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HomeMy WebLinkAboutORDINANCE NO. 934 FRANCHISE RENEWAL INTERMOUNTAIN GASORDINANCE NO. 934 A PROPOSED ORDINANCE OF THE CITY OF REXBURG, IDAHO, GRANTING TO INTERMOUNTAIN GAS COMPANY A ONE (1) YEAR EXTENSION TO ITS FRANCHISE TO CONSTRUCT, MAINTAIN AND OPERATE A GAS TRANSMISSION AND DISTRIBUTION SYSTEM; PROVIDING FOR THE USE OF STREETS AND ALLEYS, AND RULES GOVERNING THE SAME, SUBJECTING THE GRANTEE TO ALL POWERS OF THE CITY; SETTING FORTH THE RULES OF THE FRANCHISE AND GRANT; PROVIDING FOR THE RIGHT OF INSPECTION BY THE CITY OF GRANTEE'S PLANS, ACCOUNTS, AND BOOKS; REQUIRING GRANTEE TO FURNISH CERTAIN MAPS; SETTING FORTH THE QUARTERLY PAYMENT TO THE CITY, AND THE FILING OF QUARTERLY REPORTS WITH THE CITY; REQUIRING GRANTEE TO INDEMNIFY CITY, AND FILE EVIDENCE OF INSURANCE; REQUIRING COMPLIANCE WITH SAFETY REGULATIONS; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR SURRENDER OF FRANCHISE; GRANTING RIGHT TO SALVAGE; REQUIRING WRITTEN ACCEPTANCE; PROVIDING FOR CONSENT TO SALE OR ASSIGNMENT; PROVIDING FOR PAYMENT OF PUBLICATION COST; SETTING FORTH PENALTIES AND FORFEITURES, SEVARABILITY AND REPEAL. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF REXBURG, IDAHO: SECTION I. GRANT OF AUTHORITY There is hereby granted to Intermountain Gas Company, a corporation, its successors and assigns (hereinafter collectively referred to as "Grantee") a one (1) year extension to the right and authority to construct, install, maintain and operate a gas transmission and distribution system, including mains, pipes, conduits, services and other necessary structures and appliances appertaining in, under, upon, over, across and along the streets, alleys, bridges and public places within the present and future corporate limits of the City of Rexburg, Idaho (hereinafter referred to as "City") for the furnishing, transmission, distribution and sale of gas, whether artificial, natural, mixed or otherwise, for heating, domestic, industrial and other purposes and for transmitting gas into through and beyond the said City. The City represents that it has the sole power and authority to make this grant of authority and agrees to notify Grantee in writing if the City should cease to have this power. SECTION II. USE OF STREETS AND RULES GOVERNING SAME Grantee shall secure a permit for any opening it shall make in the streets, alleys and public places in the City and shall be subject to all applicable ordinances as required within the City, except that no permit fees shall be charged as a result of said Ordinances. The location or relocation of all facilities shall be made under the supervision and with the approval of such representatives as the governing body of the City may designate for such purpose. Whenever the City shall pave or repave any street or shall change the grade or line of any street or public place or shall construct or reconstruct any conduit, water main, sewer or water connection or other city public works or city utility, it shall be the duty of the Grantee when so ordered by the City to change its mains, services and other property in the streets or public places at its own expense so as to conform to the established grade or line of such street or public place and so as not to interfere with the conduits, sewers and other mains of the City as constructed or reconstructed; however, the Grantee shall not be required to relocate pipes, mains and appurtenances when the street, alley or public ground in which they are located is vacated for the convenience of abutting property owners and not as an incident to the public improvement, unless the reasonable cost of such relocation and the loss and expenses resulting therefrom is first paid to Grantee. In the event Federal, State or other funds are available in whole or in part for utility relocating purposes, the City may apply for such funds and the Grantee will be reimbursed to the extent any such funds are actually obtained. SECTION III. GRANTEE SUBJECT TO ALL POWERS OF CITY, RULES GOVERNING REPAIR AND RECONSTRUCTION OF STREET. The exercise of privileges herein granted shall be subject at all times to all of the