City of Canyon Commission Meetings

AGENDA NOTICE OF MEETING May 4, 2020 at 4:30 p.m. City of Canyon City Commission Regular Meeting will take place via Video Conference. Notice is Hereby Given in Accordance with the Order of the Office of the Governor Issued March 16, 2020. A Regular Meeting of the Governing body of the City of Canyon will be Held at 4:30 p.m. on the 4th day of May 2020, in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon by Video Conference (In Order to Advance the Public Health Goal of Limiting Face-to-Face Meetings Also Called “Social Distancing” to Slow the Spread of the Coronavirus /COVID-19. There will be No Public Access to the Location Described Above. The video meeting is hosted through Zoom. It will also be broadcast on YouTube but there will be no interaction through YouTube, an interpreter will not be available. YouTube does provide closed captioning on the recorded video, it is not provided real-time. The link to YouTube will also be posted on the City of Canyon Facebook and website. If you wish to have the ability to ask questions, you must join the Zoom meeting at: https://us02web.zoom.us/j/705319857 Use the Q and A button to ask your questions. Those wishing to address the City Commission regarding Public Comment or a Public Hearing are asked to complete the Speaker Registration card and submit it no later than 4:00 pm the day of the posted meeting. You will be required to provide your phone number on the form. The Mayor will indicate that those wishing to address the City Commission be unmuted to speak at the appropriate time. The Speaker Registration Card has complete details on rules for Public Comment and Public Hearings. The meeting will be recorded and the recording will be available to the public in accordance with the Open Meetings Act upon written request. 1. Call to Order. 2. Invocation. 3. Pledge of Allegiance. 4. Approval of the Minutes of the Meeting of April 20, 2020. 5. Approval of the Minutes of the Emergency Meeting of April 29, 2020. 6. Public Comment – Comments from Interested Citizens 7. First of Three Required Readings of Ordinance No. 1125, First Amendment to Atmos Energy Franchise Agreement. 8. First of Three Required Readings of Ordinance No. 1126, First Amendment to SPS Franchise Agreement. 9. Adjourn. City of Canyon  Joe Price Joe Price, City Manager I certify that the above Notice of Meeting was posted on the bulletin board of the Civic Complex of the City of Canyon, Texas on the 1st day of May 2020. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting April 20, 2020 The City Commission of the City of Canyon ,met at 4:30 p.m. in the City Commission Chambers of the Civic Complex with the meeting broadcast through YouTube. Mayor Gary Hinders presided over the meeting with the following Commissioners in attendance, Mayor Pro-Tem Cody Jones, Roger Remlinger, Randy Ray, and Paul Lyons. Also present were the following City Staff: City Manager Joe Price, Assistant City Manager Jon Behrens, City Secretary Gretchen Mercer, IT Manager Shaun Holtman, Business and Community Development Director Evelyn Ecker, Planning and Development Director Danny Cornelius, Chief of Police Steven Brush, Planning and Zoning Commission Chair Bill Craddock, City Engineer Dwight Brandt, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Hinders called the meeting to order at 4:37 p.m. Item 2. Invocation. Commissioner Randy Ray gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Commissioner Lyons. Item 4. Approval of Minutes of the Special Meeting of April 13, 2020. Mayor Pro-Tem Jones moved, duly seconded by Commissioner Remlinger to approve the minutes of April 13, 2020 as presented. Motion carried unanimously. Item 5. Public Comment – Comments From Interested Citizens. No Public Comments were made. Item 6. Swear in Canyon Police Chief Steven Brush. City Attorney Chuck Hester administered the Oath of Office to Canyon Police Chief Steven Brush. Item 7. Update on COVID-19. City Manager Joe Price gave an update on COVID-19 cases and policies in place to maintain preventative measures to the spread of the virus. Casie Stoughton and Dr. Milton of Amarillo Public Health, and Dr. Crossland representing Canyon with Public Health gave brief updates and answered questions. Item 8. Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 05-2020 to Consider a Funding Agreement Between the Canyon Economic Development Corporation and All Who Wander LLC, Relating to the Property Located at 1601 4th Avenue, Canyon, Texas. The Funding is Based on Business Development. City Commission Meeting April 20, 2020 Page 2 of 5 Business and Community Development Director Evelyn Ecker presented Resolution No. 05-2020 for the second and final reading. Ms. Ecker stated the new business will hire 5-6 employees and the funding agreement was based on the Texas Workforce Commission quarterly report filing for wages paid. Ms. Ecker said the incentive is 10% of the total payroll reported, not to exceed $42,000. Ms. Ecker said the incentive is capped at $42,000 or three years, whichever came first. Mr. Gaylosh would like to have the store opened before Memorial Day weekend. After discussion, Commissioner Remlinger moved, duly seconded by Commissioner Ray to adopt Resolution No. 05-2020 as presented. Motion carried unanimously. RESOLUTION NO. 05-2020 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING PROJECT FUNDING AGREEMENT BETWEEN ALL WHO WANDER, LLC AND CANYON ECONOMIC DEVELOPMENT CORPORATION RELATING TO THE PROPERTY LOCATED AT 1601 4TH AVENUE, CANYON, TEXAS. THE FUNDING IS BASED ON NEW BUSINESS DEVELOPMENT. Item 9. Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 06-2020 to Consider a Funding Agreement Between the Canyon Economic Development Corporation and Bean & Burr Coffee Lab., LLC, Relating to the New Business to be Established in Canyon, Texas.. Business and Community Development Director Evelyn Ecker presented Resolution No. 06-2020 for consideration. Ms. Ecker said the owners are investing approximately $240,000 for start-up cost and will create 6-8 new jobs in Canyon. Ms. Ecker stated the funding for the project has been capped at $70,600 and includes job incentives and direct financial assistance. After discussion, Commissioner Remlinger moved, duly seconded by Mayor Pro-Tem Jones to adopt Resolution No. 06-2020 as presented. Motion carried unanimously. RESOLUTION NO. 06-2020 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING A PROJECT FUNDING AGREEMENT BETWEEN BEAN & BURR COFFEE LAB, LLC AND CANYON ECONOMIC DEVELOPMENT CORPORATION RELATING TO THE NEW BUSINESS TO BE ESTABLISHED IN CANYON, TEXAS. Item 10. Conduct a Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1123, An Ordinance of the City Commission of the City of Canyon, Texas, Rezoning Canyon East Unit No. 8, An Addition to the City of Canyon, Randall County, Texas, Providing That the Zoning Classification Be Posted Upon the Zoning District Maps of the City of Canyon, Providing That All Ordinances or Parts of Ordinances in Conflict Herewith are Expressly Repealed, and Providing For An Effective Date. City Commission Meeting April 20, 2020 Page 3 of 5 Director of Planning and Development, Danny Cornelius, presented Ordinance No. 1123 for consideration. Mr. Cornelius said Daryl Furman, representing Kuhlman and Sons, LP submitted an application for a change of zoning for Canyon East Unit No. 8from SF-A (Single-Family Agricultural