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HomeMy WebLinkAboutORD 15-Nn 1 f C l AN ORDINANCE GRANTING A FRANCHISE TO W. L. DICKSON,IHIS SUCCESSORS APTD ASSIGNS, FOR A TERM OF THIRTY (30) YEARS, TO ERECT, CON- STRUCT, MAINTAIN AND OPERATE AN ELECTRIC LIGHT AND POWER PLANT, TRANSMISSION LINES, SUBSTATIONS, AND DISTRIBUTION SYSTEM FOR THE GENERATION, DISTRIBUTION AND SALE OF ELEC- TRICITY FOR LIGHT, HEAT AND POWER AND OTHER SIMILAR PUR- POSES IN AND THROUGH THE CITY OF BEAUMONT, TEXAS, AND TO USE THE STREETS, ALLEYS AND OTHER PUBLIC PLACES THEREOF FOR SUCH PURPOSES; PROVIDING THAT SAID FRANCHISE IS GRANTED UPON THE CONDITION THAT GRANTEE WILL ACQUIRE IN OR NEAR THE CITY OF BEAUMONT A SUITABLE SITE FOR SUCH PLANT AND SHALL START CONSTRUCTION THEREOF WITHIN SIX (6) MONTHS FROM AND AFTER THE PASSAGE HEREOF, AND SHALL PLACE SAME IN OPERATION WITHIN EIGHTEEN (18) MONTHS FROM THE DATE HEREOF; PROVIDING THAT -ALL POLES, WIRES AND OTHER EQUIPMENT SHALL,, WHENEVER POSSIBLE, BE PLACED IN THE ALLEYS AND SHALL BE INSTALLED UNDER THE SUPERVISION OF THE CITY OF BEAUMONT; PROVIDING AN INDEMNITY CLAUSE INDEMNIFYING THE CITY AGAINST ANY NEG- LIGENCE OF GRANTEE; PROVIDING THE MANNER AND METHOD IN WHICH PAVEMENT OF ANY OF THE CITY STREETS MAY BE EXCAVATED AND THAT SUCH WORK SHALL BE DONE UNDER THE SUPERVISION OF THE CITY OF BEAUMONT­ PROVIDING FOR THE MANNER OF FIXING RATES OF ELECTRIC CLIRENNT SOLD; PROVIDING CERTAIN RULES AND REGULATIONS GRANTEE MAY ESTABLISH IN CONDUCTING HIS SAID BUSINESS, AND THAT A DEPOSIT MAY BE REQUIRED TO BEAR 6% INTEREST UNDER CERTAIN CIRCUMSTANCES; PROVIDING THAT THE POLES OF GRANTEE MAY BE USED BY THE POLICE AND FIRE DEPARTMENTS WITHOUT CHARGE,BUT THAT ANY WIRES OR OTHER EQUIPMENT PLACED THEREON SHALL BE AT THE EXPENSE OF THE CITY OF BEAUMONT; PROVIDING THE MANNER AND METHOD THAT GRANTEE SHALL BE REQUIRED TO TEMPORARILY CHANGE HIS POLES OR WIRES IN THE EVENT SUCH IS NECESSARY IN THE MOVING OF ANY BUILDING OR OTHER STRUCTURES, AND PROVIDING THAT THE PERSON MOVING SUCH BUILDING OR OTHER STRUCTURES SFIALT, BEAR SUCH EXPENSE; PROVIDING THAT GRANTEE SHALL HAVE THE RIGHT TO ENTER ANY PUBLIC OR PRIVATE BUILDING DURING REASONABLE HOURS FOR -THE PURPOSE OF READING OR EXAMINING ELECTRIC - METERS; AND PROVIDING. THAT THE CITY OF BEAUMONT MAY PURCHASE SAID ELECTRIC PLANT AT ANY TIME AFTER SUCH LIGHT PLANT HAS BEEN PLACED IN COMMERCIAL OPERATION FOR A PERIOD OF FIVE" (5) YEARS, AND THE CONDITIONS AND MANNER OF SUCH PURCHASE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BEAUMONT: Section 1. There is hereby granted to W. L. Dickson, his successors and assigns, hereinafter referred to as the grantee, for the period of thirty (30) years from and after passage and approval of this ordinance, the privilege, right, authority and permis- sion to maintain and operate an electric light and power plant, transmission lines, substations and distribution. system for the generation, distribution and sale of electricity for heat, 47 light and power. and .other purposes -in the. City of Beaumont, Texas, as its corporate limits now exist or may.hereafter be ,extended,. and to the inhabitants ' thereof; and= the. right to: erect, -constructs maintain.,- .operate -and extend poles, winsulators.,-'b rackets,, .. c ,� ' ab s-' d' e ices, main onduits, c le an oth r conductors. of electricity for supplying electric light- and power under, b eneath' and thro% gh and :upon the . streets,, alleys lanes,. avenues* publi"c grounds and highways yin_ the sai d Citg of Beaumont, Texas.: Section _2. That the rights and., privileges `herein.. given and granted to said -grantee shall continue. to 'him' his, heirs and assigns, for a period of ,thirty (30) years .from date of --the passage of . this ordinance, and thereafter -for such extended term or terms as .may hereafter be granted by.the City of Beaumont,- Texas, Section -3, This franchise- is granted upon . the - condition . that the, grantee will acquire. within or 'near the City' of .Beaumont, Texas, a suitable site,. and construct,. erect -and _continuously - operate thereon an electric light and power plant, generating alternating current and. will 'construct a .new alternating . cur - ,rent -electric distribution system in.the City of,Beaumont,, Texas', and shall commence such. construction within six (6) months fromdate' hereof and substantially place same in. opera;' tion within eighteen (18) months from date hereof.- Section 4.. Whenever any poles, wires, or any other equipment shall be "installed, erected. or cons trusted•: in' the said City ;of Beaumont., Texas, by the grantee, they*shall* whenever possible, be placed in the alleys so as not to interfere unnecessarily with.ordinary traffic. Location of all such -poles, lines and Appliances:. shall be f ixed� under the : sup'ervi sign and direr tion: of _ the. governing authorities. ' of . the City of Beaumont*' Texas, section 5.. The grantee herein, his- successors and -.assigns, shall be liable for, all. damages of. any. character -whatsoever that may result to persons. or property in' the 'City of Beaumont, Texas caused directly or ,indirectly by the negligence of the said grantee., -'his successors and assigns; or their agents, servants, or employees, in.the erection, operation and/or maintenance of said electric system.within said City of Beau- mont., Texas, and the said grantee, his successors and assigns. shall .at all times save and keep harmless -the. City of Beau-. mont from. -gig and a]:1 liability of whatsoever -nature, t ' per- sons or property caused or -brought about by the negligence of said grantee, hiss successors or assigns, or their .agents, servants or,employees, 'Section 6, Whenever said grantee, his ,successors or assigns, in erecting, constructing, or maintaining. said lines- or -poles,` shall take ug or. remove any pavement in any of the streets. avenues,' alleys, lanes-: public grounds, highways or public places in said City, or shall make . ari excavation therein :such excavation shall be immediately refilled and the pave- went.replaced under the direction acid subject to.the approval of, the City of Beaumont; .all -of -such work. -to be performed wholly at.the 'expense of grantee' his.successors or assigns. Section ?. The` Schedule of Rates -'to be 'charged by the grantee_ for electricity supplied.;und'er- this 'franchise shall -be in accordance w3 th such rate ordinances of "the City of.. $eaumont, Texas, as