Ordinance #52: Intermountain Gas Company Franchise
ORDINANCE No. 52
AN ORDINANCE OF THE CITY OF GEORGETOWN, IDAHO, GRANTING TO INTERMOUNTAIN GAS COMPANY A FORTY (40) 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 GOVERNING REPAIRS AND RECONSTRUCTION OF THE STREETS: PPROVIDING FOR THE TERM 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 ANNUAL PAYMENT TO THE CITY, AND THE FILING OF ANNUAL REPORTS WITH THE CITY: REQUIRING GRANTEE TO INDEMNIFY CITY, AND FILE EVIDENCE OF INSURANCE: REQUIRING COMPLIANCE WITH SAFETY REGULATIONS: SETTING FORTH AND AGREEMENT NOT TO COMPLETE, RESERVDING POWER OF EMINENT DOMAIN: PROVIDING FOR SURRENDER OF FRANCHISE: GRANTING RIGHT TO SALVAGE: REQUIRING WRITTEN ACCEPTANCE: PROVIDING FOR CONSENT TO SALE, ASSIGNMENT OR LEASE: SETTING FORTH CITY”S RIGHT TO ADDITIONAL PAYMENTS: SETTING FORTH PENALTIES AND FORFEITURES, SEPARABILITY AND REPEAL.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF GEORGETOWN, 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 forty (40) 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 along the streets, alleys, bridqes and public places within the present and future corporate limits of the City of Georgetown, Idaho (hereinafter referred to as “City”) for the furnishing, transmission, distribution and sale of gas, whether artificial, natural mised or otherwise, for heating, domestic, industrial and other purposes and for transmitting gas into, through and beyond said City,
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 aordinances, but no fee shall be required of Grantee for any such permit. 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, but not so as unreasonably to interfere with the proper operation of Grantee’s facilities and service. 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 of 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 icident to the public improvement, unless the reasonable cost of such relocation and the loss and expenses resulting therefrom is first paid to Grantee. Whenever the City grants a permit for an excavation in a street, alley or other public ground and the work contemplated by the permit may expose gas pipes, mains and appurtenances of the Grantee, the City shall promptly furnish a copy of the permit to Grantee.
GRANTEE SUBJECT TO ALL POWERS OF CITY RULES GOVERNING REPAIR AND RECONSTRUCTION OF STREETS
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. 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 an~ construction or repair work, 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 one year all portions of street 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 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.
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 forty (40) years from February 4, 1986, through and including February 3, 2026.
CITY RIGHT TO INSPECTION OF GRANTEE’S PLANS, ACCOUNTS AND BOOKS-GRANTEE TO FURNISH CERTAIN MAPS
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 the City with a complete set of maps, including plans and profile of the distribution system of the Grantee and any future extensions.
PAYMENT TO CITY AND FILING OF ANNUAL WRITTEN REPORT WITH THE CITY
As consideration for this franchise and grant said Grantee, its sucessors and assigns, during the franchise period, shall pay to the City three percent (3%) of the gross annual receipts received from all sales of gas within the corporate limits of the City through use, operation or possession of this franchise and grant.
Such annual payments shall be in lieu of any and all other fees, charges, licenses or taxes (other than ad valorem taxes ) whcih the City may impose for the rights a;nd privileges herein granted or for the privilege of doing business within the City.
The Grantee shall file by March 31 of each year with the City a report for the preceding calendar year, verified by the affidavit of the general manager, auditor, treasurer, or assistant treasurer of said Grantee, which repot 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 year preceding such report, and at the same time the Grantee shall pay to the City the stipulated percentage of the gross annual recipts due for the year for which said report is made and filed.
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 rights hereunder, Grantee shall file with the City Clerk a certificate evidencing the insurance of the Grantee against property damage in an amount not less than $500,000.00 and bodily injury with limits of not less than $500,000.00 per person and$1,000,000.00 total for each occurrence.
SAFETY REGULATION COMPLIANCE
Grantee shall comply with and conform to all safety regulations promulgated by the City or any regulatory body having jurisdiction thereof.
AGREEMENT NOT TO COMPETE – RESERVE TO CITY POWER OF EMINENT DOMAIN
In consideration of Grantee’s undertaking hereunder as evidenced by its acceptance hereof 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 assigns; 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 and in the event of such surrender prior to any expiration or termination of 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 by 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.
SALE, ASSIGNMENT OR LEASE OF FRANCHISE
No sale, assignment or lease 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 this purpose of obtaining money for corporate objects.
RIGHT TO ADDITIONAL PAYMENTS TO CITY
In the event the Grantee shall pay any other City any greater stipulated percentage than herein before provided, then in such event, the City shall have the right of requiring Grantee to pay for the same period of time such higher percentage so paid to such other city.
SECTION XV PUBLICATION COSTS
The Grantee shall assume the cost of publication of this franchise as such publication is required by law.
SECTION XVI FORFEITURE
Any violation by the Grantee, its vendee, lessee or successors of the provisions of this ordinance, franchise and grant or any material portions thereof or the failure promptly to perform 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 continuance of such violation, failure or default; however, this provision shall not prevent the Grantee from submitting such question of forfeiture to proper court determination.
SECTION XVII SEPARABILITY
If any part or parts of this ordinance shall be adjudged by the courts to be unconstitutional or invalid, the same shall not affect the validity of any other part or parts hereof which can be given effect without the part or parts adjudged to be unconstitutional or invalid. The City delcares that it would have passed the remaining parts of this ordinance if it had been known that such other part or parts thereof would be declared unconstitutional or invalid.
SECTION XVIII REPEAL
All ordinances and parts of ordinances of City in conflict herewith shall be, and the same are hereby repealed.
PASSED BY THE CITY COUNCIL ________,1985
PASSED BY THE MAYOR _______,1985