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HomeMy WebLinkAboutOrdinance 10692.~ ~ J P r.. ~7 _ « ~~ ..:%e- i ~~ ' `- r :'~~~' ORDINANCE NO . d D ~ ~4_- ~_' =~8 AN ORDINANCE GRANTING A FRANCHISE TO LONE STAR GAS COMPANY, A DIVISION OF ENSERCH CORPORATION, A CORPORA- TION, ITS SUCCESSORS AND ASSIGNS, TO USE THE STREETS, ALLEYS AND PUBLIC THOROUGHFARES OF THE CITY OF FORT WORTH, TEXAS, FOR THE PURPOSE OF LAYING, MAINTAINING, USING AND OPERATING THEREIN PIPELINES TO HANDLE GAS FURNISHED TO RESIDENTIAL, COMMERCIAL AND INDUSTRIAL CUSTOMERS LOCATED 1'N SAID CITY; DIRECTING HOW, .WHEN AND AT WHOSE COST LINES SHALL BE INSTALLED, EXTENDED, RELAYED, REPAIRED, LOWERED AND RELOCATED; PROVIDING FOR REGULATION BY THE CITY AND COMPLIANCE WITH ALL LAWS; PROVIDING FOR TRAFFIC CONTROL DEVICES AND FOR PROTEC- TION OF THE PUBLIC; PROVIDING THAT THE CITY SHALL BE HELD HARMLESS FROM ANY DAMAGES CAUSED BY THE INSTALLA- TION, EXTENSION, RELAYING, REPAIRING, MAINTENANCE, LOWERING AND RELOCATION OF SUCH LINES; PROVIDING FOR A NON-EXCLUSIVE FRANCHISE; PROVIDING FOR DEPOSITS, REASONABLE CHARGES, RULES AND REGULATIONS FOR GAS SERVICE TO CUSTOMERS; PROVIDING FOR THE EXTENSION OF MAINS TO SERVE CONSUMERS; PROVIDING FOR THE PAYMENT OF A FEE OR CHARGE FOR THE USE OF SUCH STREETS, ALLEYS, AND PUBLIC WAYS; PROVIDING FOR THE MAINTENANCE AND INSPECTION OF RECORDS AND ACCOUNTS AND FINANCIAL AND OPERATIONAL REPORTS, AND FOR THE FURNISHING OF AN AUDIT TO THE CITY; PROVIDING FOR THE INSPECTION BY THE CITY OF THE COMPANY'S PLANT, EQUIPMENT, AND OTHER PROPERTY; PROVIDING FOR THE CITY'S REGULATION AND FIXING OF RATES AND CHARGES FOR SERVICE TO GAS CUSTOMERS; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES AND PROVISIONS OF THE FORT. WORTH CITY CODE IN CONFLICT HEREWITH.; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING FOR ACCEPTANCE HEREOF BY LONE STAR GAS COMPANY; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. Subject to the reasonable and timely compliance by Lone Star Gas Company with the provisions contained herein, the City of Fort Worth, Texas, herein called "City", hereby grants to Lone Star Gas Company, a Division of ENSERCH CORPORATION, hereinafter called "Company", its successors and assigns, consent to use and ~ t c 4 t occupy City's present and future streets, alleys and public thoroughfares for the purpose of laying, maintaining, using and operating therein the pipelines and appurtenant equipment neces- sary to deliver gas to .residential, commercial and industrial customers located within the City's corporate limits, said consent being granted for a term of twenty-five (25) years from the effective date of this ordinance. This franchise shall govern the Company's use of the public's rights-of-way, including all public streets, alleys and thoroughfares. SECTION 2. (a) Company shall lay, maintain, construct, operate and replace its pipes, mains, laterals, and other equipment so as to interfere as little as possible with traffic, and shall promptly restore, at its own cost, all streets, alleys, thoroughfares and other surfaces which it may disturb to substantially the same condition as before the Company's work began, as determined by the Director of Transportation and Public Works. Before Company extends or replaces its existing mains, there shall be filed with the City's Director of Transportation and Public Works a written work description, including scaled drawings, showing the pipe material type, location, estimated depth and size of the line. The plans will be reviewed by the Director of Transportation and Public Works and any comments will be provided to the Company within ten (10) working days. City agrees to expedite its review when conditions warrant. Before Company repairs its existing gas mains or service lines, the Company shall give notice to the City's Director of Transportation and Public Works as to the time 2 and location of the proposed repairs. Company will provide a thirty (30) day advanced schedule of planned work at the begin- ning of each month. Daily work schedules shall be provided to _, City by 8:30 a.m. of each work day. When an emergency occurs, repairs shall be performed by the Company and notice shall be given to the Director of Transportation and Public Works within twenty-four (24) hours following emergency repairs. All work in streets, alleys, thoroughfares and other surfaces will be per- formed in accordance with the City of Fort Worth's Standard Specifications for Street and Storm Drain Construction. The City may inspect any and all street repairs. (b) All work done in connection with the laying, mainte- nance, construction, operation and replacement of Company's pipes, mains, laterals, and other equipment shall be in compli- ance with all applicable laws, rules and regulations of the City and the State of Texas. Company shall comply with all construc- tion requirements of the City with respect to hours of construc- tion operations in busy peak traffic hours, barricading require- ments, and any other construction rules and regulations which may be promulgated from time to time. SECTION 3. (a) Company, at its own cost and expense, and at City's request (without claim for reimbursement or damages against the City), shall lower, relocate or relay existing gas mains or street service lines located in City rights-of-way where neces- sary