may be in force at thea time of "the'_ Sranting of this_ franchise, or .as may hereafter be enacted by the City Commission of the City of"Beauriont, Texas,'. for -the purpose of fixing or establishing . rates to be eharged. for the supply- ing of such electricity 'to the inhabitants 'of this City. Section .S. The grantee may make and -enforce reasonable rules and regulations in the conduct. of his business, and -may require before furnishing service, the execution of: a contract_ there- for., and may require. each 'consumer within the corporate limits of the City. of Beaumont, -Texas, to pay the -.grantee for the installation of all --meters and connections upon the consumerts premises,. and may .require the placing :of a `.reasonable. -deposit with him by such consumer to secure - the payment for electri- city used, such deposit- not t o exceed Five ($5.00) Dollarslo. Such deposit may be.retained by the -grantee until -service is discontinued, and,all. payments therefor shall have been . made. Grantee shall then. return, said deposit, to the consumer togeth- er with six (6f) .percent interest.'thereon from.,the date of such. deposit,. Interest . shallnot be paid on amounts remaining on -deposit with grantee less than -six (6) consecutive months; grantee shall be entitled'to apply such deposit.with.accrued .interestto any, indebtedness owing.the grantee by the.: consumer making the deposit -9 and when it shall have been -applied to, any indebtedness, electric service shall., at the optift of the grantee, be discontinued .until all of -the indebtedness, of the .consumer is paid and 'a -like deposit is again made to the gran- tee by said consumer. This provision fixing a maximum deposit fee of Five. (0.5.00) Dollars shall only apply to :domest.ic and residential .consumers. For all other classes of service the maximum mnount of deposit' required -shall be a reasonableone based upon the maximum amount of energy reasonably anticipated to be used per month. 5 Section 9. The grantee, when requested by the governing author- ities of the City of Beaumont, Texas, shall permit the poles forming the lines of said system to be used to support wires to be placed thereonfor the. use of the Police and Fire De- partments of said City, without cost to the said City, pro- vided, however, that said City shall place said wires there- on at its own expense and in accordance with the rules or regulations of said grantee covering said connectionse Section 10. Whenever it will be necessary for any person or corpor- ation to move ' along or ;:.:c; across any avenue, street or alley of said town any building of such height or size as to inter- fere with any line or lines of poles of such electric plant erected or maintained by said grantee under the terms of this ordinance, the said grantee shall, upon receiving twenty-four (24) hours notice thereof in writing, temporarily remove all poles. and wires so_ far as may be necessary to allow free pas- sage of such building or structure for a reasonable period of. time not exceeding eight (8) hours. The said grantee shall not be required to remove any poles or wires within two (2) hours before sunset or between sunset and sunrise or on cloudy days whenthe patrons of such electric plant would be seri..aus- ly inconvenienced by loss of light ' and power, and provided further that the person or corporation so moving said building or other structures across or along said avenues, streets, or alley shall pay to the said grantee the cost of the removal and replacement of all poles, wires and other equipment. Section ll. The above named grantee shall have the right, through his agents, servants or employees, to enter any public or private building in the said City of Beaumont, in the daytime - 5 - d�"_Cf d�� for the purpose of examining the electric meters in said build- ing or house in accordance with the regulations which said grantee may establish concerning the use of electricity or elec- tric meters in the houses. and buildings in said City. Section 12. ,As a condition precedent to the granting of this fran- chise to -W. L. Dickson, option to acquire by purchase all of the physical properties, rights, grants, franchise, is hereby re- served to the City of Beaumont, Texas, which option may be exer- cised at any time after five (5) years, after such electric sys- tem is placed in commercial operation, by the payment of a sum of money, such sum to be determined by a board of appraisers, such board to be 'composed of two citizens of Beaumont, Texas, and one other recognized as a competent authority in the matter) of appraising the value of electric light and power systems. In the appointment of such board the City Cormnissiona�ma shall appoint . one, the gran tee hereunder one, and these two shall select the third. Any sum of money agreed upon shall be represented by the legally issued revenue bonds of the City of Beaumont, Texas, pay- able solely from the net revenues of said system, which bonds shall mature within not to exceed twenty-five (25) years and shall bear an interest rate not exceeding five (5/) per cent per annum, provided however., that any time after five (5) years after such system has been placed in operation, and such system is tendered to said City for purchase under this option, and said City failing to exercise such option within six (6) months there- after, such option shall then cease and expire, and the grantee hereunder may thereafter be free to otherwise dispose of said system, franchise, etc. Section 13. The grantee shall have the right and authority to trim such trees as may be necessary to protect its lines and maintain efficient service. -6- x.11-�199-6 Section 14. It is the intention of W. L. Dickson, grantee hereinq to organize under and by virtue of the laws of the State of Texas.. a corporation for the purpose of taking over this fran. chise and carrying out the purpose thereof., and the said W. L. Dickson is hereby expressly granted the power and authority to assign this franchise to said corporation when so organized; but this franchise is granted on the condition that after it' has been so assigned by the said W. L. Dickson to said Texas corporation when organized, that the same will not thereafter be assigned to any person,, firm or corporation during the five (5) year period heretofore set out in Section 12 hereof..' and any attempt to assign said franchise during