HomeMy WebLinkAbout89-703 03-28-1989RESOLUTION NO. 89 -703
A RESOLUTION URGING THE TEXAS LEGISLATURE TO RAISE THE CAP ON
STREET USE CHARGES FOR ELECTRIC AND GAS UTILITIES.
WHEREAS, Texas cities and towns grant gas and electric utility companies
the privilege of using City property and rights -of -way as the most effective way
to provide services to end user customers; and
WHEREAS, without such privilege, gas and electric companies could not
provide such services and realize profits; and
WHEREAS, Texas cities and towns may charge a fee for the use of their
property under the laws of the State of Texas, and may not constitutionally make
a gift or lend its credit to a private person or entity; and
WHEREAS, in 1941, the Texas Legislature restricted the amount of street use
charge a city or town could charge to an electric or gas utility within the
city, limiting the total charges to two percent (2%) of gross receipts of the
public utility from the sale of gas or electricity within the city, absent an
agreement with the gas or electric company; and
WHEREAS, since 1941, the cost of providing such right -of -way by cities and
towns has increased such that through the passage of time the two percent (2%)
cap compels Texas cities and towns to provide valuable property rights to gas
and electric companies contrary to the Texas constitution, thereby compelling
local taxpayers to subsidize the business operations of the utility companies;
and
WHEREAS, the federal Cable Franchise Policy and Communications Act of 1984
authorizes a franchise fee of up to five percent (5%) of gross receipts for the
operation of a cable television system within a city; and
WHEREAS, several utility companies have voluntarily agreed to pay a street
use charge in excess of the 1941 cap for electric and gas utilities; and
WHEREAS, bill have been filed in the House and Senate (HB 2155 and SB 1040,
respectively) which, if passed, would allow cities to be more fairly compensated
for the use of their properties and rights -of -way;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EULESS,
TEXAS:
I.
That the City Council hereby strongly urges the Texas Legislature to amend
Section 182.025(b) of the Texas Tax Code to allow Texas cities and towns to
charge a fee for the use of city streets, alleys, or public ways by a public
utility up to five percent (5%) of the gross receipts of the public utility for
the sale of gas, electric or water within the city.
II.
That the City Council urges the Texas Legislature to pass either HB 2155 or SB
1040 relating to this issue.
III.
That this resolution shall be forwarded to the Governor, Lieutenant Governor,
Speaker of the Texas House of Representatives, and all members of the local
State Legislative delegation representing the city.
PRESENTED AND PASSED on this 28th day of March , 1989.
' ATTEST:
1 H. Kay God.` y, City Secr e
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Harold D. Samuels, Mayor