Residential District) to SF-S (Single-Family Suburban Residential District). Mr. Cornelius stated letters were sent to 17 property owners within 200’ of proposed zoning change with 1 response in support and 3 responses opposed. Mr. Cornelius stated Larry Wilhite representing the developers was present to answer questions. Mr. Cornelius stated the Planning and Zoning Commission voted unanimously to recommend approval of the zoning change. Mayor Hinders opened the public hearing. There being no comments, Mayor Hinders closed the public hearing. After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Remlinger to approve Ordinance No. 1123 rezoning Canyon East Unit No. 8 as presented. Motion carried unanimously. ORDINANCE NO. 1123 Canyon East Unit No. 8 Zoning AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS, REZONING CANYON EAST UNIT NO. 8, AN ADDITION TO THE CITY OF CANYON, RANDALL COUNTY, TEXAS, PROVIDING THAT THE ZONING CLASSIFICATION BE POSTED UPON THE ZONING DISTRICT MAPS OF THE CITY OF CANYON, PROVIDING THAT ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH ARE EXPRESSLY REPEALED, AND PROVIDING FOR AN EFFECTIVE DATE. Item 11. Consider and Take Appropriate Action on a Plat for Canyon East Unit No. 8. Planning and Development Director Danny Cornelius presented a Plat for Canyon East Unit No. 8. Mr. Cornelius stated with the approved zoning change, the plat would be considered. Mr. Cornelius said there are a total of 49 single-family lots proposed. Mr. Cornelius stated there are two drainage easements that would carry drainage east from River and CM Lanes that would be approved with the proposed plat. Mr. Cornelius said the Planning and Zoning Commission voted unanimously to recommend approval of the plat for Canyon East Unit No. 8. After discussion, Commissioner Ray moved, duly seconded by Commissioner Remlinger to approve the plat for Canyon East Unit No. 8 and the attached drainage easements as recommended. Motion carried unanimously. Item 12. Consider and Take Appropriate Action on Resolution No. 07-2020, A Resolution Approving an Interlocal Cooperation Contractual Agreement Between the PRPC and City of Canyon for Contractual Services of Grant Application Preparation and Potential Grant Administration of its 2020 Main Street Application for Community Development Funds. City Commission Meeting April 20, 2020 Page 4 of 5 Assistant City Manager Jon Behrens presented Resolution No. 07-2020 for consideration. Mr. Behrens stated in order to apply for the Texas Department of Agriculture Downtown Revitalization and Main Street Program Grant, the Texas Department of Agriculture requires the city and the PRPC to enter into an Interlocal Agreement prior to PRPC performing any grant activities for the city per Chapter 791 of the Texas Local Government Code. Mr. Behrens said City Staff will work closely with the PRPC and selected engineering firm to develop a plan and scope for the improvements around the Square. Mr. Behrens said there will be no cost to the city for this phase of the application, but if the city received the grant there would be required matching funds of $75,000 to receive $500,000 and the match would go towards grant funding for a total project fund of $575,000. After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Ray to adopt Resolution No. 07-2020 as presented. Motion carried unanimously. RESOLUTION NO. 07-2020 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING AN INTERLOCAL COOPERATION CONTRACTUAL AGREEMENT BETWEEN THE PRPC AND THE CITY OF CANYON FOR CONTRACTUAL SERVICES OF GRANT APPLICATION PREPARATION AND POTENTIAL GRANT ADMINISTRATION OF ITS 2020 MAIN STREET APPLICATION FOR COMMUNITY DEVELOPMENT FUNDS. Item 13. Consider and Take Appropriate Action on Proposed Agreement for Credit and Debit Card Processing Services With OpenEdge Payments LLC, A Division of Global Payments Direct, Inc. City Attorney Chuck Hester presented an agreement with OpenEdge Payments LLC as recommended by Tyler Technologies. Mr. Hester stated Tyler Technologies is actively working with OpenEdge and they have a lot of experience with credit and debit processing relevant to the city. Mr. Hester stated OpenEdge, a division of Wells Fargo, is recommended by Tyler Technologies to handle credit and debit transactions for the city. After discussion, Commissioner Remlinger Moved, duly seconded by Mayor Pro-Tem Jones to approve the agreement for credit and debit card processing services with OpenEdge Payments LLC, a division of Global Payments Direct, Inc. Motion carried unanimously. Item 14. Consider and Take Appropriate Action on Interlocal Agreement for Jail Services with Randall County. City Attorney Chuck Hester presented an Interlocal Agreement between the City of Canyon and Randall County for Jail Services. Mr. Hester stated the proposed agreement is modeled after the agreement between Randall County and the City of Amarillo with the exception of bed minimums, which Canyon does not have to meet. Mr. Hester said the city would pay a rate of $75 per day, the same rate charged to other entities who contract with Randall County for Jail services. City Commission Meeting April 20, 2020 Page 5 of 5 After discussion, Mayor Pro-Tem Jones moved, duly seconded by Commissioner Remlinger to approve the Interlocal Jail Services Agreement with Randall County. Motion carried unanimously. Item 15. Executive Session Pursuant to §551.071 Consultation with Attorney. Mayor Hinders indicated the Commission would adjourn into Executive Session at 5:39 p.m. Item 15. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from Executive Session at 6:27 p.m., no action was taken. Item 16. Adjourn There being no further business, Mayor Pro-Tem Jones moved this meeting be adjourned. ______________________________ Gary Hinders, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary City Commission Meeting April 29, 2020 The City Commission of the City of Canyon ,held an Emergency Meeting at 4:30 pm via Zoom and broadcast by YouTube pursuant to Government Code Section 551.045(b)(2)(c). The COVID-19 pandemic created an emergency or matter of urgent public necessity requiring the City Commission to deliberate and take action in response. Mayor Gary Hinders presided over the meeting with the following Commissioners in attendance, Mayor Pro-Tem Cody Jones, Roger Remlinger, and Paul Lyons and Randy Ray. Also present were the following City Staff: City Manager Joe Price, Assistant City Manager Jon Behrens, City Secretary Gretchen Mercer, IT Manager Shaun Holtman, Interpreter for the Deaf from AmarilloDeaf.org, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Hinders called the meeting to order at 4:40 p.m. Item 2. Invocation. Mayor Pro-Tem Jones gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Commissioner Lyons. Item 4. Consider and Take Appropriate Action on Resolution No. 10-2020, A Resolution of the City Commission of the City of Canyon Ratifying and Extending the First Amended Declaration of Disaster by the Mayor of the City of Canyon in Response to Statewide Epidemic of COVID-19 Consistent With Governor’s Executive Order GA-18. City Manager Joe Price presented Resolution No. 10-2020 for consideration. Mr. Price said Resolution No. 10-2020 would extend the disaster declaration for the City of Canyon in line with Texas Governor Greg Abbott’s orders through May 18, 2020 and be readdressed at that time. Mr. Price stated