HomeMy Public PortalAboutORD 62_Intermountain Gas Franchise_08201995ORDINANCE NO.
AN ORDINANCE OF THE CITY OF IONA, 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 FRANCHISE AND 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 TI-IE QUARTERLY PAYMENT TO THE
CITY, AND THE FILING OF QUARTERLY REPORTS
WI"fII TI-IE 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 OR ASSIGNMENT; PROVIDING FOR
PAYMENT OF PUBLICATION COST; SETTING FORTH
PENALTIES AND FORFEITURES, SEPARABILITY AND
REPEAL.
BE IT ORDAINED BY TIIE MAYOR AND COUNCIL OF IONA, 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 Iona, 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 presently has the sole power and authority to make this grant of authority and agrees
to seasonably notify Grantee in writing if a court of competent jurisdiction determines the
City no longer has this power.
SECTION II.
USE OF STREETS AND RULES GOVERNING SAME
Grantee shall secure a permit whenever it shall make any opening in the streets, alleys
or public places in the City. The City has the right to require such permit irrespective of
whether it adopts further ordinances regulating the construction, operation or maintenance
of public utility lines within public streets, alleys or rights of way . Grantee shall be subject
to all present or future ordinances of the City which regulate the construction, operation or
maintenance of public utility lines within public streets, alleys, rights of way or easements
to the extent such ordinances are not directly inconsistent with the terms hereof, but no fee
shall be required of Grantee for any permits required by such ordinances. Grantee may
locate or relocate its gas lines at any location within such places, provided such gas lines do
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not interfere with the operation or maintenance of any existing water main, sewer main,
electric line or pole, storm drain, irrigation conduit or other public utility line or appurtenance
owned by the City or any other public utility or water company. Whenever the City shall
pave or repave any street or shall change the grade or line of any street or public place or
shall construct or reconstruct any irrigation conduit, water main, sewer or water line, storm
drain or related appurtenances or other city -owned or operated works or utility, it shall be the
duty of the Grantee when so ordered by the City to move, alter, change or reconfigure 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 such facilities 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 issuing such orders, unless reasonably required for the public health, welfare or
safety. 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 fiends are actually obtained.
Grantee shall comply with the provisions of the Underground Facilities Damage
Prevention Act, as set forth in Idaho Code, §55-2201 et seq, as it presently exists or as may
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be amended hereafter, and the City shall no responsibility with respect to the construction,
location or relocation of underground facilities by or at the request of a private party.
Whenever the City desires to perform excavation of any City -owned water main, sewer main,
storm drain or other public work, and the work contemplated requires the exposure of any
gas pipes, mains or appurtenances of the Grantee, the City shall, whenever reasonably
possible, first give Grantee at least forty eight (48) hours advance notice of its intent to
commence such work. Nothing herein shall prevent the City from performing emergency
work, provided in such event the City shall give such notice as is reasonable under the
circumstances.
SECTION III.
GRANTEE SUBJECT TO ALL POWERS OF CITY
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 present or future regulatory ordinances adopted pursuant thereto.
Grantee shall not unnecessarily or unreasonably obstruct the use 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. Grantee shall
maintain, repair and keep in good condition for a period of one year from the date of
acceptance by the City, all portions of streets and alleys disturbed by it or its agents. The
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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 written notice to
Grantee, is not promptly and within a reasonable time, 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. During the course of any construction,
location, relocation or maintenance of any of Grantee's gas lines, facilities or related
appurtenances, Grantee shall observe and undertake all reasonable and appropriate safety
precautions necessary to prevent injury to property or person and Grantee shall observe all
federal, state or local laws, statutes, ordinances or regulations applicable to the safe and
proper conduct of such operations.
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 July 1,
1995 through and including June 30, 2025. This ordinance shall be effective nunc pro tune
to July 1, 1995, following its passage, execution and publication in the manner provided by
law.
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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. Upon request of the City,
the Grantee shall furnish, without charge or cost, a complete and accurate set of maps,
including plans and profile of the distribution system of the Grantee and any future
extensions.
SECTION VI.
PAYMENT TO CITY AND FILING OF QUARTERLY
WRITTEN REPORT WITH THE CITY
As consideration for this franchise and grant, Grantee, and its successors and assigns,
during the franchise period, shall pay to the City three percent (3%) of the gross quarterly
receipts received from all sales of gas by Grantee within the corporate limits of the City
arising from Grantee's use, operation or possession of this franchise and grant.
Such quarterly payments shall be in lieu of taxes, fees, permits or charges (other than
ad valorem taxes) related to easements, franchises, rights -of -way, utility lines and equipment
installation, maintenance and removal during the term of the public service provider's
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franchise with the City, which the City may impose for the rights and privileges herein
granted or for the privilege of doing business within the City.
Within thirty (30) days after the end of each calendar quarter, Grantee shall file with
the City a report, 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 quarter preceding such
report. At the same time the Grantee shall pay to the City the stipulated percentage of the
gross quarterly receipts due for the quarter for which said report is made and filed.
SECTION VII.
GRANTEE LIABILITY - INDEMNIFICATION
Grantee agrees to defend and save the City harmless from all loss sustained by the
City on account of any action, 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 within the City or otherwise caused by Grantee's use or
exercise of rights and privileges hereunder. The City shall notify Grantee within ten (10)
days after the presentation of any claim or demand, either by suit or otherwise, against the
City on account of any negligence as aforesaid on the part of the Grantee, provided that the
City's failure to timely provide such notice shall not cause Grantee to be relieved from its
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obligations hereunder unless such untimeliness substantially and materially prejudices
Grantee's ability to respond to such claim, demand or suit.
