
or overhanging its System that may endanger or interfere with the System and its operation, and
to prevent the vegetation and the branches of such trees from coming in contact with the System.
The Cooperative's vegetation management practices shall be consistent with the safety
requirements for pruning, repairing, maintaining, and removing trees endorsed by the American
National Standards Institute (specifically the ANSI A300, titled "Best Management Practices,
Utility Pruning of Trees"); NESC Section 218; and state law. Except during an emergency or the
recovery after an emergency, Cooperative shall notify the Town and its residents at least three
(3) days prior to entering onto property to perform any tree trimming activities. The Town will
encourage new developments to make prudent tree selection and planting decisions around
power lines.
K. Upon the written request of any person holding a building moving permit issued by
the Town, Cooperative shall remove, raise or lower its wires temporarily to permit the moving of
a house, building or other bulky structure. The reasonable expense of such temporary removal,
raising or lowering shall be paid by the benefitted person or persons and Cooperative may require
such payment in advance. Cooperative shall be given not less than forty-eight (48) hours advance
notice in writing to arrange for such temporary removal, raising or lowering.
L. Nothing contained in this Ordinance shall be construed to require any pole
attachments for electric light or power wires or electrical facilities or systems not provided by
Cooperative, or any non -electric wires, facilities or systems, to be attached to Cooperative's poles
or other physical plant. If the Town or any other person or entity desires pole attachments for any
such electric or non -electric wires, facilities or systems not provided by Cooperative, then a further
separate, non -contingent agreement shall be prerequisite to such attachments or such use of any
trench space. Nothing herein shall prohibit Cooperative from requiring reasonable, non-
discriminatory terms and from charging just compensation pursuant to a pole attachment or joint
use agreement; however, any pole attachment or joint use agreement with a third party shall not
be enforceable by the Town.
M. In areas of the Town where the Town finds that the Public Rights -of -Way will not
readily accommodate further facilities, the Town may require Cooperative to share trench space
with the Town or any other person authorized to use such Public Rights -of -Way for the placement
of its cables or ducts. Ducts, cables, or wires not owned by Cooperative shall be placed in
trenches in compliance with applicable safety and construction standards in a manner that does
not interfere with Cooperative's ducts, conduit, cables or wires. Nothing herein shall prohibit
Cooperative from requiring reasonable, non-discriminatory terms and from charging just
compensation for the use of its facilities or trench space; however, any such agreement with a
third party shall not be enforceable by the Town.
N. The Cooperative shall hold itself ready to furnish, subject to Section 4(L) above,
such space as may be required from time to time by the Town upon the poles now owned or
hereafter erected by the Cooperative in the Town for the use of the Town's police, fire alarm,
communications, and traffic signal systems (for purposes of this Section hereafter referred to as
Ordinance No. 16-82, Paye 7
"Town Systems"); provided that such Town use and placement shall be in compliance with
applicable safety and construction standards and shall not interfere with Cooperative's System.
The location on the poles of the Town Systems shall be determined on specific applications for
space, at the time the applications are received from the Town, and will be allotted in accordance
with the National Electrical Safety Code. In its wire construction on Cooperative's poles, the Town
shall comply with the applicable suggestions, standards and requirements of the National
Electrical Safety Code and such construction shall not interfere with or cause damage to the
Cooperative's System.
O. Town shall not sell, lease or otherwise make available any rights granted by
Cooperative to Town to use Cooperative's facilities to any third party. Such rights are provided
solely for the non-commercial, governmental use by the Town.
SECTION S. RELOCATION OF FACILITIES.
A. The Town reserves the right to lay, and permit to be laid, storm, sewer, gas, water,
wastewater and other pipe lines, cable, and conduits, or other improvements and to do and permit
to be done any underground or overhead work that may be necessary or proper in, across, along,
over, or under Public Rights -of -Way occupied by Cooperative.
