HomeMy WebLinkAboutORD 1986-005 ORllINANC� NO: 86-05
AN OKDINANCE GRAN'1'ING '1'U LONr: STA1d, iuAS
C01�1PANY, A DIVISION C)F �I�S�1tCH CORPO�tA'1'ION, �i
COliPORA`I'IUN, ITS SUCCESSORS [�NL ASSI(�NS, A
FRANCHISE TO FURNISli ANll SliP1�i,Y GAS TO '1'HE
GENERAL PUBLIC IN THE CI'I'Y �F GRAPEVINE, 1'Ati.KAN`P
COUNTY, TEXAS, FOl�, TFiE TRANSPORTING, DELIVEIt7 Y,
SALE, AND llISTRIBUTION OF GAS IN, OU'1' OF, ANll
T�iKOUG�-1 SAID I�iDNIC1PALI�I'Y FO13, f�LL PUKPUSES;
�""'"' Pti3OVIDING FOR THL: PAYMEN'I' UF A FEE OR Cf7iAK(�E
FUR THE USE OF THE ST'KEE`I'S, ALLEYS, AND PUBLIC
WAYS; ANll PftOVIDING THAT IT SHALL BE IN LIEU UF
�.::� O1'HEK FEES AND C�lAKGES, EXCEPI'1NG AD VALOREi�1
TAXES; AN D KEPEALIN G ALL PREVIO US GAS F�tAN CHISE
OHDINAN CES.
BE IT ORDAII�IED BY THE CI'I'Y COUNCIL tiF '1'HE CI'I'Y OF Gii.APEVINE, T�XAS:
SECTICUN 1. That the City of Grapevine, 'T'exas, hereinafter called "City,"
hereby grants to Lone Star Gas Company, a i)ivision of ENSE1tC1r1 CORPOKA'I'ION,
hereinafter called "Company," its successors and assigns, consent to use and occupy
the present and future streets, alleys, highways, public places, public thoroughfares,
and grounds of City for the purpose of laying, maintaining, constructing, operating,
and replacing therein and thereon pipelines and all other appurtenant equipment
needed and necessary to deliver gas in, out of, and through said City and to sell gas
to persons, firms, and corporations, including all the �eneral public, within the City
corporate limits, said consent being granted for a term of twenty (`LO) years from
and after the date of the final passage and approval of this ordinance.
SECTION 2. Company shall lay, maintain, construct, operate, and replace its
pipes, mains, laterals, and other equipment so as to interfere as little as possible
with traffic and shall promptly clean up and restore to an approximate original
condition, at its cost, all thoroughfares and other surfaces which it may disturb.
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The location of all mains, pipes, laterals, and other appurtenant equipment shall be
fixed under the supervision of the City or an authorized committee or agent
appointed by said City.
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SECTION 3. 1Nhen Company shall make or cause to be made excavations or
shall place obstructions in any street, alley, or other public place, the public shall be
protected by barriers and lights placed, erected, and maintained by Company; and in
the event of injury to any person or damage to any property by reason of the
construction, operation, or maintenance of' the gas distributing plant or system of
Company, Company shall indemnify and keep harmless City from any and all
liability in connection herewith. Company shall repair, clean up, and restore to an
approximate original condition all streets and alleys disturbed during the
construction and repair of its gas distributing system.
SECTION 4. In addition to the rates charged for gas supplied, Company may
make and enforce reasonable charges, rules and regulations for service rendered in
the conduct of its business including a charge for services rendered in the
inauguration of natural gas service, and may require, before furnishing service, the
execution of a contract therefor. Company shall have the right to contract with
each customer with reference to the installation of, and payment for, any and all of
the gas piping from the connection thereof with the Company's main in the streets
or alleys to and throughout the consumer's premises. Company shall own, operate
and maintain all service lines, which are defined as the supply lines extending from
the Company's main to the Customer's meter where gas is measured by Company.
�,,,� The consumer shall own, operate, and maintain all yard lines and house piping. Yard
lines are defined as the underground supply lines extending from the point of
connection with Company's customer meter to the point of connection with
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consumer's house piping.
SEC'I'ION 5. Company shall not be required to extend mains on any street
more than fifty (50) feet for any one consumer of gas.
SECTION 6. Company shall be entitled to require from each and every
consumer of gas, before gas service is commenced, a deposit in an amount
calculated pursuant to the Company's �ualiYy of Service Kules as may be in effect
during the term of this franchise. Said deposit shall be retained and refunded in
accordance with such Quality of Service Rules and shall bear interest, as provided in
Tex. Rev. Civ. Stat. Ann. art. 1440a (Vernon Supp. 1985). Company shall be entitled
to apply said deposit, with accrued interest, to any indebtedness owec� Company by
the consumer making the deposit.
