Loading...
The city council shall have the power, subject to the provisions of this chapter, by ordinance to confer upon any person, firm, corporation, or other business entity operating as a general public service provider the franchise or right to use the public streets, alleys, highways, thoroughfares, easements, or other public property of the city for the purpose of furnishing to the public any general public service or benefit, including, but not limited to, heat, light, power, telephone service, solid waste pickup, solid waste hauling, solid waste recycling, solid waste disposal, and transportation, for compensation or hire; provided that no franchise shall be granted by the city council to any person, firm, corporation, or other business entity to own, control, or operate a water or wastewater utility system within the city limits. Any franchise granted may be voided upon the failure of the grantee to exercise the same in compliance with the terms of the franchise. (Amend. of 11-8-05, Prop. No. 9)
The granting of franchises by the city council shall be governed by the following regulations:
(1) No exclusive franchise or privilege shall ever be granted.
(2) No determinate or fixed term franchise shall ever be granted for a longer term than 40 years.
(3) Within 10 years of the date of expiration of any fixed term franchise, the city council may grant a new franchise to commence upon the expiration of the franchise in question, or grant a new franchise if the existing franchise is released.
(4) Actual operation under a franchise must commence within six months after the granting of the franchise. As a part of the actual operation, the city council may grant a reasonable time beyond the six month period for research, development and construction upon terms and conditions as set forth in the franchise.
(5) No franchise, nor the assets held by the franchise holder, may be sold, assigned, transferred, or conveyed to any other person, firm, corporation, or other business entity without the consent of the city first had and obtained by ordinance or resolution, unless otherwise provided in the franchise. If the purchaser is the holder of a like franchise, the franchise purchased shall be canceled and merged into the franchise held by the purchaser upon terms and conditions as may be set out by the city council when permission for merger is granted.
(6) The purchaser of any franchise must assume and promptly discharge all of the payments due and owing the city by the holder of the franchise being purchased.
(7) An indeterminate franchise (that is, with no fixed or determinate duration) may be granted, provided that the ordinance granting the franchise gives to the city, in express terms, the right to purchase the property of the franchise holder or to cause a purchaser to buy such property, fixing the times, the rights, and the conditions under which they may be exercised. In the event of purchase by the city, the franchise itself shall not be deemed to have any market value.
(8) All holders of franchises for public services from the city, their successors or assigns, as compensation for the right or privilege enjoyed shall pay to the city a sum not less than four percent per annum of gross receipts of the business pursued by the franchise holder rendered in the city. Such sum shall be exclusive of, and in addition to, all special assessments and taxes of whatever nature, including ad valorem taxes upon the value of the franchise and other property of the franchise holder. The sum due under this subsection shall be due and payable on or before February 15 of each year for the preceding calendar year.
(9) All rights held under any such ordinance, shall at all times be subject to the power of the city council to require the holder thereof to make any necessary changes in or reasonable extensions of facilities and service in or to any portion of the city, which in the judgment of the city council may be necessary and proper (subject to the terms and conditions of any franchise). The city reserves the right to prevent the making of unnecessary or unprofitable extensions. (Amend. of 11-8-05, Prop. No. 9)
No person, firm, corporation, or other business entity enjoying any franchise to operate a public utility within the City of Dallas shall ever make any charge or fix any rate for public service to its patrons or the inhabitants of the City of Dallas without first being authorized by the city council by an ordinance or order approving the same, and no public utility shall contest any rate or charge or order fixed by the city council under the authority otherwise conferred in the charter of the city, in any suit or cause of action in any court until after such utility has filed a motion for a rehearing with the city council specifically setting out the grounds of complaint against any such order or ordinance fixing any rate or charge and until the city council shall have passed upon the motion for rehearing, provided that if the council has not acted within 60 days, the motion shall be deemed overruled. This section does not apply to a person, firm, corporation, or other business entity engaged in the business of solid waste pickup, solid waste hauling, solid waste recycling, or solid waste disposal. (Amend. of 11-8-05, Prop. No. 9)
In order to ascertain the true amount of gross receipts, capital invested, property value, depreciation and expenses, or any other fact connected with or relating to the business done by such franchise holder, the city council shall have full power:
(1) to examine, or cause to be examined, at any and all reasonable times, the books, papers and records of the franchise holder;
(2) to take testimony and compel the attendance of witnesses and the production of books, papers and records and to examine witnesses under oath, under such rules and regulations as the city council may adopt;
(3) to examine the physical properties and facilities of the franchise holder at all reasonable times;
(4) to declare the franchise or privilege enjoyed by the holder in default, annulled and terminated in the event the holder should unjustifiably refuse to permit the inspection of books, papers, records or properties, or if any officer, agent or employee of such franchise holder unjustifiably refuses to give testimony when requested by the city council.
Every public service franchise holder shall furnish and provide equal and uniform service alike to all persons, firms, corporations, and other business entities in the City of Dallas. It shall be unlawful and a sufficient ground for forfeiture of any franchise for any such holder, after notice, to grant free service or furnish better service, or to furnish service for a lower price or rate, conditions or quantity of service considered, to any person, firm, corporation, or other business entity, than to other persons, firms, corporations, or other business entities under like circumstances, or to otherwise discriminate in the manner of rates or service, except as may be provided by state law. Any such public service franchise holder may, from time to time, with the consent and approval of the city council, adopt the schedules governing rates, conditions or quantities of service considered, and allow the applicants to choose between alternative schedules. No such schedule shall be operative, nor shall service be furnished in accordance therewith, until filed with and approved by the city council. (Amend. of 11-8-05, Prop. No. 9)
Upon proof being received by the city council that the provisions of a franchise previously granted are being violated, it shall at once cause an investigation to be made of the alleged violation. If the city council is of the opinion that the provisions of the franchise are being violated, it shall instruct the city attorney to take the necessary steps to secure compliance with the terms of the franchise. Should the franchise holder fail to comply, after notice, then the city attorney may take the steps authorized by law including forfeiture of the same.
The city council shall provide for a fair hearing to any person, firm, corporation, or other business entity enjoying a public service franchise in the City of Dallas, prior to the change in the rates, rules, or regulations applicable to such franchise. In fixing or changing the charges, rates, fares, or compensation, or determining the reasonableness thereof, no stocks or bonds authorized or issued by any corporation, nor any indebtedness created by any person, firm, corporation, or other business entity, enjoying a franchise, shall be considered unless upon proof that the stocks, bonds, or indebtedness have been actually issued for money paid and used in the reasonable development of the property of the franchise holder, for labor done or property actually received in accordance with the laws and constitution of the state applicable thereto. No hearing shall be required for a reduction in rates unless requested in writing by an interested person, firm, corporation, or business entity. (Amend. of 11-8-05, Prop. No. 9)
Loading...