relief funds were only reimbursable while the city actively declared a disaster as enacted by the Governor. After discussion, Commissioner Remlinger moved, duly seconded by Commissioner Ray to adopt Resolution No. 10-2020 as presented. Motion carried unanimously. RESOLUTION NO. 10-2020 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON RATIFYING AND EXTENDING THE FIRST AMENDED DECLARATION OF DISASTER BY THE MAYOR OF THE CITY OF CANYON IN RESPONSE TO STATEWIDE EPIDEMIC OF COVID-19 CONSISTENT WITH GOVERNOR’S EXECUTIVE ORDER GA-18. City Commission Meeting April 29, 2020 Page 2 of 2 Item 5. Update for City Manager Joe Price on Steps Being Taken by City Facilities Regarding COVID-19. City Manager Joe Price gave a brief overview of what facilities would be open with restrictions and what would remain closed. Mr. Price stated the Canyon Area Library would open with restricted access and hours; Palo Duro Creek Golf Course was open with restrictions in place and will only allow one person per golf cart, unless it’s a family unit; Cole Community Center would remain closed; playgrounds would remain closed; and City Hall would remain closed to the public. Mr. Price said cleaning efforts continued with all facilities. Item 6. Update From City Manager Joe Price on GA-18 Discussion with Retail and Restaurants to Take Place. City Manager Joe Price discussed briefly a scheduled meeting for Thursday morning, April 30, 2020 with retail businesses and Restaurants via Zoom to discuss the phases to reopen as outlined by Governor Abbott with GA-18. Mr. Price also stated there was a scheduled meeting with area pastors Thursday afternoon, April 30, 2020 to discuss church services. Item 7. Adjourn. There being no further business, Mayor Pro-Tem Jones moved this meeting be adjourned. ______________________________ Gary Hinders, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary REGARDING ITEM 7 AGENDA To: Honorable Mayor and City Commission From: Joe Price, City Manager Date: May 4, 2020 Re: First of Three Required Readings of Ordinance No. 1125 First Amendment to Atmos Energy Franchise Agreement. On January 31st, 2011, the City Commission approved Ordinance No. 932, granting a Franchise to Atmos Energy for a term of fifteen (15) years. In Section 4 of this Ordinance, the franchise fee has remained at three (4) percent to all customers receiving electric service within the city limits. The adoption of the previous Ordinance did not include an increase in the franchise fee above four (4) percent (5% being the max allowable by law). Our current Franchise Ordinance doesn’t expire until March 2026. However, we have an opportunity to provide an amendment to the Franchise Agreement, by increasing the percentage for gross receipts. The original Ordinance (932) will continue and the Amendment will add five (5) more years to the expiration year (going from 2026 to 2031) for the franchise to operate and maintain a gas system within the corporate limits of Canyon. Additionally, the proposed Ordinance Amendment will grant a new 5 percent (currently 4%; moving to 5%) franchise fee. According to the Canyon Home Rule Charter Section 3.17, the City Commission must have three (3) full readings of the Franchise Agreement Amendment before they can take official action on the agreement. Additionally, the Franchise Agreement calls for a Public Hearing. Reading Dates: Monday, May 4th, 2020 – First Reading Monday, May 18, 2020 – Second Reading Monday, June 1, 2020 – Final Reading, Public Hearing and Official Vote The City’s General Fund currently receives approximately $110,000 to $140,000 per year in franchise fees from Atmos for the use of the City’s public right-of-ways, staff anticipates an increase of $35,000 per 2019’s gross revenue (new total: 2019 amount: $140,000 plus $35,000 = $175,000 in revenue. All reading requirements will need to be met before we can take action on Ordinance No. 1125. First Reading Only, no action necessary until the Third Reading. City of Canyon  City of Canyon TX Franchise Fee Paid Estimated Franchise Period Revenue Rate Based on 4% Rate Rate Fee Based on 5% Rate 1Q-19 $ 954,682.25 4% $ 38,187.29 5% $ 47,734.11 2Q-19 $ 460,456.25 4% $ 18,421.85 5% $ 23,022.81 3Q-19 $ 372,915.50 4% $ 14,916.62 5% $ 18,645.78 4Q-19 $ 725,060.00 4% $ 29,002.40 5% $ 36,253.00 1Q-20 $ 967,990.50 4% $ 39,719.62 5% $ 48,399.53 4% 5% $ - Total $ 3,481,104.50 $ 140,247.78 $ 174,055.23  ORDINANCE NO. 1125 AN ORDINANCE OF THE CITY OF CANYON, RANDALL COUNTY, TEXAS, AMENDING THE EXISTING GAS FRANCHISE BETWEEN THE CITY AND ATMOS ENERGY CORPORATION, (A TEXAS AND VIRGINIA CORPORATION, WITH ITS PRINCIPAL OFFICE IN THE CITY OF DALLAS, DALLAS COUNTY TEXAS), TO PROVIDE FOR A DIFFERENT CONSIDERATION; PROVIDE FOR A DIFFERENT EXPIRATION DATE; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR ACCEPTANCE BY ATMOS ENERGY CORPORATION; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, Atmos Energy Corporation (“Atmos Energy” or “Company”), is engaged in the business of furnishing and supplying gas to the general public in the City of Canyon (“City”), including the transportation, delivery, sale, and distribution of gas in, out of, and through the City for all purposes, and is using the public streets, alleys, grounds and rights-of-ways within the City for that purpose under the terms of Ordinance No. 932, as amended by Ordinance 967, heretofore duly passed by the governing body of the City and duly accepted by Company; and, WHEREAS, the City and Atmos Energy desire to amend said franchise ordinance to provide for a different consideration and expiration date; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON; SECTION 1: In Section 2.1 of Ordinance No. 932, the termination date of the franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by the Company is hereby changed to March 31, 2031. SECTION 2: In Section 4.1 of Ordinance No. 932, the consideration payable by Atmos Energy for the rights and privileges granted to Company by the franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by the Company is hereby changed to be five percent (5%). SECTION 3: In all respects, except as specifically and expressly amended by this ordinance, the existing effective franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by Atmos Energy shall remain in full force and effect according to its terms until said franchise ordinance terminates as provided therein. Page 1 of 3 SECTION 4: This ordinance shall take effect upon the first day of the calendar quarter following its final passage and Atmos Energy’s acceptance. Atmos Energy shall, within thirty (30) days from the receipt of this ordinance, file its written acceptance of this ordinance with the Office of the City Secretary in substantially the following form: To the Honorable Mayor and City Commission: Atmos Energy Corporation, acting by and through the undersigned authorized officer, hereby accepts in all respects, on this the ____ day of ________________, 2020, Ordinance No. __________ amending the current gas franchise between the City and Atmos Energy Corporation. Atmos Energy Corporation, West Texas Division By ________________________________ Philip Littlejohn, Vice President SECTION 5: The City shall provide a copy of this Ordinance to Mr. Philip Littlejohn, VP of Rates and Regulatory Affairs, Atmos Energy Corporation, 6606 66th Street, Lubbock, Texas 79424, no later than ten (10) business days after