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Home My WebLink About1985-042 CP National Acceptance229 W, MAIN STREET/P.O. BOX t7Og/MEDFORD, OR 97501 (503) 772-5281 CP NRTIONR August 28, 1985 Ashland City Council City of Ashland City Hall Ashland, Oregon 97520 This is to indicate formally CP National's acceptance of the terms and conditions of Ordinance No. 2363 passed by the Ashland City Council on August 20, ].985. Sincerely yours, / J.P. Paris ,," Vice-President, ~ Northwest Region JPP:bgr CITY OF ASHLAND CITY HALL ASHLAND, OREGON 97520 telephone (code 503) 482-3211 August 26, 1985 Mr. Charles Gates, Area Manager C.P. National Corp. P.O. BOX 1709 Medford, OR 97501 Dear Chuck: Enclosed is a copy of Ordinance No. 2363, adopting a new 20-year franchise with C.P. National. It will be officially effective on September 19, 1985. You will note that Section 8 requires a written accept- ance by C.P. National within 40 days of passage (September 29, 1985). I believe the acceptance statement language from our previous franchise would be appropriate. As previously agreed, I assume our franchise payments will continue uninterrupted from the time our previous franchise expired and the effective date of the new franchise. I am pleased that we could work out language acceptable to both parties, including the deletion of the minimum franchise fee language. Best regards, City Admin ORDINANCE NO. 2363 AN ORDINANCE GRANTING TO CP NATIONAL, A CORPORATION, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE AND PRIVILEGE TO CONSTRUCT, MAINTAIN, OPERATE, USE, REPAIR, AND REPLACE A SYSTEM OF CONDUITS, MAINS, AND PIPELINES, IN THE STREETS, ALLEYS, AVENUES AND THOROUGHFARES IN THE CITY OF ASHLAND, COUNTY OF JACKSON, STATE OF OREGON, FOR THE PURPOSE OF SUPPLYING GAS FOR LIGHT, HEAT, POWER, AND OTHER LAWFUL PURPOSES TO THE INHABITANTS THEREOF. THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. That subject to the terms and conditions hereof, there is hereby granted, effective as of March 18, 1985, to CP National, a California corporation duly authorized to do business in the State of Oregon, its successors and assigns, (hereinafter called the grantee), for the period of 20 years from said 18th day of Margh, 1985, the right, prCvilege, and franchise to construct, main6ain, operate, use, repair and/or replace a system of conduits, maims°, and pipelines, together with the appurtenances thereto, in the streets, alleys, avenues, and thoroughfares of the City of Ashland, County of Jackson, State of Oregon, for the purpose of supplying, transmitting, distributing, and selling artificial, natural, or mixed gas to any and all persons, firms, and corpora- tions within the said city and beyond the corporate limits thereof for light, heat, power, or for any other lawful purpose. ~SECTION 2. That the granting and continuance for the term above set forth of the rights, privileges, and franchise hereby granted is and shall be subject to the following conditions: (a) Ail installations of pipes, mains, and other conduits shall be underground and in accordance with the city's standards and specifications for public works as they now exist or may be hereinafter amended, and at such locations and depth (not less than 18 inches below the established grade line, except with the consent of the city) as shall not interfere with the use of such streets, alleys, avenues, or thoroughfares by the city or others for the maintenance, use, and repair of sewers, water mains, pipes, conduits, electrical circuits or other installations then in place, and shall be so laid as to do no injury to the proper use of such streets~ alleys, avenues, and thoroughfares, nor to private property adjacent thereto, and shall be maintained in a good and workmanlike manner as may now or hereafter be provided by the laws of the State of Oregon and ordinances of the City of Ashland and lawful regulations issued pursuant thereto, respectively. The grantee shall recognize and comply with the city's excavation ordinance, which limits excava- tion in newly paved streets, and is more fully set forth in Chapter 13o12 of the Ashland Municipal Code, or as it may hereinafter be amended by the City of Ashland. Ordinance No° 2363 -1- (b) The grantee shall file with the office of the City Administrator an accurate plat on all portions of its distri- bution system that are located on the streets and alleys of the City of Ashland, and shall keep and maintain said plat in a cur- rent condition, in order that at all times the City of Ashland shall be fully advised as to the location of all of the grantee's installations on said streets or alleys° (c) The grantee shall promptly upon laying, replacing, or