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HomeMy WebLinkAboutORD 71-DDORDINANCE NO. FRANCHISE 8/11/61'�`� AN ORDINANCE GRANTING TO GULF STATES UTILITIES COMPANY THE ✓ i� RIGHT, PRIVILEGE AND FRANCHISE TO CONDUCT WITHIN THE CITY OFi'IP-'JOAA BEAUMONT, TEXAS, AN ELECTRICAL LIGHTING AND POWER BUSINESS AND TO ENTER UPON ERECT CONSTRUCT MAINTAIN EXTEND RE- PAIR, REPLACE AND�REMOVE�IN, UNDER,�UPON, WITHIN, OVER, ABOVE, ACROSS AND ALONG ANY AND ALL OF THE PRESENT AND FUTT;R.E PUBLIC ROADS, HIGHWAYS, STREETS, LANES, AND ALLEYS OF THE CITY OF BEAUMONT, AND OVER AND ACROSS ANY AND ALL STREAM OR STREAMS, AND BRIDGE OR BRIDGES NOW OR HEREAFTER OWNED OR CONTROLLED BY CITY, A SYSTEM OF POLES, POLE LINES, TOWERS, DISTR.IBUTION LINES, TRANSMISSION LINES, WIRES, GUYS, CABLES, CONDUITS, TRANSFORMERS, AND OTHER DISTRIBUTION AND TRANSMISSION INSTRU- MENTALITIES, FACILITIES AND APPURTENANCES (INCLUDING TELEPHONE AND TELEGRAPH POLES AND WIRES FOR SAID COMPANY'S OWN USE), NECESSARY OR PROPER FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY INTO, IN, WITHIN, FROM, ACROSS3 AND THROUGH THE CITY OF BEAUMONT, AS NOW EXISTING, OR AS SAID CITY LIMITS MAY HEREAFTER BE EXTENDED; AND GRANTING GULF STATES UTILITIES COM- PANY, ITS SUCCESSORS AND ASSIGNS, THE AUTHORITY TO USE SUCH FOR THE PURPOSE OF TRANSMISSION, DISTRIBUTION, DELIVERY AND SALE OF ELECTRICITY TO THE CITY, AND TO THE INHABITANTS OF THE CITY, OR ANY OTHER PERSON OR PERSONS, FIRMS OR CORPORA- TIONS, WHEREVER LOCATED WITHIN OR WITHOUT THE CITY LIMITS OF BEAUMONT, FOR USE BY SUCH PURCHASER OR PURCHASERS, FOR LIGHT, POWER, COOLING AND HEAT OR FOR EITHER OR ALL OF SAID PURPOSES, OR FOR ANY OTHER PURPOSE OR PURPOSES FOR WHICH ELECTRICITY MAY BE USED; PROVIDING THAT THIS FRANCHISE SHALL BE EFFECTIVE FOR A PERIOD OF THIRTY-FIVE (35) YEARS COMMENCING UPON AND EX- TENDING FROM THE SIXTY-FIRST DAY AFTER FINAL PASSAGE HEREOF; PROVIDING FOR THE TEMPORARY REMOVAL, RAISING OR LOWERING BY COMPANY OF ITS WIRES AND OTHER APPURTENANCES; PROVIDING FOR THE RIGHT TO, AND CONDITION OF, THE OPENING OF PAVEMENTS AND SIDEWALKS BY COMPANY; RETAINING ALL RIGHTS OF CITY TO REGULATE THE LOCATION OF COMPANY'S FACILITIES IN, UPON, ALONG, UNDER AND OVER THE STREETS, ALLEYS AND OTHER PUBLIC PLACES OF CITY, AS WELL AS TO REQUIRE THE RE -LOCATION OF SAME; WAIVING CLAIMS FOR DAMAGES BY COMPANY AGAINST, AND PROVIDING INDEMNITIES TO, CITY; PROVIDING FOR EFFICIENT ELECTRICAL SERVICE AND THE MAIN- TAINING OF COMPANY'S.FACILITIES; PROVIDING FOR THE USE BY CITY FOR THE PURPOSES SPECIFIED OF POLES AND CONDUITS OF COMPANY; PROVIDING COMPENSATION, AND METHOD OF PAYMENT OF SUCH, TO THE CITY FOR THE USE BY COMPANY OF THE STREETS, ALLEYS AND PUBLIC WAYS OF THE CITY; PROVIDING FOR THE MAINTAINING OF RECORDS BY COMPANY WITH RIGHT OF INSPECTION BY CITY RESERVING TO CITY ALL POWERS OF REGULATION; PROHIBITING ASSIGNMENT EXCEPT BY CONSENT BY CITY; GIVING CITY'S CONSENT TO THE CUTTING AND TRIMMING BY COMPANY OF CONFLICTING TREES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING THAT THIS FRANCHISE SHALL NOT BE EXCLUSIVE; AND PRO- VIDING THAT THE CITY SHALL HAVE THE RIGHT AT ANY TIME WITHIN FIVE YEARS OF THE EXPIRATION OF THE TERM HEREOF, BUT PRIOR TO THE LAST TWELVE MONTHS OF SAID TERM, TO PURCHASE, OR CAUSE TO BE PURCHASED, THE PROPERTY OF THE HOLDER OF THIS FRANCHISE WITHIN THE LIMITS OF CITY AND DEVOTED TO PUBLIC SERVICE HERE- UNDER, AND PROVIDING A METHOD OF DETERMINING THE VALUE OF SUCH PROPERTIES IF SUCH PURCHASE IS MADE; MAKING MISCELLANEOUS PRO- VISIONS RELATIVE TO THIS GRANT OF FRANCHISE; REPEALING ALL PREVIOUS ELECTRICAL LIGHTING AND POWER FRANCHISE ORDINANCES; PROVIDING FOR THE PUBLICATION OF THIS FRANCHISE ORDINANCE AND ITS ACCEPTANCE BY COMPANY. - - 2- BE IT ORDAINED BY THE CITY OF BEAUMONT� TEXAS: Section 1. That subject to.the terms, conditions, and provisions of this ordinance, The City of Beaumont, Texas, hereinafter referred to as "City", does hereby grant unto Gulf States - Utilities Company, hereinafter -referred to as "Company", its successors -and assigns, the right, privilege and franchise to conduct within the boundaries of The City of Beaumont, as such boundaries now exist or may hereafter be extended, an elec- trical lighting and power business and to enter upon, erect, construct, maintain, extend, repair, replace and remove in, under, upon, within, over, above, across