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ORDINANCE NO. 1463
ORDINANCE OF THE CITY OF CIBOLO, TEXAS GRANTING A
FRANCHISE TO THE PUBLIC UTILITIES OF CIBOLO; CLARIFYING
RIGHTS OF RESPONSIBILITIES FOR PUBLIC PROPERTY USE;
PROVIDING FOR THE PAYMENT OF FRANCHISE FEES;
DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE
WAS PASSED WAS CONDUCTED IN COMPLIANCE WITH THE
TEXAS OPEN MEETINGS ACT; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City of Cibolo (the "City") owns and operates municipal owned utility
services ("Cibolo Utilities"); and
WHEREAS, the City Charter Section 10.01 requires that all utilities within the City operate
under a franchise agreement; and
WHEREAS, the City Council for the City of Cibolo (the "City Council") finds that not all
residents of the City receive services from each of the Cibolo Utilities; and
WHEREAS, the City Council finds that Cibolo Utilities function similarly to investor-owned
utility services with funds, expenses, equipment, and land use needs separate from those of the
City as a whole; and
WHEREAS, the operation of Cibolo Utilities utilizes City resources, funded by taxpayers, that
otherwise could be utilized for City business, operation, and governance; and
WHEREAS, the City collects franchise fees from the revenue of Cibolo Utilities to offset the
impact of Cibolo Utilities on the City as a whole; and
WHEREAS, the City Council finds it is best to clarify the authorization of the collection of
municipal franchise fees through the use of a franchise ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF CITY COUNCIL OF
THE CITY OF CIBOLO, TEXAS, THAT:
SECTION 1. Findings. The foregoing recitals are hereby found to be true and correct and are
hereby incorporated as part of this Ordinance.
SECTION 2: Definitions. For the purpose of this ordinance, the following words, terms, phrases
and their derivations shall have the meaning given herein.
"City " shall mean the City of Cibolo, Texas, a municipal corporation in the State of Texas.
City of Cibolo, Texas Franchise Fee Ordinance Page 1 o%
"Cibolo Utilities" of "Cibolo Utility" shall mean any municipal owned utility services
provided by the City of Cibolo.
"Consumer" or "Customer" shall mean any person or organization receiving and using service
from the Cibolo Utilities
"Franchise" shall mean this Ordinance, and all rights and obligations established herein or
as it may be amended.
"Total Recovered Bills" is the total amount of fees received by Cibolo Utilities from
consumers or customers.
"Utility Services" shall mean the act of providing any utility to the consumers or customers of
the City of Cibolo including utilities provided at the time this ordinance is enacted and any
utilities hereinafter provided.
SECTION 3: Grant of Franchise.
A. To the extent allowed by law, the City hereby grants to Cibolo Utilities a non-
exclusive franchise to maintain, construct, equip, extend, replace, alter and
otherwise establish and operate in the City, as constituted as of the effective date
of this ordinance, or as may hereafter be constituted, works, systems, plants,
distribution lines and all related facilities (including those now in service)
necessary or appropriate to sell, distribute, convey or otherwise conduct, serve,
supply and furnish the inhabitants of the City and others, utility services and said
Cibolo Utilities are hereby granted passage and right-of-way in, under, along and
across public land, easements, rights-of-way and structures, as they now or hereafter
may exist, for every and any such service, use, effect, and lawful purpose as
herein mentioned; provided that all work, activity and undertakings by the Cibolo
Utilities shall be subject to the terms and provisions of the Franchise.
B. The construction, maintenance, and operation of the system and property of
Cibolo Utilities within the City shall be subject to this Franchise and the
ordinances and regulations adopted by the City Council from time to time in
the exercise of the City's police and regulatory powers.
C. This Franchise Ordinance shall run for a term of ten (10) years and shall
automatically renew at the expiration of each firm unless other action is taken
by City Council. City Council may revoke, amend, or otherwise modify this
Franchise Ordinance at any time for any reason.
D. Cibolo Utilities may not transfer any rights and privileges granted herein.
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SECTION 4: Use of Public Property
A. Cibolo Utilities is authorized to utilize any land which the City is authorized to use
subject to and consistent with any terms or conditions of the City's authorization.
B. One Cibolo Utility usage of land shall not unreasonably or permanently interfere with
the operation of another Cibolo Utility operating within the City of Cibolo.