said period shall forthwith terminate the same and all rights thereunder shall be immediately forfeited. PASSED by an affirmative vote of the City Commission thi s th e� day of A.D. 1940. MAYOR •7� This ordinance submitted to vote of people - See Ordinance No. 16-N for Election Order, etc. i• C. - Awl AN ORDINANCE; ENTITLED AN ORDINANCE PROVIDING THAT A CERTAIN ORDINANCE HERETOFORE PASSED BY THE CITY COMMISSION OF THE CITY OF BEAUMONT ON THE 27TH DAY OF AUGUST, A.D. 1940, GRANTING TO W. L. DICKSON, HIS SUCCESSORS AND ASSIGNS, A FRANCHISE TO CONSTRUCT AND OPERATE AN ELECTRIC LIGHT AND POWER PLANT IN THE CITY OF BEAUMONT,--SHALL NOT TAKE EFFECT UNTIL AFTER IT HAS BEEN SUBMITTED TO THE ELECTORATE IN AN ELECTION HERETOFORE CALLED FOR THAT PURPOSE; ORDERING THAT THE ELECTION HERETOFORE ORDERED TO BE HELD IN THIS CITY ON TO - WIT THE 29TH DAY OF OCTOBER, A.D. 1940, BE HELD IN CONPLI- ArlCE WITH THE ELECTION ORDINANCE PASSED, DATED THE STH DAY OF OCTOBER, 1940; FINDING THAT THE CITY COMMISSION OF THE CITY OF BEAUMONT HAD THE POWER AND AUTHORITY TO CALL A SPECIAL ELECTION IN THE ABSENCE OF ANY PETITION THEREFOR, AND THAT SAID CITY COMMISSION WOULD HAVE CALLED THE SAME OF ITS OWN VOLITION IF THERE HAD NOT BEEN PRESENTEDTO IT A PETITION CONTAINING THREE HUNDRED THIRTY-ONE (331) SIGMA= TURES ON THE 28TH DAY OF.SEPTEMBER, A.D. 1940; RATIFYING AND CONFIRMING THE ACT OF THE CITY COMMISSION IN CALLING All ELECTION FOR THE ABOVE PURPOSE BY All ORDIRMiCE DATED THE STH DAY OF OCTOBER, 1940; PROVIDING THAT IF ANY PART OF THIS ORDINANCE BE HELD INVALID OR UNCONSTITUTIONAL, SUCH HOLDING SHALL NOT AFFECT THE REMAINDER HEREOF; PROVIDING THAT ALL THE EXPENSES OF SAID ELECTION SHALL BE BORNE BY W. L. DICKSON; AND DECLARING AN EMERGENCY. WHEREAS, on to -wit the 27th day of August, A.D. 1940, a certain ordinance was duly passed by the City Com- mission of the City of Beaumont granting to W. L. Dickson, - his successors and assigns, a franchise to construct and operate an electric light ' and power plant in or near the City of Beamont for the purpose of supplying electric cur- rent to the citizens of said city, .the preamble to said or- dinance reading as follows, to -wit: "GRANTING A FRANCHISE TO W. L. DICKSON, HIS SUCCESS- ORS AND ASSIGNS, FOR A TERM OF THIRTY. (30) YEARS, TO ERECT, CONSTRUCT, MAINTAIN AND OPERATE -AN ELEC- TRIC LIGHT AND POWER PLANT, TRANSMISSION LINES, SUBSTATIONS, AND DISTRIBUTION SYSTEM FOR THE GEN- ERATION, DISTRIBUTION AND SALE OF ELECTRICITY FOR. LIGHT, HEAT AND POWER AND OTHER SIMILAR PURPOSES, IN AND THROUGH THE CITY OF BEAUMONT, . TEXAS, AND TO USE THE STREETS, ALLEYS AND OTHER PUBLIC PLACES THEREOF FOR SUCH PURPOSES; PROVIDING THAT. SAID FRANCHISE IS GRANTED UPON THE CONDITION THAT GRANT- EE WILL ACQUIRE IN 01i NEAR THE CITY OF BEAUY1014T A SUITABLE SITE FOR SUCH PLANT AND SHALL START CON- STRUCTIONTHEREOF WITHIN SIX (6) MONTHS FROM AND AFTER THE PASSAGE HEREOF, AND SHALL PLACE SAME IN OPERATION WITHIN EIGHTEEN (18) MONTHS. FROM THE DATE HEREOF; PROVIDING THAT ALL POLES, WIRES AND OTHER EQUIPMENT SHALL, WHENEVER -POSSIBLE., BE PLACED IN THE ALLEYS ,AND SHALL BE INSTALLED UNDER THE SUPERVISION OF THE CITY OF BEAUMONT;. PROVIDING AN INDEMNITY CLAUSE INDEMNIFYING THE CITY AGAINST ANY NEGLIGENCE OF GRANTEE; PROVIDING THE MAMNER AND METHOD IN WHICH PAVEMENT OF ANY OF THE CITY STREETS MAY BE EXCAVATED AND THAT SUCH WORK. SHALL. BE DONE UNDER THE SUPERVISION OF THE CITY OF BEAUMONT; PROVIDING FOR THE MANNER OF FIXING RATES OF ELEC- TRIC CURRENT SOLD; PROVIDING CERTAIN RULES AND REGULATIONS GRANTEE MAY ESTABLISH IN CONDUCTING HIS SAID BUSINESS AND THAT A DEPOSIT MAY BE RE- QUIRED TO BEAR 6% INTEREST UNDER CERTAIN CIRCUM- STANCES; PROVIDING THAT THE POLES OF GRANTEE MAY BE USED BY THE POLICE AND FIRE DEPARTMENTS WITH- OUT CHARGE, BUT THAT ANY WIRES OR OTHER EQUIPMENT PLACED THEREON SHALL BE AT THE EXPENSE OF THE CITY OF BEAUMONT; PROVIDING THE MANNER AND METHOD THAT GRANTEE SHALL BE REQUIRED TO TEMPORARILY CHANGE HIS POLES OR WIRES IN THE EVENT SUCH IS NECESSARY IN THE MOVING OF ANY BUILDING OR OTHER STRUCTURES, AND PROVIDING THAT THE PERSON MOVING SUCH BUILDING OR OTHER STRUCTURES SHALL BEAR SUCH EXPENSE; PRO- VIDING THAT GRANTEE SHALL HAVE THE RIGHT TO ENTER ANY PUBLIC OR PRIVATE BUILDING DURING REASONABLE HOURS FOR THE PURPOSE OF READING OR EXAMINING ELEC- TRIC METERS; AND PROVIDING THAT THE CITY OF BEAU- MONT MAY PURCHASE SAID ELECTRIC PLANT AT ANY TIME AFTER SUCH LIGHT PLANT HAS BEEN PLACED IN COMMER- CIAL OPERATIOiu FOR A PERIOD OF FIVE (5) YEARS, AND THE CONDITIONS AND MANNER OF SUCH PURCHASEo« AND WHEPLEAS, a copy of said ordinance so granted to the said W. L. Dickson, his successors and assigns, is at- tached hereto and by reference made a part hereof for all pur- poses; and'. WHEREAS, the said franchise ordinance was subsequent- ly approved by the City Council of the City of Beautnont at a regular session of said body on to -wit the 10th day of Septem- ber, A.D. 1940; and., WHEREAS, Section 192 subsection 4, of the Charter of the City of Beaumont provides in part that any ordinance passed by the City Commission granting a franchise such as the one hereinabove described, shall not become effective until sixty ( 60) days from and. after its passage by said City Commission; and., WHEREAS, said Section 19, subsection 4, of the City Charter of the City of Beaumont also provides that if at any time before any such ordinance shall finally take effect, a'= petition or petitions shall be presented to the City Commission signed by three hundred (300) of the bona fide qualified voters of the City, then the Comission shall submit the question of the granting of such franchise to a vote of the qualified voters of the City of Beaumont at the next succeeding general election to be held in said City, provided said election is to be held within six (6) months from the date of the submission of said petition; and if such general election is not to be held within said time, then at a special election called for that purpose; and provided further that notice thereof shall be published at least twenty (20) days successively in a daily newspaper published in said city prior to the holding of said election; and, WHEREAS, Section 3 of the franchise ordinance here- inabove described, among other.things, provides that said franchise is granted upon the condition that the grantee, his successors or assigns, shall commence construction within