HomeMy WebLinkAboutR89-131USE CHARGES
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RESOLUTION NO. R89-131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW,
TEXAS, URGING THE TEXAS LEGISLATURE TO RAISE THE CAP ON STREET
USE CHARGES FOR ELECTRIC AND GAS UTILITIES.
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 street use charge 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 with the city, absent an agreement with the
gas or electric company; 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 compelling 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 w
Whereas, several utility companies 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;
Now, Therefore, Be It Resolved by the City Council of the
City of Plainview, Texas:
That the City Council hereby strongly urges the Texas
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Legislature to amend Section 182.025(b) of the ~e×as ~a× Code to
allow ~e×as cities and towns to charge a fee for the use of city
streets, alleys, or public ways by a public utility up to five
percent (5%) of the gross receipts of the public utility for the
sale of gas, electric or water within the city.
II.
That the City Council urges the Texas Legislature to pass
either HB 2155 or SB 1040 relating to this issue.
III.
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.
Presented and passed on this the 28th day of March, 1989, by
a vote of 7 ayes and 0 nayes at a Regular meeting of the
City Council of the City of Plainview, Texas.
Carla Reese, City Secretary Mayor E.V. Ridlehuber
~%APPRO~ED A~~~~CONT~NT.
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APPROVED AS TO FORM:
David Blackburn, City Attorney
(Governor William T. Clements, Jr.
Room 200
State Capitol
_Austin, Texas 78711
Lieutenant Governor Bill Hobby
P.O..Box 12068
Austin, Texas 78711
Gib Lewis
Speaker of the House
P.O. Box 2910
Austin, Texas 78769
Senator Teel Bivins
P.O. Box 12068
Austin, Texas 78711
State Representative Pete Laney
P.O. Box 2910
Austin, Texas 78769)
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