its final passage and approval. SECTION 6: It is hereby officially found and determined that the meeting at which this Ordinance is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. Page 2 of 3 READ in accordance with the Canyon Home Rule Charter Section 3.17 by the City Commission of the City of Canyon, Texas with a quorum of such Commission duly and lawfully assembled on the first (1st) reading, on the 4th of May, 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: APPROVED: ______________________________ ________________________________ Gretchen Mercer, City Secretary CHUCK HESTER, City Attorney READ in accordance with the Canyon Home Rule Charter Section 3.17 by the City Commission of the City of Canyon, Texas with a quorum of such Commission duly and lawfully assembled on the second (2nd) reading, on the 18th of May, 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: APPROVED: ______________________________ ________________________________ Gretchen Mercer, City Secretary CHUCK HESTER, City Attorney ORDINANCE PASSED AND ADOPTED in accordance with the Canyon Home Rule Charter Section 3.17 by the City Commission of the City of Canyon, Texas, with a quorum of such Commission duly and lawfully assembled and voting, on the third (3rd) and final reading, on the 1st of June, 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: APPROVED: ______________________________ ________________________________ Gretchen Mercer, City Secretary CHUCK HESTER, City Attorney Page 3 of 3  ORDINANCE NO. 933 AN ORDINANCE OF THE CITY OF CANYON, TEXAS, GRANTING TO WEST TEXAS GAS, INC. ( A TEXAS CORPORATION, WITH ITS PRINCIPAL OFFICE IN THE CITY OF MIDLAND, MIDLAND COUNTY, TEXAS) A FRANCHISE AND RIGHT TO CONDUCT IN SUCH CITY THE BUSINESS OF ACQUIRING, MAINTAINING, CONSTRUCTING, LAYING, REPAIRING, REMOVING, REPLACING, INSTALLING, OPERATING, AND DISPOSING OF A GAS SYSTEM FOR THE SALE, TRANSPORTATION, AND DISTRIBUTION OF NATURAL GAS WITHIN THE MUNICIPAL BOUNDARIES OF THE CITY AND TO THE RESIDENTS AND BUSINESSES LOCATED THEREIN FOR LIGHT, HEAT, POWER, AND ANY OTHER PURPOSES AND THE RIGHT TO USE THE PRESENT AND FUTURE STREETS, ROADS, HIGHWAYS, ALLEYS, PUBLIC WAYS, AND REAL PROPERTY IN SUCH CITY AND OWNED OR CONTROLLED BY SUCH CITY FOR SUCH PURPOSES; PRESCRIBING THE TERMS AND CONDITIONS TO WHICH SUCH FRANCHISE AND RIGHTS ARE SUBJECT; AND PRESCRIBING THE TERM OF SUCH FRANCHISE AND RIGHTS. BE IT HEREBY ORDAINED BY THE CITY OF CANYON, TEXAS, ( hereinafter referred to as the " City ") that, subject to the terms and conditions hereinafter set forth, WEST TEXAS GAS, INC., a Texas corporation with its principal office in the City of Midland, Midland County, Texas ( hereinafter referred to as " West Texas Gas"), be, and hereby is, granted the non -exclusive franchise and rights to conduct in the City the business of acquiring ( by purchase, lease, or otherwise), maintaining, constructing, laying, repairing, removing, replacing, installing, operating, and disposing of (by sale, lease or otherwise) a gas system, as hereinafter defined, for the sale, transportation, and distribution of natural gas within the municipal boundaries of the City and to the residents and businesses located therein for light, heat, power, and any other purpose during the term set forth below. Such franchise and rights shall include the right to use the present and future streets, roads, highways, alleys, public ways, and other real property, other than the City' s public parks, owned by or under the control of the City for purposes of maintaining, constructing, laying, repairing, removing, replacing, installing, and operating any and all components of the gas system, together with access, at all times and from time to time, to such streets, roads, highways, alleys, public ways, and other real property during the term hereof, with such prior notice as is reasonable under the circumstances. WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 1 of 11  ARTICLE I DEFINITIONS For the purposes of this Ordinance, the following terms shall have the meanings set forth below: Section 1. 1 Gas S sy tem. The term " gas system" shall mean any and all pipelines, as hereinafter defined, meters, valves, compressors, anti -corrosion items, facilities, structures, machinery, equipment, and appurtenances of any kind that West Texas Gas, in its sole discretion, may deem necessary or advisable for the exercise of the franchise and rights granted to West Texas Gas herein. Section 1. 2 Pipelines. The term " pipelines" shall mean any and all above -ground and below- ground pipes, including, but not limited to, mains, distribution lines, secondary lines, laterals, and other pipes, that have been, are being, or are intended to be used at any time, in or in connection with, the sale, transportation, or distribution of natural gas within the City. ARTICLE II TERM Section 2. 1 Term —unless earlier terminated in accordance with the terms and provisions hereof, the term of the franchise and rights hereby granted to West Texas Gas shall commence on the effective date hereof as defined in Section 7. 6 below, and terminate on March 31, 2026. ARTICLE III ACKNOWLEDGEMENT AND GRANT OF SPECIFIC RIGHTS OF WEST TEXAS GAS In addition to the franchise and rights granted herein to West Texas Gas, the City acknowledges that West Texas Gas has, and hereby grants to West Texas Gas, the following rights and powers: Section 3. 1 Right to Contract. West Texas Gas may enter into separate gas service contracts with industrial or other consumers in the City whose average consumption of gas generally is substantially in excess of the average consumption by residential or commercial consumers or whose service requirements generally are substantially different from the average service requirements of residential or commercial consumers. Such contracts may provide for rates different from the rates applicable to such residential and commercial consumers. WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 2 of 11  Section 3. 2 Discontinuance of Service West Texas Gas may discontinue service to any residential or commercial consumer for any lawful reason, including, but not limited to, such consumer' s failure to pay, when due, any indebtedness owed by such consumer to West Texas Gas. Section 3. 3 Reconnection Charges. In addition to any and all other proper charges, West Texas Gas may charge and collect from any residential or commercial consumer whose service has been discontinued by West Texas Gas a reasonable reconnection or similar charge for recommencing service to such consumer. Section 3. 4 Adoption of Rules. From time to time during the term hereof, West Texas Gas may, subject to any and all valid and applicable statutes, ordinances, rules, and regulations of any federal or state governmental authority or agency, make and enforce reasonable rules pertaining to West Texas Gas' s business and operations, including, but not limited to, requiring any residential or commercial consumer to execute and deliver a written contract or amendment to an existing written contract prior, and as a condition, to the initial commencement, recommencement, or continuation of service to such consumer. Section 3. 5 Removal of Gas System. West Texas Gas may remove all or any portion of the gas system upon the termination by the City, pursuant to Article VI of this Ordinance, of the franchise and rights granted hereby. Section 3. 