and along any and all of the present and future public roads, highways, streets, lanes and alleys of the City and over and across any stream or streams, bridge or bridges, now or hereafter owned or con- trolled by the City a system of poles, pole lines, towers, distribution lines, transmission_ lines-,-wire.s, _guys, cables., conduits, transformers, and other distribution and transmis- sion instrumentalities, facilities and appurtenances (including telephone and telegraph poles and wires for -Company's own use) necessary or proper for the transmission and distribution of electricity into, in, within, from, across and through the City as now existing or as the said city limits may hereafter be extended; and Company, its successors and assigns, are authorized to use said poles, pole lines, towers, distribu- tion lines, transmission lines, wires, guys, conduits, trans- formers, and other distribution and transmission instrumentali- ties, facilities and appurtenances for the transmission, dis- tribution, delivery and sale of electricity to the City and to the inhabitants of the City or any other person or persons, firms or corporations wherever located within or without the city limits of Beaumont for use by such purchaser or purchaser-, for light, power, cooling and heat, or for either or all of said purposes, or for any .other purpose or purposes, whether same or different from those herein,specified for which elec- tricity may be used. Section 2. Company, on written request of any person, firm, corpora- tion or governmental authority, shall relocate, raise or lower its wires, where located on, in or over the streets, alleys and other public ways of City, temporarily to permit construc- tion work in the vicinity thereof, or to permit the moving of houses or other bulky structures. The expense of such tempo- rary relocation, raising or lowering of such wires shall be paid by the benefited party or parties, and the Company may require the payment in advance, being without obligation to remove, raise or lower its wires until such payment shall be made,-_ _provided, _ however, that _ no such__ payment shall -be re- quired of the City except as provided in Section 3. The Com- pany shall be given not less than forty-eight (48) hours prior notice to arrange for such temporary wire changes. Section 3. Within the streets or other public wars of the City, the location and route of all poles, stubs, guys, anchors, lines, conduits and cables placed and constructed and to be placed and constructed by Company in the construction and maintenance of its electrical lighting and power system in, within and through the City shall be subject to the reasonable and proper regulation, control and direction of the City, or of any city official to whom such duties have been or may be duly delegated; all poles erected by the Company shall be so set that they will not interfere with the flow of water in any gutter or drain and so that the same will interfere as little as practicable ci-L°-lcL�yl with the ordinary travel on the streets, sidewalks or other public ways; the regulation and control herein reserved shall include, but not by way of limitation, the right to require in writing the relocation of Company facilities at Company's cost, within the streets or other public ways whenever such shall be reasonably necessary on account of the removal of a traffic hazard, the widening, change of grade, relocation or other City construction within such streets or public ways; provided, however, Company shall be entitled to be paid for its costs and expenses of any relocation, raising or lowering of its wires, required by.City, pursuant to this section or Section 2, if such expenses or costs are reimbursable or paya- ble to the Company or the City by the State of Texas, the United States or any governmental agency or subdivision of either, whether directly or indirectly, but nothing herein shall impose any obligation on the City to pay such costs and expenses except to the extent it receives funds from the United States, State of Texas, or any governmental agency or subdivision -of either, for the reimbursement or payment of same. Section 4. If it becomes necessary in furnishing electricity as con- templated under this franchise, the City grants to the Company the right and privilege to take up pavements and sidewalks, if any, in and upon said streets, alleys and highways in said City of Beaumont, and such as may be over and across any stream or bridge, for the purpose of making such excavation and installa- tion as may be necessary; provided, however, that Company shall not take up or excavate any pavement at any time without first securing permission of the Director of Public Works of City or City Manager; and provided further, that all excavations and installations so made shall be performed in such manner as will • �/ -1:�.