B. The Town also reserves the right to change in any manner any curb, sidewalk,
highway, alley, public way, street, utility lines, storm sewers, drainage basins, drainage ditches,
and other public improvements. Upon request by Town, Cooperative shall relocate, remove, or
alter its facilities at its expense whenever such relocation, removal, or alteration is made
necessary by Public Right -of -Way or other public improvements, provided that the Town shall
provide Cooperative with at least thirty (30) days prior written notice and shall specify and provide
a new location for such facilities within the Public Rights -of -Way. If Cooperative believes that the
cost is excessive to relocate, remove, or alter its facilities per the Town request, Cooperative shall
have the opportunity to present alternative proposals for the Town's consideration. Town may
request that Cooperative relocate existing overhead facilities underground when Cooperative is
required to relocate facilities under this Section 5(8), provided that the Town or property developer
shall (a) bear the cost differential between overhead and underground construction and facilities
and (b) specify and provide, in compliance with the Cooperative's reasonable specifications and
requirements, a new location for such facilities.
C. When Cooperative is required by Town to remove or relocate its poles, towers,
conduits, cables, and other facilities to accommodate Public Right -of -Way improvements, and
Cooperative is eligible under Federal, State, County, Town or other local agencies or programs
for reimbursement of costs and expenses incurred by Cooperative as a result of such removal or
relocation and such reimbursement is required to be handled through Town, the Cooperative's
costs and expenses shall be included in any application by Town for reimbursement, if
Cooperative submits its cost and expense documentation to Town prior to the filing of the
application. Town shall provide reasonable notice to Cooperative of the deadline for Cooperative
to submit documentation of the costs and expenses of such removal or relocation to Town.
D. If a Public Right -of -Way in which Cooperative has facilities is proposed to be
vacated, eliminated, discontinued, or closed, Cooperative shall be notified of same at least sixty
(60) days prior to such event, and all rights of Cooperative under this Ordinance to use same shall
terminate, provided that a reasonable alternate route within the Public Right=of-Way is available
for relocation of such facilities. Cooperative shall, as soon as reasonably possible, remove the
Electric Distribution System from such Public Right -of -Way unless Cooperative obtains any
necessary easements from the affected property owner to use the former Public Right -of -Way, or
a court orders the provision of such easements. Where reasonably possible and to the extent
consistent with the treatment of other utility facilities in the former Public Right -of -Way, Town shall
Ordinance No. 18.82, Page 8
reserve easements for Cooperative to continue to use the former Public Right -of -Way.
Cooperative shall bear the cost of any removal or relocation of the Electric Distribution System
unless the vacation, elimination, discontinuance or closure is primarily for the benefit of a private
party, in which case the private party shall bear such costs.
E. If the Town requires the Cooperative to adapt or conform its facilities, or in any
manner to alter, relocate, or change its property to enable any other entity to use, or use with
greater convenience, said Public Rights -of -Way, the Cooperative shall not be bound to make such
changes until such other entity shall have undertaken, with good and sufficient bond, to reimburse
the Cooperative for any costs, loss, or expense which will be caused by, or arises out of such
change, alteration, or relocation of Cooperative's property or facilities.
SECTION 6. INDEMNITY.
A. In consideration of the Franchise granted herein, Cooperative shall, at its sole cost
and expense, indemnify and hold the Town, and its past and present officers, agents, and
employees (the "Indemnitees") harmless against any and all liability arising from any claim,
lawsuit, judgments, or action brought or made for or on account of any death, injuries to, or
damages received or sustained by any person or persons or for damage to or loss of property
arising out of, or occasioned by Cooperative's or any of its officers, agents, or employees,
intentional and/or negligent acts or omissions in connection with Cooperative's construction,
maintenance and operation of Cooperative's System in the Public Rights -of -Way, including any
court costs, expenses and defenses thereof.
B. This indemnity shall only apply to the extent that the loss, damage or injury is
attributable to the negligence or wrongful act or omission of the Cooperative, its officers, agents
OF employees, and does not apply to the extent such loss, damage or injury is attributable to the
negligence or wrongful act or omission of the Town, or the Town's agents, representatives or
employees or any other person or entity. This provision is not intended to create a cause of action
or liability for the benefit of third parties but is solely for the benefit of the Cooperative and the
Town.
C. In the event of joint and concurrent negligence or fault of both the Cooperative and
the Town, responsibility and indemnity, if any, shall be apportioned comparatively in accordance
with the laws of the State of Texas without, however, waiving any governmental immunity
available to the Town under Texas law and without waiving any of the defenses of the parties
under Texas law. Further, in the event of joint and concurrent negligence or fault of both the
Cooperative and the Town, responsibility for all costs of defense shall be apportioned between
the Town and Cooperative based upon the comparative fault of each.
