§ 10-4. City owned utilities.

(a)

The city shall have the power to purchase, own, construct or lease, and to maintain and operate within or without the limits of said city a system of waterworks, reservoirs, gas, and electric plants, sewers and other public utilities for the use of the public and the city, and to furnish service therefrom and to make and collect such charges and fees therefor as may be fixed by said council, and to issue the bonds of said city in payment therefor; provided that the issuance of said bonds shall first be submitted to a vote of the qualified voters of said city, as provided herein for other bond elections.

(b)

(i)
Any city-owned utility, or other revenue producing property or facility currently owned or acquired in the future, except the waterworks system, shall be operated by a board of trustees. Such boards shall be appointed by a majority vote of the city council. Trustees must have the same qualifications as members of the city council.

(ii)

Such boards as appointed by the city council shall consist of four (4) trustees and the Mayor as an ex-officio member. The trustees initially appointed by the City Council shall serve staggered terms of 4, 3, 2, and 1 year. The council shall designate the position number and length of term of each initial appointee and thereafter future appointments shall be for a four-year term. New trustees shall be appointed at the expiration of the term each July 1, or upon retirement or removal by a majority vote of the City Council. No trustee shall serve longer than two (2) four (4) year terms consecutively.

(iii)

The board shall select from among its members a chairperson, and a vice-chairperson who shall serve for one (1) year. A vacancy that occurs more than sixty (60) days before the expiration date of a term shall be filled promptly for the unexpired term. A trustee who is appointed to the board to serve out an unexpired portion of a retired trustee's term shall not be considered to have served a "term" unless the unexpired portion of the term so served is two (2) years or more. A trustee may be removed for cause, after a hearing, by a majority vote of the city council.

(iv)

Each board shall meet no less than once a month to hear a report by the manager of the utility, or other revenue producing property or facility, and be subject to call meetings as often as the need should arise.

(v)

Each trustee of the board, including the Mayor, may receive a monthly compensation of ten dollars ($10.00) for service on the board.

(vi)

The boards may not levy an ad valorem tax and may not issue bonds. Each board must obtain approval of the city council before any expenditure of money. Not later than the fifteenth (15th) day after the date on which the board acts, the city council may approve or disapprove any action by the board. If the city council disapproves the act, the act is ineffective. Otherwise, the act becomes effective on the date the city council approves the act or on the fifteenth (15th) day after the date on which the board acted whichever is first.

(vii)

The general manager of the system shall deposit money generated by the utility or other revenue producing property or facility in a separate account in a bank or trust company in accordance with instructions from the city council and in accordance with the instruments authorizing debt secured by revenues generated by such utility.

(c)

Any city-owned utility, or other revenue producing property or facility currently owned, or acquired through the sale of revenue bonds, and operating under a board management provided by the ordinance or indenture under which the bonds were issued, shall, upon completion of payment of all bonded indebtedness, continue to be operated by its board as provided in the ordinance or indenture and shall otherwise program its operation as allowed by ordinance or indenture to insure sound principles of economy in management, but such boards may be reconstituted as provided in subsection (b) of Article X, section 10-4 of this charter.

(d)

(i)
The waterworks system shall be managed by a board of trustees. The trustees shall be appointed by a majority vote of the board of trustees of the waterworks system; provided, however, that such appointment shall only take effect upon subsequent approval by a majority vote of the city council. Trustees must have the same qualifications as members of the city council, except that trustees may live outside the city limits but within the area served by the waterworks system.

(ii)

The waterworks system board of trustees shall consist of four (4) trustees and the mayor as ex-officio member. In that regard, the mayor shall serve not only as an ex-officio member but also as a voting member of the board of trustees of the waterworks system. Thus, the position of the mayor as a member of the waterworks system board of trustees shall be computed for the purposes of both establishing a quorum of said board of trustees and in computing the necessary number to establish a majority vote of said board of trustees. The trustees initially appointed by the trustees and ratified by the city council shall serve staggered terms of four (4), three (3), two (2), and one (1) year. The city council shall designate the position number and length of term of each initial appointee and thereafter future appointments shall be for a four (4) year term. New trustees shall be appointed at the expiration of the term each July 1, or upon retirement or removal by a majority vote of the board of trustees, subject, however, to that action being ratified by a majority vote of the city council. No trustee shall serve longer than two (2) four (4) year terms consecutively.

(iii)

The board of trustees shall select from among its members a chairperson and a vice-chairperson who shall serve for one (1) year. A vacancy that occurs more than sixty (60) days before the expiration date of a term shall be filled promptly for the unexpired term. A trustee who is appointed to the board to serve out an unexpired portion of a retired trustee's term shall not be considered to have served a "term" unless the unexpired portion of the term so served is two (2) years or more. A trustee may be removed for cause, after a hearing, by a majority vote of board of trustees, subject however, to ratification of that action by a majority vote of the city council.

(iv)

The board shall meet no less than once a month to hear a report by the manager, and be subject to call meetings as often as the need should arise.

(v)

Each trustee of the board, including the mayor, may receive a monthly compensation of ten dollars ($10.00) for service on the board.

(vi)

The board may not levy an ad valorem tax and may not issue bonds. Water rates shall be set by the city council. In addition, the board of trustees shall authorize the completion of an audit, by an outside agency, of the operations of the waterworks system at the same frequency that the city council authorizes the completion of an audit, by an outside agency, of the operations of the City of Eagle Pass. However, any such audit authorized by the board of trustees shall employ the same auditors as employed by the City of Eagle Pass, and the findings of that auditor regarding the waterworks system shall be delivered, without delay, to the city council for its review.

(vii)

The manager, or a designated employee, of the waterworks system shall deposit on a daily basis money generated by the utility in a bank or trust company in accordance with instructions from the city council and in accordance with the instruments authorizing debt secured by revenues generated by such utility.

(viii)

The waterworks system shall, upon completion of payment of all bonded indebtedness, continue to be operated by its board as provided in the ordinance or indenture and shall otherwise program its operation as allowed by ordinance or indenture to insure sound principles of economy in management, but such boards may be reconstituted as provided in this subsection.

(Ord. No. 94-08, § 1, 3-31-1994, ref. 5-7-1994; Ord. No. 02-32, § 1, 11-7-02; elect. of 2-1-03)