HomeMy Public PortalAboutORD-CC-2009-10ORDINANCE # 2009-10
AN ORDINANCE GRANTING AN ELECTRIC UTILITY FRANCHISE
AND GENERAL UTILITY EASEMENT
TO
ROCKY MOUNTAIN POWER
WHEREAS, Rocky Mountain Power, is a regulated public utility that provides electric
power and energy to the citizens of the City of Moab (the "City") and other surrounding areas;
WHEREAS, providing electrical power and energy requires the installation, operation
and maintenance of power poles and other related facilities to be located within the public ways
of the City;
WHEREAS, the City, pursuant to the provisions of Utah Code Ann. § 10-8-21 has the
authority to regulate power line facilities within public ways and to grant to Rocky Mountain
Power a general utility easement for the use thereof;
WHEREAS, the City desires to set forth the terms and conditions by which Rocky
Mountain Power shall use the public ways of the City;
NOW, THEREFORE, be it ordained by the City:
SECTION 1. Grant of Franchise and General Utility Easement. The City hereby grants to
Rocky Mountain Power the right, privilege and authority to construct, maintain, operate,
upgrade, and relocate its electrical distribution and transmission lines and related appurtenances,
including underground conduits and structures, poles, towers, wires, guy anchors, vaults,
transformers, transmission lines, and communication lines (collectively referred to herein as
"Electric Facilities") in, under, along, over and across the present and future streets, alleys,
public ways and public places (collectively referred to herein as "Public Ways") within the City,
for the purpose of supplying and transmitting electric power and energy to the inhabitants of the
City and persons and corporations beyond the limits thereof.
SECTION 2. Term. The term of this Franchise and General Utility Easement is for 15
(fifteen) years commencing on the date of acceptance by the Company as set forth in Section 3
below.
SECTION 3. Acceptance by Company. Within sixty (60) days after the passage of this
ordinance by the City, Rocky Mountain Power shall file an unqualified written acceptance
thereof, with the City Recorder otherwise the ordinance and the rights granted herein shall be
null and void.
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SECTION 4. Non -Exclusive Franchise. The right to use and occupy the Public Ways of the
City shall be nonexclusive and the City reserves the right to use the Public Ways for itself or any
other entity that provides water or sewerage service to City residences; provided, however, that
such use shall not unreasonably interfere with Rocky Mountain Power's Electric Facilities or
Rocky Mountain Power's rights as granted herein.
SECTION 5. Municipal Energy Sales and Use Tax. Rocky Mountain Power acknowledges
that the City has levied a Municipal Energy Sales and Use Tax (MET) in the amount of three
percent (3.0%), on the sale or use of the delivered value of taxable energy within the City,
pursuant to the Municipal Energy Sales and Use Tax Act (Utah Code Ann. § 10-1-301 et seq.)
(the "Act"). To the extent consistent with the Act and City Ordinances, Rocky Mountain Power
shall collect the MET in the amount levied, as it may be adjusted during the term of this
Franchise, and pay said tax directly to the City .
Nothing in this Franchise shall affect the City's right, under the Act, or any other
applicable law then in effect, at any time hereafter to prospectively impose upon, charge or
collect a municipal energy sales and use tax on the sale or use of taxable energy supplied by or
through Rocky Mountain Power within the City, or to impose, charge or collect any lawful fee,
tax, license fee, license tax, franchise fee or similar charge, or any combination or any of the
foregoing provided the City is or becomes legally authorized to do so. In the event that Title 10,
Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act is repealed, invalidated, or the
maximum allowable rate of the MET is reduced, and if said Act is not superseded by a law
imposing a substantially equivalent tax, then Rocky Mountain Power shall pay to the City a
franchise fee in an amount equal to the MET rate imposed at the time of the repeal, invalidation
or reduction in the maximum allowable MET rate, effective on or after the day of the repeal,
invalidation or reduction.
SECTION 5. City Regulatory Authority. In addition to the provision herein contained, the
City reserves the right to adopt such additional ordinances and regulations as may be deemed
necessary in the exercise of its police power for the protection of the health, safety and welfare of
its citizens and their properties or exercise any other rights, powers, or duties required or
authorized, under the Constitution of the State of Utah, the laws of Utah or City Ordinance.
