Description
Title: Approve first reading of an ordinance granting to Bluebonnet Electric Cooperative, Inc., a non-exclusive franchise for constructing, maintaining, operating and using a transmission and distribution system in the City to provide electric utility services within its certificated area. Funding: Estimated annual franchise revenue in the amount of $196,400 is anticipated under this franchise agreement.
Summary
The City of Austin is considering an ordinance to grant Bluebonnet Electric Cooperative, Inc. (BEC) a non-exclusive franchise for operating a transmission and distribution system to provide electric utility services. This franchise, which replaces an expiring agreement, will last for ten years with a possible five-year extension, contingent on compliance with its terms. BEC will pay the City a franchise fee of 3% of its gross revenues, estimated to generate about $196,400 annually, which is significant funding for city services. The ordinance includes provisions for compliance with city regulations, the right for the City to purchase BEC’s facilities at fair market value, and stipulates that BEC must relocate facilities at its own cost to accommodate city construction projects. This legislation