repairing said pipes, mains, and other conduits, or any part thereof, at its own cost and expense place said streets, alleys, avenues, and thoroughfares, or so much thereof as have been damaged thereby, in as good order and condition as they were before being disturbed or excavated for the purpose of laying, placing, or repair- ing said pipes, mains, and other conduits and such repair shall be in accordance with city specifications and in accord with Chapter 13o12 of the Ashland Municipal Code° The grantee shall assume all liabil- ity for damages to persons or property which may arise from the construction, repair, or operation of said pipes,, mains, conduits, or appurtenances and from the excavation of any street, alley, avenue, or thoroughfare and the ex&rcise of the privilege hereby granted and shall at all times save the'City of Ashland harmless from any and all liability which may arise or be incurred therefrom, occasioned or arising out of the exercise of the privileges hereby granted to the grantee° (d) The grantee, as consideration for the priveleges hereby granted, shall within sixty (60) days of the close of each quarter during each year during the term hereof, pay to the City of Ashland a franchise tax or toll equal to three percent (3%) of the gross receipts of the grantee from the sale of gas to users thereof within the City of Ashland during each of the franchise quarters of each year throughout the term hereof° Further provided, that in the event that the Oregon Public Utilities Commission permits an increase in the franchise tax, from the present maximum of three percent (3%) of the gross receipts, then the grantee agrees, commencing with the next succeeding quarterly payment, to pay to the City of Ashland a franchise tax or toll at the rate of the maximum percentage permitted by the Oregon Public Utilities Commission of the gross receipts of the grantee as set forth herein° SECTION 3o To'the extent permitted by State Law, if the City levies a utility user tax or excise tax on the users of natural gas, then the grantee agrees to collect and remit said tax to the City of Ash- land at the same time as franchise payments are due to the City, and the grantee shall be permitted to retain five percent (5%) of the total tax collected to defray the cost of collection° Ordinance No° 2565 -2- SECTION 4. The grantee shall keep books and records of its fin- ancial affairs for the operation of its business in the city and said books shall cover only such business. The city shall have the right to inspect these books and records, at reasonable times and places with respect to all matters covered by this ordinance. SECTION 5. The grantee shall maintain liability insurance through- out the term of this franchise, insuring the City and the grantee against all damages in the minimum amount of (a) $250,000 for property damage in any one accident; (b) $500,000 for bodily injury or death to any one person, and (c) $1,000,000 for bodily injury or death resulting from any one accident. The City shall be named as an additional insured and require a "notice of cancellation" to be sent to the City at least ten (10) days prior to any such cancel- lation. Grantee shall furnish proof of insurance as required herein to the Director of Finance by filing a certificate of insurance° SECTION 6o The grantee shall promptly reimburse the City for any damage to city property by reason of the installation, maintenance, or operation of said business within the corporate limits of the City of Ashland. SECTION 7. That said gran~ee shall within 30 days after the passage of this ordinance file with 'the city council a written acceptance of the terms and conditions of this franchise~ Said franchise and privilege shall be granted upon each of the provisions and conditions herein contained and in consideration of the promise of the grantee to keep and observe each of said provisions and conditions herein expressed to be kept and observed by it and in acceptance of said franchise and privilege the grantee does agree to keep and observe each of said conditions and provisions. 'SECTION '8. The right and privilege hereby granted shall become and be effective as of March 18, 1985, and upon written acceptance of the terms and conditions herein contained by the grantee within said period of 40 days after the passage of this ordinance. The foregoing ordinance was first read by title only in accord- ance with Article X, Section 2(C) of the City Charter on the ~ z~ day of ~zz~.~~ , 1985, and duly PASSED and ADOPTED this~r~ day ATTEST: Nan E. Franklin City Recorder - Treasurer SIGNED and APPROVED this ~ ~// day Ordinance No. 2565 Don Laws - L]~airperson Actin~ Mayor -3-