Ordinance - 2022 - 879 - Veolia Water Franchise Agreement - 08/23/2022 ORDINANCE NO. 879
AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328,50-329 AND 50-329a GRANTING
A FRANCHISE TO VEOLIA WATER IDAHO INC.,A CORPORATION, AND TO ITS SUCCESSORS
AND ASSIGNS, TO CONSTRUCT, MAINTAIN AND OPERATE IN, UPON AND UNDER THE
PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER PUBLIC PLACES WITHIN THE
CORPORATE LIMITS OF THE CITY OF EAGLE, IDAHO, WATER UTILITY PROPERTY AND
FACILITIES FOR SUPPLYING WATER AND WATER SERVICE TO THE CITY, THE
INHABITANTS THEREOF, AND OTHERS FOR A TERM OF 20 YEARS, INCLUDING THE
NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE AND MAINTAIN WATER LINES, PIPES,
EQUIPMENT OR OTHER WATER FACILITIES; SETTING FORTH AN AGREEMENT NOT TO
COMPETE; RESERVING POWER OF EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF
FRANCHISE FEES; AND SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS
GOVERNING THE EXERCISE OF SAID FRANCHISE, AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF EAGLE, IDAHO THAT:
SECTION 1: The City of Eagle, Idaho(hereinafter called the "City")hereby grants to VEOLIA
WATER OF IDAHO INC., a corporation, and to its successors and assigns (hereinafter called the
"Grantee")the right(subject to the rights of the City set forth in Section 14 hereof), privilege and franchise
for a period of twenty(20)years from the effective date of this Ordinance,however,with the right to amend
by mutual agreement in accordance with Section 15, to construct, extend, improve, maintain and operate
in, upon and under the present and future streets, alleys, highways and other public places within the
corporate limits of the City, water utility property and facilities for supplying water to the City, and the
inhabitants thereof, and to persons and corporations beyond the limits of the City, including the
nonexclusive right to physically locate and maintain water lines, pipes, equipment or other water facilities
of the Grantee or other parties,(provided,that Grantee shall comply with the City's requirements for water
system franchises) all subject to the terms and conditions hereinafter specified. In the case of annexation
of property to the corporate limit, such area will be considered under this agreement, upon effective date of
the annexation, subject to section 9 hereof. All such water utility property and facilities now maintained
by the Grantee within the streets,alleys,highways and other public places within the corporate limits of the
City shall be deemed covered by this ordinance as provided herein.
SECTION 2: All of the Grantee's water property and facilities in, upon and under the present
and future streets, alleys, highways and public places within the corporate limits of the City shall be
constructed and at all times maintained in good order and condition and in accordance with including all
applicable state and federal regulations and all construction standards presently in effect by the Idaho Public
Utilities Commission(PUC)or adopted by that Commission during the term of this franchise agreement.
SECTION 3: Upon request of the City,the Grantee shall relocate its facilities as necessary within
the present and future streets, alleys, highways and other public places owned by the City. The City shall
have no responsibility for the costs of such relocations. The Grantee shall bear the cost of relocating its
facilities at the City's request,unless the facilities are to be relocated for the benefit of a third party, in which
case the third party shall pay the costs of relocation. 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.
SECTION 4: It shall be lawful for the Grantee to make all needful or convenient excavations
and/or installations in any of the present and future streets, alley, highways and other public places within
the corporate limits of the City for the purpose of installing, maintaining and operating pipes, lines,
conduits, valves, fire hydrants, meters, vaults and wire and other equipment and appurtenances for the
purpose aforesaid, or to repair and improve such water system and to extend the same; provided that when
the Grantee or any person or corporation under the authority of this franchise, shall disturb any of said
streets, alleys, highways or other public places for the purposes aforesaid, he, it or they shall restore the
same to good order and condition as soon as practicable and without unnecessary delay and failing to do so
after ten days' notice from the City, or its duly authorized officer or officers, then the City may place said
street, alley, highway, or public place in such condition at the cost and expense of the Grantee, and said
Grantee will forthwith pay the full cost and expense thereof upon demand of the City. All facilities
constructed under this ordinance shall be placed and maintained at such places and positions in or upon
such public ways and public places as shall not interfere with the passage of traffic and shall conform to all
applicable laws, rules and regulations.
