HomeMy WebLinkAboutOrdinance - 8810-1985 - Ordinance Granting To Power-Tex Joint Venture - 08/08/1985.. !l
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First Reading
August 8, 1985
Agenda Item #36
Second Reading
September 26, 1985
Agenda Item #6
ORDINANCE NO. _8_8_1_0 ---
ORDINANCE Of THE CITY Of LUBBOCK, TEXAS GRANTING TO POWER-lEX JOINT
VENTURE (A JOINT VENTURE FORMED BY ARTICLES Of JOiNT VENTURE MADE AND
ENTERED INTO THE 2ND DAY Of JULY, 1984, AS AMENDED BY AN AGREEMENT DATED
NOVEMBER 20, 1984, BY AND BETWEEN GGSI GAS CO., A TEXAS CORPORATION,
DESIGNATED MANAGER Of THE JOINT VENTURE, AND, POWER LINE, INC., AND WEST
TEXAS TRANSMISSION CORPORATION, BOTH TEXAS CORPORATIONS, WITH THE PRINCIPAL
OFFICE Of THE JOINT VENTURE BEING IN THE CITY Of MIDLAND, MIDLAND COUNTY,
TEXAS) THE RIGHT TO CONDUCT IN SAID CITY THE BUSINESS Of ACQUIRING,
MAINTAINING, INSTALLING AND OPERATING A GAS PIPELINE SYSTEM FOR THE
TRANSMISSION AND DISTRIBUTION Of NATURAL GAS TO COMMERCIAL CUSTOMERS IN THE
CITY Of LUBBOCK FOR COMMERCIAL LIGHT, HEAT, POWER AND OTHER COMMERCIAL
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 BE EXERCISED: AND PRESCRIBING
A TERM Of TWENTY (20) YEARS FOR SAID FRANCHISE RIGHTS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY Of LUBBOCK:
THAT Power-lex Joint Venture (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
public educational or institutional, industrial and commercial consumers
(hereinafter referred to as "commercial consumers") in the City of Lubbock
1 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 are expressly limited to
natural gas service to: (i) educational, health, and other public institu-
tions; and (ii) industrial or commercial consumers in the City of Lubbock.
All references to consumers or customers in this Ordinance shall refer to
1!1 these types or classes of commercial consumers and not other types of
l customer or consumer. Grantee shall have no right or obligation to serve ~~ residential consumers under this franchise.
U SECTION 2. The term of this grant shall be for twenty (20) years from 'I the effective date hereof, and for such additional period or extension of
' time as may be granted;; provided, however, that at the end of each five I year period of the term of this grant, the City reserves the right to make
H reasonable amendments to this Ordinance except: (i) the twenty (20) year
j term of this franchise hereby granted; (ii) the limitation of service to
I
I commercial customers only unless agreed in writing by Grantee: and (iii)
the rights granted and reserved in Section 3. Written notice of an
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intention to amend any of the terms, conditions or consideration of this
agreement shall be served not later than ninety (90) days prior to the end
of each five year period of the term of this grant.
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 commercial consumers in
the City of lubbock, and to the best interest of the commercial gas con-
sumers, 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 inconsis-
tent 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 commercial consumers
of gas in lubbock, Texas, as may be necessary or advisable in their
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 tre 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 unneces-
sarily 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 negli-
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gence of the Grantee, its agents or employees, while exerc1s1ng any of the
rights herein granted. Grantee shall maintain public liabilities insur-
ance, with Grantor listed as an additional insured, in amounts not less
than the following:
bodily injury -$500,000 per occurrence and $500,000 in the aggre-
gate;
property damage -$100,000 per occurrence and $100,000 in the aggre-
gate; and,
personal injury -$500,000 per annum.
Such insurance shall not be cancelled except upon twenty (20) days
prior written notice to Grantor.
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 commercial 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
one hundred fifty (150) 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.
1. 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 reconstruction 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
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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.
8. Grantee agrees to release, hold harmless and to indemnify the
City of lubbock from and against any claims, suits or damages arising out
of or related to the passage of this Ordinance and franchise.
SECTION 4. The Grantee shall not discriminate in favor of or against
any 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 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 commercial 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 surren-
der 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 avail-
able to the consumer at the end of any special contract period. Such
special contracts, amendments or extensions thereof may cover a period not
exceeding five years for each such contract, or amendment or extension.
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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 and one-half times
the amount of an estimated average monthly bill, or a minimum deposit of
One Hundred Dollars ($100.00), which said deposit may be retained by the
Grantee until service is discontinued and all billa 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 ita
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 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, the amount of which may, if desired by the City, be fixed from time to
time by it.
SECTION 8. The City or its duly authorized representatives shall have
the right, at all reasonable times, to inspect the books and records of the
Grantee, whether located in the City or elsewhere.
SECTION 9. 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 obliga-
tions 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 public institutional consumers in their use of
gas during the period of such shortage.
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SECTION 10. 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 11. If the said Grantee shall fail to substantially comply
with the conditions of the franchise, the City of Lubbock shall have the
right by Ordinance duly passed therefor to forfeit all the right 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 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 12. 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.
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SECTION 13. 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.
