HomeMy WebLinkAboutOrdinance - 9194-1988 - Granting Energas Company, A Texas Corporation Operating Gas Pipeline System - 04/14/1988Rev. 4/8/88
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First Reading
April 14, 1988
Second Reading
May 12, 1988
ORDINANCE NO. 9194
ORDINANCE OF THE CITY OF LUBBOCK, TEXAS GRANTING TO ENERGAS COMPANY,
A TEXAS CORPORATION, WITH ITS PRINCIPAL OFFICE IN THE CITY OF DALLAS,
DALLAS COUNTY, TEXAS, THE RIGHT TO CONDUCT IN SAID CITY OF LUBBOCK THE
BUSINESS OF ACQUIRING, MAINTAINING, INSTALLING AND OPERATING A GAS
PIPELINE SYSTEM FOR THE TRANSMISSION AND DISTRIBUTION OF NATURAL GAS TO
RESIDENTIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF LUBBOCK FOR LIGHT,
HEAT, POWER AND OTHER PURPOSES, AND THE RIGHT TO USE THE STREETS, ALLEYS
AND OTHER PUBLIC WAYS IN SAID CITY FOR SAID PURPOSES; PRESCRIBING THE
CONDITIONS, LIMITATIONS AND RESTRICTIONS UNDER WHICH SAID PRIVILEGES MAY
1 BE EXERCISED; AND PRESCRIBING A TERM OF FIFTEEN (15) YEARS FOR SAID
FRANCHISE RIGHTS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT Energas Company (hereinafter called Grantee), its successors
and assigns, be and it is hereby granted the non-exclusive franchise,
right and privilege to conduct in the City of lubbock, Texas, the business
of acquiring, maintaining, installing and operating a gas pipeline system for the transmission and distribution of natural gas to residential and
commercial consumers (hereinafter referred to as "consumers") in the City
of lubbock for light, heat, power and other purposes upon the following
terms, provisions and conditions, to-wit:
SECTION 1. The franchise, rights, obligations and privileges
granted in this Ordinance are not exclusive to Grantee and Grantee is
hereby authorized to do business with any and all classes of customers
within the City of lubbock.
SECTION 2. The term of this grant shall be for fifteen (15) years
from the effective date hereof, and for such additional period or
extension of time as may be granted; provided, however, that at any time
by mutual written agreement of both parties reasonable amendments to this
Ordinance may be made except: (1) the fifteen (15) year term of this
franchise hereby granted; and (ii) the rights granted and reserved in Section 3.
SECTION 3. That the said Grantee is hereby granted the right to
construct, lay, repair, remove and replace mains, pipes, facilities and
equipment, and to construct and install such machinery, equipment and/or
other facilities as may be necessary or advisable in its judgment for the
proper performance of the service to be rendered to consumers in the City
of Lubbock, and to the best interest of the gas consumers, in, over,
under, along, upon and across all the present and/or future streets,
roads, highways, alleys and public ways of the City of Lubbock, Texas,
controlled by the City of lubbock, and to have at all times access to said
streets, alleys and public ways of said City for the purpose of
constructing, laying, repairing, removing and replacing such mains, pipes,
facilities and equipment and other appurtenances under this grant as may be needed from time to time during the term of this franchise or any
extension thereof; provided, however, that the work done in connection
with the construction, maintenance and operation of said plant and
distribution system shall be subject to and governed by the regulations,
rules and ordinances now legally in force or that may be hereafter
lawfully adopted to the extent that such regulations, rules and ordinances
are not inconsistent with the provisions of this Ordinance and do not
deprive Grantee of its use and enjoyment of the franchise rights and
privileges herein granted.
That the said Grantee is to have the right to lay mains, pipes and
equipment, and to construct such buildings and install such machinery or
equipment, and to sell or lease such equipment to the consumers of gas in
lubbock, Texas, as may be necessary or advisable in Grantee's judgment for
the proper performance of this service, and to have, at all times, access
to the streets and alleys of said City for the purpose of laying such
mains, pipes and equipment as may be needed from time to time during the
term of this franchise, or any extensions thereof, provided that at no
time shall the Grantee obstruct such streets or alleys so as to interfere
with the public use thereof for a period longer than twenty-four hours,
unless approved by the City Engineer, and that after such mains, pipes or
equipment are laid and tested the same shall be covered and such streets
or alleys shall be replaced in the same or as good condition before such
work was done.