SECTION 5: The City, through the chief of its fire department or other properly authorized
officer, may use water from the fire hydrants for extinguishing fires, washing or flushing drains, gutters,
and sewers, in its streets, avenues, alleys and other public places and for sprinkling the public streets,
whenever the City Council and Mayor or board of health deem it necessary. The water so used by the City
shall be without additional compensation to Grantee. In consideration for the privileges and benefits of this
use of water and the covenants contained in this ordinance, the City covenants that this franchise and the
plant and all property now or hereafter acquired, owned, constructed, maintained and operated under this
franchise by Grantee, shall be exempt from the payment of all municipal taxes and assessments which are
or may be assessed by City during the term of this franchise. When the franchise or other property of
Grantee is not exempted by the City, then the City covenants to pay Grantee, as rental, a sum equal to the
amount Grantee pays or is required to pay to the City as they accrue and become due, out of the general
revenues of City. The Grantee's performance of the covenants contained in this ordinance and the granting
to City of the privileges and benefits above are in effect a payment of the taxes and assessments,which are
or may be assessed by the City during the term of this franchise. In all other cases not specified in this
ordinance where Grantee supplies the City with, or the City uses,water, it shall be paid for by the City out
of its general revenues at the rates in place and as established by the PUC.
SECTION 6: The City shall have the right and privilege to install and maintain lines and pipes
for its own use for its fire, police,airport and other services adjacent to lines and other facilities erected and
maintained by the Grantee hereunder, subject to the Rules and Regulations of the Idaho Public Utilities
Commission. The City shall install, maintain and operate such lines and pipes at its own expense, risk and
responsibility, and in accordance with all legal requirements and good engineering practices and in such
manner as not to impose any additional expense upon Grantee of its said conduits and facilities. Any such
lines of the City shall be subject to interference by the Grantee only when necessary in the maintenance,
operation or repair of the Grantee's own fixtures, lines, facilities and appurtenances.
SECTION 7: The Grantee shall at all times indemnify and hold the City, its officers,employees
and agents, harmless from any and all expenses or liability arising from or by reason of any negligent act
or omission of the Grantee, its representatives or employees, in the construction, operation or maintenance
of any of the Grantee's water utility property or facilities.
SECTION 8: Upon acceptance of this franchise by Grantee and before Grantee should have any
rights hereunder, Grantee shall file with the City Clerk a Certificate of Insurance evidencing General
Liability Insurance which covers claims for Bodily Injury, Property Damage and Personal Injury. Such
insurance shall have minimum limits of$1,000,000.00 per occurrence. The City of Eagle shall be named
as an "Additional Named Insured" under Grantee's insurance policy. Should the minimum limits of
insurance as set forth herein be increased above $1,000,000, pursuant to the Idaho Tort Claims Act(Idaho
Code Section 6-901 et. seq.) or any similar legislation, the Grantee shall be required to provide the City
with a new Certificate of Insurance evidencing the higher limits upon the City's request.
SECTION 9: The water service to be furnished to the public hereunder,and all rates and charges
therefore, and all regulation of the Grantee hereunder, shall at all times be subject to all rules, regulations
and order that may be lawfully prescribed by the Idaho Public Utilities Commission or by any other
governmental authority now or hereafter having jurisdiction over such matters. During the terms of this
franchise, Grantee shall at all times assure that customers within the City have access to customer service
from the Grantee as required by the Idaho Public Utilities Commission.
SECTION 10: As compensation for the right, privilege and franchise hereby granted, Grantee
agrees to pay to the City on or before the 30th day of January,April,July and October,an amount equivalent
to one percent(1%)of Grantee's "gross revenues" for the preceding calendar quarter. For purposes of this
Section, "gross revenues"shall mean the amount of money billed by the Grantee for the water it sells within
the corporate limits of the City to customers, less uncollectables. The City shall provide appropriate
information to the Grantee to allow the Grantee to identify which of its customers are located within the
corporate limits of the City for purposes of paying franchise fees. Grantee shall not be responsible for any
failure to pay franchise fees,which results from deficiencies in such information provided by the City. In
the event the City annexes a new area into its corporate limits,the terms of this Section 9 regarding franchise
fees shall not apply to the annexed area until sixty (60) days after the City has supplied the Grantee with
appropriate information for the identification of the Grantee's customers within the annexed area.
