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HomeMy Public PortalAboutORD-CC-1975-01ORDINANCE NO. 1-75 GRANTING TO UTAH GAS SERVICE COMPANY, A UTAH CORPO- RATION, ITS SUCCESSORS OR ASSIGNS, A FRANCHISE FOR THE CON- STRUCTION AND OPERATION OF A GAS DISTRIBUTION SYSTEM IN THE CITY OF MOAB, STATE OF UTAH, FOR A TERM OF THIRTY-THREE YEARS, AND FIXING AND PRESCRIBING CONDITIONS AND TERMS THEREOF. THE MAYOR AND THE CITY COUNCIL OF THE CITY OF MOAB, UTAH, ORDAIN AS FOLLOWS: SECTION 1. That there is hereby granted to UTAH GAS SERVICE COMPANY, its successors and assigns, hereinafter called, "the grantee", the right, privilege, and franchise, for the period of thirty-three (33) years from and after the passage of this Ordinance, to lay, construct, install, operate and maintain a gas transmission and distribution system including mains, service pipes and lines, curb boxes and other necessary attachments and appliances in, under, upon, over, across and along the present and future roads, highways, streets, alleys, bridges and other public places within the present and future corporate limits of the City of Moab, Utah, for the purpose of conveying, distributing, supplying and selling gas to said city, the inhabitants thereof and property owners and users therein, and also for the purpose of transmitting gas into, through and beyond said city, to persons and corporations beyond the boundaries thereof for all useful purposes. The right, privilege and franchise granted herein shall nevertheless expire and be of no further force and effect upon the revocation or termination of the certificate of public convenience and necessity issued to grantee by the Public Service Commission of Utah authorizing grantee to provide gas service to the City of Moab; however, transfer of said certificate by grantee to a successor or assignment thereof by grantee shall not be construed as a revocation or termination of said certificate. This franchise is granted in consideration of the mutual covenants herein contained and the acceptance by the grantee of the terms and conditions of this Ordinance as herein provided. . SECTION 2. That all mains, service pipes and lines shall be so raid as to interfere as little as possible with traffic. Grantee, its successors and assigns, shall lay and construct all gas mains and pipes under this grant with dispatch in accordance with established practices with respect to gas line construction, and so as not to unnecessarily interfere with water pipes or other pipes which may have been previously laid in said roads, highways, streets, alleys, lanes and other public places, having regard to the safety and convenience of said city and its citizens. Grantee shall comply with such construction, materials and maintenance standards of its mains, pipes, boxes, stations, connections, meters and other appliances that are now in effect or hereafter from time to time established by applicable state and federal regulatory agencies. The location of mains, service pipes and lines may be fixed under the super- vision of the proper officer of said city. SECTION 3. That all roads, highways, streets, alleys, lanes and public places that may be opened by the grantee for the aforesaid purposes shall be filled in and put in as good repair as they were prior to the opening thereof and so as to present the least possible obstruction C.) 2. and inconvenience to the travelling public. Said city reserves the right to change the grade of the streets, alleys and public ways and to construct, change or repair any water mains, sewer pipes, drains or other public improve- ments; and should the grade of any street, alley or public way be changed, or other necessary public improvement be made that would require the change of location of gas mains and service pipes, boxes, reducing and regulating stations, laterals, connections, and/or other appliances, the grantee, upon request by said city in writing, shall make such change at its own expense. SECTION 4. Grantee shall make such reasonable extensions of the mains of said system from time to time as are warranted by expansion and development of demand, but grantee shall not be required to make an extension for the purpose of serving any new consumer or consumers which will necessitate the installation of more than one hundred (100) feet of main for each consumer to be served, nor where the estimated revenue to be derived from serving such new consumer or consumers is insufficient to show an adequate return upon the total investment required to serve such new consumer or consumers. SECTION 5. Grantee shall have the right to make such reasonable rules and regulations for the protection of its property, the prevention of loss and waste and in con- nection with the distribution and sale of gas as from time to time it may deem necessary or expedient including a reasonable meter deposit for domestic meters and a deposit for all other meters in such amount as may be required to assure payment of bills. Grantee shall have the right to enter the premises of consumers at all reasonable times for the purpose of reading meters, inspecting pipes and gas appliances and disconnecting and removing meters. SECTION 6. Said city shall in no way be liable or responsible for any accident or damage that may occur in the construction, operation or maintenance by the grantee of its pipe lines and appurtenances hereunder, and the acceptance of this franchise shall be deemed an agreement on the part of said grantee, its successors and assigns, to indemnify said city and hold it harmless against any and all liability, loss, cost, damage or expenses which may accrue to said city by reason of any neglect, default, or misconduct of the grantee in the construction, operation or maintenance of said pipe lines and appurtenances. SECTION 7. Subject to state and federal regulatory approval, permission is hereby granted unto said Utah Gas Service Company, its successors or assigns, to assign this franchise and all rights hereunder and upon assignment of this franchise in accordance herewith, said successors or assigns, whether individuals or corporations, shall become entitled to all the rights and privileges herein granted and shall assume all the obligations and duties herein provided. SECTION 8. Grantee shall collect from users and pay to said city as compensation for the use of city property as herein provided and for all other rights and privileges herein granted, a sum equal to one and one half per cent (1-1/2%) of Grantee's gross revenues from the sale of gas or heat or other purposes within the corporate limits of said city during the first ten years of the rights herein granted, excluding from said gross revenues the amount received from said city for gas service furnished to it and excluding the revenue received from the sale of gas to other local, state or federal governmental agencies and after adjustment for the net write-off of uncollectable accounts and corrections of bills theretofore rendered; provided that for the remaining period of this ordinance Grantee shall collect from users and pay to said city a sum equal to two and one-half per cent (2-1/2%) of its gross revenue from the sale of gas derived as above provided. Payments shall be made quarterly, within thirty (30) days after the close of each quarter in each calendar year. For the purpose of ascertaining or audit- ing the correct amount to be paid under the provisions of this section, the City Auditor and/or any committee appointed by the City Council of Moab City shall have access to the books of Grantee for the purposes of checking the gross revenue received from the operations of Grantee within the corporate limits of the City of Moab. SECTION 9. Said grantee shall, within ninety (90) days after the passage of this Ordinance, accept in writing, duly filed with the City Recorder of said city, this franchise and the grants and privileges herein given, together with the conditions binding upon said grantee. SECTION 10. This Ordinance shall be published in the Times Independent, a newspaper of general circulation within said city, for one publication on January 23 , 1975, and be in full force and effect upon the expi ation of twenty (20) days following the date of publication. Passed January 21, 1975. ATTEST:% Moa City Re order Councilmen Voting "Aye" Harold W. Jacobs I. D. Nightingale Richard P. Hammer Gerald Bonser Keith Peterson Councilmen Voting "No" None