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Home My WebLink AboutOrdinance 5734 ORDINANCE NO. AN ORDINANCE GRANTING CONSENT TO UNITED GAS PIPE LINE COMPANY, ITS SUCCESSORS AND ASSIGNS, TO USE THE STREETS, ALLEYS, ROADS, HIGHWAYS, AND PUBLIC LANDS AND PLACES OF THE CITY OF FORT WORTH TO LAY, ERECT, CONSTRUCT, RE- PLACE, RELOCATE, RENEW, OPERATE, MAINTAIN, AND REMOVE PIPELINES AND NECESSARY EQUIPMENT AND APPURTENANCES TO TRANSPORT NATURAL GAS INTO, THROUGH, AND BEYOND THE BOUNDARIES OF THE CITY FOR DELIVERY TO CUSTOMERS; PRO- VIDING HOW SUCH PIPELINES SHALL BE LAID, MAINTAINED, AND OPERATED AND HOW LINES MAY BE EXTENDED, REPAIRED, OR RE- LAID; PROVIDING THAT SUCH COMPANY SHALL BE SUBJECT TO REASONABLE REGULATIONS AND THAT SUCH COMPANY SHALL HOLD CITY HARMLESS FROM EXPENSE OR LIABILITY FOR ACTS OR NEGLIGENCE OF SUCH COMPANY CAUSED BY THE CONSTRUCTION AND MAINTENANCE OF SUCH LINES; PROVIDING THAT THE RIGHTS AND PRIVILEGES OF SUCH COMPANY ARE NOT EXCLUSIVE; PRO- VIDING WHEN SUCH COMPANY AT ITS OWN EXPENSE SHALL LOWER, RELOCATE, OR RELAY ITS PIPELINES AND EQUIPMENT IF THE CITY DEEMS IT NECESSARY IN THE USE OF CITY'S STREETS AND PUBLIC WAYS; PROVIDING FOR PAYMENT OF A FEE OR CHARGE FOR THE USE OF STREETS, ALLEYS, AND PUBLIC WAYS BASED UPON GROSS REVENUES FROM SALES TO CUSTOMERS WITHIN COR- PORATE CITY LIMITS, PROVIDING FOR THE FILING BY COMPANY OF STATEMENTS OF REVENUES AND FOR FORFEITURE OF RIGHTS IN EVENT OF FAILURE TO MAKE PAYMENTS PROVIDED HEREIN; AND PROVIDING FOR EFFECTIVE DATE OF THE ORDINANCE AND FOR ACCEPTANCE HEREOF BY UNITED GAS PIPE LINE COMPANY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. The City of Fort Worth, herein called City, gives and grants to United Gas Pipe Line Company, a Delaware Corporation, its successors and assigns, herein called Company, the right, privilege, power, authority, and consent of the City for Company to use, for a period of twenty-five (25) years from the date this ordinance is adopted, for the purpose of transport- ing natural gas into, through and beyond the boundaries of the City for delivery to company's customers, all present and future streets, roads, highways, alleys, and any public lands and places in said City, as it pres- ently exists, and as the City may be enlarged, to lay, erect, construct, replace, relocate, renew, operate, maintain, and remove pipelines, together with any and all necessary equipment and appurtenances. SECTION 2. Company shall lay, maintain, and operate its lines and equipment so as to interfere as little as possible with traffic and shall promptly restore all thoroughfares and other surfaces which it may disturb to their original condition. Before Company shall be authorized or required to ex- tend, repair, or relay its existing gas mains, there shall be filed with the Director of Public Works a written statement showing the nature and character of the extensions proposed to be made. SECTION 3. Company' s property, operations, and rates in the City shall be subject to such regulation by the City as may be reasonably necessary for the protection of the general public. SECTION 4. Company shall hold City harmless from all expenses or liability for any act or neglect of the Company hereunder. SECTION 5. Nothing herein contained shall ever be held or construed to con- fer upon Company exclusive rights or privileges of any nature whatsoever. SECTION 6. Company, at its own cost and expense, and at City's request and for City's benefit, shall lower, relocate, or relay existing gas mains where necessary due to the lowering of street grades by the City, closing of streets, or work in or under the City streets by the City; but Company shall have no such obligation where the request by the City is made for the purpose of enabling any other person, firm, corporation, or governmental authority to use the streets, alleys, highways, and public places of the City, or to use the land theretofore used for street, alley, or highway purposes. SECTION 7. Commencing April 1, 1967, Company shall, for the privileges and consent granted herein, pay or cause to be paid an amount equal to three per cent (3%) of the gross revenues received by Company from the sale of gas to its customers located within the corporate limits of the City of Fort Worth for the immediate preceding quarter of the year. The quarterly payment shall be due and payable on or before the last day of the month im- mediately following the calendar quarter, and each such payment will fully discharge Company' s obligation for the calendar quarter for which made. Such payments shall be made