six months from the date thereof, to -wit the 27th day of August, A.D. 1940; and, -2- WHEREAS, on to wit the 28th day of September, .A.D- 1940; at a special session of the City Commission, a petition containing three hundred and thirty-one (331) signatures of bona fide qualified voters of the City of Beaumont was pre- sented and filed with the City Commission; as provided by Section 19, subsection 4,.of the Charter of the City of Beau- mont, requesting that an election be held to determine whe- ther or not the above described franchise should be grant- ed to the said W. L. Dickson; and, WHEREAS, on the 8th day of October, 1940, the City ` Commission ordered an election to be held on the 29th day of October, 1940, in the City of Beaumont, Texas, at which elec- tion it was ordered that there shall be submitted to the vot- ers who are qualified to vote under the Constitution and laws of the State of Texas; the preamble to said ordinance being as follows, to wit: "AN ORDINANCE" "ENTITLED AN ORDINANCE ORDERING AN ELECTION TO BE HELD IN THE CITY OF BEAUMONT, TEXAS, ON THE 29th DAY OF OCTOBER,1 A. D. 1940, UPON THE QUESTION OF WHETHER OR NOT THE CITY SHALL GRANT A FRANCHISE TO ERECT AN ELECTRICAL PLANT FOR THE PURPOSE OF SERVING THE CITY; DESIGNATING THE TIME AND PLACE OF HOLDING SAID ELECTION, _AND APPOINTING ELECTION JUDGES TO PRESIDE OVER THE SAVE; PROVIDING FOR THE VI ER OF HOLDING SAID ELECTION AND FOR GIVING OF NOTICE THEREOF; PRESCRIBING THE QUALIFICATIONS OF VOTERS IN SAID ELECTION; AND DECLARING AN EIM- GENCY. " The City Commission having concluded at said time that the next succeeding general election of the City of Beaumont under the Charter of said city will not be held Until the first Tuesday in April; 1941, which said Tuesday will fall -'on, to wit, the 1st day of April; 19.41, which said date is more than. six (6) months from. and after the said 28th day of September, 1940, the date when said petition was presented and filed with the City Commission, requiring that a special election be held under the charter provision above referred to; and; -3- WHEREAS, on the 16th day of October, 1940, the Gulf States Utilities Company, a corporation, which is now furnishing electric power and current to the City of.Beaumont, Texas, and the citizens thereof., filed a protest with the Mayor of the City of Beaumont, Texas, urging that the charter requirement of three hundred names to the petition above re- ferred to is in conflict with Articles 1181 and 1182 of the Revised Civil Statutes of Texas, 1925, and that the petition for election heretofore filed with the City Commission on the 28th day of September, 1940 was wholly insufficient -to author- ize the City Commission to call said election; and, WHEREAS, there has now been filed on to -wit the 22nd day of October, 1940, another petition containing approximately twenty-five hundred (2500) names of persons purporting to be duly qualified voters of the City of Beaumont, Texas, which said petition was circulated by Gulf States Utilities Company., their agents, employees and friends, and which said petition was presented to said City Commission by and through the rep- resentatives of said Gulf States Utilities Company; and, WHEREAS, said petition so filed and presented by said Gulf States Utilities Company petitions the City Commission of the City of Beaumont to submit to the qualified voters of the City of Beaumont the proposition of whether the aforesaid fran- chise shall be given to the said ill. L. Dickson; and, WHEREAS, under the charter provisions of the City of Beaumont, Texas, being a portion of subdivision 4 of Section 19 thereof, the City Commission in passing an ordinance grant- ing a franchise, may provide therein that it shall not take ef- fect untilt he same shall have been submitted to and approved by a majority of the qualified voters voting thereon at a gen- eral election or a special election called for that purpose; and, WHEREAS., the City Commission of the City of Beaumont had the authority and power to so provide in the franchise and had the authority and power of its own volition to call a special election in the City of Beaumont, submitting to the qualified voters thereof the question of whether the franchise granted to said W. L. Dickson shall take effect.,regardless of whether or not any petition or petitions for said election were filed with the City Commission; and., WHEREAS, the ordinance granting the franchise to said W. L. Dickson has not yet taken effect and no vested rights have accur,ed to the grantee, his successors or assigns by virtue of said franchise; and, WHEREAS, the City Commission of the City of Beaumont would have on its own motion submitted to the' qualified voters of the City of Beaumont the question of whether the franchise granted to said W. L. Dickson shall take effect if there had not been presented to said Commission on the 28th day of Sep- tember a petition therefor; and, WHEREAS., under the terms of the franchise ordinance itself, it will expire on to -wit the 27th day of February, A.D. 1941, unless VT. L. Dickson., his successors or assigns, begins the construction of an electric light and power plant; and, WHEREAS, the said W. L. Dickson could not be expected to invest many thousands of dollars in machinery and other sim- ilar material until all rights were fully invested under the franchise; end., -4- k -JJ La , As Al Fs WHEREAS, the next regular municipal election occurs on to -wit the 1st day of April, A.D. 1941, two months after all rights have expired under Mr, Dickson's franchise, and no election on said franchise could be held at that time; and.. WHEREAS, by reason of the matters hereinabove stated, it is deemed necessary and expedient to hold a special election in the City of Beaumont on October 29th, in conformity with an election ordinance heretofore passed by the City 'Commission on the 8th day of October., A.D. 1940; and, WHEREAS, it became immediately known to the City Com- mission after the franchise ordinance was so granted to the said W. L. Dickson, that the Gulf States Utilities Company in- tended to circulate a referendum petition and file the same be- fore the said franchise ordinance became effective in order to force an election on said project, said information being con- veyed to the City Commission by various and sundry soLirces, from which the Commission determined and so finds that the Gulf States