6 Consumer Preferences. West Texas Gas may give preference to residential consumers over other consumers during periods in which the total volume of gas available for distribution to and within the City is insufficient, for any reason whatsoever, to adequately supply all residential and commercial consumers. ARTICLE IV OBLIGATIONS OF WEST TEXAS GAS Section 4. 1 Franchise Fee. a) As consideration for the grant of the franchise and rights herein and for the use by West Texas Gas of the streets, roads, highways, alleys, public ways, and other real property, other than the City' s public parks, owned or controlled by the City, West Texas Gas shall pay to the City, within thirty ( 30) days after the end of each calendar quarter during the term hereof, a franchise fee equal to five percent ( 5 %) of West Texas Gas' s gross receipts derived from the WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 3 of 11  sale, transportation, and distribution by West Texas Gas of natural gas within the City limits during the preceding calendar quarter. At any time during the term of this franchise, the City may increase the franchise fee payable hereunder, subject to and in accordance with all of the following terms and conditions: 1) The city may increase the franchise fee only if the franchise fee, as so increased, constitutes a charge for West Texas Gas' s use of the City' s streets, roads, highways, alleys, public ways, and other real property, other than the City' s public parks, that is reasonable and lawful. Such increase must be adopted by the governing body of the City at a public hearing that is held no earlier than thirty 30) days following the delivery to West Texas Gas by the City, in person or by certified or registered mail, of a written notice stating the reason for, and the date, time, place of such hearing. 2) The franchise fee may not be increased at any one time by an amount exceeding the amount allowed by applicable law. 3) In the event the franchise fee provided herein exceeds that franchise fee amount that is recovered by West Texas Gas as part of its base rates for natural gas service charged to its customers within the City, or if the franchise fee is increased in accordance with this Subsection 4. 1( a), the City agrees that West Texas Gas may immediately add a line -item surcharge to the monthly bills of West Texas Gas' s customers located within the City in an amount sufficient to recover such excess or increase. b) Nothing herein contained shall preclude, or be deemed to preclude, West Texas Gas and the City from agreeing to an increase in the franchise fee in excess of the limitations imposed in such subsection. c) The franchise fee, together with any and all charges of the City for water, sewage, and garbage services provided by the City to West Texas Gas, any and all sales taxes collected by West Texas Gas, and any and all ad valorem taxes assessed by the City against West Texas Gas' s property, shall constitute the only amounts for which West Texas Gas shall be obligated to pay to the City and shall be in lieu of any and all other costs, levies, assessments, fees, or other WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 4 of 11  amounts, of any kind whatsoever, that the City, during the term hereof, may charge West Texas Gas or assess against West Texas Gas' s property. Section 4.2 No Obstruction of Public Property. West Texas Gas shall not, unnecessarily or for any unreasonable period of time, obstruct or interfere with the public use of any of the streets, roads, highways, alleys, public ways, or other real property owned or controlled by the City. Section 4. 3. Repair of Damages. West Texas Gas shall repair any and all damages caused solely by West Texas Gas, its agents, contractors, or employees, to any streets, roads, highways, alleys, public ways, or other real property, owned or controlled by the City and shall restore, as nearly as practicable, such property to substantially its condition immediately prior to the incident causing such damage. West Texas Gas shall commence such repairs immediately upon completion of the work or activity in which West Texas Gas was involved at the time the damage occurred and shall complete such repairs as promptly as possible. West Texas Gas shall maintain the repairs to the reasonable satisfaction of the City for one year after the date the surface of such street, road, highway, alley, or public way was broken for such construction or maintenance work, after which time responsibility for the maintenance shall become the duty of the City. The City may, from time to time, adopt reasonable ordinances regulating such work. Section 4. 4 Conduct of Work and Activities. West Texas Gas shall use reasonable care in conducting its work and activities in order to prevent injury to any person and unnecessary damage to any real or personal property. Section 4. 5 Use of Alleys. West Texas Gas shall attempt to utilize the alleys of the City insofar as is reasonably practicable in conducting its work and activities hereunder. Notwithstanding the foregoing, however, West Texas Gas may, when reasonably necessary, utilize the streets and any other public ways owned or controlled by the City to perform such work and activities. Section 4. 6 Service and Supply. West Texas Gas shall use reasonable care to furnish good and reliable service and an adequate supply of pipeline quality natural gas. Section 4. 7 Installation of Underground Pipelines. West Texas Gas, shall, when reasonably practicable, install all pipelines under -ground at such depth and in such manner so as not to interfere with the existing pavement, curbs, gutters, or underground wires, cables, or water WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 5 of 11  or sewer pipes owned or controlled by the City. The proposed location of pipelines shall be approved by the City. Section 4. 8 No Discrimination Between Consumers. Subject to West Texas Gas' s rights set forth in Article III of this Ordinance, West Texas Gas shall not discriminate against any consumer with respect to charges for natural gas or services rendered under substantially the same circumstances to other consumers of the same classification. Section 4. 9. Changes in Gas System. a) West Texas Gas shall, upon written request from the City, change the location, position, route, or depth of any pipeline or other component of the gas system if and when such change becomes reasonably necessary because of a change in the grade of any street, road, highway, alley, public way, or other real property, owned or controlled by the City or because of any change in the location of, or in the manner of maintaining, constructing, laying, repairing, removing, replacing, installing, or operating any pavement, curbs, gutters, or underground wires, cables, or water or sewer pipes owned or controlled by the City. The City' s written request for such change must set forth, in detail substantially all of the essential elements and specifications of the requested change. b) All of the changes in location, position, route, depth, described in Subsection 4. 9( a) above shall be made at West Texas Gas' s sole expense, and without unreasonable delay, provided, however, that West Texas Gas may seek payment from any governmental entity or agency, other than the City (unless the City exercise its authority granted under § 1433. 