C. All work must be performed with reasonable diligence and without unnecessary
inconvenience to the public or individuals. None of the facilities shall unreasonably
endanger the lives of persons, unreasonably interfere with any public
improvements the City may deem proper to make, or unnecessarily obstruct the
free use of the streets, alleys, bridges, easements or public property.
SECTION 5: Rules and Regulations.
A. The rates, rules and regulations of Cibolo Utilities shall be subject to approval by
City Council.
B. Cibolo Utilities shall be entitled to require from each and every customer to
make such deposits and payments as required by Cibolo Utilities, and to
comply with applicable rules and regulations.
SECTION 6: Franchise Fees
A. The streets, rights-of-way, and public easements to be used by the Cibolo Utilities in
the operation of its system within the boundaries of the City are valuable public
properties acquired and maintained by the City at great expense to its taxpayers.
Additionally, the City incurs costs in regulating and administering these utilities
which could otherwise be used for other City business thereby increasing personnel
and technology demand. As a result, the City shall through the term of this franchise
ordinance collect a Primary Franchise Fee and Offset Costs from Cibolo Utilities as
shown below:
1. Primary Franchise Fee: three percent (3%) of the Total Recovered Bills, and
2. Offset Costs: specific percentages of the annual budget for certain departments
as specified in the list of City of Cibolo Public Utilities and Offset Costs, and
as amended from time to time, attached hereto as Attachment A.
B. In addition to the fees above, the City may offset additional costs in the event of a failure
of the Cibolo Utility or other event requiring extensive additional City resources.
C. The fee shall be paid monthly.
SECTION 7. Intent and Limitations
City of Cibolo, Texas Franchise Fee Ordinance Page 3 of6
This ordinance is intended to identify proper and authorized usage of public property and
to authorize and clarify franchise fees collected from public utilities in Cibolo. Nothing
herein grants a private right of action for any resident, company, or other individual or
entity, whether located in or out of the City, against the City or a City Utility for violation
of this ordinance. Further, this ordinance does not establish a standard of care for the
purposes of any private rights of action.
SECTION S. Savings. All rights and remedies of the City of Cibolo are expressly saved as to
any and all violations of the provisions of any ordinances which have accrued at the time of the
effective date of this Ordinance; and, as to such accrued violations and all pending litigation,
both civil and criminal, whether pending in court or not, under such ordinances, same shall not
be affected by this Ordinance but may be prosecuted until final disposition by the courts.
SECTION 9. Repeal. This Ordinance shall be and is hereby cumulative of all other ordinances
of the City of Cibolo, Texas, and this Ordinance shall not operate to repeal or affect any of such
other ordinances except insofar as the provisions thereof might be inconsistent or in conflict with
the provisions of this Ordinance, in which event, such conflicting provisions, if any, in such
other ordinances are hereby repealed.
SECTION 10. Severability. If any section, paragraph, sentence, clause, or phrase of this
Ordinance shall for any reason be held to be unconstitutional or invalid by a court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed and ordained all the
remaining portions of this Ordinance without the inclusion of such portion or portions found to
be unconstitutional or invalid.
SECTION 11. Open Meeting. The City Council hereby finds and determines that the meeting
at which this Ordinance was passed was conducted in accordance with the Texas Open Meetings
Act.
SECTION 12. Effective Date. This Ordinance shall become effective and be in full force and
effect upon passage.
<signatures of the following pages>
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PASSED, APPROVED, AND ADOPTED THIS /0 DAY OF Se�e2
2024.
ATTEST:
�2�
Peggy Cimics, TRMC
City Secretary
Mark Allen
Mayor
E V1117Ulf)110A
Citi Attorney '
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ATTACHMENT A
LIST OF CIBOLO UTILITIES AND THEIR OFFSET COSTS
Cibolo Utility
Percentage and Department for Offset
Costs
Cibolo Water/Wastewater Services:
1. 30% of the Public Works Department
Annual Administration Budget
2. 11 % of the Human Resources
Department Annual Budget
3. 7% of the Information Technology
Department Annual Budget
4. 38% of the Finance Department
Annual Budget
Drainage Utility District
1. 22.5% of the Public Works Annual
Administration Budget
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