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HomeMy WebLinkAboutOrdinance No. 18489ORDINANCE NO. ~"~ AN ORDINANCE GRANTING TO NORTHWEST NATURAL GAS COMPANY, A CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR THE PERIOD OF TWENTY ~ 2 0 ~ YEARS FROM AND AFTER THE EFFECTIVE DATE OF THIS ORDINANCE, A NON-EKCLUSIVE RIGHT AND FRANCHISE TO LAY, MAINTAIN, AND OPERATE GAS MAINS, PIPES AND APPURTENANCES IN THE PRESENT AND FUTURE STREETS, ALLEYS, PUBLIC EASEMENTS, WALKWAYS, BIKEWAYS, AND PUBLIC PLACES IN THE CITY OF EUGENE, OREGON, AND FOR THE PURPOSE OF SUPPLYING GAS TO THE CITY AND THE INHABITANTS THEREOF, AND OTHERS, FOR LIGHT, HEAT, POWER, AND OTHER PURPOSES; PROVIDING FOR THE PAYMENT OF COMPENSATION TO THE CITY; AND PROVIDING FOR THE REPEAL OF ORDINANCE N0. 11549, PASSED BY THE COMMON COUNCIL JULY 13, 1959, AND APPROVED BY THE MAYOR JULY 14, 1959. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. This Ordinance shall be known and may b~e cited as The Northwest Natural Gas Company Franchise Ordinance. Section 2. Definitions. For the purpose of this Ordinance the following terms, phrases, words and their derivation shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and words in the singular number include the plural number. The word "shall" is always mandatory and not merely directory. ~l} "'City" is the City of Eugene, Oregon. ~ 2 ~ "Company "' i s Northwest Natural Gas Company , the grantee of rights under this Franchise. ~3} "Council" is the City Council of the City of Eugene. ~4~ "Person" is any person, firm, partnership, association, corporation, company or organization of any kind. ~5} "Code" is the Eugene Cade, 1971, including all amendments thereto. -1- 18+89 Section 3. Grant of Authority. There is hereby granted by the City to the Company the right and privilege to lay, maintain, and operate gas mains, pipes and appurtenances, with all necessary service connections, in and under the surface of the present and future streets, alleys, easements, walkways, bikeways and public places thereinafter "public ways and places" ~ , subject to the terms of this Ordinance for a period of twenty years. The above described grant of authority shall not be exclusive, and the City reserves the right to grant similar use of such public ways and places to any person or corporation at any time during the period of this Franchise. Section 4, Compliance with Applicable Laws and Ordinances . The Company shall, at all times during the life of this Franchise, be subject to all lawful exercise of the police power of the City, and to such reasonable regulation as the City shall hereinafter by resolution or ordinance provide. Section 5. Conditions -~ Occupancy of Public Ways and Places. The Company, subject to the prior approval of the City Manager or his designee, and requirements of all applicable ordinances, regulations and adopted City policies , may make necessary excavations in public ways and places for the purpose of laying, operating and maintaining its mains, pipes and appurtenances, The Company shall furnish and file with the City Engineer of the City maps or blueprints showing the location of all such mains, pipes, and appurtenances within the City, and shall bring maps and blueprints up to date annually or upon such shorter notice as the City Engineer may reasonably require , -~- 18N$9 The City reserves the right to stop any work on a public way or place if the City Manager or his designee determines that the work has a serious adverse effect on traffic flow or endangers public safety. The right to stop work is absolute and cannot be challenged by Company, even if the Company's work hours and/or traffic control plans have been previously approved by the City. Section 5. Restoration. Whenever the Company excavates or in any manner disturbs or interferes with any public way or Place within the City, the Company shall restore the same as provided by the Code. Section 7. City Free to Use Public Ways and Places. Nothing in this ordinance shall be construed to prevent the City from sewering, grading, paving, repairing, altering, or doing any work that it finds necessary or desirable on any public way or place. Should the City find it necessary in improving any public way or place tv permanently or temporarily remove or change the location of any of the Company's mains, pipes or appurtenances, the Company shall, upon request and reasonable notice from the Director of Public Works, do all necessary work at the Company's sole cast and expense as promptly as the circumstances will reasonably permit, If the Company fails so to do, the City may cause such work to be done and the Company shall pay all costs