SECTION 7. The rights, privileges, and franchises granted by this ordinance
are not to be considered exclusive, and City hereby expressly reserves the right to
grant, at any time, like privileges, rights, and franchises as it may see fit to any
other person or corporation for the purpose of furnishing gas for light, heat, and
power to and for City and the inhabitants thereof.
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SECTION 8. Company shall furnish reasonably adequate service to the public
at reasonable rates and charges therefor; and Company shall maintain its property,
equipment, and appliances in good order and condition.
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SECTION 9. A. Company, its successors and assigns, agree to pay and City
agrees to accept, on or before the fifteenth day of Nlay, 1986, and on or before the
fifteenth day of the second month following the end of each calendar quarter during
the life of this franchise (Nlay 15, August 15, November 15, and February 15) the
last payment being made on or before the 15th day of February, 2007, a sum of'
money which shall be equivalent to three percent (3$) of the gross receipts received
by Company from the sale of gas to its domestic and commercial consumers and
industrial consumers within the corporate limits of said City, for the preceding
calendar quarter, which quarterly payment shall be for the rights and privileges
herein granted to Company, including expressly, without limitation, the right to use
the streets, alleys, and public ways of said City.
B. Company, its successors and assigns, agrees to pay and City agrees to
accept on or before the fifteenth day of the second month following the end of each
calendar quarter during the life of this franchise (l�iay 15, August 15, November 15,
and February 15) the last payment being made on or before the 15th day of
February, 2007, a sum of money which shall be equivalent to ane and one-half
percent (1-1/2$) of the gross receipts received by Company from the sale of gas
directly to governmental consumers and users within the corporate limits of said
City that own and operate a regional airport pursuant to Art. 46d-1 (the Nlunicipal
�-°, Airports Act) Tex. Rev. Civ. Stat. Ann., and the operation and maintenance of said
airport which is financed by at least sixty percent from fees generated from users
for the preceding calendar quarter, which quarterly payment shall be for the rights
`�"`" and privileges herein granted to Company including expressly, without limitation,
the right to use the streets, alleys, and public ways of said City.
C. Receipts from the sale of gas to all other governmental users and
consumers is excluded from either subsection 'A' or subsection 'B'. Governmental
users and consumers are defined as Cities (except as provided in 'B' above) public
schools, County Governments, State Government, Federal Government, and all
branches and subdivisions of said governmental entities that are tax-supported
institutions.
D. It is also expressly agreed that the aforesaid quarterly payment shall be in
lieu of any and all other and additi.onal occupation taxes, easement and franchise
taxes, or charges (whether levied as an ad valorem, special, or other character of
tax or charge), in lieu of municipal license and inspection fees, street taxes and
street or alley rentals or charges, and all other and additional municipal taxes,
charges, levies, fees, and rentals of whatsoever kind and character which City may
impose or hereafter be authorized to levy and collect, excepting only the usual
general or special ad valorem taxes, which City is authorized to levy and impose
upon real and personal property. Should City not have the legal power to agree that
the payment of the foregoing sums of money shall be in lieu of taxes, licenses, fees,
street, or alley rentals or charges, easement, or franchise taxes or charges
�F� aforesaid, then City agrees that it will apply so much of said sums of money paid as
may be necessary to satisfy Company's obligation, if any, to pay any such taxes,
licenses, charges, fees, rentals, easement, or franchise taxes or charges.
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E. In order to determine the gross receipts received by Company from the
sale of gas within the corporate limits of City, Company agrees that on the same
date that quarterly payments are made as provided in the preceding subsections 'A'
and 'B', Section 9, it will file with the City Secretary a sworn report showing the
gross receipts received from the sale of gas to the consumers and users covered by
subsections 'A' and 'B' within said corporate limits for the calendar quarter
preceding the date of payment. City may, if it sees fit, have the books and records
of Company examined by a representative of said City to ascertain the correctness
of the sworn reports agreed to be filed herein.
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SECTION 10. When this franchise ordinance shall have become effective, all
previous ordinances of said City granting franchises for gas distribution purposes
which were held by Company shall be automatically cancelled and annulled, and
shall be of no further force and effect.
SECTION 11. Company shall accept this franchise ordinance within a
reasonable period of time after its final passage and approval by said City.
PASSED AND APPKOVED on first reading on this the 7th day of
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Januarv , A.D. 198 6 .
FINALLY PASSEll AND APPHOVEB on second reading on this the 4th
day of February , A.D. 198 6 .
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ATTEST:
Li�'���
City Secr tary 1Vlayor
City of Grapevine, Texas
FRANCHISE ORllINANCE ACCEPTED BY Lone Star Gas Company, a
Division of ENSERCH Corporation this the ;� i'«�. day of ���Jf�f�;,_;� ,
198 ;:
ATTEST: LONE STAR GAS COiViPANY, a Division
of ENSEHCH Corporation
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�"+.... � i 4� i� �.� "� S,�q f.i 1,
�y ��,����.� , ��.����.a
Assistant Corporate Secretary Vice P esident
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