That this franchise is granted upon and subject to the following
provisions:
1. In maintaining its properties, the Grantee shall not
unnecessarily or unreasonably impair or obstruct the streets, roads,
highways, alleys, sidewalks and public ways.
2. The Grantee shall use reasonable precautions to avoid damage
or injury to persons or property, and shall hold and save harmless the
City of lubbock, Texas, from all damages, losses, or expense caused by the
negligence of the Grantee, its agents or employees, while exercising any
of the rights herein granted. Grantee shall maintain public liabilities
insurance in amounts not less than the following:
bodily injury -$500,000 per occurrence and $500,000 in the aggregate;
property damage -$100,000 per occurrence and $100,000 in the
aggregate; and,
personal injury -$500,000 per annum.
Such insurance shall not be cancelled except upon twenty (20) days prior written notice to Grantor.
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3. In installing and constructing additional mains or lines of
pipe, Grantee shall, insofar as practicable, so install and construct the
same along and under the alleyways, where alleys exist, rather than along
and under streets, using the streets as necessary in connecting from one
alley to another.
4. All mains and pipelines shall be so laid that the top of said
main or pipeline shall be below the surface of the street or alley so as
to protect and not to interfere with existing paving, wire cables, water
pipes, underground wires, or sewer laterals, as directed by and to the
satisfaction of the City Council or the City Engineer.
5. The Grantee shall furnish good service and good quality of
merchantable gas to its customers for their fuel requirements. Said gas
shall be commercially free from dust or solid or liquid matter which might
interfere with its merchantability or cause injury to or interference with proper operation of customer's appliances.
6. Grantee, at its expense, shall lay and extend all service
connections with the gas mains and pipes to the property line of the
consumer, but Grantee shall not be required to extend main lines more than
seventy-five (75) feet to any one consumer, unless mutually agreed to by
Grantee and consumer. Each consumer of gas shall install and maintain suitable piping within his property lines and suitable appliances and
fixtures, except meters.
7. The City reserves the right to lay and permit to be laid
electric conduits, water and other·pipelines or cables, and to do and
permit to be done any underground work that may be deemed necessary or
proper by the City Council in, across, along or under any street, alley, highway, or other public way occupied by the Grantee; and whenever, by
reason of changes in the grade of any street, or in the location or manner
of constructing or reconstructing any City owned water pipes, electric
conduits, sewers or other underground structure, it shall be deemed necessary by the City Council to alter, change, adapt or conform gas mains
and service pipes of Grantee in any street or alley lawfully dedicated to
public use or other public way occupied by Grantee, such alterations or
changes shall be made by the Grantee when ordered in writing by the City
Council or any supervisor or other representative of the City Council so
authorized to act, without any claim for reimbursement for damages against
the City; provided, however, that Grantee shall at all times be entitled
to receive from appropriate governmental bodies, excluding City, payments
for relocation of its facilities to which it may be lawfully entitled to
under applicable federal law or laws of the State of Texas with respect to
relocation payments where highway construction or reconstruction is involved.
SECTION 4. The Grantee shall not discriminate in favor of or
against any person, corporation, firm, or association in the charge for
gas service or in the services rendered under like circumstances to
customers of the same classification. The Grantee will not directly or
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indirectly grant any discount, rebate or give things of value to
circumvent the established rate schedule, nor shall it directly or
indirectly charge, demand, collect or receive from any one a greater or
less compensation for any service rendered than from another for a like
and contemporaneous service.
SECTION 5. Grantee, its successors and assigns, shall file with the
City Secretary of the City of lubbock a schedule of all rates for the sale
of natural gas and natural gas service to its customers who use natural
gas within the City of lubbock which shall be the rates agreed between the
parties; provided, however, nothing herein shall prohibit the Grantee from
filing in the future its application for increase or decrease of such
rates and the City acting thereon by Ordinance.
