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Everman holds first reading of 20-year franchise with Encore Electrical Delivery Co.; second reading and publication required
Summary
Council held a first reading of Ordinance No. 824 to grant Encore Electrical Delivery Company a nonexclusive 20-year franchise to use city rights-of-way. City attorney outlined terms including a 0.003357 kilowatt-hour multiplier and requirements for insurance, relocation costs, and a 4% charge on certain discretionary service revenues; Encore must accept the franchise within 60 days and ordinance requires two readings and publication before effectiveness.
The Everman City Council heard the first reading on Oct. 8 of Ordinance No. 824, which would grant Encore Electrical Delivery Company, LLC a nonexclusive 20-year franchise to use the city's public rights-of-way for electrical distribution and transmission.
City attorney Victoria summarized key terms of the draft franchise: it incorporates the city's right-of-way management ordinances; it reserves to the city the superior right to use and change public rights-of-way (with limited exceptions); and generally requires Encore to pay relocation costs if the city relocates Encore facilities to accommodate public improvements. The franchise would require Encore to carry insurance and indemnify the city for liability arising from its acts or omissions. Victoria said the franchise sets a fee based on kilowatt-hours delivered to customers inside the city multiplied by a multiplier currently set at 0.003357; it also requires Encore to pay 4% of gross revenue that the company receives from certain discretionary service charges (for example, special metering or temporary construction facilities).
Victoria explained the charter and procedural steps: a charter-mandated two readings at separate meetings are required before adoption, an ordinance summary must be published in the newspaper, and once approved the ordinance becomes effective 30 days after approval. Victoria also said Encore would need to file formal acceptance of the franchise with the city secretary within 60 days of approval; once accepted, the ordinance functions as a contract between the city and Encore.
Scott Baumbach, an Encore representative, told the council he appreciated the opportunity to present and offered to answer any questions before the next reading. The council did not vote on the franchise at the Oct. 8 meeting; staff and Encore expect the matter to return for a subsequent reading and vote.
The discussion also touched on practical concerns about required publication in a circulating newspaper if traditional local papers cease operations; Victoria noted the city would need to identify an official paper that meets circulation requirements or consider charter changes if publication norms change.
