HomeMy WebLinkAbout0849 Amended Intermountain Gas Franchise FeeCITY OF CHUBBUCK, IDAHO
ORDINANCE NO: R Y q
AN ORDINANCE OF THE CITY OF CHUBBUCK, IDAHO, GRANTING TO
INTERMOUNTAIN GAS COMPANY A THIRTY (30) 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; TO ADDITIONAL RIGHT PAYMENTS TO
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 COSTS;
SETTING FORTH PENALTIES AND FORFEITURES, SEPARABILITY AND REPEAL.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF
CHUBBUCK, IDAHO.
SECTION 1— GRANT OF AUTHORITY
There is hereby granted to Intermountain Gas Company, a corporation, its successors and
assigns (hereinafter collectively referred to as "Grantee") a thirty (30) 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 Chubbuck, 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 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.
Ordinance -I-
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, 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 representative as the governing body of the
City may designate for such purpose, but not so as unreasonably to interfere with the proper
operating 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 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 there from is first paid to Grantee. The City will avoid the need for such
moving or changing whenever possible. In the event Federal, State, or other funds are available
in whole or in part for utility relocating purposes, the City shall apply for such funds and the
Grantee will be reimbursed to the extent any such funds are actually obtained. Grantee and the
City shall comply with Idaho Damage Prevention Statutes, Idaho Code, Title 55, Chapter 22.
_SECTION III — 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 any 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 three years from the date of acceptance 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.
Ordinance -2-
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 thirty (30) years from September 11%
2022, through and including August 31 ", 2052.
SECTION V — CITY RIGHT TO INSPECTION OF GRANTEE'S PLANS,
ACCOUNTS AND BOOKS — GRANTEE TO FURNISH CERTAIN MAPS
Upon reasonable advance notice, the City shall have access to Grantee's records only to
the extent necessary to verify the accuracy of the Franchise fee payments required herein. The
Grantee shall furnish, upon request from the City a complete set of maps, including plans and
profile of the distribution system of the Grantee and any planned 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, utility lines and equipment installation,
maintenance and removal during the term of the public service provider's franchise with the city,
which the City may impose for the rights and privileges herein granted or for the privilege of
doing business within the City.
The Grantee shall file 30 days after the end of each calendar quarter with the City a report
for the preceding calendar quarter, which report shall contain a statement 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 which said report is made and filed.
SECTION VII — RIGHT TO ADDITIONAL PAYMENTS TO CITY
In the event that Grantee shall in conjunction with any other franchise agreement, pay
any other city within the State of Idaho any percentage greater than hereinbefore provided, then
and in such event, the City shall be entitled to collect from Grantee such higher percentage of
gross annual sales, based upon Grantee's gross annual sales within the city for the same period of
time for which such other city is entitled to receive such higher percentage,
SECTION VIII--- 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 (1.0) days after the presentation of
Ordinance -3-
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 IX — 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 $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 X — SAFETY REGULATION COMPLIANCE
Grantee shall comply with and conform to all applicable safety regulations promulgated
by the United States, State of Idaho or City of Chubbuck, or any regulatory body having
jurisdiction thereof.
SECTION XI — AGREEMENT NOT TO COMPETE
RESERVE TO CITY POWER OF EMINENT DOMAIN
In consideration if 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 XII - 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 its plant, works and facilities, and will restore
City's streets and alleys damaged by such salvage operation.
SECTION XIII— 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.
Ordinance -4-
SECTION XIV -- 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 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 Grdntee, 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, fail -Lire 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
declares that it would have passed the remaining parts of this ordinance if it had been known that
such other part of parts thereof would be declared unconstitutional or invalid.
SECTION XVIII — REPEAL
All ordinances and parts of ordinances of the City in conflict herewith shall be, and the
same are hereby repealed.
Ordinance -5-
PASSED BY THE CITY COUNCIL OAF THE CITY OF CHUBBUCK, IDAHO
AND APPROVED BY THE MAYOR THIS Zy DAY OF Jam. (� , 2022.
ATTEST:
Ci e
ACCEPTANCE
Mayor
INTERMOUNTIAN GAS COMPANY, as the franchisee, accepts the franchise set forth
in the above Ordinance and agrees to abide by the terms and conditions thereof.
DATED thislFday of ub-' -� T , 2022
INTERMOUNTAIN GAS COMPANY
By:
Eric Martuscelli
It's: Vice President, Field Operations
ATTEST:
Ordinance -6-