--LPL l�l a -5- cause the least inconvenience to the public, and Company shall promptly restore to as good condition as before working there- on, and to the reasonable satisfaction of the Director of Pub- lic Works of City or City Manager, all streets excavated by it. The City of Beaumont shall.have the right to have oneinspec- tor present at each excavation and installation, whose salary for the time he is so present at, and traveling to and from, such excavation or installation, shall be paid by Company. Section 5, If any of the facilities installed by Company hereunder shall be in any respect damaged or injured by The City of Beaumont or,any of its officers, agents, representatives, or employees, in connection with the performance of any work or repairs that may be done upon the streets, avenues, alleys, and other public places of The City of Beaumont, Company shall not be entitled to prosecute or,maintain a claim against The City of Beaumont for any such damage or injuries so sustained by it, and the same is hereby in all things waived; provided, however, the foregoing portion of this section shall not apply where such property is damaged or injured as a proximate result of installing, maintaining or removing City's equipment upon or from Company's poles, or in or from Company's ductlines, as pro- vided in Section g hereof. Section 6. The City, by the granting of this franchise, does not surrender or to any extent lose, waive, imperil or lessen the lawful powers and rights now or hereinafter vested in the City under the Constitution and statutes of the State of Texas and under the Charter of the City to regulate the rates for ser- vices of Company; and.Company, by its acceptance of this fran- chise, agrees that all such lawful regulatory powers and rights D -6- as the same may be from time to time vested in the City shall be in full force and effect and subject to the exercise thereof by the City at any time and from time to time. Section 7. It shall be the -Company's obligation hereunder to furnish efficient electrical service to the public at its rate schedule, said service to be first class in all respects, considering all circumstances, and Company shall maintain its system in reasonable operating condition during the continunace of this agreement. Section 8. Nothing contained in this ordinance shall be construed as conferring upon Company any exclusive rights or privileges of any nature whatsoever. Section 9. In addition to the consideration set forth elsewhere in this ordinance, the Company shall hold itself ready to furnish free of charge, subject to the use of the City, such pole space as may be required from time to time for the installation of City -owned traffic, police and fire alarm system conductors, and alarm or other necessary signal boxes; provided that such conductor space does not exceed the capacity of one cross -arm on any one pole, and provided that such space is then available on existing poles. The specific location for these traffic, police and fire alarm conductors and boxes on Company's poles -- shall be determined by the Company, and will be allotted at the times specific applications for space are received from the City. Where a main underground ductline is constructed or installed between manholes,by Company after the effective date of this franchise ordinance, Company shall, as a part of same.. provide free of charge for the installation by City of its traffic, police or fire alarm cables, one top duct having one capped off entry channel and one capped off exit channel be- tween each two manholes, such entry and exit channels leaving the duct bank enclosure outside of, but near to, such manholes, and no cable or other equipment of City shall enter Company's manholes. Company shall, prior to each addition by it to any duct now existing or hereafter