HomeMy WebLinkAboutOrdinance 0121
ORDINANCE NO. / ..:t /
AN ORDINANCE WHEREBY THE CITY OF NORTH
RICHLAND HILLS, TEXAS AND THE TRI-COUNTY
ELECTRIC COOPERATIVE, INC. AGREE THAT THE
TRI-COUNTY ELECTRIC COOPERATIVE, INC. SHALL
CONTINUE TO MAINTAIN ITS NOW ERECTED ELEC-
TRIC LIGHT AND POWER LINES WITH ALL NECESSARY
OR DESIRABLE APPURTENANCES (INCLUDING UNDER-
GROUND CONDUITS, POLES, TOWERS, WIRES, AND
TRANSMISSION LINES) AND THE CITY GRANTS ITS
CONSENT FOR THE USE OF ITS PRESENT STREETS,
ALLEYS, HIGHWAYS, AND PUBLIC GROUNDS IN SAID
CITY, UNDER REGULATIONS AND RESTRICTIONS AS
STATED THEREIN AND THAT THE CITY OF NORTH
RICHLAND HILLS SHALL RECEIVE AN ANNUAL PAY-
MENT FOR SAME, ALL AS THEREIN PROVIDED.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICH-
LAND HILLS, TEXAS:
Section 1. That the City of North Richland Hills, Texas, herein
called "City" hereby grants its consent to the use of its present streets,
alleys, highways and public grounds by the Tri-County Electric Cooperative,
its successors, and assigns, herein called "Cooperative," for the purpose
of maintaining and operating electric light and power lines with all necessary
or desirable appurtenances (including underground conduits, poles, towers,
wires and transmission lines, and telegraph and telephone lines for its own
use) within the area of the City of North Richland Hills, Texas, presently
served by Cooperative for the purpose of supplying electricity to certain
existing points of delivery to established customers within the said City for
light, heat, power, and other purposes; said consent being granted for a term
of 20 years from the date this Ordinance is adopted and approved.
Section 2. Poles and towers shall be maintained so as not to un-
reasonably interfere with traffic over streets and alleys.
Section 3. Cooperative t s property and operations in the City shall
be subject to such regulations by the City as may be reasonably necessary
for the protection of the general public.
Section 4. Cooperative shall hold the City harmless from all
expense or liability for any act or neglect of the Cooperative hereunder.
Section 5. In consideration of the grant of said privilege by the
City and as full payment for the privilege of using and occupying the streets,
alleys, highways, easements, parks and other public places within the City,
and in lieu of any and all occupation taxes, easements, and franchise taxes
(whether levied as an ad valorem, special or other character of tax), and in
lieu of street taxes, street or alley rentals and of all other taxes, charges,
levies, fees, and rentals of whatsoever kind and character which the City
may impose or hereafter be authorized or empowered by law to levy or
collect, excepting such inspection fees and charges which may become
applicable in the maintenance of service and excepting the usual general or
special ad valorem taxes which the City is authorized to levy or impose upon
real and personal property, the Cooperative (Tri-County Electric Coope rative,
Inc. and its assigns) shall pay to the City of North Richland Hills, Texas,
annually and on or before March l5 of each year during the term hereof,
beginning immediately, an amount equivalent to two per cent (2%) of the gross
revenue received by the Cooperative, its successors and assigns during the
preceding year from sales of electricity within the corporate limits of said
City, exclusive of sales to federal, state and municipal customers and
-2-
exclusive of sales to industrial and other customers excluded from taxation
under the provisions of the regulations of the Treasury Department of the
United States, Article 40, Regulation 42 as amended by TD 4393, September 20,
1933, TD 4570, July 24, 1935, and TD 475l, July 21, 1937, unless such
regulations and decisions have been or shall be repealed, amended, or
changed. On or before the March 15 of each year a report shall be filed
with the City by the Cooperative showing its gross revenues as aforesaid for
the preceding year, and the payment made hereunder be based upon said
report.
Section 6. Nothing herein contained shall ever be held or construed
to confer upon the Cooperative exclusive rights or privileges of any nature
whatsoever. This agreement is made by the City of North Richland Hills,
Texas with Tri-County Electric Cooperative, Inc. for the purpose of allow-
ing Tri-County Electric Cooperative, Inc. to continue providing electric
service to points of delivery of its established customers only in the areas
annexed or to be annexed by the City of North Richland Hills, Texas, in which
the Cooperative was serving prior to such annexation.
Section 7. The Cooperative is hereby limited to service to existing
points of delivery to such customers as are now established within the City
of North Richland Hills, or shall be established upon annexation by this
municipality, but nothing herein contained shall ever be held or construed to
confer upon the Cooperative the right to extend its service to any dwelling,
structure, apparatus, or point of delivery other than those so established.