powers of the City and all regulatory ordinances adopted pursuant thereto. Prior to making any excavations in City Rights -of -way, the Grantee shall obtain an excavation permit and comply with all requirements of the permit. The Grantee shall not unnecessarily or unreasonably obstruct the use of or damage any street or alley, and shall within a reasonable time and as early as practicable upon completion of any construction or repair work as determined by the City, restore all City streets and alleys to the same order and condition as they were before the excavation was made insofar as reasonably possible. The Grantee shall maintain, repair and keep in good condition for a period of three years from the date of acceptance of completion by the City, all portions of streets and alleys disturbed by it or its agents. The Grantee shall be responsible for any obstruction in any street, alley or other public place caused by it in the operation and maintenance of its properties occurring at anytime and shall promptly remove such obstruction. Any such obstruction which, after proper notice to Grantee demanding removal is not promptly removed by the Grantee may be taken care of by the City and the costs thereof shall be charged against Grantee and may be enforced as a lien upon any of its properties or assets. SECTION IV. TERM OF FRANCHISE AND GRANT. The right, authority and grant herein and hereby made to said Grantee, its successor and assigns, is granted for and limited in time to a period of one (1) years from March, 2005 through and including February, 2006. SECTION V. CITY RIGHT TO INSPECTION OF GRANTEE'S PLANS. The City shall have access at all reasonable hours to all of the Grantee's plans, contracts and engineering, accounting, finance, statistical, customer and service records relating to the property and operations of Grantee within the City. The Grantee shall furnish, upon request, the City with a complete set of maps, including plans and profile of the distribution system of the Grantee and any future extensions. SECTION VI. PAYMENT TO CITY AND FILING OF QUARTERLY WRITTEN REPORT WITH THE CITY. As consideration for this franchise and grant said Grantee, its successors and assigns, during the franchise period, shall pay to the City three percent (3%) of the gross quarterly receipts received from all sales of gas by Grantee within the corporate limits of the City through use, operation or possession of this franchise and grant. Such quarterly payments shall be in lieu of taxes, fees or charges (other than ad valorem taxes) related to easements, franchises, rights -of -way, and utility lines during the term of the public service provider's franchise within the city, which the City may impose for the rights and privileges herein granted of for the privilege of doing business within the City. The Grantee shall file by 30 days after the end of each calendar quarter with the City, a report for the preceding calendar quarter, verified by the affidavit of the general manager, auditor, treasurer, or assistant treasurer of said Grantee, which report shall contain a statement in such form and detail as shall from time to time be prescribed by the City, of all the gross receipts arising from all sales of gas by said Grantee within the City for the calendar quarter preceding such report, and at the same time the Grantee shall pay to the City the stipulated percentage of the gross quarterly receipts due for the calendar quarter for which said report is made and filed. R SECTION VII. GRANTEE LIABILITY -INDEMNIFICATION. It is expressly understood and agreed by and between the Grantee and the City that the Grantee shall save the City harmless from all loss sustained by the City on account of any suit, judgment, execution claim or demand whatsoever, resulting from negligence on the part of the Grantee in the construction, operation or maintenance of its gas system in the City, The City shall notify the grantee's representative in the City within ten (10) days after the presentation of any claim or demand, either by suit or otherwise, made against the City on account of any negligence as aforesaid on the part of the