SECTION 6. Indemnification. The City shall in no way be liable or responsible for any loss or
damage to property or any injury to, or death, of any person that may occur in the construction,
operation or maintenance by Rocky Mountain Power of its Electric Facilities. Rocky Mountain
Power shall indemnify, defend and hold the City harmless from and against claims, demands,
liens and all liability or damage of whatsoever kind on account of Rocky Mountain Power's use
of the Public Ways within the City, and shall pay the costs of defense plus reasonable attorneys'
fees for any claim, demand or lien brought thereunder. The City shall: (a) within thirty (30) days
give written notice to Rocky Mountain Power of any claim, demand or lien with respect to which
the City seeks indemnification hereunder; and (b) permit Rocky Mountain Power to assume the
defense of such claim, demand, or lien. If such defense is not assumed by Rocky Mountain
Power, Rocky Mountain Power shall not be subject to liability for any settlement made without
its consent. Notwithstanding any provision hereof to the contrary, Rocky Mountain Power shall
not be obligated to indemnify, defend or hold the City harmless to the extent any claim, demand
Ordinance #2009-10 2
or lien arises out of or in connection with any negligent or willful act or failure to act of the City
or any of its officers or employees.
SECTION 7. Annexation.
7.1 Extension of City Limits. Upon the annexation of any territory to the City, the
rights granted herein shall extend to the annexed territory to the extent the City has such
authority. All Electrical Facilities owned, maintained, or operated by Rocky Mountain Power
located within any public ways of the annexed territory shall thereafter be subject to all of the
terms hereof.
7.2 Notice of Annexation. When any territory is approved for annexation to the
City, the City shall, not later than ten (10) working days after passage of an ordinance approving
the proposed annexation, provide by certified mail to Rocky Mountain Power: (a) each site
address to be annexed as recorded on county assessment and tax rolls; (b) a legal description of
the proposed boundary change; and (c) a copy of the City's ordinance approving the proposed
annexation. The notice shall be mailed to:
Rocky Mountain Power
Attn: Property Management / Right -of -Way Department
1407 West North Temple, Suite 110
Salt Lake City, UT. 84116
With a copy to:
Rocky Mountain Power
Attn: Office of the General Counsel
201 South Main Street, Suite 2400
Salt Lake City, UT 84111
SECTION 8. Plan, Design, Construction and Installation of Company Facilities.
8.1 All Electrical Facilities installed or used under authority of this Franchise shall be
used, constructed and maintained in accordance with applicable federal, state and city laws,
codes and regulations.
8.2 Except in the case of an emergency, Rocky Mountain Power shall, prior to
commencing new construction or major reconstruction work in the public way or street or other
public places, apply for a permit from the City which permit shall not be unreasonably withheld,
conditioned, or delayed. Rocky Mountain Power will abide by all applicable ordinances and all
reasonable rules, regulations and requirements of the City, and the City may inspect the manner
of such work and require remedies as may be reasonably necessary to assure compliance.
Notwithstanding the foregoing, Rocky Mountain Power shall not be obligated to obtain a permit
to perform emergency repairs.
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8.3 All newly installed Electric Facilities shall be located so as to cause minimum
interference with the Public Ways of the City and all Electric Facilities shall be constructed,
installed, maintained, cleared of vegetation, renovated or replaced in accordance with applicable
rules, ordinances and regulations of the City.
8.4 If, during the course of work on its Electrical Facilities, Rocky Mountain Power
causes damage to or alters the Public Way or public property, Rocky Mountain Power shall (at
its own cost and expense and in a manner reasonably approved by the City) replace and restore it
in as good a condition as existed before the work commenced.
8.5 In addition to the installation of underground electric distribution lines as
provided by applicable state law and regulations, Rocky Mountain Power shall, upon payment of
all charges provided in its tariffs or their equivalent, place newly constructed electric distribution
lines underground as may be required by City ordinance.