SECTION VIII.
INSURANCE
Upon acceptance of this franchise by Grantee and before Grantee shall exercise any
rights hereunder, Grantee shall file with the City Clerk a certificate evidencing the insurance
of the Grantee having limits of liability of not less than $500,000.00 for property damage,
$500,000 per person for bodily injury or death and $1,000,000.00 total for each occurrence.
Such certificate shall also evidence that an endorsement to such policy has also been issued,
naming the City as an insured thereon, and for the same limits of liability, insuring the City
from any wrongful act or liability caused by Grantee's negligent acts or omissions. Such
endorsement shall further provide that such coverage shall not be terminated without at least
thirty (30) days advance written notice being delivered to the City. In the event the limits of
liability under the Idaho Tort Claims Act (Idaho Code Section 6-901, et seq., hereafter
referred to as the "ITCH") are increased at any time during the term hereof, then the limits
of liability for the insurance policy required of Grantee hereunder shall be increased in the
same proportion that the new limit of liability under the ITCA bears to the present limit of
liability under such Act.
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SECTION IX.
SAFETY REGULATION COMPLIANCE
Grantee shall comply with and conform to all health and safety regulations
promulgated by the United States, the State of Idaho, or the City of Iona, or any other
regulatory body having jurisdiction thereof.
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
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will promptly restore City's streets and alleys damaged by such salvage operation to the same
condition they existed prior to the commencement of such salvage operation.
SECTION XII.
WRITTEN ACCEPTANCE
The Grantee shall within thirty (30) clays after 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. In the event Grantee fails to file such
acceptance, then this ordinance shall become null and void without further action by the City
Council.
SECTION XIII.
SALE OR ASSIGNMENT OF FRANCHISE
No sale or assignment of this franchise shall be effective until it is approved by the
City; provided, however, such permission shall not be unreasonably withheld by the City and
provided further 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. No grantee in any
Sheriff's deed or in any Trustee's Deed may exercise the rights and privileges herein, without
the express prior approval of the City.
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SECTION XIV.
PUBLICATION COSTS
Within thirty (30) days after the publication of this franchise as required by law and
the delivery of an invoice to Grantee, Grantee shall reimburse the City for all costs of
publication of this ordinance.
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 (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.
SEVERABILITV
If any part or parts of this Ordinance shall be determined by a court of competent
jurisdiction to be unconstitutional or invalid for any reason, such determination shall not
affect the validity of any other part or 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.
1 I - ORDINANCE
SECTION XVII.
REPEAL
All ordinances and parts or ordinances of City in conflict herewith shall be, and the
same are hereby repealed.
SECTION XVIII
NOTICE
All notices given or required to be given under the terms hereof, shall be delivered
to either party at the following addresses, or such other address as shall be delivered in
writing to the sending party, to wit:
The City of Iona
P. O. Box 487
Iona, Idaho 83427
Intermountain Gas Company
P. O. Box 7608
Boise, Idaho 84707
Delivery of such notice shall be presumed complete upon its deposit in the United States
mail, addressed as set forth above with proper postage affixed, certified mail, return receipt
requested.
SECTION XXIX
EFFECTIVE DATE
This ordinance shall become effective upon its passage, execution and publication in
the manner required by law.
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PASSED BY THE CITY COUNCIL
, 1995.
APPROVED BY TIIE MAYOR , 1995
SEAL
City Clerk
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ACCEPTANCE
INTERMOUNTAIN GAS COMPANY, as franchisee, accepts the franchise set forth
in the above Ordinance and agrees to abide by the terms and conditions thereof.
DATED this day of August, 1995.
INTERMOUNTAIN GAS COMPANY
By:
Its: Executive Vice President
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STATE OF IDAHO
County of Bonneville
I, RONALD NELSON, CITY CLERK OF THE CITY OF IONA, IDAHO, DO
HEREBY CERTIFY:
That the above and foregoing is a full, true and correct copy of the Ordinance entitled,
"AN ORDINANCE OF THE CITY OF IONA, 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 FRANCHISE
AND 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 QUARTERLY PAYMENT TO THE
CITY, AND THE FILING OF QUARTERLY 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 OR
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ASSIGNMENT; PROVIDING FOR PAYMENT OF PUBLICATION COST; SETTING
FORTH PENALTIES AND FORFEITURES, SEPARABILITY AND REPEAL."
y (1-&60,
Ronald Nelson
City Clerk
G:\WPDATA\D W S\3400\FRAN0702.ORD:
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NOTICE OF PROPOSED GAS FRANCHISE ORDINANCE
Pursuant to the provisions of Idaho Code Section 50-329, notice is hereby given that
a proposed Gas Franchise Ordinance has been introduced before the City Council of the City
of Iona, said proposed Ordinance being in the form attached hereto as Exhibit "A".
Comments thereon may be delivered to the offices of the City Clerk at the Iona City Hall, or
by mailing the same to the Iona City Clerk, P. O. Box 487, Iona, Idaho 83427. All such
comments shall be delivered to the City Clerk on or before August 23, 1995.
DATED this Z °t 11 day of July, 1995.
Li; w .
Ronald Nelson
City Clerk
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