due to street construction or street reconstruction by or on behalf of the City, or due to the construction or relocation of 3 City utility lines, including but not limited to water, sanitary sewer, storm drains, street lights and traffic signal conduits, or due to any other work in or under the City streets, alleys or thoroughfares; but Company's obligation to .lower, relocate or relay such mains or service lines at its cost and expense shall occur only when such street construction, street reconstruction, City utility line construction or relocation, or such other work by or on behalf of the City in or under the City streets, alleys or thoroughfares is for the benefit of the general public and such streets, alleys or thoroughfares are to be maintained and operated by the City. When the Company is required to relocate its mains, laterals and other facilities to accommodate the construction of City streets, sewers and. other public works, the Company shall retain the right to reimbursement from the State of Texas or Federal government, as permitted by law, when the construction and reloca- tion is the result of construction or improvement to any portion of the Federal-Aid System (or any successor thereto) that is or will be maintained by the State _~;of Texas or any Federal agency. (b) Before Company acquires any rights-of-way for the instal- lation or relocation of gas mains, street service lines, or any other Company equipment or facilities along or adjacent to any existing street or thoroughfare or any proposed street or thoroughfare as reflected on the City's then current Master Thoroughfare Plan, Company shall give the City's Director of Transportation and Public Works written notice of such planned acquisition no later than thirty (30) days before the date of 4 said acquisition. The City's Director of Transportation and Public Works will review the proposed installation or relocation to see that same does not conflict or interfere with any proposed street or thoroughfare expansion. Should the Director of Transportation and Public Works determine that such conflicts or interference will be caused by the proposed projects, then the Director of Transportation and Public Works will notify the Company of the potential conflict or interference. Thereafter, the City and the Company will endeavor in good faith to resolve the potential conflict or interference. Failure by Company to notify the City within the prescribed thirty (30) day period will thereafter require the Company to relocate its facilities at its own cost in order to resolve any such conflict or interference, and will absolve the City of any responsibility for such cost. SECTION 4. Company's property and operations hereunder shall be subject to such regulation by the City as may be reasonably necessary for the protection of the general public. In this connection, Company shall be subject to, governed by, and shall comply with all applicable federal, state and local laws, including all ordi- nances, rules and regulations of the City, as same may be adopted and amended from time to time. SECTION 5. When Company performs or causes the performance of any work on any street, alleyway, thoroughfare or other public place, or so closely adjacent to such facilities as to create hazards for the public or themselves, the Company, its employees or con- 5 tractor shall provide construction and maintenance signs and sufficient barricades at work sites to protect the public, equip- ment and workmen. The application of such traffic control devices shall be consistent with the standards and provisions of Part VI of the Texas Manual on Uniform Traffic Control Devices. Appropriate warning lights shall be used at all construction and maintenance zones where one or more traffic lanes are being obstructed during nighttime conditions. Company shall repair, clean up and restore all streets, alleys and thoroughfares disturbed during the construction and repair of its gas distribu- ting system, and shall warrant the repairs and restoration of such streets, alleys and thoroughfares for a period of two years from the date of completion of same. Such repairs, clean up and restoration shall return the streets, alleys and thoroughfares to substantially the same condition as before the Company's work began, as determined by the Director of Transportation and Public Works or his designee. SECTION 6. Company shall indemnify, hold harmless, and defend City, at Company's expense, from and against any and all property loss or damage and/or personal injury, including death, in connection with its acts or omissions, negligent or otherwise, related to laying, maintenance, use and operations of its gas distributing system. SECTION 7. Nothing herein contained shall ever be held or construed to confer upon Company, its successors and assigns, exclusive rights 6 or privileges of any nature whatsoever. To the extent permitted by law, if any other franchise, permit or consent be given to another person or corporation to sell, deliver, or transport gas within the City, such person or corporation shall .not be granted more favorable terms and conditions, including compensation to the City, than are required of Company herein. SECTION 8. In addition to the rates charged for gas supplied, Company may make and enforce reasonable charges, rules