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Section 8. This Ordinance shall be cumulative and in addition to
the other permits granted and ordinances owned, held, or claimed by the
Cooperative; however, this Ordinance shall yield providing that any such
ordinances or parts of such ordinances that conflict herewith are hereby
repealed.
Section 9. This Ordinance shall become effective as of this date.
ADOPTED AND APPROVED this
the:2..ff' % day of /?;1 d'f/
'r}
A. D., 1964.
~'
( Æ.,t~' Z~pr{;::4
, ayor of thU;ty of North Richland
, ills, Texas
L- ~/Žâ/ £27'Æ ,
q~~retary
,
-4-
THE STATE OF TEXAS
COUNTY OF TARRANT I
!, ~~~/ ~~æ.¿ , ' Secretary of the City of North
Richland Hills, Texas hereby certify t the foregoing is a true and correct
copy of Ordinance No. /~/ , ereby the City of North Richland
Hills, Texas and Tri-County Electric Cooperative, Inc. agree that the Tri-
County Electric Cooperative, Inc. shall continue to erect and maintain its
electric light and power lines with all neces sary or desirable appurtenances
(including underground conduits, poles, wires, towers and transmission
lines) and the City grants its consent for the use of its present and future
streets, alleys, highways, and public grounds in said City, under regulations
and restrictions as stated therein and that the City of North Richland Hills,
Texas, shall receive payment for same, all as therein provided.
WITNESS MY HAND AND SEAL, this the ....z.-..)dday of ~d~
A. D., 1964. (/
~4d/~
Sec' ary of the City of NoW
Richland Hills, Texas
(Seal)
May 8, 1964
TO:
Honorable John P. Hunter, Mayor, and
Members of the City Council of North
Rich1and Hills, Texas
SUBJECT :
Authority of the City of North Rich1and
Hills to grant Tri-County Electric
Cooperative a franchise to expand its
services within the city limits.
It is the opinion of this writer that it would be unlawful for
the City of North Rich1and Hills to grant Tri-County Cooperative
a franchise to expand its services within the city limits of the
City of North Rich1and Hills. This opinion is based on the following:
The Texas Electric Cooperative Corporation Act, Vernon's
Annotated Civil Statute 1528b, was enacted by the Texas Legislature
in 1937 and the said Tri-County Electric Cooperative is governed
by this statute, a portion of which is quoted...
"Sec. 3 Co-operative, non-profit, membership corporations
heretofore or hereafter organized under this Act are authorized
to engage in rural electrification by anyone or more of the
following methods;
(1) The furnishing of electric energy to any person, for
delivery to any dwelling, structure, apparatus or point of
delivery which is located in a rural area, and which is
not receiving central station service not withstanding the
fact that such person may be receiving central station
service at other points of delivery in a rural or non-
rural area.
(2) If any area in which such corporation is furnishing
electric service to its members is annexed by an incorporated
city or town (whether rural or nonrura1 as defined in this
Act) in which central station service is supplied by such
city or town or by a public utility corporation, the
co-operative corporation is authorized to continue to
furnish electric energy to any dwelling, structure
apparatus or point of delivery to which the co-operative
corporation was delivering electric energy on the date
of such annexation and if any person desires electric
service in such annexed area for any dwelling, structure,
apparatus or point of delivery which was not being served
by the co-operative corporation on the date the area became
annexed and to which central station service is not avail-
able from the city or town or public utility corporation,
the co-operative corporation may thereafter furnish electric
energy to such dwelling, structure, apparatus or point of
delivery."
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The leading case, based upon the aforementioned section, was decided
by the Texas Supreme Court in 1957 in State vs Upshure Rural Electric
Cooperative Corporation, 156 Texas 633, 298 SW(2nd) 805 (the City of
Gilmer case). In this case the Co-op claimed the right to serve
residents in annexed areas, regardless of whether it was servicing
them when the area in which they resided were annexed. Speaking
for the Supreme Court of Texas, Chief Justice Hickman held that
"rural electric cooperative could continue to serve members resid-
ing in areas annexed to city and that those persons not members of
cooperative at time of annexation, even though residing in the same
areas, could not be served."
Based upon the statute and the Supreme Court case, it is my opinion
that nothing would be gained by the granting of a franchise to the
Tri-County Electric Cooperative because the law is very clear that
they may serve only those customers which they were serving at the
time of the annexation by the City of North Rich1and Hills.
Respectfu11 sUbmitted~
~; ~
, Glenn Goodnight, C' Attorney
City of North Ri and Hills