Grantee. SECTION VIII. INSURANCE. Upon acceptance of this franchise by Grantee and before Grantee shall have any right hereunder, Grantee shall file with the City Clerk a certificate evidencing the insurance of the Grantee against property damage in an amount not less the $1,000,000.00 and bodily injury with limits of not less than $1,000,000.00 per person and $2,000,000.00 total for each occurrence. Provided however, the minimum limits of insurance as set forth herein shall be automatically increased at any time the liability limits of the City are increased pursuant to the Idaho Tort Claims Act (Idaho Code Section 6-901 et. seq.) or any similar legislation. SECTION IX. SAFETY REGULATION COMPLIANCE. Grantee shall comply with and conform to all safety regulations promulgated by the United States, State of Idaho or City of Rexburg, or any regulatory body having jurisdiction thereof. SECTION X. AGREEMENT NOT TO COMPETE -- RESERVE TO CITY POWER OF EMINENT DOMAIN. In consideration of Grantee's undertaking hereunder as evidenced by its acceptance thereof the City agrees not to engage in the business of distributing and selling gas during the life of this franchise or any extension thereof in competition with the Grantee, its successor and assign: but nothing herein contained shall be construed or deemed to prevent the City from exercising at any time any power of eminent domain granted to it under the laws of the State of Idaho. SECTION XI. SURRENDER OF FRANCHISE In the event natural gas at any time shall cease to be available to Grantee for the distribution and sale hereunder, Grantee reserves the right to surrender this franchise, or in any of such events, Grantee reserves the right to salvage all of its plant, works and facilities, and will restore City's streets and alleys damaged any such salvage operation. SECTION XII. WRITTEN ACCEPTANCE. The Grantee shall within thirty (30) days after the passage and publication of this ordinance, file with the City Clerk its acceptance of this franchise in writing signed by its proper officers and attested by its corporate seal. SECTION XIII. SALE OR ASSIGNMENT OF FRANCHISE No sale or assignment of this franchise shall be effective until it is approved by the City, provided, however, that nothing herein contained shall be construed as to require consent or to prevent the Grantee of this franchise and grant from including it in a mortgage or trust deed executed for the purpose of obtaining money for corporate objects. SECTION XIV. PUBLICATION COSTS. 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The City represents that it has the sole power and authority to make this grant of authority and agrees to notify Grantee in writing if the City should cease to have this power. SECTION II. USE OF STREETS AND RULES GOVERNING SAME Grantee shall secure a permit for any opening it shall make in the streets, alleys and public places in the City and shall be sub- ject to all applicable ORDINANCE NO. 934 ardinances as re- —wired within the City, __,__.__ —"Ak -PROPOSED ORDI- except that no permit NANCE OF THE fees shall be charged CITY OF REXBURG, as a result of said Or- IDAHO, GRANTING dinances. The loca- TO INTERMOUN- tion or relocation of all TAIN GAS COMPA- facilities shall be NY A ONE (1) YEAR made under the su- EXTENSION TO ITS pervision and with the FRANCHISE TO approval of such rep - CONSTRUCT, MAIN- resentatives as the TAIN AND OPERATE governing body of the A GAS TRANSMIS- City may designate for SION AND DISTRI- such purpose. When- BuTION SYSTEM; ever the City shall PROVIDING FOR, pave or repave any THE USE OF street or shall change STREETS AND AL- the grade or line of LEYS, AND RULES any street or public GOVERNING . THE place or shall con - SAME, SUBJECTING struct or reconstruct THE GRANTEE TO any conduit, water ALL` POWERS OF main, sewer or water THE CITY; SETTING connection or other FORTH THE RULES city public works or OF THE FRANCHISE city utility, it shall be AND GRANT; PRO- the duty of the Grant- VIDING FOR THE ee when so ordered RIGHT OF INSPEC- by the City to change TION BY THE CITY its mains, services OF GRANTEE'S and other property in PLANS, ACCOUNTS, the streets