Colleagues,
I reviewed the proposed 10-year franchise agreement with Pedernales Electric Cooperative (PEC) and used ChatGPT to assist in my analysis. Below are my key concerns coupled with related questions for Council discussion:
1. Relocation Cost Burden
Concern: The ordinance places the cost of relocating or undergrounding PEC facilities on the City when such work is tied to public projects or beautification efforts.
Question: Does this match the cost-sharing structure in our previous PEC franchise, or are we assuming greater fiscal responsibility now?
2. Franchise Fee Level
Concern: The 2% franchise fee may be below the rate collected by comparable cities.
Question: Can staff confirm whether 2% aligns with PEC’s agreements in nearby jurisdictions such as Jonestown or Marble Falls, and whether a higher rate could be justified?
3. Automatic Renewal Clause
Concern: Section 9 provides for automatic six-month renewals unless canceled, which may limit Council’s ability to revisit or renegotiate terms after the 10-year term.
Question: Should we request language requiring Council reauthorization at the end of the initial term rather than indefinite auto-renewal?
4. Vegetation Management Exemption
Concern: PEC is exempt from city tree-trimming permits or fees, which could conflict with tree preservation or parkland maintenance standards.
Question: Should PEC be required to notify City staff before large-scale trimming or vegetation removal within city-maintained areas?
5. City Coordination Obligations
Concern: The City is required to provide PEC with updated capital improvement plans and schedules.
Question: Do Public Works and Engineering currently have procedures to meet this requirement, or would new coordination processes be needed?
6. Indemnification Scope
Concern: PEC indemnifies the City only for willful or gross negligence, excluding ordinary negligence.
Question: Would PEC consider expanding indemnification to include ordinary negligence, which is a more typical municipal standard?
7. Waiver of Prior Claims
Concern: The City waives any claims arising from prior franchise agreements.
Question: Has staff verified that there are no outstanding billing discrepancies or disputes with PEC before this waiver is accepted?
Summary:
The proposed ordinance appears generally standard and functional, but a few sections warrant clarification before approval. These questions aim to ensure the City fully understands its financial and operational obligations under the new 10-year term.
I reviewed the proposed 10-year franchise agreement with Pedernales Electric Cooperative (PEC) and used ChatGPT to assist in my analysis. Below are my key concerns coupled with related questions for Council discussion:
1. Relocation Cost Burden
Concern: The ordinance places the cost of relocating or undergrounding PEC facilities on the City when such work is tied to public projects or beautification efforts.
Question: Does this match the cost-sharing structure in our previous PEC franchise, or are we assuming greater fiscal responsibility now?
2. Franchise Fee Level
Concern: The 2% franchise fee may be below the rate collected by comparable cities.
Question: Can staff confirm whether 2% aligns with PEC’s agreements in nearby jurisdictions such as Jonestown or Marble Falls, and whether a higher rate could be justified?
3. Automatic Renewal Clause
Concern: Section 9 provides for automatic six-month renewals unless canceled, which may limit Council’s ability to revisit or renegotiate terms after the 10-year term.
Question: Should we request language requiring Council reauthorization at the end of the initial term rather than indefinite auto-renewal?
4. Vegetation Management Exemption
Concern: PEC is exempt from city tree-trimming permits or fees, which could conflict with tree preservation or parkland maintenance standards.
Question: Should PEC be required to notify City staff before large-scale trimming or vegetation removal within city-maintained areas?
5. City Coordination Obligations
Concern: The City is required to provide PEC with updated capital improvement plans and schedules.
Question: Do Public Works and Engineering currently have procedures to meet this requirement, or would new coordination processes be needed?
6. Indemnification Scope
Concern: PEC indemnifies the City only for willful or gross negligence, excluding ordinary negligence.
Question: Would PEC consider expanding indemnification to include ordinary negligence, which is a more typical municipal standard?
7. Waiver of Prior Claims
Concern: The City waives any claims arising from prior franchise agreements.
Question: Has staff verified that there are no outstanding billing discrepancies or disputes with PEC before this waiver is accepted?
Summary:
The proposed ordinance appears generally standard and functional, but a few sections warrant clarification before approval. These questions aim to ensure the City fully understands its financial and operational obligations under the new 10-year term.