constructed, notify the Elec- trical Department of City of the nature and location of such intended addition; further, Company shall, along with'its application for a permit to open a street for the purpose of laying a new duct, provide the City Electrical Department and the City Engineer's office each with a set of plans showing the type, number, and location in the street, of the ducts to be constructed. City, prior to the original installation by it of its equipment in any such top duct, shall notify'Company of the time and place it intends to make such entry and instal- lation. All cables installed by the City in Company ducts shall be of the non-metallic, sheath type to prevent corrosive or electrolytic action between the City and Company -owned cables. All City -owned conductors and cables, whether on poles or in ductlines, shall be constructed, maintained and operated in such manner as to not interfere with or create a hazard in the operation of the Company's electrical transmission and distri- bution system. Further, all City -owned traffic, police and fire alarm conductors, and alarm boxes, and any City circuits on Company poles, and all cables -installed by City in ducts con structed by Company, shall be installed in strict compliance with the applicable provisions of the National Electric Safety Code, Handbook 30, as published in March, 1948, by the United States Department of Commerce, Bureau of Standards, as from time to time amended or supplemented; provided, however, &IIULZD so nothing herein shall impair the right of the City in the future by ordinance to adopt any new, amended or revised code, or by ordinance to specify such further or different standards as may be found to be in the public interest. Section 10. On or before the lst day of August of each year during the life of this franchise, Company shall file with the City Clerk a written, sworn report setting out Company's total gross receipts from its electric light and power sales for consumption within the corporate limits of the City of Beaumont during the twelve months ending on the immediately preceding June 30. Said report shall comply in other respects with the Charter of the City of Beaumont. Section 11. As compensation for the use of the streets, alleys and public ways of City in the conduct of its business under this franchise, Company shall pay City each year of the life of this franchise an annual payment consisting of a sum of money equal to 2% of the annual gross receipts of Company within the City of Beaumont from its electric lighting and power sales for.consumption within the corporate limits of the City. Said annual payments shall be due and payable on the 1st day of August of each year, and each shall be computed upon receipts by Company during the twelve months ending on the June 30 im- mediately preceding each such annual payment date. Nothing herein shall be construed to bar, limit or abridge any legal right which the City may hereafter have to levy, charge, assess or collect an amount in excess of 2% of the Company's gross receipts for the use by Company of City's streets, alleys and public ways in the conduct of Company's business. Said annual payments above provided shall be exclusive of and in addition `7 ZqZ -g- to ad valorem taxes. Any and -all such annual payments made by Company pursuant to this section shall be credited on any amount imposed, levied.or assessed against Company by the City of Beaumont, pursuant. to ordinance or otherwise, at any time as a charge (whether designated as rental, tax or otherwise) for the use by Company of City's streets, alleys and public ways. Section 12. At all times during the continuance of the rights herein granted, Company shall keep in its office at the disposal of and open to inspection by The City of Beaumont at all reason- able times all contracts,.books of accounts, and costs and operating records, a full, true, complete and accurate account of all monies received and expended, and liabilities incurred by it in connection with its business in the construction, maintenance and operation of its properties operated hereunder, and also complete statistical records of its business and operations. Section 13. The Company, its successors and assigns shall indemnify, save and hold harmless the City from any and all claims for injuries and damage to