Utilities Company in any event intended to cause to be circulated and filed a referendum petition in order to.force said franchise to an election; and, WHEREAS, on to -wit the 8th day of October, A.D. 19400 at a regular meeting of the City Commission, an ordinance was passed by said body, calling a special election to be held on the 29th day of October, A.D. 1940, to determine whether or not said franchise should be granted to the said W. L. Dickson; and, WHEREAS, after the ordinance calling said election was passed by the City Commission, and within six (6) months of a regular city election, the Gulf States Utilities Company and its attorney for the first time raised the legal proposi- tion with respect to the insufficiency of the number of signa- tures on the original petition filed on September S. 1940, al- though:they had sufficient and ample time to raise such objec- tion prior to the first day of October; and, WHEREAS, thereafter, on to -wit the 22nd day of October, 1940, the Gulf States 'Utilities Company caused a petition to be filed with the City Commission containing the signatures of ample and sufficient number of qualified voters of the City of Beaumont, requesting that an election be held in accordance with the Charter of the City of Beaumont and the laws of the State of Texas, on the franchise matter, and said Gulf States Utilities Company contend that said election should be held on the lst day of April, 1941,at a time when such franchise by its own.terms will have expired together with all rights there- under; and, WHEREAS, the City Commission is of the opinion and so finds, that said petition was caused to be circulated by the Gulf States Utilities Company,and is of the opinion that such action on the part of said company constituted a violation of our anti-trust laws and especially Article 7428a of tI*B Revised Civil Statutes of Texas, 1925, but does not know whether such violation would have the effect of invalidating said petition or not; and, YE EREAS, if said petition be valid, the City Commission is of the opinion that said petition so filed by the Gulf States Utilities Company cured all defects complained of by said com- pany with respect to insufficiency of signatures on the original petition; and, -5- i Al WHEREAS, there is considerable doubt as to the con- stitutionality of Articles 1181 and 1182 of the Revised Civil Statutes of Texas,- providing for five hundred (500) names on a referendum. petition of this character, and providing for the manner and procedure with respect to the election to follow, for the reason among other things, that said statutes say that when a petition is filed, a franchise ordinance does not become effective until after the election, and in the. -very next breath say that no such election shall ever be held until the ordinance does become effective; and, WHEREAS, the City Commission is of the opinion that it has authority under the terms of Section 19, subsection 4, of its Charter, of its own motion to refer the franchise matter to the vote of the people, irrespective of any petition; and, WHEREAS, Articles 1181 and 1182 of the Revised Civil Statutes, 1925, when construed together, are ambiguous and un- certain, and the City Commission of the City of Beaumont does not know how the same will be construed by the court of last resort in this state, and does not know whether .under said Article 1182 said election should be called on the first Tues- day in April of 1941, or when the same should be called; and -I WHEREAS, if the Legislature meant this election to be had at a "general election" which is to occur on the 5th day of November, 1940, then and in that event the City Commis- sion is wholly without power or authority to place this question on the official ballot, and as a matter of fact the City Com- mission is wholly. unable to understand what said statutes do mean and, therefore, deem it advisable to proceed under the provisions of its City Charter and also to comply with the state statutes in so far as such a compliance may be possible; and, WHEREAS, the City Commission has heretofore made due publication of the ordinance calling said special election on to -wit the 29th day of October, A.D. 1940, in the newspaper and will continue to make such publication so as to completely comply with the statute with reference to publication of such notice, and in addition thereto will have completely complied with the charter provisions of the City of Beaumont with respect to said notice, and in addition thereto has caused notices of said election to be posted in each voting precinct in the City, which said notices will have been posted twenty (20) days prior to the time of holding said election, when said election is held. Moreover,' the City Commission is of the opinion based upon com- petent, ample and sufficient evidence, and so finds as a fact, that there has been abundant articles and advertisements pub- lished in the daily newspapers fully advising the people with respect to the approaching election and fully advising the people with respect to exactly what is to be voted on at said election. That the City Commission has made an investigation and finds as a fact that all of the citizens of the City of Beaumont are well aware of all of the facts with respect to the approaching election, and that they are well aware of the fact that the polls will be open,as required by law on to -wit, the 29th day of October, 1940, and that each and every citizen qualified to vote at said election will be permitted to cast his ballot; and, WHEREAS, the said ill. L. Dickson has agreed to pay all the costs of the election heretofore ordered to be held on the 29th day of October, 1940, and if another election is called at another date, or if the matter be submitted to a vote on any general election day, it will be necessary for the City to bear the expenses of said election; and, -6- FM 1=REAS, the City deems it advisable to hold this election at a time and on a date when it will not cost the City any amount of money; and, WHEREAS, due to the fact that the present utility company supplying electric current to the citizens of this city is, and has been for many years, charging an exorbitant rate; and, WHEREAS, it is deemed necessary to pass this ordinance at once in order to clear up .and correct any irregularities that might hereafter or have heretofore existed with respect to the approaching