D. In fulfilling its obligations to defend and indemnify Town, Cooperative shall have
the right to select defense counsel, subject to Town's approval, which approval will not be
unreasonably withheld. Cooperative shall retain defense counsel within seven (7) business days
of Town's written notice that Town is invoicing its right to indemnification under this Section 6. If
Cooperative fails to retain counsel within such time period, Town shall have the right to retain
defense counsel on its own behalf, and Cooperative shall be liable for all reasonable defense
costs incurred by Town.
SECTION 7. LIABILITY INSURANCE.
Cooperative shall, at its sole cost and expense, obtain, maintain, or cause to be
maintained, and provide, throughout the term of the Franchise granted herein, insurance in the
amounts, types and coverages set forth below. Such insurance may be in the form of self-
insurance to the extent not precluded by applicable law or by obtaining insurance, as follows:
Ordinance No. 16-82, Page 9
A. Commercial general or excess liability on an occurrence or claims made farm with
minimum limits of not less than five million dollars ($5,000,000) per occurrence and
not less than ten million dollars ($10,000,000) aggregate. To the extent that
coverage is maintained on a claims made form, the minimum limits are not less
than ten million dollars ($10,000,000) per occurrence and not less than twenty
million dollars ($20,000,000) aggregate. This coverage shall include the following:
1. Products/completed operations to be maintained for the warranty period
specified in Section 4(G), provided however that no bond shall be required.
2. Personal and advertising injury.
3. Contractual liability.
4. Explosion, collapse, or underground (XCU) hazards.
B. Automobile liability coverage with a minimum policy limit of not less than one
million dollars ($1,000,000) combined single limit each accident. This coverage
shall include all owned, hired and non -owned automobiles.
C. Statutory workers' compensation benefits in accordance with the statutes and
regulations of the State of Texas. Cooperative must provide the Town with a
waiver of subrogation for workers' compensation claims.
D. Cooperative must name the Town, which includes all authorities, commissions,
divisions, and departments, as well as elected and appointed officials, agents, and
volunteers, as additional insureds under the coverage required herein, except
workers' compensation coverage. The certificate of insurance must state that the
Town is an additional insured.
E. Cooperative will require its contractors and subcontractors performing work within
the Public Rights -of -Way to maintain, at their sole cost and expense, commercial
general or excess liability on an occurrence or claims made form with minimum
limits of not less than one million dollars ($1,000,000) per occurrence and not less
than two million dollars ($2,000,000) aggregate. Such insurance shall be required
under the same conditions as specified herein for Cooperative. Cooperative will
maintain at all times, and will provide to Town upon request, proof of its contractors'
and subcontractors' compliance with this requirement.
F. The Cooperative will provide proof of insurance in accordance with this Ordinance
within thirty (30) days of the effective date hereof and annually thereafter.
Cooperative will not be required to furnish separate proof when applying for
permits.
G. All polices shall be endorsed to read: "THIS POLICY WILL NOT BE CANCELLED
OR NON -RENEWED WITHOUT THIRTY (30) DAYS ADVANCE WRITTEN
NOTICE TO THE TOWN EXCEPT WHEN THIS POLICY IS BEING CANCELLED
FOR NONPAYMENT OF PREMIUM, IN WHICH CASE TEN (10) DAYS
ADVANCE WRITTEN NOTICE IS REQUIRED.
Ordinance No. 16-82, Page 10
SECTIONS. NON-EXCLUSIVE FRANCHISE.
The Franchise granted herein is not exclusive, and nothing herein contained shall be
construed so as to prevent the Town from granting other like or similar rights, privileges and
franchises to any other person, firm, or corporation.
SECTION 9. COMPENSATION TO THE TOWN.
A. In consideration of the grant of said right, privilege and franchise by the Town and
as full payment for the right, privilege and franchise of using and occupying the said Public Rights -
of -Way, Cooperative shall pay to the Town a franchise fee as set forth herein ("Franchise Fee").