by Company and accepted by City as full payment for Company's privilege of using and occupying the streets, roads, highways, alleys, easements, 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) . The first such payment to be made under this agreement will be based upon the revenues for January, February, and March, 1967, and will be due and payable not later than April 30, 1967, and all subsequent payments shall be made in this manner for the term of this agreement. SECTION 8. A certified copy of a financial statement of the total gross reve- nues derived from Company's operations within the City limits shall be filed with the City Utilities Supervisor contemporaneously with the making of the quarterly payment. These obligations shall be binding on the Company's successors and assigns. Failure to make the payments provided herein at the appointed and appropriate time as provided in this ordinance shall con- stitute a forfeiture of the rights and privileges herein granted. SECTION 9. This ordinance shall be in-force and effect from and after its adoption by the City Council, providing Company, within thirty (30) days thereafter, files its written acceptance thereof with the City Secretary. Passed and adopted on the,,,. day of'-, 1967 . ATTEST, CITY OF FORT WORTH 2z J"City Secretary mayor APPROVED AS TO FORM AND LEGALITY: 7 City Attorney Cary of Fort Worth, Texas w)wt4L.CL McMAHAN Mayor and ousel m il Cmunication MORPHIS GI r45x%JGI4 DATE REFERENCE SUBJECT: 'Proposed Consent Ordinance, PAGE NUMBER United Gas Pipe Line Company I I Of 2/20/6 7' G-1060 During the summer of 1964., the City's administrative staff was negotiating with officials of United Gas Pipe Line Company regarding the extension of the company's grant of operating privilege (Ordinance 2041) , approved by the City Council on August 16, 1939, and expiring on August 15, 1964. However, the City Council was advised in a report dated September 9, 1964, that the Lone Star Gas Company pro- posed to acquire the facilities of United Gas Pipe Line Company and in view of the pending sale of the United Gas Pipe Line Company's facilities, the City did not proceed with a new franchise agreement, Fort Worth is a western terminus of the United Gas Pipe Line facility, which was constructed originally to serve electric generating plants in Fort Worth and Dallas. The American Cyananxid Company and the American Manufacturing Company are the major customers of the company in Fort Worth. Approximately 30 residences and the Village Greek Sewage Treatment Plant are served by the company's line but the retail, company for ttiese customers is the United Gas Corporation. United Gas Pipe Line Company will pay three per cent of its gross receipts on the revenue it re- ceives from its sales to United Gas Corporation. The annual revenue cif Unit6d , .` Gas Corporation amounts to approximately $2,700 based on the last 12 months ' bitlings. Representatives of the, United Gas Pipe Line Company advised the City on January 26, 1967, that the proposed Purchase of United's facilities by Lone Star Gas Company had not been consummated because of prospective resultant litigation. Lone Star and United Gas Pipe Line now have, by mutual consent, cancelled their purchase and sale agreement. United Gas Pipe Line Company wishes to continue to serve the customers it now has in Fort Worth and because its Consent Ordinance expired on August 16, 1964, desires that a new ordinance 'be adopted by the City Council extending its authority to operate in the City for 25 years. The new consent ordinance, a copy of which is attached, provides that the United Gas Pipe Line Company will pay three per cent (.)f its gross receipts to the City which is approximately equal to the payment received by the City from Lone Star Gas Company, Other sections of the proposed ordinance provides for the same type of control, as other utility ordinances of the City. The Company has agreed to the provisions of the ordinance, op , The street rental payments are proposed to begin in Apr 1967, based upon reve- ,nues of the immediately preceding quarter (January, Fe 'r ""and March, 1967) and all other subsequent payments will be made on th J, s;N Based upon 1.966 'revenues from United customers, the gross rece, t y e City will ai�rount to approximately $13,4°25 per year. ' 4 It is recommended that the City Council approve the ",V�ii tieordinance for the United Gas Pipe Line Company, JLB.,mhg ..................... SUBMITTED BY: DISPOSITI? # BY COUNCIL, APPROVED OTHER (DESCRIBE) S S C 4fl C DATE ----------- CITY MANAGER EFE 2,0 'M7