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HomeMy Public PortalAbout1992_01_14_O001 Washington Gas Light FranchiseThe Town of Leesburg, [ il Virginia PRESENTED January 14, 1992 ORDINANCE NO. 92-0-1 ADOPTED January 14, 1992 AN ORDINANCE: GRANTING TO THE WASHINGTON GAS LIGHT COMPANY A FRANCHISE TO USE AND OCCUPY THE STREETS, ALLEYS, AND OTHER PUBLIC GROUNDS OF THE TOWN OF LEESBURG AS THE SAME NOW EXIST OR MAY HEREAFTER BE LAID OUT, FOR THE CONSTRUCTION, MAINTENANCE AND OPERATION OF A SYSTEM OF PIPES, MAINS, CONNECTIONS, METERS AND OTHER EQUIPMENT AND APPLIANCES NECESSARY OR CONVENIENT FOR THE TRANSMISSION, DISTRIBUTION AND SALE OF NATURAL GAS IN THE TOWN OF LEESBURG WHEREAS, the Council of the Town of Leesburg, at a meeting held on the 26th day of November, 1991, authorized a legal notice asking for bids to be submitted for a franchise to use and occupy the streets, alleys and other public grounds of the Town of Leesburg as now existing or as may hereafter be laid out, for the construction, maintenance and operation therein of a system of pipes, mains, connections, meters and other equipment and appliances necessary or convenient for the transmission, distribution and sale of natural gas in and to any part of the Town of Leesburg and luring the time for the reception by the Town Council of bids; and WHEREAS, such ordinance was published in the Loudoun Times-Mirror, a newspaper having general circulation in the Town of Leesburg, Virginia, once a week for four successive weeks as required by law, said advertisement commencing on the 4th day of December, 1991, and terminating on the 23rd day of December, 1991, as will appear from a certificate of such publication now on file x~th the Clerk of the Town of Leesburg; and WHEREAS, the Town Council at a meeting held on the 14th day of January, 1992, invited bids for such franchise as required by law; and WHEREAS, --Washington Gas Light Company submitted in writing a bid in the amount of $1,000.00 for the franchise; and WHEREAS, in the opinion of the Council of the Town of Leesburg, it is expedient and in the best interest of the town that the franchise be granted to Washington Gas Light Company. THEREFORE, ORDAINED by the Council of the Town of Leesburg in Virginia as follows: -2- ORDINANCE - FRANCHISE TO USE AND OCCUPY THE STREETS FOR NATURAL GAS SECTION I. A fi:anchise is hereby granted to Washington Gas Light Company, a corporation of the Commonweaith of Virginia, its successors and assigns (hereinafter collectively referred to as Grantee), to use and occupy the streets, alleys, and other public grounds in the Town of Leesburg, as now existing or as may hereafter be laid out, for the construction, maintenance and operation therein of a system of pipes, mains, connections, meters and other equipment and appliances necessary or convenient for the transmission, distribution and sale of natural gas in and to any part of the Town of Leesburg. SECTION II. Occupation of Streets, Alleys and Public Grounds. (a) Permits. In conformance with the Manual of Permits for Work Performed Within the Streets of the Town of Leesburg or the Virginia Department of Transportation Land Use Permit Manual, as applicable, application must be made to the respective jurisdiction and a permit received before work may' start within any dedicated right-of-way or easement. (b) Construction Drawings. The Grantee shall prepare and submit for review and approval by the town detailed construction drawings of any proposed transmission or distribution main within any street, alley or other public ground prior to proceeding with construction. Where the Grantee proposes to construct a transmission or distribution main on private property within the town limits, the Grantee shall notify the town of its general plans or submit general construction drawings showing such facilities so that the town may recommend appropriate action to avoid conflict with existing or planned facilities owned by the town. All necessary private property easements and permits shall also be secured prior to the start of construction. A courtesy copy of the easements shall be supplied to the town. (c) Location of Mains and Other Appurtenances. The location and laying out of all pipes and mains, the placing of conduits, and the location of any other permanent equipment or appliances of any kind under this franchise shall be subject to the approval of the Town Council or such committee or town official as the Town Council may from time-to-time designate, and when plans showing the location or relocation of such pipes, mains, connections, meters, or other equipment or appliances have been submitted to and approved by said Town Council or such designated committee or officials, they shall be effective and binding to the same extent as if they were set out fully and at length in this franchise. (d) Maintenance of Traffic. All work performed under this franchise shall be planned and executed in :such a manner as not to interfere unreasonably with the free and proper use of the streets, alleys, and other public