The Grantee's franchise fee payment obligations hereunder shall continue without interruption with
the adoption of this franchise ordinance.
SECTION 11: The City shall have the right during the term of this franchise agreement to
increase the franchise fee hereunder up to three percent(3%),by obtaining approval of a majority of voters
of the City voting on the question at an election held in accordance with Chapter 4, Title 50, Idaho Code.
Any such vote to increase the franchise fee hereunder shall provide that the increased franchise fee will
apply to any water service provider(other than the City who utilizes the City's streets,alleys or other public
places to provide water service within the City,during the term of this franchise agreement.
SECTION 12: The Grantee shall keep accurate books of account for the collection of the
franchise fees hereunder and the City shall have the right to inspect the same at all times during business
hours,and from time to time audit the same for the purpose of determining gross revenues under Section 9
above.
SECTION 13: The franchise fees paid by the Grantee hereunder will be in lieu of and as payment
for any tax or fee imposed by the City on the Grantee by virtue of its status as a public utility including,but
not limited to, taxes, fees or charges related to easements, franchises, rights-of-way, utility lines and
equipment installation,maintenance and removal during the term of this franchise agreement.
SECTION 14: In consideration of Grantee's undertaking hereunder and as exists upon the
effective date of this ordinance, the City agrees not to engage in the business of providing water service
during the life of this franchise or any extension thereof in the certificated area approved by the PUC as of
August 23, 2022 and as subsequently amended by the PUC. 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. The City shall not grant a franchise to another water service provider during
the terms of this franchise agreement unless the water service provider has received approval to provide
water service within the City from the Idaho Public Utilities Commission, and the City has imposed the
same franchise fee on the water service provider as paid by the Grantee.
SECTION 15: In the event of an amendment to the laws,rules or regulations of the City of Eagle,
the State of Idaho,or the Public Utilities Commission of Idaho applicable to their franchise,or for periodic
review of any section of this agreement, the terms of this franchise and the rights and privileges hereby
conferred may be changed,altered,amended or modified upon mutual agreement between the City and the
Grantee. In all cases, sixty(60) days notice shall be required on the part of the City or Grantee to reopen
the agreement pursuant to this section.
SECTION 16: Any violation by the Grantee 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 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 violation or forfeiture to the
appropriate forum (which may include the district court having jurisdiction or the Idaho Public Utilities
Commission)for determination.
SECTION 17: Sale, assignment or lease of this franchise is prohibited without prior written
consent of the City. The City's consent under this Section shall not unreasonably denied.
SECTION 18: The City shall assume the cost of publication of this franchise;as such publication
is required by law.
SECTION 19: Inasmuch as the Grantee has constructed and now is maintaining and operating
the water utility property and facilities in, upon and under the streets, alleys, highways, and public places
in the City, it is hereby adjudged and declared that this ordinance is necessary for the preservation of the
public peace,health and safety,and therefore this ordinance shall take effect upon its passage,approval and
publication.
This Ordinance, or a summary thereof in compliance with Section 50-901A, Idaho Code, shall be
in full force and affect thirty(30)days after its passage, approval and publication in the official newspaper
of the City of Eagle, Idaho.
PAS ED AND ADOPTED by the Council of the City of Eagle,Idaho this 23`d day of August, 2022.
JA PIERCE
Mayor
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Tracy s orn
Eagle ty Clerk
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ACCEPTANCE
Veolia Water of Idaho, Inc., as the franchisee, accepts the franchise set forth in the above Ordinance 879
and agrees to abide by the terms and conditions thereof.
DATED this day 94 k of c l cal I2r ,2022.
: Marshall Thompson,General Manager
Veolia Water of Idaho, Inc.
ACKNOWLEDGEMENT:
State of 1/1Q
County of RCIRA.
This record was acknowledged before me on C\11 Z.Z by Marshall Thompson as General
Manager who represent that he is authorized to act on behalf of Veolia Water of Idaho, Inc.