election, the Commission is of the opinion that this is an emergency measure necessary for the immediate preservation of the public peace, property, .health and safety, to the end that this ordinance may and should be passed finally on the date of its introduction, and that it be effective im- mediately upon and after its final passage; and NOW, THEREFORE, the City Commission of the City of Beaumont finds; (1) That it had the power and authority to call a special election at which there would be submitted to the qualified voters of the City of Beaumont, the proposition of whether a franchise should be granted to said W. L. Dickson in the absence of any petition or petitions therefor, and had the power and authority to make said franchise effective only after the same was submitted to and approved by a majority of the qualified voters voting thereon at a special election called by the City Commission f or that purpose; (2) There are now before the City Commission of the City of Beaumont petitions containing approximately twenty- seven hundred names of the qualified voters of the City of Beaumont, Texas, asking that the question of granting said franchise be submitted to a vote of the people, and the City Commission is willing and anxious that it be so submitted; (3) Due and proper notice of an election was, on the Sth day of October, 1940, duly posted in each of the elec- tion precincts of the City of Beaumont and said notice has been published in a newspaper of general circulation, namely, The Beaumont Enterprise, published daily in the City of Beau- mont, Texas, continuously from the 9th day of October, 1940, up to and including the present date; (4) In addition there have appeared in the news- papers of the City of Beaumont from time to time advertisements and newspaper articles concerning said election, and the duly qualified voters of the City of Beaumont have actual knowledge and notice that an election will be held on the 29th day of October, 1940, and no one can be misled or deprived of the right to vote at said election; (5) By holding the election on the 29th day of October, A.D. 1940, as originally ordered, no expense in -con- nection therewith will be incurred by the City of Beaumont; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BEAUMONT: -7- &)0. 1 --Al Section 1, That the ordinance heretofore passed on to -wit the 27th day of August, A.D. 1940, granting to W. L. Dickson a franchise to construct and operate an electric light and power plant in or near the City of Beaumont and to supply electric current to the citizens of said City, not take effect until after it has been submitted to and approved -by a majority of the qualified voters voting in en election called for that pur- pose. Section 2. That the election heretofore referred to in Section 1 hereof shall, and the same is hereby ordered to be held in this City on to -wit, the 29th day of October., A.D. 1940, in compliance with that certain ordinance heretofore passed by the City Commission on to -wit, the 8th d ay of October, A.D. 1940, the preamble to said ordinance being as follows, to -wit: "ENTITLED AN ORDINANCE ORDERING -AN ELECTION TO BE HELD IN THE CITY OF BEAUMONT, TEXAS,, ON THE 29TH DAY OF OCTOBER, A.D. 1940, UPON THE QUESTION OF VEIETHER OR NOT THE CITY SHALL GRANT A FRANCHISE TO ERECT AN ELECTRICAL PLANT FOR THE PURPOSE OF SERVING THE CITY; DESIGNATING THE TIME AND PLACE OF HOLDING SAID ELECTION, ;AND APPOINTING ELECTION JUDGES TO PRESIDE OVER THE SAME; PROVIDING FOR THE MANNER OF HOLDING SAID :ELECTION AND FOR GIVING OF NOTICE THEREOF; PRESCRIBING THE QUALIFICATIONS OF VOTERS IN SAID ELECTION; AND DECLARING AN EMERGENCY.11 It being the intention of the City Commission under the two pre- ceding paragraphs to submit the ma tier of granting the above de- scribed franchise to W. L. Dickson to the electorate in said election., based on all other authority reposed in it and also of its own motion under Section 19, subsection 4., of the City Charter and independent of any referendum petition heretofore filed with the City Com-aission. Section 3. That in addition to and cumulative of the foregoing sections of this ordinance, in view of the fact that the Gulf States Utilities Company has cured all defects which may have heretofore existed with respect to an insufficiency of N . •. T signatures on the original petition filed with the City Com- mission, it is ordered that said election proceed according to the terms of that certain ordinance dated the 8th day of October, A.D. 1940, heretofore passed by the City Commission, above referred to, and that all of the mtters contained in said ordinance be, and they hereby are in all things ratified and confirmed. Section 4. That the said W. L. Dickson, in conformity with his agreement with the City of Beaumont, pay all valid election exp enses incurred by said city in the holding of -said election on October 29, 1940e Section 5. That in the event any part and/or parts of this or- dinance be held invalid or unconstitutional in as y court of competent jurisdiction, such holding shall not affect the re- mainder hereof, end such provisions and/or parts of provisions of this ordinance not expressly held to be invalid, shall re- main in full force and effect$ Section 6e The fact that the present franchise holder offering electric current and electric service for sale in the City of Beaumont is charging high and exorbitant rates for such service, and the fact that the matters covered by this ordinance are deemed necessary in order to correct certain asserted irregu- larities in the election to be held on October 29, A.D. 1940; the fact that the election may be held on October 29, 1940,, without expense to the City of Beaumont; the fact that any delay in holding the election will be costly to the City of Beaumont and the inhabitants thereof; and the fact that the election machinery to hold said election on October 29, 1940, has been set up and practically all preparations made therefor, creates an imperative public emergency, necessitating the sus- pension of the rule requiring that ordinances be read on three -9- d0--19ga ~ lV separate days before the passage thereof and, therefore, said rule is hereby suspended and this ordinance shall take effect immediately from and after the date of its passage, and it is so ordained, PASSED AND APPROVED by an affirmative vote of all members of the City Commission of the