1. The Franchise Fee shall be in lieu of any and all occupation taxes,
assessments, municipal charges, fees, easement taxes, franchise taxes,
license, permit and inspection fees or charges, street taxes, bonds, street
or alley rentals, and all other taxes, charges, levies, fees and rentals of
whatsoever kind and character which the Town may impose or hereafter
be authorized or empowered to levy and collect, excepting only the usual
general or special ad valorem taxes which the Town is authorized to levy
and impose upon real and personal property, sales and use taxes, and
special assessments for public improvements.
2. The Franchise Fee on Gross Revenues and CIAC shall be paid quarterly,
within forty-five (45) days after the end of each calendar quarter (i.e., by
May 15, August 15, November 15, and February 15 of each year of this
Franchise term); and the Franchise Fee on Pole Attachment Revenue shall
be paid annually by May 15.
3. Quarterly payments shall be a sum comprised of the following:
(a) a sum equal to four percent (4%) of Gross Revenues received by
Cooperative for the immediately preceding calendar quarter; and
(b) a sum equal to four percent (4%) of CIAC received by Cooperative
for the immediately preceding calendar quarter.
4. The Franchise Fee on Pole Attachment Revenue shall be four percent (4%)
of Pole Attachment Revenue received by Cooperative for the immediately
preceding calendar year.
5. Payments shall continue in like manner for any extension of the Franchise
granted herein as provided in Section 13 hereof.
B. With each payment of compensation required by Section 9(A), Cooperative shall
furnish to the Town a statement, executed by an authorized officer of Cooperative or designee, in
sufficient detail to show how each component of the payment described herein was arrived at and
how the amount paid to the Town was determined for the pertinent quarter.
C. If either party discovers that Cooperative has failed to pay the entire or correct
amount of compensation due, the correct amount shall be determined by mutual agreement
between the Town and Cooperative and the Town shall be paid by Cooperative within thirty (30)
calendar days of such determination or such additional time as mutually agreed to by the Town
and Cooperative. Any overpayment to the Town through error or otherwise will, at the sole option
of the Town, either be refunded or offset against the next payment due from Cooperative.
Acceptance by the Town of any payment due under this Section shall not be deemed to be a
waiver by the Town of any breach of this Ordinance, nor shall the acceptance by the Town of any
such payments preclude the Town from later establishing that a larger amount was actually due
or from collecting any balance due to the Town.
Ordinance No. 18-82, Page 11
D. Interest on late payments and underpayments shall be calculated in accordance
with the interest rate for customer deposits established by the Public Utility Commission of Texas
in accordance with Texas Utilities Code § 183.003, as amended, for the time period involved.
E. No taxes, fees, or other payments by Cooperative to the Town, including, but not
limited to, ad valorem taxes, shall reduce the Franchise Fees payable to the Town hereunder,
except as agreed to in writing by the Town.
F. Within thirty (30) days after the effective date of this Ordinance, the Town shall
provide Cooperative (at the notice address specified in Section 18) with maps clearly showing the
location of the boundaries of the Town. Within thirty (30) days after Town annexes property into,
or disannexes property from, the territory of Town, Town shall provide Cooperative (at the notice
address specified in Section 18) with maps clearly showing the location of the boundaries of such
annexed or disannexed property. Within sixty (60) days, or such additional time as mutually
agreed to by the Town and Cooperative, after Cooperative's receipt by certified mail of (i) written
notice from the Town that the Town has annexed territory into the Town and (ii) maps showing
clearly the areas annexed, the Cooperative shall revise its accounting records to include the
annexed territory, and Cooperative's customers therein, within the Town. After such time period,
each kilowatt hour of electricity delivered by Cooperative to each retail customer whose
consuming facility's point of delivery is located within such annexed area shall be included in the
calculation of the amount described in Section 9(A) above.
G. Cooperative is hereby authorized to surcharge to customers within the Town all or
any portion of the Franchise Fee that is the subject of this Ordinance. All bills for service rendered
within the Town may be adjusted so as to recover the Franchise Fee that is the subject of this
Ordinance, less any percentage that is recovered by Cooperative through base rates or other
charges.
SECTION 10. ACCOUNTING MATTERS.
A. Cooperative shall keep accurate books of account at its principal office for the
purpose of determining the Franchise Fee amount due to the Town under this Ordinance.