SECTION 14. If any section, paragraph, subdivision, clause, phrase,
limitation or provision hereof shall be adjudged invalid or unconstitu-
tional, 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 15. 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:"
"Power-lex Joint Venture, for itself, its successors and assigns
hereby accepts the attached Ordinance finally passed by the City Council of
Lubbock the day of , 1985, and agrees to be
bound by all of iEs terms and prov~s~ons."
Power-lex Joint Venture
By:~atf
D. B. freeman
As:
----------~(~o~f~f~ic_e_)~--------
of GGSI Gas Co., Inc.
Its Designated Manager
"Dated the ___ day of---------------' 1985."
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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
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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
II passage by the City Council this Ordinance shall take effect thirty (30) I days after its last publication.
AND IT IS SO ORDERED
Passed by the City Council on first reading this 8th day of August
1985.
Passed by the City Council on second reading this 26th day of September
1985.
ATTEST:
<APPROVED AS TO CONTENT:
1ty
Services
APPROVED AS TO FORM:
I, Ranette Boyd, City Secretary, lubbock, Texas, hereby certify that
the above and foregoing is a true and correct copy of Ordinance No. 8810
passed by the City Council on September 26, ·1985 , and recorded in
Volume 44-A , Page 528 , of the Minutes of the City Council, lubbock,
Texas this 26th day of September , 1985.
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,
THE STATE OF TEXAS M2320-R22
COUNTY OF LUBBOCK
Before me DorothY RUf.foe·ll a Notary Public in and for Lubbock County. Texas on this day
personally appeared Tttila Auf! II' Account Manau!er of the Southwestern Newspa-
pers Corporation. 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 Lei! a I Not lee
-------------No. 68695J. at Lubbock County, Texas and the attached print-
ed copy of the LeI! I I N 0 t 1 C e is a true COP.Y of the original and was printed in the Lubbock
Avalanche-Journal on the following dates: Septem6er 28, October s, J-985
249 Word' @ 16t Per word = $189,24
Account manal!er
LUBBOCK AVALANCHE-JOURNAL
Southwestern Newspapers Corporation
Subscribed and sworn to before me this ...... 7J.--day ofQ c to fl a r
FORM58-l0
~l:el».i-NoTiee
i• ' . 0RI)tN;lt.NC!Wf0; alit
.OFtOIJWie& OF TMic (fTV Ol'
•JWIIBOCk. Tell.U q~MTINO !. tO POWEIHE!JI. JOINT YEN· ':TUllE lA . JOI'IilT VE!NT\IIU!: ;, ~ED laY · ARTICI.ES OF l JOINT VlHTURE IMDI; ANO ii eNTeiUID tN'tG ntl IND ClAY . OF ~ULY. ~-A$ AMENDED IIY AN·AOREEMENT DATED ------------------·--:~r~· C:s~·~·to~N~ r--:, TEXAS CORPO.RATION, OI!SIO..
; NATEO MANAGER OF THE j JOtNT VENTURE, AHD. POWlR ~ LINE. INC: •• AHD WEST TEXAS i TltANSMISSION · . CORPORA·
t; ~~g~s.~WH :r~~s pCf.~~?PRf'L
: OFFICE OF THE JOINT VEN' ' ·TURE:f BEING IN JHE CITV OF MIDLAND, MIDLAND COUNTY,
TEXAS) THE RIGHT TO 'CON-
. DUCT IN SAID CITY. THE IIIJSI·
NESS OF ACQUIRING. ·MAIN· TAINING, ··, INSTALLING AND
OPERATING A GAS PIPELINE . SY.$TEM f'OR THE. TRANSMIS·
SION I.NO DISTRIBUTION OF
·NATURAL. GAS TO 'COMMER·
CIAL CUSTOMERS IN Tlill' CITV
OF LIJ680CK FOR ~ERCIAL LIGHT, HEAT, POWER
ANO OTH.eR . ·COMMERCIAL PURPOSES. AND THE RIGHT TO USE ntE ITReETS. ALLEYS AND OTHER PUBLIC WAYS IN
SAID . CITV FOR. ~AID PUR·
POSES: PRESCRIBING THE
CONDITIONS. LIMITATIONS
: AND RESTRICTIONS UNDER 1 WHICH SAID PRIVILEGES MAY j· liE EXERCISED: .AND PRE· i SC.RIBING'ATERMOF TWENTY
':. (20) · YI!ARS FOR .SAID FRAN·
' CHISE RIG~~~OINAi4~e NO. 1820
·. AN ORDINANCE CANCELLING ··AUTHORITY AND APPROVAL f! FOR A TRAFFIC' SIGNAL' AT
:i ITH $TREET AND AVENUE K AND AUTHORIZING THE ·RE· MOVAL OF SA,IO TRAFFIC SIG-NAL AS AN OPERATIVE TRAF•
" FIC SIGNAL. . . . . ~. · · . OROIANCE N0.1821 : AM . ORDINANCE AMENDING !; SECTION 21-4 OF THE CODE OF
t ORDINANC. ES OF THE C:ITY OF LUBBOCK. TEXAS. ·WITH RE·' GARO TO ADVERTISING OF l.l~~RTA:,~g se~¢1~'ts~ II PROVIDING A PENALTY; PRO. ' \IIOING A SAVINGS CLAUSE; AND PROVIDING FOR PU8LI·
CATION, : R·%2'
. 19 85
DOROTHY RUSSELL
Notary Public In And For lhe Stale 01 Texas.
My Commi!.sion Expires Nov. 9, 1988