Art. II Revenue, Savings and Generation

Section 200. - Public Works Contracts.

The City shall have the power to establish standards, procedures, rules or regulations to regulate all aspects of the bidding, award and performance of any public works contract, including, but not limited to, the compensation rates to be paid for the performance of such work.

Section 201. - Public Financing.

The City shall have the power to establish standards, procedures, rules or regulations related to any public financing.

Section 202. - Utility Franchises.

202.1. The City shall have the power to adopt any ordinance providing for the acquisition, development, or operation by the City of any public utility, or any ordinance providing for the granting of a franchise to any public utility not owned by the City which proposes to use or is using City streets, highways or other rights-of-way.

202.2 Notwithstanding the terms of §202.1, after the effective date of this amendment, the City, a utility established by the City, or any commission, agency or unit of the City government (individually or collectively hereinafter "City") shall not, prior to November 2, 2014, itself or through a third party, provide Distribution Services within the boundaries of the City unless each of the following conditions shall have first been met:

202.2.1 The City shall charge the same or a lower cumulative rate (taking into account all cost factors) for Distribution Services for each consumer classification as that which is charged by the City's incumbent franchisee.

202.2.2 The City shall have the financial ability and provide the Distribution Services without incurring debt or encumbering the general fund of the City.

202.2.3 Prior to any election required by the terms hereof, a qualified, independent auditor shall certify that the Distribution Services proposed will satisfy subsections 202.2.1 and 202.2.2 above.

202.2.4 At an election to be scheduled by the City, the voters of San Marcos shall approve proposed Distribution Services.

202.2.5 Distribution Services shall mean ownership and/or operation of any pipes, wires, and electric and gas utility plant and related services for the delivery of electricity or natural gas to consumers but only within the boundaries of the City of San Marcos.

Section 203. - Enterprises.

The City shall have the power to engage in any enterprise deemed necessary to produce revenues for the general fund or any other fund established by the City Council to promote a public purpose.