Ordinance - 1984 - 090 - Franchise Agreement Intermountain Gas Company - 04/10/1984
ORDINANCE NO.
90
AN ORDINANCE OF THE CITY OF EAGLE, IDAHO, GRANTING TO INT RMO TAIN
GAS COMPANY A THIRTY (30) YEAR FRANCHISE TO CONSTRUCT MAINT IN
OPERATE A GAS TRANSMISSION AND DISTRIBUTION SYSTEM; P OVIDIN FO THE USE
OF STREETS AND ALLEYS, AND RULES GOVERNING THE SAME; UBJECT NG T E
GRANTEE TO ALL POWERS OF THE CITY; SETTING FORTH THE ULES G VERN NG
REPAIRS AND RECONSTRUCTION OF THE STREETS; PROVIDING OR THE TERM OF THE
FRANCHISE AND GRANT; PROVIDING FOR THE RIGHT OF INSPE TION B THE CITY
OF GRANTEE'S PLANS, ACCOUNTS, AND BOOKS; REQUIRING G TEE T FU ISH
CERTAIN MAPS; SETTING FORTH THE ANNUAL PAYMENT TO THE CITY, T E
FILING OF ANNUAL REPORTS WITH THE CITY; REQUIRING GRA TEE TO INDE IFY
CITY, AND FILE EVIDENCE OF INSURANCE; REQUIRING COMPL CE TH S FETY
REGULATIONS; SETTING FORTH AN AGREEMENT NOT TO COMPET , RESE VING POWER
OF EMINENT DOMAIN; PROVIDING FOR SURRENDER OF FRANCHI; G TING RIGHT
TO SALVAGE; REQUIRING WRITTEN ACCEPTANCE; PROVIDING F CONS NT T SALE,
ASSIGNMENT OR LEASE; SETTING FORTH CITY'S RIGHT TO AD TIONA PA NTS;
SETTING FORTH PENALTIES AND FORFEITURES, SEPARABILITY RE EAL.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF EAGLE, IDAH :
SECTION I
GRANT OF AUTHORITY
There is hereby granted to Intermountain Gas Com any, a cor
ration,
its successors and assigns (bereinafter collectively
eferre
to
s
"Grantee") the right and authority to construct, inst 11, ma"ntai
and
operate a gas transmission and distribution system, i cludin
pipes, conduits, services and other necessary structu es and appl"ances
appertaining in, under, upon, over, across and along
alleys,
bridges and public places within the present and futu
limits
of the City of Eagle, Idaho, (hereinafter referred to
or the
furnishing, transmission, distribution and sale of ga
tificial,
natural, mixed or otherwise, for heating, domestic, i
other
purposes and for transmitting gas into, through and be
SECTION II
USE OF STREETS AND RULES GOVERNING SAME
Grantee shall secure a mermit for any opening it
hall m ke "
the
streets, alleys and public places in the City and shal
be su ject to
all applicable ordinances, but no fee shall be require
of Gr ntee for any
such permit.
The location or relocation of all facili ies sh 11 b
made
under the supervision and with the approval
and service.
Whenever the City shall pave or repave a
tive
as the
governing body of the City may designate for such purp
not so as
unreasonably to interfere with the proper operation of
's f cilities
shall
change the grade or line of any street or public
or reconstruct any conduit, water main, sewer or
onnection
city public works or city utility, it shall be the duty
tee when
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so ordered by the City to change its mains, services
nd ot
operty
in the streets or public places at its own expense so as to
the established grade or line of such street or publi
so as
not to interfere with the conduits, sewers and other
ains 0
the City
as constructed or reconstructed; however, the Grantee shall
ot b
required to relocate pipes, mains and appurtenances w en the stre t,
alley or public ground in which they are located is
or t e
convenience of abutting property owners and not
to a public
improvement, unless the reasonable cost of such reloc
loss
and expenses resulting therefrom is first paid to Gra
ee.
City grants a permit for an excavation in a street, al ey or
ground and the work contemplated by the permit may exp se gas pip
and appurtenances of the Grantee, the City shall promp
copy
of the permit to Grantee.
SECTION III
GRANTEE SUBJECT TO ALL POWERS OF
CITY - RULES GOVERNING REPAIR AND
RECONSTRUCTION OF STREETS
The exercise of privileges herein granted shall b
subje t at all
times to all of the powers of the City and all regulato y ord" anc s
adopted pursuant thereto.
The Grantee shall not unnece sarily or
unreasonably obstruct the use of or damage any street 0
alley, and shall
within a reasonable time and as early as practicable up n comp etio
of
any construction or repair work, restore all city stree sand
lley
to
the same order and condition as they were before the ex
insofar as reasonably possible.
The Grantee shall be r
was made
r any
obstruction or any defect in any street, alley or other
ublic
caused by it in the operation and maintenance of its pro ertie
occ rring
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at any times and shall promptly remove such obstruct on or
Any
such obstruction or defect which, after proper notic
demanding
removal or repair, as the case may be, is not prompt
repaired
by the Grantee may be taken care of by the City and
reof
shall be charged against Grantee and may be enforced
on any of
its properties or assets.
SECTION IV
TERM OF FRANCHISE AND GRANT
The right, authority and grant herein and hereby made t
sai
Grantee, its successors and assigns, is granted for,
nd lim ted "n time
to, a period of thirty (30) years from the date it ta es eff ct.