8.6 The City shall have the right without cost to use all poles and suitable overhead
structures owned by Rocky Mountain Power within Public Ways for City wires used in
connection with its fire alarms, police signal systems, or other public safety communication lines
used for governmental purposes; provided, however, any such uses shall be for activities owned,
operated or used by the City for a public purpose and shall not include the provision of CATV,
internet, or similar services to the public. Provided further, that Rocky Mountain Power shall
assume no liability nor shall it incur, directly or indirectly, any additional expense in connection
therewith, and the use of said poles and structures by the City shall be in such a manner as to
prevent safety hazards or interferences with Rocky Mountain Power's use of same. Nothing
herein shall be construed to require Rocky Mountain Power to increase pole size, or alter the
manner in which Rocky Mountain Power attaches its equipment to poles, or alter the manner in
which it operates and maintains its Electric Facilities. City attachments shall be installed and
maintained in accordance with the reasonable requirements of Rocky Mountain Power and the
current edition of the National Electrical Safety Code pertaining to such construction. Further,
City attachments shall be attached or installed only after written approval by Rocky Mountain
Power in conjunction with Rocky Mountain Power's standard pole attachment application
process. Rocky Mountain Power shall have the right to inspect, at the City's expense, such
attachments to ensure compliance with this Section 8.6 and to require the City to remedy any
defective attachments.
8.7 Rocky Mountain Power shall have the right to excavate the Public Rights of Ways
subject to reasonable conditions and requirements of the City. Before installing new
underground conduits or replacing existing underground conduits, Rocky Mountain Power shall
first notify the City of such work by written notice and shall allow the City, at its own expense,
(to include a pro rata share of the trenching costs), to share the trench of Rocky Mountain Power
to lay its own conduit therein, provided that such action by the City will not unreasonably
interfere with Rocky Mountain Power's Electrical Facilities or delay project completion.
8.8 Before commencing any street improvements or other work within a Public Way
that may affect Rocky Mountain Power's Electric Facilities, the City shall give written notice to
Rocky Mountain Power.
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SECTION 9. Relocations of Electric Facilities.
9.1 The City reserves the right to require Rocky Mountain Power to relocate its
Electric Facilities within the Public Ways in the interest of public convenience, necessity, health,
safety or welfare at no cost to the City. Within a reasonable period of time after written notice,
Rocky Mountain Power shall promptly commence the relocation of its Electrical Facilities.
Before requiring a relocation of Electric Facilities, the City shall, with the assistance and consent
of Rocky Mountain Power, identify a reasonable alignment for the relocated Electric Facilities
within the Public Ways of the City. Rocky Mountain Power shall coordinate with other utility
providers to request that said utility providers remove their service lines from Rocky Mountain
Power poles within 60 days of Rocky Mountain Power's relocation or removal of its lines from
said poles.
The City may assign or otherwise transfer to Company any right it may have to recover the cost
for the relocation work and shall support the efforts of Rocky Mountain Power to obtain
reimbursement.
9.2 Rocky Mountain Power shall not be obligated to pay the cost of any relocation
that is required or made a condition of a private development. If the removal or relocation of
facilities is caused directly or otherwise by an identifiable development of property in the area, or
is made for the convenience of a customer, Rocky Mountain Power may charge the expense of
removal or relocation to the developer or customer. For example, Rocky Mountain Power shall
not be required to pay relocation costs in connection with a road widening or realignment where
the road project is made a condition of or caused by a private development.
SECTION 10. Subdivision Plat Notification. Before the City approves any new subdivision
and before recordation of the plat, the City shall mail notification of such approval and a copy of
the plat to Rocky Mountain Power:
Rocky Mountain Power
Attn: Property Management / Right -of -Way Department
1407 West North Temple, Suite 110
Salt Lake. City, UT. 84116
SECTION 11. Vegetation Management. Rocky Mountain Power or its contractor may prune
all trees and vegetation which overhang the Public Ways, whether such trees or vegetation
originate within or outside the Public Ways to prevent the branches or limbs or other part of such
trees or vegetation from interfering with Rocky Mountain Power's Electrical Facilities. Such
pruning shall comply with the American National Standard for Tree Care Operation (ANSI
A300) and be conducted under the direction of an arborist certified with the International Society
of Arboriculture. A growth inhibitor treatment may be used for trees and vegetation species that
are fast-growing and problematic, provided that said treatment shall only be administered under
the guidelines of a certified arborist. Nothing contained in this Section shall prevent Rocky
Mountain Power, when necessary and with the approval of the owner of the property on which
they may be located, from cutting down and removing any trees which overhang streets.