SECTION 6. The City, by granting of this franchise, does not
surrender or to any extent lose, waive, imperil or lessen the lawful
powers and rights now or hereinafter vested in the City under the
Constitution and Statutes of the State of Texas and under the Charter of
the City to regulate the rates for services of Grantee: and Grantee, by
its acceptance of this franchise, agrees that all such lawful regulatory
power and rights as the same may be from time to time vested in the City
shall be in full force and effect and subject to the exercise thereof by the City at any time and from time to time.
Subject to the provisions of this Section, the Grantee, its
successors and assigns may make special contracts with industrial and
other consumers with similar load characteristics covering the sale of
natural gas and natural gas service at rates other than the established
General Service Rate; provided, that any established General Service Rate
shall be available to the consumer at the end of any special contract period. Grantee, its successors and assigns shall always offer the same
rates to contemporaneous applicants for gas service to be rendered under
like or similar conditions or circumstances but shall not be required to
continue to offer gas service to subsequent applicants at the same rates
which have been previously contracted even though such previous contracts are still outstanding.
SECTION 7. The Grantee may require from any consumer of gas, before
gas service is commenced or continued, a deposit of one-sixth the amount
of an estimated average annual bill, or a minimum deposit of Ten Dollars
($10.00), which said deposit may be retained by the Grantee until service
is discontinued and all bills therefor have been paid. The Grantee shall
then return said deposit to the consumer, together with interest accrued
thereon (to the extent not theretofore paid or applied) at the statutory
rate from the date of said deposit. The Grantee shall be entitled to
apply said deposit and/or accrued interest to any indebtedness owed the
Grantee by the consumer owning the deposit, and when said deposit has been
applied in whole or in part to any such indebtedness, the consumer may be
required to restore or increase said deposit to its proper level as a
condition to the resumption or continuation of service. The Grantee may
make from time to time and enforce reasonable rules and regulations for
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the conduct of its business and may require, as a condition to the
commencement of continuation of its service, the execution of a contract
therefore by the consumer of such gas.
In case of default or nonpayment of any gas bill rendered at any
authorized rate, Grantee shall have the right to discontinue gas service
to such consumer, and in case said consumer shall make application to have
service reconnected it may be required to pay as a condition precedent
thereto all amounts due to the Grantee and, also, a reasonable
reconnecting fee.
SECTION 8. The City or its duly authorized representatives shall have the right to inspect the books and records of the Grantee, whether
located in the City or elsewhere, upon seventy-two (72) hours prior
notice.
SECTION 9. Grantee shall, upon written request from the City,
furnish to the City a copy of any contract between Grantee and any
industrial or other large volume consumer.
SECTION 10. The Grantee's undertakings shall be subject to its
ability, by use of due diligence and normal business methods, to obtain
and place in service the necessary materials and facilities. Moreover,
the Grantee shall be excused from failure or delay in performing such
obligations if and to the extent occasioned by act of God, fire,
explosion, flood, act of a public enemy, contagion or contamination
hazardous to human life or health, legal restraints, labor difficulties,
material shortages, interruption or deficiency of gas supply not
attributable to the fault of the Grantee or, without limitation, any other
cause or combination of causes not reasonably within the Grantee's ability
to anticipate or control. In any case of shortage of gas supply due to
any cause, where the Grantee by reason thereof is unable to furnish gas
for all purposes, preference shall be given to use of gas for domestic
purposes during the period of such shortage.
SECTION 11. The Grantee, its successors or assigns, shall prepare
and file with the City Secretary of Lubbock, Texas, a map setting forth
its distribution system located within the City of Lubbock, Texas, which
map shall be corrected and brought up to date from time to time
thereafter. The location of all lines located within the City of Lubbock
shall be marked with appropriate signs or other markers.