001 et seq. of The Texas Government Code), person, or party of any amount to which West Texas Gas may be entitled because of such change in location, position, route, or depth or because of the abandonment of any pipeline or other component of the gas system regardless of whether such pipeline or component is wholly or partially located in any public or private right -of -way. Section 4. 10. Schedule of Rates. West Texas Gas shall, at all times, keep on file with the City a schedule setting forth current residential and commercial rates for natural gas and services rendered to customers within the City. Nothing contained in this Ordinance, however, shall adversely affect West Texas Gas' s right to apply for an increase in all or any of its rates at any time and from time to time during the term hereof and to a lawful and equitable decision with respect to any such application. Nothing contained in this Ordinance shall adversely affect the WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 6 of 11  City' s right to legally oppose any increase in all or any of West Texas Gas' s rates at any time and from time to time during the term hereof. Section 4. 11 Rebates. West Texas Gas shall not grant, directly or indirectly, any rebate, in the form of money or any other thing of value, to any consumer in order to circumvent the rate schedule filed with the City pursuant to Section 4. 10 of this Article IV. Section 4. 12. Maps of Gas System. West Texas Gas shall make available to the city a map or maps in AutoCad format showing the current location of all pipelines and other components of West Texas Gas' s natural gas distribution facilities located in the City. Section 4. 13. Bond for Removal of Gas System. West Texas Gas shall, upon electing to remove all or or any portion of the gas system in accordance with Section 3. 5 of Article III of this Ordinance, file with the Clerk of the City a bond in a reasonable amount and with a proper and adequate surety, securing West Texas Gas' s obligation to promptly repair, at West Texas Gas' s sole expense, any damage to any real property, or personal property, owned or controlled by the City caused by West Texas Gas' s removal of all or any portion of the gas system and to restore such property to substantially the same condition it was in immediately prior to the incident causing such damage. Section 4. 14. Location Restrictions. West Texas Gas shall be restricted to installation of new pipelines to newly developed areas only, unless specifically authorized by action of the City Commission. ARTICLE V RIGHTS OF THE CITY Section 5. 1. Use of City Property. The right of West Texas Gas hereunder to use any streets, roads, highways, alleys, public ways, and other real property, other than City' s public parks, owned or controlled by the City shall in no way affect the right of the City or its agents to maintain, construct, lay, repair, remove, replace, install, or operate any pavement, curbs, gutters, or underground wires, cables, or water or sewer pipes owned by the City and located on or near such streets, roads, highways, alleys, public ways, and other real property. Section 5. 2. Inspection of Books and Records. The City may, at its sole expense and, upon reasonable prior notice, at any reasonable time during normal business hours, inspect and WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 7 of 11  copy any of West Texas Gas' s books and records, wherever located, pertaining to and directly affecting the rights of the City arising under or by virtue of this Ordinance. ARTICLE VI REMEDIES UPON DEFAULT BY WEST TEXAS GAS Section 6. 1. Termination of Franchise and Rights. In the event of a substantial breach by West Texas Gas of any material provision of this Ordinance, the City may terminate the franchise and rights granted to West Texas Gas hereunder, provided, however, that such termination shall not be effective unless and until the procedures described below have been followed: a) The City must deliver to West Texas Gas, by certified or registered mail, a written notice signed by the Mayor, attested by the City Clerk, and sealed with the official seal of the City. Such notice must ( i) fairly and fully set forth in detail each of the alleged acts or omissions of West Texas Gas that the City contends constitutes a substantial breach of any material provision hereof, (ii) designate which of the terms and conditions hereof the City contends West Texas Gas breached, and ( iii) specify the date, time, and place at which a public meeting will be held by the governing body of the City for the purpose of determining whether the allegations contained in the notice did in fact occur, provided, however, that the date of such meeting may not be less than thirty ( 30) days after the date of such notice. b) Within ten ( 10) days following the adjournment of the public meeting described in Subsection 6. 1( a) above, the City must deliver to West Texas Gas, by certified or registered mail, a written notice signed by the Mayor, attested by the Clerk, and sealed with the official seal of the City, setting forth ( i) the acts and omissions of West Texas Gas described in the first notice that the governing body of the City determines to have in fact occurred and ( ii) the specific terms and conditions of this Ordinance listed in the first notice that the governing body of the City determines to have in fact been breached by such acts or omissions of West Texas Gas. The City must permit West Texas Gas the opportunity to substantially correct all of the breaches hereof set forth in the written notice described in Subsection 6. 1( b) above within sixty ( 60) days after West Texas Gas' s receipt of such notice. Section 6. 2. Civil Penalty. In lieu of terminating the franchise and rights granted herein pursuant to Section 6. 1 of this Article VI, the City may, in the event of a substantial breach by WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 8 of 11  West Texas Gas of any material provision of this ordinance, charge and collect from West Texas Gas a civil penalty of Five Hundred Dollars ($ 500. 00) per day for each breach by West Texas Gas hereof, provided, however, that the City shall first have furnished to West Texas Gas the notices, right to public hearing, and opportunity to cure described in Section 6. 1 of this Article VI. ARTICLE VII GENERAL PROVISIONS Section 7. 1. Force Majeure. Notwithstanding anything expressly or impliedly to the contrary contained herein, in the event West Texas Gas is prevented, wholly or partially, from complying with any obligation or undertaking contained herein by reason of any event of force majeure, then, while so prevented, compliance with such obligations or undertakings shall be suspended, and the time during which West Texas Gas is so prevented shall not be counted against West Texas Gas for any reason. The term " force majeure", as used herein, shall mean any cause not reasonably within West Texas Gas' s control and includes, but is not limited to, acts of God, strikes, lock -outs, wars, riots, orders or decrees of any lawfully constituted federal, state, or local body, contagions or contaminations hazardous to human life or health, fires, storms, floods, wash -outs, explosions, breakages, or accidents to machinery or lines of pipe, inability to obtain or the delay in obtaining rights -of -way, materials, supplies, or labor permits, temporary failures of gas supply, or necessary repair, maintenance, or replacement of facilities used in the performance of the obligations contained in this Ordinance. Section 7. 