Cooperative shall retain such books, records, and documents and other evidence pertaining to
the Franchise granted herein and Franchise Fee payments due hereunder for a period of not less
than five (5) years, except if an audit is in progress or audit findings are yet unresolved, in which
case records shall be kept until all audit tasks are completed and resolved. Each of the terms
"books," "records," "documents," and "other evidence" as used herein shall be construed to
include electronic files.
B. The Town may conduct an audit or other inquiry in relation to a Franchise Fee
payment made by Cooperative or may pursue a cause of action in relation to Cooperative's
payment of any Franchise Fee only if such audit, inquiry, or pursuit of a cause of action concerns
a payment made less than two (2) years before the commencement of such audit, inquiry, or
pursuit of a cause of action. Provided, the Town shall not, after the Effective Date of this
Ordinance, initiate an audit of or seek any other remedies related to the Franchise Fee payments
by the Cooperative for any period prior to the Effective Date of this Ordinance. The Town may, if
it sees fit, upon reasonable notice to the Cooperative, examine, audit, and obtain copies of the
books and records of the Cooperative related to the Franchise Fee. Cooperative shall make
available all requested books, records, documents and other evidence within thirty (30) calendar
days of Town's written request for same.
C. If the results of any audit indicate that Cooperative (i) paid the correct Franchise
Fee, (ii) overpaid the Franchise Fee and is entitled to a refund or credit, or (iii) underpaid the
Franchise Fee by five percent (5%) or less, then the Town shall pay the costs of the audit. If the
Ordinance No. 16-82, Page 12
results of the audit indicate the Cooperative underpaid the Franchise Fee by more than five
percent (5%), then the Cooperative shall pay the reasonable costs of the audit.
D. Upon the reasonable request of the Town, the Cooperative shall use commercially
reasonable efforts to make available to the auditor at the Cooperative's offices where such
records are maintained and such personnel are located, during the Cooperative's regular
business hours and upon reasonable notice, such personnel and records as the Cooperative, in
its reasonable discretion, determines are necessary or appropriate to the Town's request in order
to complete such audit, and shall make no charge to the Town therefor; provided, however, any
copy expenses or other out-of-pocket expenses incurred by the Cooperative as a result of
requests by the Town or its auditor, shall be the responsibility of the Town and the Town shall
promptly pay the reasonable cost thereof to the Cooperative.
1. If as the result of any Town audit, Cooperative is refunded/credited for an
overpayment or pays the Town for an underpayment of the Franchise Fee,
such refund/credit or payment shall be made pursuant to the terms
established in Sections 9(C) and 9(D).
2. If as a result of a subsequent audit, initiated within two (2) years of an audit
which resulted in Cooperative making a payment to the Town due to an
underpayment of the Franchise Fee of more than five percent (5%),
Cooperative makes another payment to the Town due to an underpayment
of the Franchise Fee of more than five percent (5%), the Town may also
recover interest on the total amount of underpayment at the interest rate in
effect on the date of the invoice (calculated as provided in Section 9(D)
hereof), plus two percent (2%) on the entire amount from the date of
invoice.
3. If the results of the audit indicate that the Cooperative underpaid the
Franchise Fee by more than five percent (5%), and the Cooperative is
unable to produce reasonable evidence that the results of the audit are not
accurate, then the Cooperative shall pay to the Town a penalty equal to
five percent (5%) of the total amount underpaid in addition to the total
amount underpaid. No penalty shall be assessed for uncollected Franchise
Fees by Cooperative; however, the Cooperative shall provide evidence of
the actual amount of uncollected Franchise Fees. Interest on the total
amount of underpayment shall be paid at the interest rate in effect on the
date the original payment was due (calculated as provided in Section 9(D)
hereof), plus two percent (2%), and interest shall be calculated from the
time the original amount was due. Any additional amount due to Town
hereunder shall be paid within thirty (30) days from the date of invoice. Any
amount not paid within thirty (30) days from the date of the invoice will
cause interest to be payable at the interest rate in effect on the date of the
invoice (calculated as provided in Section 9(D) hereof), plus two percent
(2%) on the entire amount from the date of invoice.
E. The Cooperative shall assist the Town in its review by responding to all requests
for information no later than thirty (30) days after receipt of a request unless a different schedule
is agreed to by the Town and Cooperative.