City of Beaumont this the 23rd day of October, A,D, 19400 MAYOR .. w 1 - ", AN ORDINANCE GRANTING A FRANCHISE TO W. L. DICKSON, HIS SUCCESSORS 2'ND ASSIGNS, FOR A TERM OF THIRTY (30) YEARS, TO ERECT, CONSTRUCT, M.U. NTAIN AND OPERATE 1W ELECTRIC LIGHT AND POWER PLANT, TRANSMISSION LINES, SUB- STATIONS, AND DISTRIBUTION SYSTEM FOR THE GENERATION, DISTRIBUTION AND SALE OF ELECTRICITY FOR LIGHT, HLIT AND POWER AND 0TH"IR SIMILAR PURPOSES IN AND THROUGH THE CITY OF BEAUMONT, TEXAS, AND TO USE THE STREETS, ALLEYS AND OTHER PUBLIC PLACES THEREOF FOR SUCH PURPOSES; PROVIDING THAT SAID FRANCHISE IS GRANTED UPON THE CONDITION THAT GRANTEE WILL ACQUIRE IN OR NEAR THE CITY OF BEAUMONT A SUITABLE SITE FOR SUCH PLANT AND SHALL START CONSTRUCTION THEREOF WITHIN SIX (6) MONTHS FROM AND AFTER THE PASSAGE HEREOF, AND SHALL PLACE SAME IN OPERATION WITHIN EIGHTEEN (16) MONTHS FROM THE DATE HEREOF; PROVID- ING THAT ALL POLES, WIRES AND OTHER EQUIPMENT SHALL, WHENEVER POS- SIBLE, BE PLACED IN THE ALLEYS AND SHALL BE INSTALLED UNDER THE SUPERVISION OF THE CITY OF BEAUMONT; PROVIDING .'sN INDEMNITY CLAUSE INDEMNIFYING THE CITY AGAINST ANY NEGLIGENCE OF GRANTEE; PROVIDING THE MANNER AND METHOD IN WHICH PAVEi'`�liENT OF ANY OF THE CITY STREETS MAY BE EXCAVATED AND THAT SUCH WORK SHALL BE DONE UNDER THE SUPER- VISION OF THE CITY OF BEAUMONT; PROVIDING FOR THE MANNER OF FIXING RATES OF ELECTRIC CURRENT SOLD; PROVIDING CERTAIN RULES AND REGULA- TIONS GRANTEE MAY ESTABLISH IN CONDUCTING HIS SAID BUSINESS AND THAT A DEPOSIT ikUff BE REQUIRED TO BEAR 6% INTEREST UNDER CERTAIN CIRCud- STANCES; PROVIDING THAT THE POLES OF GRANTEE MAY BE USED BY THE POL- ICE AND FIRE DEPARTMENTS WITHOUT CHARGE, BUT THAT ANY WIRES OR OTHER EQUIPMENT PLACED THEREON SHALL BE AT THE EXPM\ISE OF THE CITY OF BEAU- MONT; PROVIDING THE MANNER AND METHOD THAT GRANTEE SHALL BE REQUIRED TO TEMPORARILY CHANGE HIS POLES OR WIRES IN THE EVENT SUCH IS NECES- SARY IN THE MOVING OF ANY BUILDING OR OrniER STRUCTURES, AND 'ROVID- ING THAT THE PERSON MOVING SUCH BUILDING OR OTHER STRUCTURES SHALL BEAR SUCH EXPENSE; PROVIDING THAT GRANTEE SHALL HAVE THE RIGHT TO ENTER ANY PUBLIC OR PRIVATE BUILDING DURING REASONABLE HOURS FOR THE PURPOSE DF READING OR EXIT 4INING ELECTRIC METERS; AND PROVIDING THAT THE CITY OF BEAU'AONT 111AY �'URCHASE SAID ELECTRIC PLANT AT ANY TIME AFTER SUCH LIGHT PLANT HAS BEEN PLACED IN COMMERCIAL OPERATION FOR A PERIOD "J -F FIVE (5) YFJ-d-ZS, AND THE CONDITIONS AND MANNER OF SUCH PURCHASE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BEAUMONT: Section 1. There is hereby granted to W. L. Dickson, his successors and assigns, hereinafter referred to as the grantee, for the period of thirty (30) years from and after pass:Ze and approval of this ordi- nance, the privilege, right, authority and permission to _maintain and operate an electric light and power plant, transmission lines, sub- stations and distribution system for the generation, distribution and sale of electricity for heat, light and power and other purposes in the City of Beaumont, Texas, as its corporate limits now exist or may hereafter be extended, and to the inhabitants thereof; and the right to erect, construct, maintain, operate and extend poles, wires, insulators, brackets, main conduits, cables and other conductors of electricity for supplying electric light and power under, beneath and through and upon the streets, alleys, lanes, avenues, public grounds and highways in the said City of Beaumont, Texas. Section. 2. That the rights and privileges herein given and granted to said grantee shall continue to him, his heirs and assigns, for a period of thirty (30) years from date of the passage of this ordinance, and thereafter for such extended term or terms as may hereafter be grant- ed by the City of Beaumont, Texas. -1- r Section 3. This franchise is granted upon the condition that the grantee will acquire within or near the City of Beaumont, Texas, a suitable site, and construct, erect and continuously operate thereon an elec- tric light and power plant, generating alternating current, and will construct a new alternating current electric distribution system in the City of Beaumont, Texas, and shall commence such construction within six (6) months from date hereof and. substantially place same in operation within eighteen (18) months from date hereof. Section 4. Whenever any. poles, wires, or any other equipment shall be in- stalled, erected or constructed in the said City of Beaumont, Texas, by the grantee, they shall, whenever possible, be placed in the al- leys so as not to interfere unnecessarily with ordinary traffic, Lo- cation of all such poles, lines and appliances shall be fixed under the supervision and direction of the governing authorities of the City of Beaumont, Texas. Section 5. The grantee herein, his successors and assigns, shall be liable for all damages of any character whatsoever that may result to per- sons or property in the City of Beaumont, Texas, -caused directly or indirectly by the negligence of the said grantee, his successors and assigns, or their agents, servants, or employees, in the erection, operation and/or mainte;i; Heti of said electric system within said City of Beaumont, Texas, and the said grantee, his successors and as- signs shall at all times save and keep harmless the City of Beaumont from any and all liability of whatsoever nature, to persons or pro- perty caused or brought about by the negligence of said grantee, his successors or assigns, or their agents, servants or employees. Section 6. Whenever said grantee, his successors or assigns, in erecting, constructing, or maintaining said lines or poles, shall take up or remove any pavement in any of the streets, avenues, alleys, lanes, public grounds, highways or public places in said City, or shall make an excavation therein, such excavation shall be immediately re- filled and the pavement replaced under the direction and subject to the approval of the City of Beaumont; all of such work to be per- formed wholly at the expense of grantee, his successors or assigns. Section 7. The Schedule of Raters to be charged by the grantee for elec- tricity supplied under this franchise shall be in accordance with such rate ordinances of the City of Beaumont, Texas, as may be in force at the time of the granting of this franchise, or as may here- after be enacted by the City Commission of the City of Beaumont, Tex- as, for