or public AND BOOKS; RE- places at its own ex- QUIRING GRANTEE pense so as to con - TO FURNISH CF_R- form to the estaulish- AIUI MAUL, 011 art n ,q. ni lino _f are available in whole or in part for utility re- locating purposes, the City may apply for such funds and' the Grantee will be reim- bursed to the extent any such funds are actually obtained. SECTION Ill. GRANT- EE SUBJECT TO ALL POWERS OF CITY, RULES GOV- ERNING REPAIR AND RECONSTRUC- TION OF STREET. The exercise of privileg- es herein granted shall be subject at all times to all of the powers of the City and all regulatory ordinan- ces adopted pursuant thereto. Prior to mak- ing any excavations in City Rights -of -way, the Grantee shall ob- tain an excavation permit and comply with all requirements of the permit. The Grantee shall not un- necessarily or unrea- sonably obstruct the use of or damage any street or alley, and shall within a reasona- ble time and as early as practicable upon completion of any construction or repair Work as determined by the City, restore all, City streets and alleys to the same order and condition as they were before the excavation was made insofar as reasonably possible. The Grantee shall maintain, repair and keep in good condi- tion for a period of three' years from the date of acceptance of completion by the City, all portions of streets and alleys dis- turbed by it or its agents. The Grantee shall be responsible for any obstruction in any street, alley or other public place caused by it in the op- eration and mainte- nance of its properties occurring at anytime (1) years from March, 2005 through and in- cluding February, 2006. SECTION V. CITY RIGHT TO INSPEC- TION OF GRANT EE'S PLANS. The City shall have ac- cess at all reasonable hours to all of the Grantee's plans, con- tracts and engineer- ing, accounting, fi- nance, statistical, cus- tomer and service re- cords relating to the property and opera- tions of Grantee within the City. The Grantee shall furnish, upon re- quest, the City with a complete set of maps, including plans and profile of the distribu- tion system of the Grantee and any fu- ture extensions. SECTION VI. PAY- MENT TO CITY AND FILING OF QUAR- TERLY WRITTEN REPORT WITH THE CITY. As consideration for this franchise and grant said Grantee, its suc- cessors and assigns, during the franchise period, shall pay to the City three percent (3%) of the gross quarterly receipts re- ceived from all sales of gas by Grantee within the corporate limits of the City through use, opera- tion or possession of this franchise and grant. Such quarterly payments shall be in lieu of taxes, fees or charges (other than ad Valorem taxes) re- lated to easements, franchises, rights -of - way, and utility lines during the term of the public service provid- er's franchise within the city, which the City may impose for the rights and privileges herein granted of for the privilege of doing business within the City, fated percentage rof the gross quarterly re- ceipts due for the cal- endar' quarter for which said report is made and filed. SECTION VII. GRANT EE LIABILITY -IN- DEMNIFICATION. It is expressly' under- stood and agreed by and between the Grantee and the City that the Grantee shall save the City harm- less from all loss sus- tained by the City on account of any suit, judgment, execution claim or demand whatsoever, resulting from negligence on the part of the Grant- ee in the construction, operation or mainte- nance of its gas sys- tem in the City, The City shall notify the grantee's representa- tive in the City within ten (10) days after the presentation of any claim or demand, ei- ther by suit or other- wise, made against the City on account of any negligence as aforesaid on the part of the Grantee. SECTION Vill. INSUR- ANCE. Upon acceptance of this franchise by Grantee and before Grantee shall have any right hereunder, Grantee shall file with the City Clerk a certificate evi- dencing the insurance of the Grantee against property damage in an amount not less the $1,000,000.00 and bodily injury with limits of not less than $1,000,000.00 per person and $2,000,000.00 total for each occurrence. Provided however, the minimum