and regulations with respect to its customers for services rendered in the con- duct of its business, including a charge for services rendered in the inauguration of natural gas service, and may require, before furnishing service, the execution of a contract therefor. Company shall have the right to contract with each customer with reference to the installation of, and the payment for, any and all of the gas piping from the connection thereof with the Company's main in the streets and alleys to and throughout the consumers' premises. Company shall own, operate and maintain all service lines, which are defined as the supply lines extending from the Company's main to and including the customers' meters where the gas is measured by Company. The consumer shall own, operate and maintain all yard lines and house piping. Yard lines are defined as the underground supply lines extending from the point of connection with the Company's customer meter to the point of connection with the consumer's house piping. 7 SECTION 9. Company shall not be required to extend mains in any street, alley or thoroughfare more than one hundred feet (100') to serve any one consumer of gas. SECTION 10. Company shall be entitled to require from each and every consumer of gas, before gas service is commenced, a deposit in an amount calculated pursuant to the Company's Quality of Service Rules as may be in effect during the term of this franchise. Said deposit shall be retained and refunded in accordance with such Quality of Service Rules and shall bear interest, as pro- vided in Tex. Rev. Civ. Stat. Ann. art. 1440a (Vernon Supp. 1989), as it may be amended from time to time. Company shall be entitled to apply said deposit, with accrued interest, to any indebtedness owed Company by the consumer making the deposit. SECTION 11. Company shall furnish reasonably adequate service to the public at reasonable rates and charges as may be prescribed from time to time by appropriate state and local authorities; and Company shall maintain its property, equipment and appliances in good order and condition. SECTION 12. Company shall not give unreasonable preference or advantage as to rates or services to anyone within a service classifica- tion; nor shall Company discriminate against anyone in the furnishing of gas service under this franchise, or the charges 8 .. ,, therefor, on account of race, color, religion, sex or national origin. SECTION 13. In consideration .for the rights and privileges herein granted, Company, its successors and assigns, shall pay to the City during the term of this franchise, a franchise fee in the amount of four percent (4~) of all the following: (a) Gross receipts received by the Company from the sale of gas to customers within the City; (b) Gross receipts received by the Company from the trans- portation of gas to customers within the City; and (c) Purchase price paid by customers for gas consumed within the corporate limits of City and transported by the Company, but not sold by the Company; The gross receipts shall include sales to residential, com- mercial, industrial and governmental customers within the corpo- rate limits of the City of Fort Worth. In order to determine the charge for the use of the City streets and alleys, each transpor- tation customer of the Company shall disclose to the Company the purchase price of said gas on a quarterly basis. Should a trans- portation customer refuse to furnish Company its gas purchase price, Company shall estimate same by utilizing Lone Star Gas Company's monthly industrial Weighted Average Cost of Gas (WACOG), as reasonably near the time as the transportation service is performed, at the rate of four percent (4~) of the WACOG for each Mcf of such transported gas, until such time as the Company is able to obtain the actual gas purchase price. The 9 Company shall pay to the City only the franchise fee collected when billed on purchase price of gas, or WACOG estimate. Following passage of this ordinance, the franchise fee shall be paid on or before the fifteenth day of February, May, August, and November of each year for the preceding calendar quarter during the term of this franchise. Such payments shall be by Company and accepted by City as full payment for Company's privi- lege of using and occupying the streets, alleys, highways, ease- ments and parks within the City and of other fees connected with that use, such as rentals, supervision, inspection and occupation charges and in lieu of license and inspection fees, street and alley rentals (excepting only general or special ad valorem taxes which the City is authorized to levy and impose upon real or personal property). In order to determine the gross receipts received by Company from the sale of gas within the corporate limits of City, and the fees received by the Company for the transportation of gas within the Company's lines, the Company agrees that on the same date that payments are made, as provided herein, it will file with the City Secretary a sworn report showing the fees received by the Company for the transportation of gas within the Company's lines to the corporate limits of the City and the gross receipts received by the Company from the sale of gas to the residential, commercial, industrial, and governmental customers of the Company within the corporate limits of