grounds while the said work is in progress, or unnecessarily to obstruct the travel thereon. The grantee shall contact the town traffic engineer for approval of any restriction or diversion of the flow of pedestrian or vehicular traffic within the right-of-way which might become necessary in the performance of the work under this franchise. A traffic maintenance plan, in strict accordance with the Virginia Work Area Protection Manual and the Manual on Uniform Traffic Control, must be submitted to, and approved by the traffic engineer before the flow of pedestrian or vehicular traffic can be restricted or detoured in any manner. (e) Minimum Standards for Construction, Maintenance, Distribution, and Operation of Natural Gas Facilities. All work performed under this franchise with respect to pipe design, design of pipeline components, joining of pipe, construction standards, customer service installation, corrosion control, testing, uprating, operations, and maintenance shall conform with U.S. Department of Transportation Pipeline Safety Regulations 49 CFR Part 192, current edition. -3- ORDINANCE - FRANCHISE TO USE AND OCCUPY THE STREETS FOR NATURAL GAS (f) Minimum Standards for Utility Cuts Including Pavement Cutting, Excavation, Backfill and Restoration. All such work performed under this franchise shall be performed in accordance with the Town of Leesburg Design and Construction Standards Manual, the Manual of Permits for Work Performed Within the Streets of the Town of Leesburg, and the Virginia Department of Transportation Road and Bridge Specifications, current editions, as applicable. SECTION III. Protection of Other Facilities. The work to be done under the ordinance shall be done in such a manner as not to damage any other underground construction of any other public service corporation holding a franchise from the town or any other construction approved or performed by the town itself, or by the Virginia Department of Transportation, or unnecessarily to interfere with or impede the approach to or service of, or the making of connections by the town or by the citizens thereof with water, sanitary sewer, and/or storm drainage systems which may now or hereafter be laid or constructed in the town. The Grantee shall notify the town of its plans to construct any transmission or distribution main in the franchise area prior to commencing construction. The Grantee shall repair or replace any such facilities damaged during the course of its work. SECTION IV. Relocation of Facilities. Whenever any of the pipes, mains or other structures of the Grantee shall prove to be in the way of streets, alleys, sidewalks or improvements on public property, whether such streets, alleys, sidewalks or improvements be new or as a result of changing the location of, or repairing, existing streets, sidewalks, alleys or public grounds, the Town Council may require the Grantee, at its cost, unless federal funds are involved and federal regulations require reimbursement for relocation of utility facilities, to move to an alternate location so much of its facilities in the streets, sidewalks, alleys, or other public grounds in the town as may impede the progress of such improvements, and upon the failure of the Grantee to do so, the Town Council may, after ten days' notice in writing to the Grantee, itself make such necessary/ changes in the works of the Grantee at the cost and expense of the Grantee. SECTION V. lq:estoration of Streets and Public Areas. The Grantee shall, at its own proper cost, promptly replace, relay, repair and restore as nearly as possible to their original condition all streets, sidewalks, water mains, sewers, or other structures or public areas disturbed or damaged in the construction of the work authorized to be done by this -4- ORDINANCE - FRANCHISE TO USE AND OCCUPY THE STREETS FOR NATURAL GAS franchise; and upon failure to do so, after ten days' notice in writing shall have been given by the Town Council, the town may replace, relay, repair or restore such portion of the streets, sidewaiks, water mains, sewers or other structures or public areas disturbed or damaged as may be so damaged or disturbed and collect the cost so incurred from the Grantee. SECTION VI. Notice of Interruption for Repairs. Whenever it is necessary to shut off or interrupt service for the purpose of making repairs or installations, the Grantee shall do so at such times as will cause the least amount of inconvenience to its customers, and unless such repairs are unforeseen and immediately necessary, it shall give reasonable notice thereof to the consumers. SECTION VII. Indemnification. By the acceptance of this franchise, the Grantee hereby agrees to indemnify and save harmless the Town of Leesburg from ail loss, costs, damages or expenses to which the town may be subjected for any damages or destruction that may be done or suffered by anyone in person or property for which the town may be held liable, on account of any act or omission by the Grantee, its employees or agents, in and about the installing, repairing