limits of in- surance as set forth herein shall be auto- matically increased at any time the liability limits of the City are increased pursuant to anceVthereof uthe vCity agrees not to engage in the business of dis- tributing and selling gas during the life of this franchise or any extension thereof in competition with the Grantee, its successor and assign: but noth- ing herein contained shall be construed or deemed to prevent the City from exercis- ing at any time any power of eminent do- main granted to it un- der the laws of the State of Idaho.' SECTION XI, ' SUR- RENDER OF FRAN- CHISE In the event natural gas at any time shall cease to be available to Grantee for the dis- tribution and sale hereunder, Grantee reserves the right to surrender this fran- chise; or in any of such events, Grantee reserves the right to salvage all of its plant, works and facilities, and will restore City's streets and alleys damaged any such salvage operation. SECTION XII. WRIT TEN ACCEPTANCE. The Grantee shall with- in thirty (30) days after' the passage and pub- lication of this ordi- nance, file with the City Clerk its accept- ance of this franchise in writing signed by its proper officers and at- tested by its corporate seal. SECTION XIII. SALE OR ASSIGNMENT OF FRANCHISE No sale or assignment of this franchise shall be effective until it is approved by the City, provided, however, that nothing herein contained shall be construed as to re- quire consent or to prevent the Grantee of this franchise and any of the provisions thereof shall be cause for the forfeiture of this franchise and grant and all rights hereunder by the City after sixty (60) days written , notice to the Grantee and the con- tinuance of such viola- tion, failure or default; however, this provi- sion shall not prevent the Grantee from submitting such qu8s- tion of forfeiture to proper court.determi- nation. SECTION XVI. SEPA- RABILITY. If any part or parts of this ordinance shall be adjudged by the courts to be unconsti- tutional or invalid, ei- ther party shall have the option to repeal the entire ordinance. SECTION XVII. AMENDMENT OR REPEAL. In the event the Legisla- ture changes the law relating to franchises granted in cities for natural gas,' this ordi- nance may be amend- ed'or repealed by the City. SECTION XVII., RE- PEAL All ordinances and parts or ordinances of City in conflict herewith shall be, and the same are hereby re pealed. PASSED BY THE COUNCIL AND AP- PROVED BY THE MAYOR this 20TH day of April, 2005. SHAWN LARSEN, Mayor ATTEST: BLAIR D. KAY, City Clerk (SEAL) ACCEPTANCE 1 .-Y l.Iwy. IIIal the above and forego- ing Is a full, true and correct copy of the or- dinance entitled: AN ORDINANCE OF THE CITY OF REX- BURG, IDAHO, GRANTING TO INTERMOUNTAIN GAS COMPANY A ONE (1) YEAR EXTENSION TO ITS FRANCHISE TO CONSTRUCT, MAINTAIN AND OP- ERATE A GAS TRANSMISSION AND DISTRIBUTION SYSTEM; PROVID- ING FOR THE USE OF STREETS AND ALLEYS, AND RULES GOVERNING THE SAME, SUB- JECTING ' THE GRANTEE TO ALL POWERS OF THE CITY;' SETTING FORTH THE RULES OF THE FRANCHISE AND GRANT; PRO- VIDING FOR THE RIGHT OF INSPEC- TION BY THE CITY OF GRANTEE'S PLANS, ACCOUNTS, AND BOOKS; RE- QUIRING GRANTEE TO FURNISH CER- TAIN MAPS; SET TING FORTH THE QUARTERLY PAY- MENT TO THE CITY, AND THE FILING OF QUARTERLY RE- PORTS WITH THE CITY; REQUIRING GRANTEE TO IN- DEMNIFY CITY, AND FILE EVIDENCE OF INSURANCE; RE- QUIRING COMPLI- ANCE WITH SAFETY REGULATIONS; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RE- SERVING POWER OF EMINENT DO- MAIN; PROVIDING FOR SURRENDER OF FRANCHISE; GRANTING RIGHT TO SALVAGE; RE- QUIRING WRITTEN ACCEPTANCE; PRO- VIDING FOR CON- SENT TO SALE OR ASSIGNMENT; PRO- vIDINr; FCIR PAY- O o _U H Q Q U a c� U cd 3 w O O 3 Cd o •Cd ono U 3 Cd U 'C7 cif O .t"i —+ N (1! .fl b cd cl (D N ON U N bb rV. cn ^S N a�Q are o o m a� o A.d M bz a�.�cT �� cl r. a � O O o9. ==CD4 4-4 4-4 U o y) J -d r. 1-1M o 0 v 3 b O ��' O 3 cd' N o ->� U chi 'N a� O �. �• a� r5 cc Go Ts a >; o ao w cd p RS t-y m .--i •+� 'C7 Q�.� ,~D a.+ E-+ �spCZ0C) aT,cZao���4-, E- O �aa�a�u� IZIll O ; .. •.,e• �yf�r. 4 �//1//hN11M1N >. 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