person or property occasioned by or arising out of the construction, reconstruction, maintenance, operation or repair of said Company's electrical lighting and power system, or by the conducting of Company's business in The City of Beaumont, or in any way growing out of the granting of this franchise, either directly or indirectly, or by reason of any act, negligence or nonfeasance of the contractors, agents or employees of Company, its successors and assigns, and shall refund to City all sums which it may be adjudged to pay on any such claim, or which may arise or grow out of the exercise of the rights and privileges hereby granted, or by the abuse 2-L9��9�r1 -10- thereof, and Company shall indemnify and hold the City harmless from and on account of all damages, costs, expenses, actions and causes of actions that may accrue to or be brought by any person, persons, company or companies at any time hereafter by reason of the exercise of the rights and privileges hereby granted, or of the abuse thereof; provided, however, that the provisions of this section shall not be applicable to any claims, damages, costs, expenses, actions or causes of actions proximately re- sulting from the use by City, its officers, agents, representa- tives or employees, of Company's poles and ductlines for the in- stallation, maintenance or removal of City's equipment, as pro- vided in Section 9. Section 14. In granting this franchise it is understood that the lawful power vested by law in the City to regulate all public utilities within the City and to regulate the local rates of public utili- ties within the City, within the limits of the Constitution and laws and to require all persons or corporations to discharge the duties and undertaking for the performance of which this fran- chise was made is reserved; this grant is made subject to all the rights, powers and authorities either of regulation or other- wise reserved to the City by its Charter or by the general laws of the State. Section 15. The rights, franchises and privileges granted hereby shall not be transferred or assigned by Company except with the consent of the City Council of The City of'Beaumont expressed by Ordi- nance passed by said City Council. Section 16. The City shall have the.right and reserves the right at any time within five (5) years of the expiration of the term hereof, but prior to the last twelve (12) months of said term, to pur- chase or cause to be purchased the property of the holder of thi.- -11- franchise located within the boundaries of The City of Beaumont and devoted to public service hereunder; said purchase, if made, to be effective at the expiration of the term hereof. If the City elects to exercise such purchase right, the values of such property, if `riot agreed between -the parties, shall be determined in an appropriate proceeding filed in any court having jurisdic- tion; provided, however, that before the City shall purchase or cause to be purchased such property of Company, the matter of such acquisition of such property shall be submitted at a muni- cipal election to be determined by a majority vote of the quali- fied taxpayers voting thereon. Section 17. To the extent that the City has authority so to do, it gives to Company, during the life of this franchise, the right, license, privilege and permission to trim trees upon and overhanging the streets, alleys, sidewalks and public places of City; so.as to prevent the branches of sudh trees from coming irf contact with the wires or other equipment of Company. Company agrees that it will fully protect and indemnify City from any and all claims; demands, actions, causes of actions, damages and expenses arising because of such trimming by Company under the provisions of this section. Section 18. If any provision, section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be uncon- stitutional, 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 City in adopting this ordinance that no portion thereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality or invalidity of any other por- tion, provision, or regulation, and, to this end, all provisions of this ordinance are declared to be severable. Y' C -12- Section 19.. Upon the filing with City by Company of the acceptance required hereunder, this franchise shall be in full force and -effect for a term and period of