2. Other Ordinances. Except to the extent otherwise expressly provided herein, the franchise and rights granted hereby and the operations and activities performed by West Texas Gas pursuant hereto shall be subject to all valid ordinances and regulations of the City and any valid amendments thereto insofar as, such ordinances and regulations ( i) do not shorten the term hereof or terminate, abrogate, or materially and adversely affect the franchise and rights granted to West Texas Gas hereby or ( ii) do not conflict with or are not inconsistent with the terms and provisions contained in this Ordinance, such conflicting or inconsistent ordinances hereby being repealed to the extent of such conflict or inconsistency. Section 7. 3. Amendments. This Ordinance and the franchise and rights granted herein may be amended only by written agreement of the City and West Texas Gas to such amendment. WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 9 ( 2011) Page 9 of 11  Section 7. 4. Severabili y. In the event any part of this Ordinance is determined to be invalid or illegal for any reason whatsoever, such invalidity or illegality shall not affect the validity or legality of this Ordinance as a whole or any part hereof. Section 7. 5. Binding Effect. This Ordinance shall extend to, be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. Section 7. 6. Effective Date. This Ordinance shall become effective on the date on which this Ordinance is finally adopted by the City in accordance with law, and West Texas Gas shall file with the Clerk of the City a letter stating that West Texas Gas accepts this Ordinance as adopted and agrees to comply with and be bound by all of the terms and conditions thereof. A true and correct copy of this Ordinance as finally adopted shall be attached to such letter and by reference made a part thereof, and the letter shall be addressed to the Mayor and the governing body of the City, dated, and executed by an authorized officer of West Texas Gas. Section 7. 7. Save Harmless. West Texas Gas, at its sole cost and expense, shall indemnify and save the City harmless from all claims, demands, or causes of action, including attorneys' fees and expenses of litigation against the City, for injury to persons or property arising out of the construction, reconstruction, maintenance, repair, or operation by West Texas Gas or its employees or agents of West Texas Gas' s gas system. Nothing in the foregoing sentence shall obligate West Texas Gas to indemnify the City for any such claims, demands, or causes of action for injury to persons or party arising, either wholly or partially, out of any action or failure to act by the City or its employees or agents. Section 7. 8. Assignments. If this franchise and the rights granted herein are assigned, the assignee shall be required to accept and abide by all the terms and provisions hereof. Section 7. 9. Section and Other Headings. The section and other headings contained in this Ordinance are for reference purposes only and shall not affect in any way the meaning or interpretation of this Ordinance. WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 10 of 11  Read by the City Commission of the City of Canyon, Texas with a quorum of such Commission duly and lawfully assembled, on the first ( I") reading, on the 100' of January, 2011. CITY OF CANYON, TEXAS QUINN ALEXANDER, Mayor Read by the City Commission of the City of Canyon, Texas with a quorum of such Commission 2nd) duly and lawfully assembled, on the second ( reading, on the 20 of January, 2011. CITY OF CANYON, TEXAS J4p- QUINN ALEXANDER, Mayor This Ordinance was passed and adopted by the City Commission of the City of Canyon, Texas-, - d) with a quorum of such Commission duly and lawfully assembled and voting, on the third ( 3` and final reading, on the 31" of January, 2011. CITY OF CANYON, TEXAS QUINN ALEXANDER, Mayor i WEST TEXAS GAS INC. FRANCHISE — ORDINANCE 933 ( 2011) Page 11 of 11  COO [ PY WIG February 28, 2011 Mr. Quinn J. Alexander Honorable Mayor City of Canyon, Texas 301 16th Street Canyon, Texas 79015 Re. Ordinance Number 933 ( 2011 Mayor Alexander and Governing Body of the City of Canyon Pursuant to the terms of Ordinance Number 933 ( 2011), please accept this correspondence as West Texas Gas, Inc. ( WTG) acceptance of the stated Ordinance as adopted by the City of Canyon. WTG agrees to comply with and be bound by all of the terms and conditions set out in the stated Ordinance. A true and correct copy of the Ordinance as finally adopted is attached hereto. WTG certainly appreciates the City of Canyon granting WTG this Ordinance, and we look forward to a long -term relationship with the City of Canyon, Texas. Very truly yours, Richard D. Hatchett Vice President cc: Franchise File REGARDING ITEM 8 AGENDA To: Honorable Mayor and City Commission From: Joe Price, City Manager Date: May 4, 2020 Re: First of Three Required Readings of Ordinance No. 1126 First Amendment to SPS Franchise Agreement. On January 31st, 2011, the City Commission approved Ordinance No. 934, granting a Franchise to SPS for a term of fifteen (15) years. In Section 3 of this Ordinance, the franchise fee has remained at three (3) percent; however, language was added to surcharge franchise fees in excess of 1.51 percent to all customers receiving electric service within the city limits. The adoption of the previous Ordinance did not include an increase in the franchise fee above three (3) percent (5% being the max allowable by law). Our current Franchise Ordinance doesn’t expire until January 2026. However, we have an opportunity to provide an amendment to the Franchise Agreement, by increasing the percentage for gross receipts. The original Ordinance (934) will continue to grant SPS six (6) more years for the franchise to operate and maintain an electric system within the corporate limits of Canyon. The proposed Ordinance Amendment will grant a new 4.51 percent (2% embedded in base rates and 3% as a surcharge) franchise fee. It will continue to maintain the franchise fee on miscellaneous service charges as well as the City’s rights to utilize SPS’s poles for the installation of City owned equipment such as traffic cameras, computer data cables and systems, Christmas lights or other related data or telecommunications equipment used solely for the City’s use. The Canyon Franchise Agreement is unique compared to other cities, only allowing the increase by 1.51 % versus the normal 2%. Hence, the City of Canyon can only go up to 4.51% instead of the max 5%. In discussions with SPS, the remaining 0.49% will have to go on to the next rate case, which is likely in the next year or two. According to the Canyon Home Rule Charter Section 3.17, the City Commission must have three (3) full readings of the Franchise Agreement Amendment before they can take official action on the agreement. Reading Dates: Monday, May 4th, 2020 – First Reading Monday, May 18, 2020 – Second Reading Monday, June 1, 2020 – Final Reading and Official Vote City of Canyon  AGENDA The City’s General Fund currently receives approximately $330,000 to $365,000 per year in franchise fees from SPS for the use of the City’s public right-of-ways, staff anticipates an increase of $174,875 per 2019’s gross revenue (new total: 2019 amount: $347,434 