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 hour
of the
Grantee's plans, contracts and engineering, accounting
statistical, customer and service records relating to
operations of Grantee within the City.
The Grantee sh II fur ish
he
City with a complete set of maps, including plans and
rofile of t e
distribution system of the Grantee and any future exte sions.
SECTION VI
PAYMENT TO CITY AND FILING OF ANNUAL
WRITTEN REPORT WITH THE CITY
As consideration for this franchise and grant said Grantee, i s
h use,
successors and assigns, during the franchise period, sh 11 pay to
the following stipulated percentage of the gross annual receip s re eived
from all sales of gas within the corporate limits of th
City
operation or possession of this franchise and grant:
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(1)
Three percent (3%) per each year during th
life
Such annual payments shall be in lieu of any and
ees,
franchise and grant.
charges, licenses or taxes (other than ad valorem
may impose for the rights and privileges herein grant
privilege of doing business within the City.
The Grantee shall file by March 31 of each year
a written
report for the preceding calendar year, verified by t e affi avit of the
general manager, auditor, treasurer, or assistant tre
f sa.d
Grantee, which report shall contain a statement in su h form and
etail as
shall from time to time be prescribed by the City,
gro s receipts
arising from all sales of gas by said Grantee within
for the
calendar year preceding such report, and at the same
shall
pay to the City the stipulated percentage of the gross
for the year for which said report is made and filed.
as used in this Section VI means the calendar year, ex
first
year which ~ill commence on the date when this franchi
rant is in
effect and end on the following December 31.
SECTION VII
GRANTEE LIABILITY - INDEMNIFICATION
It is expressly understood and agreed by
Gran ee and
the City that the Grantee shall save the City harmless
rom a 1 10 s sus-
tained by the City on account of any suit, judgment, e
cutio
demand whatsoever, resulting from negligence on the pa
of t
the construction, operation or maintenance of its gas s stem.
City.
The City shall notify the Grantee's representative in t
(10) days after the presentation of any claim or demand
otherwise, made against the City on account of any negl gence
on the part of the Grantee.
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SECTION VIII
INSURANCE
Upon acceptance of this franchise by Grantee and befor
have any rights hereunder, Grantee shall file with th
City
shall
a
certificate evidencing the insurance of the Grantee a ainst
rope ty damage
in an amount not less than $50,000.00 and bodily inju y with
not less than $50,000.00 per person and $500,000.00 t tal fo
occurrence.
SECTION IX
SAFETY REGULATION COMPLIANCE
Grantee shall comply with and conform to all saf
y reg lati ns
promulgated by the City or any regulatory body having .urisd"ctio
thereof.
SECTION X
AGREEMENT NOT TO COMPETE - RESERVE
TO CITY POWER OF EMINENT DOMAIN
In consideration of Grantee's undertaking hereund r as e iden ed by
its acceptance hereof the City agrees not to engage in the bu ines
of
distributing and selling gas during the life of this f anchis
or
ny
extension thereof in competition with the Grantee, its succes ors
nd
assigns; but nothing herein contained shall be
the City from exercising at any time any power
to it under the laws of the State of Idaho.
to prevent
anted
SECTION XI
SURRENDER OF FRANCHISE
In the event natural gas at any time shall cease t
be av ilab e to
Grantee for the distribution and sale hereunder, Grante
reser es t e right
to surrender this franchise and in the event of such su
prio to
uch vents,
nd
s ch
any expiration or termination of this franchise, or in
Grantee reserves the right to salvage all of its plant,
facilities, and will restore City's streets and alleys
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salvage operation.
SECTION XII
WRITTEN ACCEPTANCE
The Grantee shall within thirty (30) days after
cept nce
age and
publication of this ordinance file with the City Cler
of this franchise in writing signed by its proper off cers
ested
by its corporate seal.
SECTION XIII
SALE, ASSIGNMENT OR LEASE OF FRANCHISE
No sale, assignment or lease of this franchise s all be effe tive
herein
until it is approved by the City, provided, however,
contained shall be construed as to require consent or
he Grantee
of this franchise and grant from including it in a mo
st deed
executed for this purpose of obtaining money for corpo
SECTION XIV
PUBLICATION COSTS
The Grantee shall assume the cost of publication
f this fran hise
as such publication is required by law.
SECTION XV
FORFEITURE
Any violation by the Grantee, its vendee, lessee
of
the provisions of this ordinance, franchise and grant
ater al por-
tions thereof or the failure promptly to perform any 0
thereof shall be cause for the forfeiture of this
all rights hereunder by the City after sixty (60) days
the Grantee and the continuance of such violation, fail
however, this provision shall not prevent the Grantee
itti g such
question of forfeiture to proper court determination.
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SECTION XVI
SEPARABILITY
If any part or parts of this ordinance shall be
by
he
courts to be unconstitutional or invalid, the same sh
affe t the
validi~y of any other part or parts hereof which can
eff ct without
the part or parts adjudged to be unconstitutional or
Th
City
declares that it would have passed the remaining part
s or inance
if it had been known that such other part or parts th
e declared
unconstitutional or invalid.
SECTION XVII
REPEAL
All ordinances and parts of ordinances of City in
PASSED BY THE CITY COUNCIL,
April
shall be, and the same are hereby repealed.
0
SIGNED BY THE MAYOR,
April
0
, 19
84
(SEAL)
ATTEST:
4~ ~~-ðÆ¿~.£~
City Clerk
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