thirty-five (35) years com- mencing upon, and extending from, the sixty-first day after final passage of this ordinance by City. Section 20.. This franchise replaces all former franchise ordinances granted to Company or its predecessors, which are hereby re- pealed, which repeal is effective as of the time the franchise herein granted takes effect. There is specifically and particu- larly repealed, effective as of that time.. that certain ordi- nance passed by the City of Beaumont on October 7, 1890, grant- ing to Beaumont Ice, Light and Refrigerating Company a fran- chise for a period of fifty (50) years from June 23, 1888, and that Ordinance passed on July 20, 1912, granting to Beaumont Electric Light and Power Company, successor to Beaumont Ice, Light and Refrigerating Company, an extension of the aforesaid. franchise, previously granted to Beaumont.Ice, Light and Refrigerating Company, for an additional period of twenty-five (25) years beyond its expiration date, or until June 23, 19632 such franchise subsequently having been assigned to Eastern Texas Electric Company, a Texas corporation, on August 1, 1918" and then having been assigned by Eastern Texas Electric Company, a Texas corporation, to Gulf States Utilities Company on Septem- ber 1, 1926, when Gulf States Utilities Company acquired cer- tain properties of Eastern Texas Electric Company, a Texas corporation. Section 21. Company shall, within thirty (30) days from the date of the final passage of this ordinance by the City Council of ��dl 117142) -13- The City of Beaumont, file with the City Clerk of Beaumont, a written statement signed in its name and behalf in the follow- ing form: "To the Honorable Mayor and the City Council of The City of Beaumont: "Gulf States Utilities Company, for itself, its successors and assigns, hereby accepts the attached ordinance finally passed by the City Council of Beaumont, the day of , 196 , and agrees to be bound by all of its terms and provisions. GULF STATES UTILITIES COMPANY By "Dated the day of 196 " Section 22. The full text of this ordinance shall, after final pas- sage by the City Council of The City of Beaumont, be published once each week for four (4) consecutive weeks in a newspaper of general circulation published in The City of Beaumont, and the expense of such publication shall be borne by Company. Upon said publication being completed and the acceptance of this ordinance by Company as herein provided,..this ordinance shall take effect sixty-one (61) days after its adoption on third and final reading by the City Council of The City of Beaumont, and thereafter continue for thirty-five (35) years. Passed first reading on the 10X' day of 4oeicls; , 196.1_ _. Passed second reading on the day of ,d oe; ca l , Passed third and final reading on the day of 196 Passed this the i14'4 day of 196 / Approved this the 1'7 'l day of 196�_. Mayor of the City of Beaumont, Texas GULF STATES UTILITIES COMPANY N. ,- (C SEaJ` LOCK DRAWER 2 9 5 1 BEAUMONT T E X A S To the Honorable Mayor and the City Council of The City of Beaumont: Gulf States Utilities Company, for itself, its successors and assigns, hereby accepts the attached or- dinance finally passed by the City Council of Beaumont, the 19th day of September, 1961j and agrees to be bound by all of its terms and provisions. GULF STATES UTILITIES COMPANY L. M. Welch' Vice President Dated the llth day o.f October, 1961. V v �� GULF STATES UTILITIES COMPANY LOCK D RAWER 2 9 51 B E A U M O N T T E X A S August 11, 1961 The City Council of Beaumont Beaumont, Texas Attention: Mr. Jeffrey, City Manager Gentlemen: Gulf States Utilities Company respectfully requests the City of Beaumont to grant it a franchise to continue the Company's right to render electric service in the City of Beaumont. The present fran- chise was granted to a predecessor company approximately 75 years ago. Even though the franchise now held by this Company has approxi- mately 22 months before expiration, the fact that this remaining life is of such short duration places a handicap on the Company. The very nature of this Company's business requires that it con- tinuously plan fixed improvements and betterments to be made at great cost. These are feasible only when this Company has the assured right to continue in business in the area where such expensive improvements, and enlargements