SECTION 11. RIGHT OF RENEGOTIATION.
A. Should either Cooperative or the Town have cause to believe that a change in
circumstances relating to the terms of the Franchise granted herein may exist, it may request that
the other party provide it with a reasonable amount of information to assist in determining whether
Ordinance No. 16-82, Page 13
a change in circumstances has taken place. If the Cooperative elects to participate in customer
choice (i.e., retail competition), it shall notify the Town within thirty (30) days of the Cooperative's
election to so participate.
B. Should either party hereto determine that based on a change in circumstances, it
is in such party's best interest to renegotiate all or some of the provisions of this Ordinance, then
the other party agrees to enter into good faith negotiations. Said negotiations shall involve
reasonable, diligent, and timely discussions about the pertinent issues and a resolute attempt to
settle those issues. The obligation to engage in such negotiations does not obligate either party
to agree to an amendment of this Ordinance as a result of such negotiations. A failure to agree
does not show a lack of good faith. If, as a result of renegotiation, the Town and Cooperative
agree to a change in a provision of this Ordinance, the change shall become effective upon
passage of an ordinance by the Town in accordance with the Town Charter and acceptance of
the ordinance by Cooperative.
SECTION 12. TRANSFER AND ASSIGNMENT.
The Franchise granted herein shall not be assigned or transferred without the written
consent of the Town, which consent shall not be unreasonably withheld, provided, however, that
Cooperative may assign its rights under this Ordinance to a parent, subsidiary, affiliate or
successor entity without such consent, so long as (i) such parent, subsidiary, affiliate or successor
assumes all obligations of Cooperative hereunder, and (ii) is bound to the same extent as
Cooperative hereunder. Cooperative shall give the Town sixty (60) days prior written notice of any
assignment to a parent, subsidiary, affiliate or successor entity. Any required consent shall be
expressed by an ordinance that fully recites the terms and conditions, if any, upon which such
consent is given. Any assignment or transfer effected prior to the Town's approval thereof, if
required, shall authorize the Town to treat such assignment or transfer as an Uncured Event of
Default and immediately implement the provisions of Section 14, including the right to terminate
the Franchise granted herein.
SECTION 13. TERM.
This Ordinance shall become effective on the Effective Date and shall expire on December
31 of the calendar year in which the tenth (10"') anniversary of the Effective Date occurs; provided
that, unless written notice of non -renewal is given by either party hereto to the other not less than
six (6) months before the expiration of the Franchise granted herein, it shall be automatically
renewed for an additional period of one (1) year from such expiration date and shall be
automatically renewed thereafter for like periods until canceled by written notice given not less
than six (6) months before the expiration of any such renewal period.
SECTION 14. DEFAULT, REMEDIES AND TERMINATION.
A. Events of Default. The occurrence, at any time during the term of the Franchise
granted herein, of any one or more of the following events, shall constitute an Event of Default by
Cooperative under this Ordinance:
1. The failure of Cooperative to pay the Franchise Fee on or before the due
dates specified herein.
2. Cooperative's breach or violation of any of the terms, covenants,
representations or warranties contained herein or Cooperative's failure to
perform any material obligation contained herein.
B. Uncured Events of Default.
Ordinance No. 16-82, Page 14
1. Upon the occurrence of an Event of Default which can be cured by the
immediate payment of money to Town or a third party, Cooperative shall
have thirty (30) calendar days after receipt of written notice from Town of
an occurrence of such Event of Default (or such longer time as the Town
may specify in such notice) to cure same before Town may exercise any of
its rights or remedies pursuant to Section 14(C).
2. Upon the occurrence of an Event of Default by Cooperative which cannot
be cured by the immediate payment of money to Town or a third party,
Cooperative shall have sixty (60) calendar days (or such additional time as
may be agreed to by the Town) after receipt of written notice from Town of
an occurrence of such Event of Default to cure same before Town may
exercise any of its rights or remedies pursuant to Section 14(C).
3. If the Event of Default is not cured within the time period allowed for curing
the Event of Default as provided for herein, such Event of Default shall,
without additional notice, become an Uncured Event of Default, which shall
entitle Town to exercise the remedies pursuant to Section 14(C).
