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HomeMy WebLinkAbout2922 Avista Franchise ORDINANCE NO. 2922 AN ORDINANCE OF THE CITY OF ASHLAND, OREGON, GRANTING A FRANCHISE TO AVISTA CORPORATION FOR THE CONSTRUCTIION, OPERATION, AND MAINTENANCE OF NATURAL GAS FACILITIES WITHIN THE CITY OF ASHLAND, OREGON THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOllOWS: SECTION 1. Subject to the terms and conditions hereof, City grants to Avista Corporation (Grantee), its successors and assigns, for a period of 10 years from the 1 st day of January, 2006, the right, privilege, and franchise to construct, maintain, operate, use, repair and/or replace a system of conduits, mains, 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 corporations within the said city and beyond the corporate limits thereof for liqht, heat, power, or for any other lawful purpose. SECTION 2. This franchise is granted and the continuance hereof is contingent upon and subject to the following conditions: a) All 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 eighteen inches (18") 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, in Ashland Municipal Code Title 13, Chapter 12, as it currently exists or as it may hereinafter be amended by the City of Ashland. b) The Grantee shall file on or before the anniversary date of this franchise each year, with the office of the City Administrator, an electronic file on all portions of its distribution system that are located on the streets and alley of the City of Ashland, and shall annually update that file in ordlsr that the City of Ashland be advised as to the location of all of the Grantee's installation on said streets or alleys. The City of Ashland shall 1tO the Gas Franchise Agreement G:\legal\Mike\Ordinances\Avista Franchise 2005(5).doc Page - 1 extent permitted under Oregon law, maintain the information in confidence. 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 repairing said pipes, mains, and other conduits and such repair shall be in accordance with city specifications and in accord with Title 13, Chapter 12 of the Ashland Municipal Code. The grantee shall assume all liability 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 exercise 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) Grantee shall perform all construction, installation, repair or relocation of lines and appurtenances along or under the roads, rights of way or properties subject to this Franchise in such a manner as not to interfere with the construction and maintenance of other utilities, public or private, drains, drainage ditches and structures, irrigation ditches and structures located therein, nor with the grading or improvement of such roads, rights of way or other public property subject to this Franchise. e) The grantee, as consideration for the privileges 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 five percent (5%) 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 the Oregon Public Utilities Commission permits an increase in the gross receipts, then 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 3. The grantee shall keep books and records of its financial affairs for the operation of its business in the city and said books shall cover only such busliness. 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. Grantee when filing each quarterly report shall include in addition to the revenue calculation, information relating to the quantity of natural gas sold by customer class and the number of customers served in the reporting period. SECTION 4. The grantee self insurers against liability. The grantee agrees to maintain Gas Franchise Agreement G:\legaI\Mike\Ordinances\Avista Franchise 2005(5).doc Page - 2 insurance reserves throughout the term of this franchise, insuring the granteE! against all damages in the minimum amount of (a) $250,000 for property damage in anyone accident; (b) $500,000 for bodily injury or death to anyone person, and (c) $'1,000,000 for bodily injury or death resulting from anyone accident, or in such amounts as provided for City liability in the Oregon Tort Claims Act, ORS 30.265 et seq., as it exists today or hereinafter is amended, whichever is greater. Grantee shall certify in writing, to be provided on or before the anniversary date each year of this franchise, Grantee is in compliance with the insurance reserve requirements set forth above. The grantee agrees to indemnify and hold the City harmless against any liability or cost arising out of or in connection with actions by the Grantee, its officers, employees, agents, contractors and/or subcontractors. In the event grantee's insurance reserves, for any reason, drop below the minimums to cover potential liabilities as set forth in this paragraph Grantee shall immediately notify City of the reserve deficiency and shall take necessary steps to bring the insurance reserves back up to minimum required amounts. During any period of insurance reserve deficiency, Grantee shall not perform any work within the City of Ashland until such deficiency shall have been corrected. Grantee shall notify the City of Ashland in writing in the event the Grantee elects to obtain insurance from a third party provider and provide a certificate of insurance within 30 days. SECTION 5. 