are made. Further, we must frequently sell securities to obtain funds for our necessary expansion program. We estimate that for the years 1961- 1964, inclusive, a total of $195, 000, 000 will be required to meet this need. Most of this money must b_e obtained from the sale by this Com- pany of its bonds, debentures and stock. One of the material factors considered by potential purchasers of this Company's securities is the period covered by the Company's franchises, and particularly the length of such franchises in the larger cities in which this Company does business. It is customary and advisable for utility companies to market, in order to raise a portion of the needed money, bondswhich provide that the principal amount of such will not be payable until the expiration of thirty years. The sale of these bonds at favorable inter- est rates is hampered unless the Company then holds city franchises ef- fective for a substantial period of time in the future. In addition to the foregoing, various states require annually from the Company evidence that its securities are "top -grade." Investment #2- rating services evaluate and rate the securities sold, and to be sold, by this Company, and furnish such ratings to the buying public. In each in- stance, the rating agency considers city franchises, and the length of their unexpired terms; and this factor has a substantial effect upon the rating given to our security offerings; with the resultant effect upon the rate of interest this Company must pay to procure such funds. In view of the foregoing, it is customary for utility companies to request, from the cities in which they render service, new franchises several years prior to the expiration of their current ones; and it is necessary, for the reasons herein set forth, that this Company request at this time a new franchise from the City of Beaumont. In every Texas town and city in which this Company operates, it has a franchise that ex- tends beyond the expiration date of our current Beaumont franchise. Beaumont is our home city. A substantial percentage of the plant owned by this Company is located in and about. Beaumont. Our top execu- tives, and hundreds of employees, are here. Beaumont is the largest municipality in Texas served by us. It is one of the largest two cities upon the Company's system. Because of these factors, as. well as others, the period of our franchise in the City of Beaumont receives particular scrutiny from the various rating agencies evaluating securities and by the purchasers of: our securities. For some period of time, discussions have been in course between Company attorneys and the City Attorney of Beaumont with reference to the terms of a proposed franchise that would pass t°legal muster" by the City Attorney's department of the City. The instrument handed you here- with has been drafted to conform to objections, criticisms and suggestions made by the City Attorney of Beaumont. - We will be pleased to furnish any additional information that may be desired by you.. Your early consideration of this request will be appre- ciated. Yours very truly, Chairof the Board PUBLISHER'S AFFIDAVIT' THE STATE OF TEXAS ' COUNTY OF JEFFERSON Before me, the undersigned authority, personally appeared R. A. Bean who, being by me duly sworn, says that the foregoing and attached Legal Notice was published on the following dates: September 22. 29, October 6 & 13 A. D_, 19 61 in the BEAUMONT Journal , a daily newspaper printed and published at Beaumont, Jefferson County Texas. 1 // G R. A. Bean, Credit Manager SUBSCRIBED and sworn to before me, this thedJCday, of A. D., 19 � NO TT13— itY and for JeRerson county, Texas EAUMONT JOURNV _I LEGAL NOTICES sau- al payment consisting. of a sum of mo�tey,, ur- equal to 2 aer cent.py The annual gross) eat, receipts of Compony/Within the City oi' eor Beaumont from its electric lighting and th,power sales- for consumption within the p rem corporate limits of the City. Said annual i be payments shall be due and payable on the 1st day of August of each year, and St each shall be computed upon receipts any .? by Company during the twelve months ppent• ending on the June " immediately pre• low- ceding each such annual payment date. Stover Nothing herein shall be construed to bar, > I e limit or abridge any legal right which j�fCon• the City may hereafter