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Council approves 20-year franchise agreement with Tri County Electric, raising franchise fee to 4%
Summary
On second reading the council approved Ordinance 1292, a 20-year franchise agreement with Tri County Electric Cooperative that increases the franchise fee from 3% to 4% and runs through September 2045.
The City of Southlake approved Ordinance 1292 on second reading, adopting a 20-year franchise agreement with Tri County Electric Cooperative that increases the city's franchise-fee payment from 3% to 4% and extends the term through September 2045.
Sharon Jackson, the city's Chief Financial Officer, said the agreement outlines the utility's use of the public right-of-way, responsibilities concerning relocation and abandonment of lines, and the franchise-fee payment. Jackson said the agreement had been reviewed by the city attorney and would be forwarded to Tri County for signature after council approval.
The item required a public hearing; no members of the public spoke during the hearing. Mayor Pro Tem Williamson moved approval; the motion carried 7-0 on second reading.
Why it matters: The higher franchise fee increases the city's share of Tri County's gross receipts from utility operations in the right-of-way, a revenue source for the municipal budget. The 20-year term sets the franchise arrangement through 2045.
Next steps: The city will execute the agreement and provide the signed documents to Tri County Electric Cooperative. The increase from 3% to 4% takes effect per the approved ordinance and the terms in the agreement.
Speakers: Sharon Jackson (CFO) presented the item. No public comments were recorded during the public hearing. The ordinance passed unanimously.