C. Remedies. Upon receipt of a notice of an alleged Uncured Event of Default as
described in Section 14(B), which notice shall specify the alleged failure with reasonable
particularity, the Cooperative shall, within the time periods specified in Section 14(B) or such
longer period of time as the Town may specify in such notice, either cure such alleged failure or,
in a written response to the Town, either present facts and arguments in refuting or defending
such alleged failure or state that such alleged failure will be cured and set forth the method and
time schedule for accomplishing such cure. In the event that such cure is not forthcoming or the
Town determines that an unexcused Uncured Event of Default has occurred, Town shall be
entitled to exercise any and all of the following cumulative remedies;
1. The commencement of an action against Cooperative at law for monetary
damages.
2. The commencement of an action in equity seeking injunctive relief or the
specific performance of any of the provisions, which as a matter of equity,
are specifically enforceable.
3. The termination of the Franchise granted herein.
D. Remedies Not Exclusive. The rights and remedies of Town and Cooperative set
forth in this Ordinance shall be in addition to, and not in limitation of, any other rights and remedies
provided by law or in equity. Town and Cooperative understand and intend that such remedies
shall be cumulative to the maximum extent permitted by law and the exercise by Town of any one
or more of such remedies shall not preclude the exercise by Town, at the same or different times,
of any other such remedies for the same failure to cure. However, notwithstanding this Section
or any other provision of this Ordinance, Town shall not recover both liquidated damages and
actual damages for the same violation, breach, or noncompliance, either under this Section or
under any other provision of this Ordinance.
E. Termination. The Franchise granted herein may be terminated only in accordance
with the provisions of Section 14(C). Town shall notify Cooperative in writing at least thirty (30)
business days in advance of the Town Council meeting at which the questions of termination shall
be considered, and Cooperative shall have the right to appear before the Town Council in person
or by counsel and raise any objections or defenses Cooperative may have that are relevant to the
proposed forfeiture or termination. The final decision of the Town Council may be appealed to
any court or regulatory authority having jurisdiction. Upon timely appeal by Cooperative of the
Town Council's decision terminating the Franchise granted herein, the effective date of such
termination shall be either when such appeal is withdrawn or a court order upholding the
termination becomes final and unappealable. If no appeal is filed, the effective date of such
Ordinance No. 16-62, Page 15
termination shall be the thirtieth (30"') day following the date of the final termination decision of
the Town Council. Until the termination becomes effective the provisions of the Franchise granted
herein shall remain in effect for all purposes.
F. The failure of the Town to insist in any one or more instances upon the strict
performance of any one or more of the terms or provisions of this Ordinance shall not be construed
as a waiver or relinquishment for the future of any such term or provision, and the same shall
continue in full force and effect. No waiver or relinquishment shall be deemed to have been made
by the Town unless said waiver or relinquishment is in writing and signed by the Town.
SECTION 1S. PUBLIC INFORMATION.
If the Cooperative provides confidential or proprietary information to the Town, the
Cooperative shall be solely responsible for identifying such information with markings calculated
to bring the Town's attention to the proprietary or confidential nature of the information, provided
it is expressly understood and agreed that all maps and all information concerning Franchise Fee
calculation and payments and audit information furnished by or on behalf of the Cooperative to
the Town or its auditors or consultants shall be deemed strictly confidential and subject to the
Town's agreement in the next sentence. The Town agrees to maintain the confidentiality of any
information obtained from Cooperative so designated to the fullest extent allowed by law. If the
Town is not permitted by applicable law to maintain such confidentiality, the Town shall notify the
Cooperative of such fact at the time the Town requests any such information from the Cooperative
or, in all other events, prior to receiving such information from the Cooperative. Town shall not
be liable to Cooperative for the release of any information the Town is required to release by law.
Town shall provide notice to Cooperative of any request for release of information designated as
confidential or proprietary prior to releasing the information so as to allow Cooperative adequate
time to pursue available remedies for protection. If the Town receives a request under the Texas
Public Information Act that includes information designated by Cooperative as proprietary or
confidential, Town will notify the Texas Attorney General of the asserted proprietary or confidential
nature of the document(s). The Town also will provide Cooperative with a copy of such notification
to the Texas Attorney General, and thereafter Cooperative is responsible for establishing that an
exception under the Texas Public Information .Act allows the Town to withhold the information.