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Beaufort Gazette The Herald-Rock Hill Nuevc Herald-Miami Sun News-Myrtle Beach
Belle',ille Ne',y-De.rno,_rat Herald Sun-Durham Modesto Bee The News Tribune Tacoma
Bellingham Herald Idaho Statesman Raleigh Neers. Obserer The Telegraph-Macon
��.I�, _r pp Brenrld Island packet The 3lyrnpian Sari Luis Obispo Tribune
1Cs .rT t,. Centre Dail,ftonHe TimesKansas City Star Sacramento Tri-City Herald
Charlotte t'hser,er Lexington Herald-Leader Fort'Worth Star-Telegram Wichita Eagle
Columbus Ledger-Er,auirer Merced'Sun-Star The State-Columbia
Fresno B e Miami Herald Sun Herald-Biloxi
AFFIDAVIT OF PUBLICATION
Account# Order Number Identification Order PO Amount Cols Depth
36791 292634 Print Legal Ad-IPL0082159 $34.06 1 30 L
Attention: Mike Williams Bettina Jantzen,being duly sworn,deposes and
PO BOX 1520 says:That she is the Principal Clerk of The Idaho
EAGLE,ID 836169102 Statesman,a daily newspaper printed and
published at Boise,Ada County,State of Idaho,
and having a general circulation therein,and which
said newspaper has been continuously and
uninterruptedly published in said County during a
CITY OF EAGLE period of twelve consecutive months prior to the
Notice of proposed franchise Ordinance 879 first publication of the notice,a copy of which is
for water public utilities attached hereto:that said notice was published in
As allowed by,and in accordance
with Idaho State Code 50-328 and 50- The Idaho Statesman,in conformity with Section
329 notice is hereby given that the EA- 60-108,Idaho Code,as amended,for:
GLE CITY COUNCIL is proposing the
adoption of a franchise ordinance for
water public utilities at the August 23,
2022 City Council meeting at 5:30 P.M. No.of Insertions: 1
at Eagle City Hall,660 E.Civic Lane,
Eagle,Idaho.The draft ordinance can
be found in its entirety on the City Beginning Issue of: 07/20/2022
website at hams//bit.ly/COEORD879
or at Eagle City Hall. Ending Issue of: 07/20/2022
Qualified individuals who need ac-
cessible communication aids and
services or other accommodations to
participate in programs and activities
are invited to make your needs and
preferences know to the 504/ADA Co-
ordinator(Eagle City Clerk),208-939-
6813.Please allow three to five days
advanced notice so that your needs
may be adequately met.
Tracy E.Osborn,CMC
City Clerk (Legals Clerk)
IPL0082159
Jul 20 2022
On this 15th day of August in the year of 2022 before me,
a Notary Public,personally appeared before me Bettina
Jantzen known or identified to me to be the person
whose name subscribed to the within instrument,and
being by first duly sworn,declared that the statements
therein are true,and acknowledged to me that she
executed the same.
Notary Public in and for the state of Texas,residing in
Dallas County
S3ES+uii scan BEARD
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Extra charge for lost or duplicate affidavits.
Legal doarnent please do not destroy!
,.OF T
° CITY OF EAGLE
* * 660 E.Civic Ln.,Eagle,ID 83616
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CLE I Phone#: (208)939-6813 Fax#: (208)939-6827
DATE July 14, 2022
TO The Idaho Statesman
PUBLISH ON..... July 20, 2022
CITY OF EAGLE
Notice of proposed franchise Ordinance 879
for water public utilities
As allowed by, and in accordance with Idaho State Code 50-328 and 50-329 notice is hereby given
that the EAGLE CITY COUNCIL is proposing the adoption of a franchise ordinance for water public
utilities at the August 23, 2022 City Council meeting at 5:30 P.M. at Eagle City Hall, 660 E. Civic
Lane, Eagle, Idaho. The draft ordinance can be found in its entirety on the City website at
https://bit.ly/COEORD879 or at Eagle City Hall.
Qualified individuals who need accessible communication aids and services or other accommodations
to participate in programs and activities are invited to make your needs and preferences know to the
504/ADA Coordinator (Eagle City Clerk), 208-939-6813. Please allow three to five days advanced
notice so that your needs may be adequately met.
Tracy E.Osborn,CMC
City Clerk