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 6. Grantor shall notify Grantee of any intended or expected requirement or request to relocate Grantee's facilities as early as practicable, but not later than 120 days prior to any such relocation when the requirement or request could havl~ been foreseen by that date. Grantor shall endeavor to cause any such relocation to be consistent with any applicable long term development plan or projection of Grantor or approved by Grantor. If, at any time, the Grantor shall cause or require the alteration or the improvement (the "Improvement") of any road, highway or right-of-way wherein Grantee maintains facilities subject to this franchise by grading or regarding, planking or paving the same, changing the grade, altering, changing, repairing or relocating the same or by constructing drainage or sanitary sewer facilities, the Grantee upon written notice from Grantor shall, with all convenient speed, change the location or madjust the elevation of its system and other facilities so that the same shall not interfere with such work and so that such equipment and facilities shall conform to such new grades or routes as may be established. The relocation of Grantee's facilities shall be at the sole expense of Grantee unless: (i) the Improvement was not paid for solely by public funds, in which case the Grantor agrees to make reasonable efforts to facilitate an agreement between the adjoining property owners or developers to pay for the costs of relocation; or (ii) Grantor has failed to provide the required advance notice, in which case, except in the event of an emergency or in the event such relocation was caused by an unforeseen event, any and all excess costs caused by the failure to provide such notice shall be paid by Grantor. Gas Franchise Agreement G:\legal\Mike\Ordinances\Avista Franchise 2005(5).doc Page - 3 SECTION 7. Grantee shall within 30 days after the passage of this ordinancH 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. In the event that Grantor charges or imposes upon Grantee any fees, taxes or other costs in connection with the issuance, maintenance, existence, continuation, or use of the franchise, or the public rights-of-way governed hereby, granted pursuant to this document, then Grantor shall impose equivalent charges, fees, taxes or costs upon any other franchisee in the same business or competing with Grantee. SECTION 9. If Grantee shall willfully violate or fail to comply with any of the provisions of this Franchise through willful and unreasonable neglect or willful and unreasonable failure to heed or comply with any notice given Grantee under the provisions of this grant, then Grantee shall forfeit all rights conferred hereunder and this Franchise may be revoked or annulled by the Grantor; provided, however, the Grantor shall !~ive ninety (90) days' written notice of its intention to revoke or annul the Franchise during which period Grantee shall have the opportunity to remedy any breach. SECTION 10. Any facilities and appurtenances in streets, alleys, rights of way and public places, incidental to the franchise system, that have been, or are at any future time acquired, leased, or utilized in any manner by Grantee are thereupon to be deemed authorized by and shall be subject to all provisions of this Franchise., SECTION 11. Any subsequent additions or modifications of the boundaries of the Grantor, whether by annexation, consolidation or otherwise, shall be subject to the provisions of this Franchise as to all such areas. Grantor shall notify GranteH of the precise scope of any change of boundaries not less than thirty (30) days prior to such change becoming effective. SECTION 12. This Franchise shall update and supersede all prior gas franchises for the above stated purpose heretofore granted to Avista Corporation or its predecessors, by Grantor, or its predecessors, and shall affirm, authorize and ratify all prior installations authorized by permits or other action not previously covered by this Franchise. SECTION 13. The Franchise is granted pursuant to Ashland Municipal CodH and to the laws of the State of Oregon relating to the granting of such rights and privilegles by Grantor. If any article, section, sentence, clause or phrase of this Franchise is for any reason held illegal, invalid, or unconstitutional, such invalidity shall not affect the validity of the Franchise or any of the remaining portions. The invalidity of any portion of this Gas Franchise Agreement G:\legal\Mike\Ordinances\Avista Franchise 2005(5).doc Page - 4 Franchise shall not abate, reduce, or otherwise affect any obligation required of Grantee. SECTION 14. The right and privilege hereby granted shall become and be effective as of January 1, 2006, and upon written acceptance of the terms and conditions herein contained by the grantee within said period of forty (40) days after the passane of this ordinance. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the ~ day of September, 2005, and duly PASSED and ADOPTED this ~ day of December, 2005. ~~ SIGNED and APPROVED this 7 day of Ot~r- ,2005. ()'0C\ ~- hn W. Morri on, Mayor Gas Franchise Agreement G:\legaI\Mike\Ordinances\Avista Franchise 2005(5).doc Page - 5 Avista Utilities 1411 East Mission PO Box 3727 MSC-25 Spokane. Washington 99220-3727 Telephone 509-489-0500 Toll Free 800-727-9170 Facsimile 509-495-8734 ~ll:'VJrSTA' Utilities January 6, 2006 Comes now Avista Corporation and on this date accepts that certain Gas Franchise granted to it by the City of Ashland, Jackson County, State of Oregon, under Ordinance No. 2922, approved December 6, 2006. Avista Corporation ~~Otl~~ IV1 ~ Senior Vice President *************************************************************************** We hereby acknowledge receipt of the Formal Acceptance by Avista Corporation of the Gas Franchise granted to said Company by the City of Ashland, Jackson County, State of Oregon, under Ordinance No. 2922, approved December 6, 2006, said Acceptance being duly signed by Scott L. Morris, Senior Vice President of the Company on January 6,2006. By: Titl : ;/J",,","/ 1, I lJ ,2006