the purpose of fixing or establishing rates to be charged for the supplying of such electricity to the inhabitants of this City. Section 8. The grantee may make and enforce reasonable rules and regula- tions in the conduct of his business, and may require before furn- ishing service, the execution of a contract therefor, and may require each consumer within the corporate limits of the City of Beaumont, Texas, to pay the grantee for the installation of all meters and con- nections upon the consumer's premises, and may require the placing of a reasonable deposit with him by such consumer to secure the payment for electricity used, such deposit not to exceed. Five (�,,5.00) Dollars, Such deposit may be retained by the grantee until service is discon- tinued, and all payments therefor shall have been made. Grantee shall then return said deposit to the consumer together with Six (6%) per- cent interest thereon from the date of such deposit. Interest shall not be paid on amounts remaining on deposit with grantee less than -2- /s/V � a'? --19 �_d six (6) consecutive months; grantee shall be entitled to apply such deposit with accrued interest to any indebtedness owing the grantee by the consumer making the deposit, and when it shall have been ap- plied to any indebtedness, electric service shall, at the option of the grantee, be discontinued tntil all of the indebtedness of the consumer is paid and a like deposit is again made to the grantee by said consumer. This provision fixing a maximum deposit fee of Five ($5.00) Dollars shall only apply to domestic and residential con- sumers. For all other classes of service the maximum amount of de- posit required ,shall be a reasonable one based upon the maximum a- mount of energy reasonably anticipated to be used per month. Section 9. The grantee, when requested by the governing authorities of the City of Beaumont, 'Texas, shall permit the poles forming the lines of said system to be used to support wires to be placed thereon for the use of the Police and Fire Departments of said City, without cost to the said City, provided, however, that said City shall place said wires thereon at its own expense and in accordance with the rules or regulations of said grantee covering said connections. Section 10. Whenever it will be necessary for any person or corporation to move along or ;:- ac ross any • avenue, street or alley of said tovim any building of such height or size as to interfere with any line or lines of poles of such electric plant erected or maintained by said grantee under the terms of this ordineance, the said grantee shall, upon re- ceiving twenty-four (24) hours notice thereof in writing, temporarily remove all ;poles and wiry s so far as may be necessary to allow free passage of such building or structure for a reasonable period of time not exceeding eight (8) hours.. The said grantee shall not be requir- ed to remove any poles or wires within two (2) hours before sunset or between sunset and sunrise or on cloudy days when the patrons of such electric plant would be seriously inconvenienced by loss of light and power, and i')rovided further that the person or corporation so moving said building or other structures across or along said avenues, streets, or alley shall pay to the said grantee the cost of the removal and replacement of all poles, wires and other equip- ment. Section 11. The above named grantee shall have the right, through his agents, servants or employees,"to enter any public or private building in the said City of Beaumont, in the daytime for the purpose of examin- ing the electric meters in said building or house in accordance with the regulations which said grantee may establish concerning the use of electricity or electric meters in the houses and buildings'in said City. Section 12. As a condition precedent to the granting of this franchise to W. L. Dickson, option to acquire by purchase all of the physical properties, rights, grants, franchise, is hereby reserved to the City of Beaumont, Texas, which option may be exercised at any time after five (5) years, after such electric system is placed in commercial operation, by the payment of a sum of money, such sum to be determin- ed by a board of appraisers, such board to be composed of two citi- zens of Beaumont, exas, and one other recognized as a competent auth- ority in the; matter of appraising the value of electric light and power systems. In the appointment of such board the City Commission shall appoint one, the grantee hereunder one, and these two shall select the third. Any sum of money agreed upon shall be represented by the legally issued revenue bonds of the City of Beaumont, Texas, payable solely from the net revenues of said system, which bonds shall mature within not to exceed twenty-five (25) years and shall bear an interest rate not exceeding five (5%) l)er cent per annum, provided however, that any time after five (5) years after such system ha: -s -3- C9-� cC, JS"� lel been placed in operation, and such system is tendered to said City for purchase under this op{tion, and said City failing to exercise such option within six (61 months thereafter, such option shall then ease and expire, and the grantee hereunder may thereafter be free to otherwise dispose of said system, franchise, etc. Section 13. The grantee shall have the right and authority to trim such trees as may be necessary to protect its lines and maintain efficient service. Section 14. It is the intention of W. L. Dickson, granted herein, to or- ganize under and by virtue. of the laws of the State of Texas, a corl)orat :on for the purpose of taking over this franchise and carry- ing -jut the purpone thereof, and the said W. L. Dickson is hereby expressly granted the power and authority to assign this _Franchise to said corporation when so organized; but this franchise is granted on the condition 'that after it has been so assigned by the said. W. L. Dickson to said Texas corporation when organized, that the same will not thereafter be assigned to -my 1)erson, firm or corpora- tion during the five (5) year L)eriod heretofore set c;ut in Section 12 hereof, and any attempt to assign said franchise during said period shall forthwith terminate the same and all rights thereunder shall be immediately forfeited. PASSED by an affirmative v:)te of the City Commission this the 27th day of August, A. D. 1940. /s/ GEO. W. MORGAN -Mayor- r-