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SECTION 12. Renewal. Rocky Mountain Power shall give to the City notice at least 180 days
prior to the expiration of this agreement that the agreement should be extended or renegotiated.
Upon notice, Rocky Mountain Power and the City either shall agree to extend the term of this
Franchise for a mutually acceptable period of time or the parties shall use best faith efforts to
renegotiate a replacement Franchise. Rocky Mountain Power shall have the continued right to
use the Public Ways of the City as set forth herein in the event an extension or replacement
Franchise is not entered into upon expiration of this Franchise.
SECTION 13. No Waiver. Neither the City nor Rocky Mountain Power shall be excused from
complying with any of the terms and conditions of this Franchise by any failure of the other, or
any of its officers, employees, or agents, upon any one or more occasions to insist upon or to
seek compliance with any such terms and conditions.
SECTION 14. Transfer of Franchise. Rocky Mountain Power shall not transfer or assign any
rights under this Franchise to another entity, except transfers and assignments by operation of
law, or to affiliates, parents or subsidiaries of Rocky Mountain Power which assume all of Rocky
Mountain Power's obligations hereunder, unless the City shall first give its approval in writing,
which approval shall not be unreasonably withheld, conditioned or delayed; provided, however,
Rocky Mountain Power may assign, mortgage. pledge, hypothecate or otherwise transfer without
consent its interest in this Franchise to any financing entity, or agent on behalf of any financing
entity to whom Rocky Mountain Power (1) has obligations for borrowed money or in respect of
guaranties thereof, (ii) has obligations evidenced by bonds, debentures, notes or similar
instruments, or (iii) has obligations under or with respect to letters of credit, bankers acceptances
and similar facilities or in respect of guaranties thereof.
SECTION 15. Amendment. At any time during the term of this Franchise, the City through
its City Council, or Rocky Mountain Power may propose amendments to this Franchise by
giving thirty (30) days written notice to the other party of the proposed amendment(s) desired,
and both parties thereafter, through their designated representatives, will, within a reasonable
time, negotiate in good faith in an effort to agree upon mutually satisfactory amendment(s). No
amendment or amendments to this Franchise shall be effective until mutually agreed upon by the
City and Rocky Mountain Power and formally adopted as an ordinance amendment, which is
accepted in writing by Rocky Mountain Power.
SECTION 16. Notices. Unless otherwise specified herein, all notices from Rocky Mountain
Power to the City pursuant to or concerning this Franchise shall be delivered to the City
Recorder's Office. Unless otherwise specified herein, all notices from the City to Rocky
Mountain Power pursuant to or concerning this Franchise shall be delivered to the Customer
Services Vice President, Rocky Mountain Power, 201 South Main, Suite 2400, Salt Lake City,
Utah 84111, and such other office as Rocky Mountain Power may advise the City of by written
notice.
SECTION 17. Severabilitv. If any section, sentence, paragraph, term or provision hereof is for
any reason determined to be illegal, invalid, or superseded by other lawful authority including
any state or federal regulatory authority having jurisdiction thereof or unconstitutional, illegal or
Ordinance #2009- 10 6
invalid by any court of common jurisdiction, such portion shall be deemed a separate, distinct,
and independent provision and such determination shall have no effect on the validity of any
other section, sentence, paragraph, term or provision hereof, all of which will remain in full force
and effect for the term of the Franchise or any renewal or renewals thereof.
PASSED by the City Council of the City of Moab, Utah this 13th day of October,
2009.
David L. Sakrison, Mayor
.),,-;EST:
Rachel Ellison, Recorder
Ordinance #2009-10 7