have - to ) e v y, , or charge, assess or collect an amount in ex. \pother cess of. 2 per cent of the Company's a such gross receipts for the use by Company of D Gene City's streets, alleys and public way.. in the conduct of Company s business_ -Said npany annual payments above prodided`sti6\P*6e f t ;e, be' exclusive of and in addition "toad valor- f fj raise em taxes. Any and all such annual pay- 81•, that ments mode by Company pursuant to this action shall be credited on any amount C Ycl 3t imposed, levied or assessed a g a f n s i of less Company by the City of Beaumont, pur- suant to ordinance or otherwise, at any dr notice time as a charge (whether designated as N w i t e rental, tax or otherwise) for the use by C I Company of City's streets, alleys a n d public ways. u61ic Section 12. t route of At all times during the continuance of n; lines, the rights herein granted, C o m p a n y ons}ruct• shall keep in its office at the disposal ofl clad 6y and open to inspection by The City oft ^' 11,d main- Beaumont at 611 reasonable times all con• Ojnd .ugh the tracts, books of accounts, and costs and' nable operating records, a full, true, completes easo and cable and accurate account of all monies re-' ,5'.'official te. calved and expended, and liabilities in• Hr may be curred by it in connection with its busi- •. d by the cess in the construction, maintenance and .ti r op they will eration of its properties o p e r a t e d. R hereunder, and also complete statistical C water in records of its business and operations. t the same Licable with Section 13. reets, side- The Company, its successors and as- theregula• signs shall indemnify, save and hold harmless the City from led shall in• any and all -" citation, the claims for injuries and damage to per- ; son or property �o relocation P party occasioned by or arising mom p o n y's out of the construction, reconstruction, dher public maintenance, operation or repair of, said e reasonably Company's electrical lighting and power removal of a system; or by -the. conducting of Com- t change of Pony's business in The City of Beaumont, r; City con• or in any way growing out of the grant- or public ing of this franchise, either .directly or Tompany shall indirectly, or by reason of any act, neg- tjits costs and ligence or nonfeasance of the contractors, raising or agents or employees of Company, its Oiired by City, successors and assigns, and shall refund a, Section 2, if to City all sums which, it may be ad- I reimbursable judged to pay, on any such claim, orl y or the City which may arise or grow out of the exer-' United States cise of the rights and privileges hereby — - jency or- sub• gronted, or by The abuse thereof, and directly or In. Company shall indemnify and hold tile' n shall impose City harmless from and on account of all y to pay such damages, costs, expenses,actions a n dl t to the extent causes of actions that may accrue to or, s United States, be brought by any person, persons, com- r governmental pony or companies at any time hereafter, either, for the by reason of the exercise of the rights, Pe 14,000 nt of same. and privileges hereby granted, or of the abuse thereof; provided, however, t h a t n for .the ry in furnishing the provisions of this section shall not be ill sd u n d e r this applicable to any claims, damages, costs,; which expenses, actions or causes of actions 6 is to the Co._ proximately resulting from the use by jOSil ilege to take up g s, if any, in and City, its officers, agents, representatives and highways in or employees, of Company's poles and vnd such as -may ductlines for the installation, maintenance ream or bridge,['s"tood or removal of City's equipment, as pro- --. •i':`:'i';cinr such a ridge,vided in Section 9. -be necessary; Section 74. Ingranting the thislawfranchise it is under• Power vested by law "e\City to regulate all public utilities ��. and to regulate the local '!as within the City0 , the Constitution and all persons or car-' de the duties and un- srformance, of which' A Wade is reserved; this lest to all the rights, ies either of regulation teed to the City by its, s general laws of .the action 15., an nand privileges shallll not be transferred -ompany except with the 6ty Council of The City pressed by Ordinance tY Council, Section 16, ,II have the right and re• ht at any time. within-five-1