incurred by the City in performing such work within thirty X307 days of the date City notifies Company of the Cost thereof. Section 8. Company to Defend and Hold City Harmless. The Company will defend, indemnify and save harmless the City, its employees, officers and agents, from any and all claims, damages, costs, liabilities, and expenses to which it or they mar be subjected _8_ IS~t89 by reason of any act or neglect of the Company, its agents or employees, or which may in any manner arise out of the construction, maintenance, operation or use of any property of the Company in any public way or place. Section 9 . Default and Termination . If the Company fails to comply with or perform any of the requirements imposed on it by this Qrdinance and the City gives written notice specifying the nature of the Company's default and demanding that such default be remedied within a reasonable time to be fixed in such notice, the right and privilege granted by this ordinance may be terminated and annuled by the City if Company fails to remedy its default within the time specified. Section l4. Franchise Fee. As payment to the City for the franchise hereby granted, Company shall pay to City an amount equivalent to three percent ~ 3 a } of Company's gross revenues from the sale of gas within the corporate limits of the City during each calendar year, ar fraction thereof, during which this franchise shall be in effect. The term "gross revenue" shall mean all revenues derived from the sale of such gas, but excluding revenues derived from the sale of such gas under a tariff schedule applying exclusively to gas supplied for industrial purposes, Payment shall be made within sixty ~6D} days after the close of each calendar year or fraction thereof; provided, however, that upon thirty day's prior written notice by either party to the other, the amount of the annual compensation shah be subject to renegotiation and redetermination at the end of the first l4-year period of the term of the franchise hereby granted, for the remaining 1Q-year period of the franchise term. -4- i g~rs~ Section 11. Reports by Company. The Company shall deliver to the Finance Officer or to any other officer or authority designated by the Council, at the time of each payment required under Section l0 hereof ~ a report verified under oath by the president, treasurer, general manager, or other responsible officer of the Company, setting forth such detailed information as may be prescribed by the Council, or its authorized representative, for the purpose of determining the amount of the payment then due to the City under Section 10. The books and records showing Company's gross revenues from the gas sales referred to in Section 10, shall always be open to inspection by the Finance Officer, or by any other authorized repre- sentative of t~,e City for the purpose of ascertaining the amount payable to the City under Section 10 , or of verifying any statement or report submitted by Company. pursuant to the provisions of this Section. Section 12. Company to Pa all City Taxes and Fees, Nothing contained in this franchise shall give the Company any credit against any non-discriminatory business tax or ad valorem property tax now or hereafter levied against real or personal property within the City, or against any local improvement assessment imposed on the Company, or against any permit fees or inspection fees required by the construction codes or other ordinances of the City which are or may hereafter be adapted. Section l3. Valuation for Eminent Domain. 1n the event the City should desire to acquire the property of the Company in the City and adjacent territory by purchase, condemnation, or otherwise, the price to be paid by the City -5- 18489 shall exclude the value of the franchise or other prerogatives of sovereignty granted by the City and connected with property of the Northwest Natural Gas Company in the City of Eugene. . Section 14 . Acceptance by Company . Within thirty ~ 3Q } days from and after the effective date of this ordinance, Northwest Natural Gas Company shall file with the Finance Officer of the City its written acceptance of this franchise ordinance and the obligations hereby imposed. This ordinance shall become null and void unless such acceptance is filed. Section 15. Repeal of ordinance 11549. From and after the effective date of this Ordinance, Ordinance 11549 of the City of Eugene, passed by the Council an July 13, 1959, and approved by the Mayar July 14, 1959, shall be, and the same is hereby repealed. Passed by the City Council This ~ ay of ~ ~, 1979. ,- ,; City Recor er Approved by the Ma o r This ___ day nf~ ~."~".~ ~~~ayor _6~