HomeMy WebLinkAbout0380 Intermountain Gas 1992ORDINANCE NO. 380
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 FRANCHISEAND 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 ANI~AL 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, ASSIGNMENT OR LEASE;
PROVIDING FOR PAYMENT OF PUBLICATION COST; SETTING FORTH PENALTIES AND
FORFEITURES, SEPARABILITY AND REPEAL.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF CHUBBUCK, 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
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.
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 representatives 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
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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. 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. 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 furnish
a copy of the permit to Grantee at least 48 hours prior to such work.
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
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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 one year 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 thirty
(30) years from , 19__ through and including
SECTION V
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, 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.
ORDINANCE 4
SECTION VI
PAYMENT TO CITY AND FILING OF ANNUAL
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 annual 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 annual payments shall be in lieu of any and all other fees, charges,
licenses or taxes (other than ad valorem taxes) 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 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 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 year preceding such report, and
at the same time the Grantee shall pay to the City the stipulated percentage of
the gross annual receipts due for the year for which said report is made and
filed.
SECTION VII
GRANTEE LIABILITY o 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
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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. 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 , or any
regulatory body having jurisdiction thereof.
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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 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.
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SECTION XIII
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 the purpose
of obtaining money for corporate objects.
SECTION XIV
PUBLICATION COSTS
The Grantee shall assume the cost of publication of this franchise as such
publication is required by law.
SECTION XV
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 XVI
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
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other part of 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 or parts thereof would be declared unconstitutional or invalid.
SECTION XVII
REPEAL
Ail ordinances and parts or ordinances of City in conflict herewith shall
be, and the same are hereby repealed.
PASSED BY THE CITY COUNCIL AUGUST 11, , 19 92
APPROVED BY THE MAYOR ~ AUGUST 11, , 19 92
tJOHN O. COTANT, MAYOR
SEAL
ATTEST
City Clerk
ACCEPTANCE
INTERMOUNTAIN 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 this day of , 19
ORDINANCE 9
By:
Its: Executive Vice President