said City, including the customer purchase price of all gas transported by the Company into the corporate limits of the City for the calendar quarter preceding 10 r, the date of payment. The City may, if it sees fit, have the books and records of the Company examined by a representative of said City to ascertain the correctness of the sworn reports agreed to be filed herein. Further, if the State Legislature permits a home-rule city the right to increase the percentage it may charge on the gross receipts of a gas public utility or to charge a gas public utility any new or additional tax or fee, then City may exercise such right; and should City expressly exercise such right, then City and Company agree that any such increase or new or addi- tional tax or fee shall be automatically made a part of Company's rate covered by the then existing rate ordinance. Such automatic adjustment to the then existing rate ordinance shall be effective thirty (30) days from such date as the. City expressly exercises such right. SECTION 14. (a) Company shall use the system of accounts and the forms of books, accounts, records, and memoranda accepted by the Railroad Commission of Texas or its successor. Company shall maintain records, accounts, and financial and operating reports in a manner that will allow the City to determine investment, cost of service, and operating expenses related to providing gas utility service to customers within the City. City Manager, or his designee, may require the keeping of additional records or accounts reasonably necessary for administration of the franchise. If Company objects to a requirement of the City Manager, or his designee, Company may appeal the requirement to the City Council. 11 J (b) Company shall furnish the City with copies of its annual audit report of its financial statements of the Fort Worth Distribution System by an independent certified public accountant and monthly financial and operating reports and shall make .avail- able for inspection by the City all reports filed with the Railroad Commission of Texas or its successor. Upon request, Company shall make such special studies and furnish such other reports as the City Council may reasonably require for the admin- istration of this franchise. (c) The City Manager, or his designee, shall have the right, at reasonable times, to inspect the plant, equipment, and other property of the Company and its affiliates according to state law, and to examine, audit, and obtain copies of the papers, books, accounts, documents, and other business records of the Company and its affiliates consistent with state law. (d) The City retains all of the investigative powers and other rights provided to the City by its City Charter and by state law. SECTION 15. (a) The City Council hereby expressly reserves the right, power, and authority to fully regulate and fix the rates and charges for the services of the Company to its customers as pro- vided by state law and the City Charter. (b) Company may from time to time propose changes in its general rates by filing an application with the City Secretary for consideration by the City Council. Within a reasonable time consistent with law, the City Council shall afford Company a fair 12 hearing with reference to the appl i c a t i o n a n d s h a l l e i t h e r approve or disapprove the proposed changes or make such order as may be reasonable. (c) In order to ascertain any and all facts., the City Council shall have full power and authority to .inspect, or cause to be inspected, the books of .Company and to inventory and appraise, or cause to be inventoried and appraised, the property of Company, and to compel the attendance of witnesses and the production of books and records. SECTION 16. When this franchise ordinance becomes effective, all pre- vious ordinances of the City granting franchises to Lone Star Gas Company for gas distribution purposes shall be automatically cancelled and of no further force and effect. SECTION 17. This ordinance and the franchise granted herein are subject to the applicable provisions of the Constitution and laws of the United States and of the State of Texas, the Charter of the City of Fort Worth, and the Fort Worth City Code. This ordinance and franchise shall in no way affect or impair the rights, obliga- tions, or remedies of the parties under the Gas Utility Regulatory Act of Texas. SECTION 18. That this ordinance shall be cumulative of all provisions of the Code of the City of Fort Worth (1986), as amended, except in those instances where the provisions of this ordinance are in direct conflict with the provisions of such Code, in which 13 r 7 instances the provisions of this ordinance shall supersede the conflicting provisions of such Code as they apply to the Company. SECTION 19. That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared void, ineffective or unconstitutional by the valid judg- ment or final decree of a court of competent jurisdiction, such voidness, ineffectiveness or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance since the same would have been enacted by the City Council without the incorporation herein of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. SECTION 20. That the City Secretary of the City of Fort Worth is hereby directed to publish this ordinance in its entirety once a week