SECTION 12. If the said Grantee shall fail to substantially comply
with the material conditions of the franchise, the City of Lubbock shall
have the right by Ordinance duly passed therefor to forfeit all the rights
and franchises herein granted to the said Grantee, provided that the City
of Lubbock shall give the said Grantee, its successors and assigns, sixty
(60) days notice in writing, specifying the conditions claimed to have been violated, and giving full and fair opportunity to be heard thereon
before declaring such forfeiture, which notice shall fairly and fully set
out all of the conditions claimed and complained of and shall be given by
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the said City and shall be signed by the City Secretary under the seal of
said City, after having been properly authorized by the Mayor and City
Council of the said City; provided, however, that the said Grantee shall
have sixty (60) days after receiving such notice in which to rectify and
correct such violations and to substantially comply with the terms and
conditions of the Ordinance; should the violations of this Ordinance so
complained of not have been rectified and corrected and the terms and
conditions of this Ordinance substantially complied with at the end of
said sixty (60) days, then, and in that event, the City shall have the
power to forfeit this franchise on account of the violations specified in
said notice. In case of forfeiture as herein provided, the City of
Lubbock reserves the right to purchase the gas pipeline system of the
Grantee at its fair appraised value or to allow the Grantee to remove same
within one year from the date of such forfeiture, provided that, before
any of said property may be removed, the Grantee shall be required to give
to the City a good and sufficient bond that the streets and alleys will be
placed and left in as good condition as found.
In lieu of forfeiture, at the option of the City Council, for each
and every breach or violation of any of the provisions of this Ordinance
by the Grantee, it shall be liable to a civil penalty of Twenty-Five
Dollars and, if the breach or violation shall be a continuous one, each
day during which such breach or violation continues shall be deemed a
separate breach or violation of this Ordinance.
SECTION 13. The Grantee shall have the right and privilege of
assigning this franchise and all the rights, obligations and privileges
granted herein, and where the word "Grantee" appears herein it shall be
construed as applying to its successors and assigns. Any successor or
assign shall expressly assume, in writing addressed to Grantor, all
obligations of Grantee from and after the date of the assignment or succession.
SECTION 14. As part of the consideration for the granting of this
franchise as hereinabove set forth and as compensation to the City for use
of the City's streets, alleys, highways and other public ways, the Grantee
agrees to pay to the City, each year that this franchise is in existence,
three (3) percent of Grantee's total yearly gross receipts from the sale
of natural gas within the corporate limits of the City of Lubbock. It is
further understood between the parties hereto that for the purposes of
this contract gross receipts shall mean the total revenue derived by
Grantee each year from the sale of natural gas within the City limits of
the City of Lubbock. Grantee shall pay to the City, within thirty (30)
days after the end of each calendar month that month's Franchise amount,
plus any and all charges for water, sewage and garbage services provided
to Grantee by Grantor, any and all sales taxes collected by Grantee and
any and all ad valorem taxes assessed by Grantor against Grantee's
property.
SECTION 15. If any section, paragraph, subdivision, clause, phrase,
limitation or provision hereof shall be adjudged invalid or
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unconstitutional, the same shall not effect the validity hereof as a
whole, or any part or provision other than the part or provision so
decided to be invalid or unconstitutional; provided that in the event the
Ordinance and franchise as reformed is unacceptable to either party, that
party shall have the right to cancel this Ordinance and franchise upon
sixty (60) days written notice to the other party.
SECTION 16. Grantee shall, within thirty (30) days from the date of
the final passage of this Ordinance by the City Council of the City of lubbock, file with the City Secretary of lubbock, a written statement
signed in its name and behalf by a duly authorized officer of Grantee in the following form:
"The Honorable Mayor and the City Council of the City of lubbock:"
"Energas Company, for itself, its successors and assigns hereby
accepts the attached Ordinance finally passed by the City Council of
lubbock the day of , 1988, and agrees to be
bound by all of its terms and provisions."
ENERGAS COMPANY
BY: ___________ _
AS: ______ ~7r~--------{office)
"Dated the ___ day of --------------' 1988."
The full text of this Ordinance shall, before final passage by the
City Council of the City of lubbock, be published once each week for three
(3) consecutive weeks in a newspaper of general circulation published in
the City of lubbock, and the expense of such publication shall be borne by
Grantee. Upon said publication being completed and the acceptance of this
Ordinance by Grantee as herein provided, and upon final approval and
passage by the City Council this Ordinance shall take effect thirty (30) days after its last publication.