and maintenance of said gas works, mains and gas lines and ail guarding, trenches or excavation while the same are being installed, or subsequently at any time extended, or while repairs or aiterations are being made thereto at any time in the future, or on account or by reason of any work done under this franchise, or in consequence of the operations of the Grantee, provided nothing herein shall be construed to relieve the town of negligence on the part of its agents, servants or employees. SECTION VIII. Grantee to Abide by Franchise; Forfeiture. This franchise is granted under the express condition that the Grantee shail maintain a proper system for the transmission, distribution and saie of gas in the Town of Leesburg, Virginia, subject to the jurisdiction of the State Corporation Commission of Virginia. In furtherance thereof, Grantee shall execute a bond in the amount of $10,000.00 with good and sufficient surety, in favor of the Town of Leesburg, to secure the obligations imposed by this franchise and ordinance. If, in the judgment of the Council, the Grantee has not substantially kept its obligations under this franchise, then: -5- ORDINANCE - FRANCHISE TO USE AND OCCUPY THE STREETS FOR NATURAL GAS (,1) The Council may declare a forfeiture of the franchise; provided (12) Either party may have the declaration of forfeiture reviewed by the State Corporation Commission of Virginia or a court having jurisdiction thereof; and (3) If the declaration be not set aside, the town may exercise its right of eminent domain and thus acquire all of the interests and property of the Grantee of every nature and description which constitutes the town gas system and those things incident thereto. Possession and fee simple ownership shall vest upon the payment by the town to the Grantee of the award in condemnation. In such condemnation proceeding the franchise shall not constitute an asset of the Grantee, but in all other respects such proceeding shall be in accordance with eminent domain procedures in Virginia. SECTION IX. Conditions of Bond. The conditions of the bond required by Section VIII shall be that the Grantee shall maintain the works provided for and reasonably necessary for the exercise of the rights and privileges granted by this ordinance and will provide adequate, efficient and safe service at just and reasonable rates, and will maintain the same in good condition throughout the term of this grant, any will comply in all respects with the terms, conditions and provisions of the ordinance, including but not limited to the covenants of indemnity provided for in Section VII. Said bond shall not in any wise be considered as the limit of the Grantee's obligations or possible liabilities hereunder, but is merely a minimum requirement to fund such obligations and possible liabilities. SECTION X. Service Standards. The Grantee shall provide and maintain an adequate, efficient and safe service of gas for light, heat, power, fuel and other practical uses thereof at reasonable rates in the Town of Leesburg, to the town and residents thereof, and shall maintain its properties, works and structures located in the said town in good order through the term for which the franchise is granted, except when prevented from doing so by fires, freshets, strikes, or causes beyond its control, which may temporarily prevent the -6- ORDINANCE - FRANCHISE TO USE AND OCCUPY THE STREETS FOR NATURAL GAS maintenance of such service and such conditions to the property; that the Grantee shall stand ready at all times to make service connections for supplying gas for light, heat, power and fuel and other practical uses and purposes at any point within the territory to which this franchise applies, upon the proper applications therefore and in accordance with the standard terms and conditions of the Grantee, as approved by the State Corporation Commission and in effect at the time such application is made; provided that the Grantee shall not be required to make service connections or extensions across private property without the consent of the owner thereof. SECTION XI. Adequacy of Service. The adequacy, efficiency and safety of service under this franchise and the reasonableness of the rates and charges to the public therefore and the reasonableness of the rules and regulations affecting such service to the public are to be determined by the State Corporation Commission of Virginia, or by such other legally' constituted regulatory body as may have jurisdiction under the laws of the State of Virginia, to determine such matters and the Grantee in accepting this franchise expressly agrees that the said Commission or other body shall have jurisdiction to the full extent and in the manner now or hereafter during the lite of this franchise provided by law to enforce the provisions of the franchise to the full extent provided by law. SECTION XII. Odorization of Gas. The Grantee agrees that any gas distributed to consumers through gas mains or gas services or used for domestic purposes which does not naturally possess a distinctive