for four (4) consecutive weeks within a period of thirty (30) days after its passage in the official newspaper of the City, as required by Section 2 of Chapter XXV of the City Charter of the City of Fort Worth, Texas. SECTION 21. That the City Secretary of the City of Fort Worth is hereby directed to engross and enroll this ordinance by copying the caption and effective date of same in the minutes of the City 14 .c r. Council of Fort Worth and by filing this ordinance in the ordi- nance records of said City. SECTION 22. Pursuant to Section 2 of Chapter XXV of the Charter of the City of Fort Worth, the Company, as a condition precedent to the effectiveness of this franchise, acknowledges by the signature hereunder of its duly authorized representative, that it accepts and agrees to the terms, conditions and provisions of this ordi- nance the same as if it were a contract between the City and Company. This franchise ordinance shall not become effective until accepted and agreed to in writing by Company as herein prescribed. Should Company fail to accept and agree to this ordi- nance in writing within sixty (60) days after its passage by the City Council, such ordinance shall not thereafter take effect by a subsequent written acceptance. SECTION 23. That this ordinance shall be in full force and effect from and after its passage, publication and written acceptance by Company as above specified, and it is so ordained. APP OVED AS TO FORM AN LEGALITY: ' ~~l/ l ~6Pvey City Attorney Date : /O - 9 - 90 ADOPTED : ~ ~ ' R - G' O EFFECTIVE : ~ ~ ~ ~~~ ~ EED T(~ A,ND CCEPT ~ BY: ary Cumbie, Vice President Lone S ar Gas Company 15 t~ T MASTER F-L'E.D J 'V2ty Of ~D9't ~09'tt~L, ~e~a,~ ACCOUNTlNpa2 ~ / ~/'~ ,~'f ,~1 7RANSP_ORTAT~pN`P-Sl81.ly,y~[0~'~a ly/ O~ a~,~l.LL, ~®~ /~,~~1.~~~ ~j®a'~) ~'~j 71 11 ~lyA 7) lL.~a~~®~ i7AiER AOMtN1S.TRl!'~AM /' '/W !V `~•/ // ~ W l/ Y {V tl/1V O IL Ili 1 DATE REFERENCE suB~ECT~RDINANCE RENEWING THE FRANCH SE PAGE /,~~ NUMBER OF LONE STAR GAS COMPANY TO USE CI Y Q 10-9-90' G-8856 OF FORT WORTH STREETS AND RIGHTS- ' °f ---2- r-~ - OF-WAY RECOlII~iSNDAT I ON It is ~°recommended that the City Council adopt the attached •-~~..~ .ordinance renewing the franchise of Lone Star Gas Company, a division of Enserch Corporation, to use the streets, alleys and thoroughfares of the City for the purpose of laying, maintaining and operating therein pipelines to service its customers located within the City. DISCUSSION' City Ordinance No 5299, which granted Lone Star Gas Company the privilege to use the City's streets and rights-of-way to Iay and operate the Company's gas lines, has expired. City staff has conducted extensive negotiations with the Lone Star Gas officials, and the result is the attached ordinance. Under the proposed franchise ordinance, Lone Star Gas Company will pay the City a fee of four percent (4~) of the following. I (a) Gross receipts received by the Company from the sale of gas to customers within the City; (b) Gross receipts received by the Company from the transportation of gas to customers within the City, and (c) Purchase price paid by customers for gas consumed within the corporate limits of City and transported by the Company, but not sold by the Company. ~ The calculation of gross receipts shall include sales to residential, commercial, industrial and governmental customers within the corporate limits of the City of Fort Worth The previous ordinance, while prescribing a fee of four percent (4$) of gross receipts, did not include industrial and governmental customers in the calculation of gross receipts Other major improvements in the franchise ordinance include' (a) a requirement that the Company provide advance notice to the City of work within the City streets except for ~- emergencies, (b) a requirement that the Company provide the City advance notice prior to acquiring private easements along existing or proposed thoroughfares; DATE I REFERENCE SUBJECT ORDINANCE RENEWING THE FRANC ISEPAGE NUMBER F LONE STAR GAS COMPANY TO USE CI Y ___1_. ~{~ 10-9-90 G-8856 F FORT WORTH STREETS AND RIGHTS- OF-WAY (c) a provision that the City will not grant a franchise with more favorable terms to any other entity desiring to sell, deliver, or transport gas within the City, (d) a change in the franchise fee due dates, moving the due date from 75 days to 45 days from the preceding calendar quarter; and (e) a provision allowing the City to increase the percentage it may charge on gross receipts and to charge Lone Star Gas new or additional taxes or fees should the State Legislature permit home-rule cities to do so. The term of the ordinance is twenty-five years from its effective date. The City retains the right to require the Company to relocate its facilities located within the street right-of-way at no cost to the City, if necessary for street construction, or reconstruction, or relocation of City owned utility lines and if such work is done for the benefit of the general public Attachment APPROVE~+BY~ c~TY couNCeL ~~ ~, ~. City SecietarSy Q~ f~4 City of Foci V{F'e `ate SUBMITTED FOR THE OIFFICEABY GER'S Ruth Ann McKi nne 6125 DISPOSITION BY COUNCIL. ~, APPROVED PROCESSED BY ORIGINATING ~. OTHER (DESCRIBE) DEPARTMENT HEAD Wade Adkins 7623 CITY SECRETARY FOR ADDITIONAL INFORMATION /I ^ Adopted Ordinance No, ~~ DATE 5 CONTACT Dann Reed 61 `E ~~