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AND IT IS SO ORDERED.
Passed by the City Council on first reading this 14th day of
April , 1988.
Passed by the City Council on second reading this 12th day of
May , 1988.
,-APPiD As TO coNTENT:
. ' . .,;;t; :a..a.... .... ~ 2erMass~Ass!ifant City
' Manager for Financial Services
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THE STATE OF TEXAS
COUNTY OF LUBBOCK R-207
Before me Frances Hernandez a Notarv Public in and for Lubbock Countv. Texas on this dav
personally appeared T.J. Aufill' Account ManaE!er of the S~uthwestern Newspa-
pers CorJX>ration. publishers of the Lubbock Avalanche-.Journal -Morning. Evening and Sunday. who
being by me duly sworn did depose and say that said newspaper has been published continuously for more
than fifty-two weeks prior to the first insertion of this LeE!a I Notice
------.,--..,----:--.--..,..--,c-.--No. 826252 at Lubbock County. Texas and the attached print-
ed copy of the LeE! a I Not 1 ce is a true copy of the original and was printed in the Lubbock
Avalanche-Journal on the following dates: MaY 14• 21• 1988
185 Words @ .88 = $162.80
LUBBOCK A V ALANCHE·JOURN AL
Southwestern Newspapers Corporation
Subscribed and sworn to before me this 25 day of _..:.M.:.::B::.;'I:.-__ _
f . CRXI!lfANQl dlfl
· . .:.31:~l1:ht&-;~ FORI\158·18
FRANCES HERNANDEZ
Notary PL~t:>iic. !itate ol Texas
My C<>mmission E•pires 7-6·91 . TO Etll!llGAl COMPAI\t't A
TEXA$ CORPORATION, WITH
IT$ PRINCIPAL OFFICE IN THE
··CITY OF. OALI.AS, DALlAS --~~~~~~~~~~~~~~~~-' ·----------------,..--------1· COUNTY, TEXAS, THE RIGHT . TO (OI!IDUCT IN .sAID CITY OF ·
LUBBOCK THE BUSUII!iU OF
ACQIIIRING, MA.INTAINING, IN·
·STALLING AND OPERATING A GAS PIPEI..tNE SYSTEM FOR
THE T.RMISMlSSION AND 'DIS.. TRIBIITION OF NATIIRAL GAS
TO RESIDENTIAL AND COM-
MERCIAL CUSTOMERS IN TtiE CITY OF LUBBoCK FOR LrGKT
HEAT, POWER. AND OTH.ER PIIRPOSES. ANO THE RIGHT JO USE· THE STREETS, ALLEYS ANO OTHER PIIBI.JC WAYS IN SAIO CI.TY FOR SAID PUR· POSES: PRESCRIIIING THE
CONDITIONS, LIMITATIONS
ANO RESTRICTIONS UNDER
WHICH SAID PRIVU,:EGES MAY
BE filXERCISEO:. ANO PRE' SCRIBINGA TERM OF FIFTEEN
(15) YEARS FOR SAID FRAN-CHISE .RIGHTS. ·. . ;
. ORO,INAPI~E lfl9!97 .
AN ORDINAN~E AUTHOruz:
lNG A NEW TRAFFIC SIGNAL
AT BROADWAY .ANO AVSNUE
Ot ANO PROVIDING FOR ·PUe.. L.ICATION, · ·
. . . oiu:m\IANcri #ttta
· 'AM ORDIN~cr=: AMP,!Nott.iG ··
CHAPTER 6, ARTICLE 111 OF THE CODE OF ORDINANCES .
·CITY OF L.UBBOCK, Tl;xAs E~
·TITLED "PlUMBING CODE"
BY ·AODING IU'i'QUIItEMEN'i£'
1'011 DRAIN PANS TO: BE:
PlACE!) UNDER .ALL• WATER
HEATERS INSTALLEO IN NEW . CONSTRUCTION: PROII'IOING
1'0R A I>SNAI.. TV: PRO\IIOING .-; SAVINGS CLAUSE AND Pt.!OVII). ~~;,.I'QR PUBLI~TION, ,