SECTION 16. PUBLIC PURPOSE.
All of the provisions contained in this Ordinance are hereby declared to be for a public
purpose, and are in the interests of the health, safety, and welfare of the general public.
SECTION 17. SEVERABILITY; ORDINANCE CONTROLLING.
If any provision, section, subsection, sentence, clause or phrase of this Ordinance is for
any reason held by a court of competent jurisdiction to be unconstitutional, void or invalid (or for
any reason unenforceable), the validity of the remaining portions of this Ordinance shall not be
affected thereby, it being the intent of the parties in adopting this Ordinance that no provision
hereof shall be inoperative or fail by reason of any unconstitutionality or invalidity of any other
portion, provision, or regulation, and to that end, all provisions of this Ordinance are declared to
be severable. Both the Cooperative and the Town expressly recognize that this Ordinance creates
a binding and enforceable contract between them, which contract may not be amended without
written consent of both the Cooperative and the Town. Should any inconsistency or conflict exist
between the provisions of this Ordinance and the Town's charter or another ordinance or
ordinances, then the provisions of this Ordinance shall control to the extent of such inconsistency
or conflict to the extent not prohibited by law.
Ordinance No. 16-82, Page 16
SECTION 18. NOTICE.
Any notices required or desired to be given from one party to the other party to this
Ordinance shall be in writing and shall be given and shall be deemed to have been served and
received if: (i) delivered in person to the address set forth below; (ii) deposited in an official
depository under the regular care and custody of the United States Postal Service located within
the confines of the United States of America and sent by certified mail, return receipt requested,
and addressed to such party at the address hereinafter specified; or (iii) delivered to such party
by courier receipted delivery. Either party may designate another address within the confines of
the continental United States of America for notice, but until written notice of such change is
deemed served and received by the other party as provided above, the last address of such party
designated for notice shall remain such party's address for notice.
TOWN COOPERATIVE
Town of Prosper, Texas Denton County Electric Cooperative, Inc.,
121 W. Broadway d/b/a CoSery Electric
Prosper, Texas 75078 7701 S. Stemmons Freeway
Attention: Town Manager Corinth, Texas 76210-1842
Attention: President
SECTION 19. ACCEPTANCE.
In order to accept the Franchise granted herein, Cooperative must file with the Town
Secretary its written acceptance of this Ordinance within sixty (60) days after the Town provides
written notice to Cooperative of this Ordinance's final passage and approval by Town (the "Town
Adoption Notice"). Cooperative shall reimburse Town for publication expenses incurred by Town
in connection with Town publishing this Ordinance for purposes of public notification of the
accepted Franchise to the extent that such expenses do not exceed the cost to publish the caption
of this Ordinance in accordance with Section 52.013(a) of the Texas Local Government Code,
Upon Cooperative's written acceptance of the terms of this Ordinance, all claims of Town
and Cooperative under any prior franchise ordinance or other agreement between the parties that
were or could have been made by either party shall be forever waived and extinguished.
SECTION 20. FUTURE AMENDMENTS.
This Ordinance may be amended only by an ordinance adopted by the Town and accepted
by the Cooperative in writing.
SECTION 21. ORDINANCE PASSED AT PUBLIC MEETING.
It is hereby officially found that the meeting at which this Ordinance is passed is open to
the public and that due notice of this meeting was posted, all as required by law.
SECTION 22. EFFECTIVE DATE.
Upon the filing of Cooperative's written acceptance of the Franchise granted herein, this
Ordinance shall become effective as of the first day of the calendar month that is not less than
sixty (60) days after the final adoption of this Ordinance by the Town.
Ordinance No. 18.82, Page 17
SECTION 23. REPEAL.
This Ordinance shall supersede any and all other franchises granted by the Town to
Cooperative, its predecessors and assigns.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, BY A VOTE OF ,5, TO -0 ON THIS THE 13TH DAY OF DECEMBER,
2016.
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Robyn Bate, Town Secretary
APPROVED AS TO FORM AND LEGALITY:
Terrence S. Welch, Town Attorney
APPROVED:
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Ray Sml , Mayor
Ordinance No. 16-82, Page 18