odor to the extent that its presence in the atmosphere is readily detectable at concentrations well below that required to produce an explosive mixture shall have an odorant added to it to make it detectable. SECTION XIII. Rates. The State Corporation Commission of Virginia shall control and designate the rates to be in effect. SECTION XIV. Gross Revenue. An annu~d Summary Report shall be made to the town showing gross revenue received by the Grantee from its operations within the town during the preceding year and such other information -7- ORDINANCE - FRANCHISE TO USE AND OCCUPY THE STREETS FOR NATURAL GAS as the town shall request with respect to the properties and expenses related to the Grantee's service within the Town of Leesburg. The Grantee shall pay all applicable license or other taxes to the town which may obtain during the life of this franchise. SECTION XV. iMap of Gas Pipes. The Grantee shall maintain in its office (and open to inspection by the town or its agents) and keep current a complete and detailed map of its mains and distribution system within the territory to which this franchise applies, showing all additions and deletions to such system. The Town of Leesburg shall be entitled to a copy of the map required by this section upon request and shall safeguard the information revealed therein in accordance with such reasonable restrictions as may be imposed by the Grantee. SECTION XVI. (a) Publication Costs; Legal and Plan Review Fees. The Grantee shall assume the cost of publication of this franchise, and any required amendment thereto, as such publication costs shall be presented to the Grantee by the Town Clerk. The Grantee shall also assume the cost of legal services required by the Council in the preparation, review and any amendment required to this franchise ordinance. Such costs shall be paid at the time of the Grantee's filing of acceptance required by Section XX. (b) The cost to the town of reviewing construction plans for and inspecting installation of the Grantee's system within a dedicated right-of-way or easement in the franchise area shall be reimbursed by the Grantee in accordance with the Manual of Permits For Work Performed within the streets of the Town of Leesburg. SECTION XVII. Ownership of Facilities. Nothing in this franchise ordinance shall have the effect of altering, amending, abridging, or otherwise affecting the right, title or ownership of any person, firm or corporation in and to gas distribution facilities owned and operated by it and now situate, lying and being in the said town, and all bids by other persons, firms or corporations shall be subjected to said rights heretofore vested in said property, under the Constitution and laws of the State of Virginia. SECTION XVIIL Transfer. This franchise shall not be transferred, assigned, or sublet except to an affiliate of the Grantee, without the written consent of the Town of Leesburg. SECTION XIX. Expiration of Franchise. -8- ORDINANCE - FRANCHISE TO USE AND OCCUPY THE STREETS FOR NATURAL GAS At the expiration of the life of this franchise, the Town of Leesburg shall have the fight, at its option, to purchase at a fair valuation, to be determined in the manner hereinafter provided, all the mains, pipes, conduits and other appurtenances of the Grantee lying and being within the corporate limits of the town. Should the town desire to avail itself of the privilege herein reserved, then the fair value of said property of the Grantee shall be ascertained and arrived at between the town and the Grantee by agreement if possible; but in the event that the fair value thereof cannot be agreed upon, the Town of Leesburg shall select an appraiser, the Grantee shall select an appraiser, and the two persons so selected shall select a third appraiser, and the three persons so selected, or a majority of them, shall fix the fair value of the Grantee's mains, pipe, conduits and other appurtenances lying and being within the corporate limits of the town, which shall be accepted by the Town of Leesburg and the Grantee as the correct fair value thereof, and if ~he Town of Leesburg then desires to purchase the property aforesaid at said fair valuation, it shall have the right to acquire the same at the price so fixed, and pay for the same at such time and in such manner and upon such terms and conditions as the town and the Grantee may agree. SECTION XX. Effective Date. This franchise and the rights and privileges hereby granted and conferred shall not become effective unless and until the Grantee shall, within thirty days from the time it receives actual notice of approval of its bid, file with the Clerk of the Town Council its written acceptance thereof and post the bond required by Section VIII. SECTION XXI. Franchise Term. The privileges hereby granted shall continue for a period of thirty (30) years from the date of the approval of this ordinance. This ordinance shall remain in effect upon its passage. PASSED this 14th day of January, 1992. ATTEST: Clerk of Council t~obert E. Sevila, Maydr Town of Leesburg