plus $174,875 = $522,309 in revenue. In the future, once the rate case is concluded and the full 5% is granted, we will be around $579,000. All reading requirements will need to be met before we can take action on Ordinance No. 1126. First Reading Only, no action necessary until the Third Reading. City of Canyon Franchise Fee Projections Based on 2019 Data City of Canyon Franchise Projection Actual Quarterly Exemptions Quarterly Surcharge Embedded Quarterly Gross and Net Franchise Franchise Total Franchise Franchise Fees Projections with New Agreement Payments Revenue Write‐Offs Revenue Fees Paid 1.49% Fees Paid 1.51% Fees Paid 1% 1.51% 2% 3% 4% 5% Mar‐2019 $2,848,134 $114,365 $2,733,769 $40,733 $41,280 $82,013 $27,338 $41,280 $54,675 $82,013 $109,351 $136,688 Jun‐2019 $2,723,224 $122,919 $2,600,305 $38,745 $39,265 $78,009 $26,003 $39,265 $52,006 $78,009 $104,012 $130,015 Sep‐2019 $3,796,627 $130,101 $3,666,526 $54,631 $55,365 $109,996 $36,665 $55,365 $73,331 $109,996 $146,661 $183,326 Dec‐2019 $2,688,656 $108,107 $2,580,549 $38,450 $38,966 $77,416 $25,805 $38,966 $51,611 $77,416 $103,222 $129,027 Totals $12,056,642 $475,492 $11,581,149 $172,559 $174,875 $347,434 $115,811 $174,875 $231,623 $347,434 $463,246 $579,057 Estimated Franchise Fee Payment Increase/(Decrease) ($231,623) ($172,559) ($115,811) $0 $115,811 $231,623  ORDINANCE NO. 1126 FIRST AMENDMENT TO FRANCHISE AGREEMENT AN ORDINANCE AMENDING ORDINANCE NO. 934, WHICH GRANTED SOUTHWESTERN PUBLIC SERVICE COMPANY (“SPS”) A FRANCHISE WITHIN THE CITY OF CANYON, TEXAS (“CITY”) TO CONDUCT AN ELECTRICAL LIGHTING AND POWER BUSINESS AND TO HAVE USE OF CITY’S PUBLIC STREETS, ALLEYS, HIGHWAYS, BRIDGES, AND OTHER PUBLIC GROUNDS TO PUBLIC RIGHT- OF-WAY AS SPECIFIED IN ORDINANCE NO. 934, TO REVISE THE PERCENTAGE OF GROSS RECEIPTS PAID AS A FRANCHISE FEE FOR USE OF CITY’S STREETS, ALLEYS, HIGHWAYS, BRIDGES, AND OTHER PUBLIC GROUNDS; PROVIDING FOR RATE RECOVERY OF FRANCHISE FEES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER; PROVIDING SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the current franchise agreement between the City of Canyon, Texas (“City”) and Southwestern Public Service Company (“SPS”) is set out in Ordinance No. 934, which was passed on January 31, 2011; and WHEREAS, the City and SPS now agree to this FIRST AMENDMENT to the franchise agreement as set forth below, in order to increase the percentage of gross receipts that SPS pays as a franchise fee and for SPS’s recovery of that increase in the fee; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF CANYON: SECTION 1: Facts: The facts and matters set forth in the preamble of this Ordinance are hereby found to be true and correct. SECTION 2: Amendment No. 1, Part No. 1: Ordinance No. 934, Section III, first sentence, is amended, in part, to delete the words “three percent (3%)” and in lieu of those words to insert the words “four point five one percent (4.51%)” in their place. SECTION 3: Ordinance No. 1126 Page 1 of 4 Amendment No. 1, Part No. 2: Ordinance No. 934, Section III, is amended in part by adding the language below in place of the entire third sentence of Section III, and reads as follows: A one point five one percent (1.51%) Franchise expense is currently embedded in SPS’s system-wide rates. All Franchise expense payable to the City above one point five one percent (1.51%) of “gross receipts” will be surcharged back by SPS to all retail customers taking service from SPS within the City until the earliest of the effective date, relate-back date, or temporary rate date of new rates in SPS’s next base rate proceeding before the Public Utility Commission of Texas (which for the avoidance of doubt is not Docket No. 47527), at which time the portion of the Franchise Fee that is subject to surcharge to the retail customers taking service from SPS within the City will be determined, and the percentage that is subject to surcharge will be subject to change from time to time as determined in rate proceedings before the Public Utility Commission of Texas. SECTION 4: Savings: Except as amended in Sections 2 and 3 of this Ordinance, the remainder of the Ordinance No. 934 shall remain in full force and effect according to its terms until Ordinance No. 934 terminates as provided therein. SECTION 5: Acceptance and Effective Date: SPS shall, within thirty (30) days from its receipt of this Ordinance, file its written acceptance of this Ordinance with the City Secretary of the City of Canyon, Texas in substantially the following form, and upon the filing of such acceptance the amendments set out in Sections 2 and 3 of this Ordinance shall be incorporated into Ordinance No. 934 and be effective as of the date of filing such acceptance: To the Honorable Mayor and City Commission: Southwestern Public Service Company, acting by and through the undersigned authorized officer, hereby accepts in all respects, on this the ____ day of ________________, 2020, Ordinance No. __________ amending the current electric franchise, as established in Ordinance No. 934, between the City of Canyon, Texas and Southwestern Public Service Company. Southwestern Public Service Company By: Name: Title: Ordinance No. 1126 Page 2 of 4 SECTION 6: Severability: If any provision, section, subsection, sentence, or clause of this Ordinance or the application of this Ordinance to any person or set of circumstances for any reason is held to be unconstitutional, void, or invalid or for any reason unenforceable, the validity of the remaining portions of this Ordinance or the application of this Ordinance shall remain in effect, it being the intent of the City Commission of the City of Canyon, Texas in adopting this Ordinance that no portion thereof or provision contained herein shall become inoperative or fail by any reasons of unconstitutionality of any other portion or provision. SECTION 7: Repealer: All ordinances, resolutions, and parts of ordinances or resolutions in conflict with this Ordinance are hereby repealed to the extent of conflict with this Ordinance. Ordinance No. 1126 Page 3 of 4 READ in accordance with the Canyon Home Rule Charter Section 3.17 by the City Commission of the City of Canyon, Texas with a quorum of such Commission duly and lawfully assembled on the first (1st) reading, on the 4th of May, 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: APPROVED: ______________________________ ________________________________ Gretchen Mercer, City Secretary CHUCK HESTER, City Attorney READ in accordance with the Canyon Home Rule Charter Section 3.17 by the City Commission of the City of Canyon, Texas with a quorum of such Commission duly and lawfully assembled on the second (2nd) reading, on the 18th of May, 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: APPROVED: ______________________________ ________________________________ Gretchen Mercer, City Secretary CHUCK HESTER, City Attorney ORDINANCE PASSED AND ADOPTED in accordance with the Canyon Home Rule Charter Section 3.17 by the City Commission of the City of Canyon, Texas, with a quorum of such Commission duly and lawfully assembled and voting, on the third (3rd) and final reading, on the 1st of June, 2020. CITY OF CANYON, TEXAS ________________________________ GARY HINDERS, Mayor ATTEST: APPROVED: ______________________________ ________________________________ Gretchen Mercer, City Secretary CHUCK HESTER, City Attorney Ordinance No. 1126 Page 4 of 4