SUBJECT
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Second Reading of Ordinance of the City of Laredo, Texas, granting Medina Electric Cooperative, Inc., its legal representatives, successors, lessees and assigns, as the grantee herein, certain powers, licenses, rights-of-way, privileges and franchise to construct and maintain in the City-of Laredo, Texas, as now or hereafter constituted, an electric power utility system in said city and to use the bridges, other structures, places and public grounds in said city for a period of five (5) years with one (1), five (5) year renewal period subject to renegotiation by the parties; and prescribing certain rights, duties, terms and conditions herein mentioned and providing for the payment to city a percentage of certain receipts of grantee from its operations therein; and providing for the acceptance of this ordinance by grantee; and containing a saving clause, and providing for publications and an effective date.
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PREVIOUS COUNCIL ACTION
Ordinance No. 98-0-195 approved by City Council on August 1998.
BACKGROUND
Medina Electric Cooperative, Inc, has a franchise fee with the City of Laredo (Ordinance No. 98-O-195). The current ordinance is expired; therefore, the City of Laredo proposes a five-year, renewable non-exclusive franchise agreement with Medina Electric Cooperative, granting it the right to construct, operate, and maintain an electric transmission and distribution system within public ways and structures of the city. In exchange for these rights, Medina Electric will pay the city six percent of its gross receipts quarterly, comply with city and state regulations, ensure non-discriminatory service, maintain infrastructure standards, and make a one-time settlement payment for prior obligations. The franchise is contingent upon formal written acceptance and allows for renewal subject to renegotiation. Beginning April 1, 2025, the Cooperative shall pay to the City six percent (6%) of its gross receipts in accordance with this ordinance.
COM...
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