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