Fort Walton Beach Ordinance — 1710--Natural Gas Utility Franchise — reading text

of service as other areas serviced by the Grantee. Subj ect to reasonab I e and diligent priority, service to all areas proven feasib I e should be available within six ( 6) months of notification by the Grantor that the annexed area desires natural gas service. Any and all annexed areas will fall under the same terms and conditions of this ordinance as the current areas now located within the City. The Grantor agrees to notify the Grantee of the names and addresses of the residents in newly annexed areas within sixty ( 60) days of the date of the annexation. SECTION 5. TERM. The franchise shall be granted for a period of ten (l0) years unless sooner terminated by reason of a breach of the terms hereof by the Grantee. Provided however, that the entire franchise is subject to renegotiation by notice of either party issued in writing within ninety ( 90) days of the third anniversary of this franchise. The exercise of its right to renegotiate on the third anniversary of this franchise shall not give the Grantor the right to terminate the franchise agreement or the right to exercise its purchase rights under Section 24. SECTION 6. CONSIDERATION. A. Grantee shall pay to the Grantor a sum equal to six percent ( 6%) of gross revenues subject to renegotiation pursuant to the terms of Section 5. Payment to the Grantor shall be made in quarterly payments during the year with the last payment within ninety ( 90) days of the close of the fiscal year and without demand by the Grantor. Any adjustment payment due Grantor resulting from the Grantee' s annual audit shall be made to Grantor by Grantee within thirty ( 30) days of the completion of the Grantee' s annual audit. B. It is further understood and agreed that the consideration paid pursuant to this ordinance shall not be added on as a separate item on the customer' s bill, unless and until such time as Grantee 4 separately itemizes such amounts in its system wide billing. c. No acceptance of any payment shall be construed as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim the Grantor may have for further or additional sums. If a re- computation results in additional revenue to be paid to the Grantor, such amount shall be subject to a surcharge of the lesser of twelve percent (12%) per annum, or the prime rate effective the date the payment was originally due as reported in the Wall Street Journal. D. In the event that any payment is not made within thirty (30) days of when due, interest on such payment shall apply from such date at the prime rate effective the date the payment was originally due as reported in the Wall Street Journal. SECTION 7. CITY NOT TO COMPETE. The Grantor agrees that it shall not, during the term of this franchise, construct, acquire, own or operate, directly or indirectly, a gas plant or gas transmission or gas distribution system within its corporate limits except through the exercise of the option to purchase hereinafter provided in this Ordinance or except in the event this franchise is terminated prior to the end of the term of this franchise. SECTION 8. ACCOUNTING; AUDIT; INSPECTION. A. Grantee shall keep an accurate set of books and records reflecting the gross revenues derived under and pursuant to the franchise rights herein granted. Said books and records shall reflect, in addition to information normally reflected pursuant to standard accounting procedures, the name and service address of each customer, dates of commencement and termination of service, the service charge and any other charges thereto, the billings and billing dates and the receipt of revenues. B. Grantor may cause, upon reasonable notice, an audit to be made of the books and records of Grantee in order to determine whether or not the franchise fees paid are the same as those required thereby. The omission of the Grantor to exercise its rights to an audit at any time shall not constitute a waiver of such right. In the event Grantor elects to exercise its right of audit, Grantor shall provide to Grantee written notice of such election at least forty- eight ( 48) hours in advance of the time of such audit. Grantor shall have the right to elect auditors to make the audit and the audit shall be made at Grantor's expense. Grantee shall make available to the auditor such personnel and records as the Grantor may in its reasonable discretion request in order to complete such audit, and shall make no charge, to the Grantor therefor. Such audits shall be conducted within regular business hours. C. Grantor shall have the right to inspect the books, records, maps, plans and other like materials of Grantee related to its operations in the service area at any time during normal business hours. SECTION 9. REGULATION OF RATES. By its acceptance of this franchise, the Grantee specifically grants and agrees that its rates and charges to its customers shall be consistent with rates to customers within Okaloosa County, Florida including its other municipalities. SECTION 10. ASSIGNMENT. The franchise rights herein granted to the Grantee shall not be assigned. Further, the Grantee agrees not to assign or sell its distribution system, facilities and equipment or transmission system during the term of this franchise. Accordingly, no provision for Right 5 of First Refusal is necessary or included in this franchise. SECTION 11. (RESERVED) SECTION 12. COMPLIANCE WITH LAWS. Grantee shall conduct operations under this agreement in compliance with all applicable laws and regulatory standards. SECTION 13. CONDITIONS OF OCCUPANCY OF PUBLIC WAYS. The Grantee and Grantor mutually agree that the location, appearance and aesthetic qualities of such facilities are important considerations and agree to participate during the term of this franchise in a cooperative effort in the location, relocation and construction of such facilities to achieve the most feasible and desirable result compatible with sound economic consideration of the Grantee and the conditions of occupancy of public ways heretofore provided for in this ordinance. All transmission and distribution pipes, lines, conduits and other property erected by Grantee within the franchise area shall first be approved by the City Manager or his designee upon application by Grantee and shall be so located as to cause minimum interference with the proper use of public ways, and to cause minimum interference with the rights and reasonable convenience of property owners who join any of the said public ways, or with any installations of Grantor or of a public utility serving the City. The Manager' s approval shall not be unreasonably withheld. All agreements relating to this Section shall be immediately submitted to a hearing officer mutual 1 y agreeable to the Grantor and Grantee, who shall be a certified mediator within the Fourth Judicial Circuit of Florida, for resolution on an emergency basis with the normal notice requirements waived. SECTION 14. RESTORATION. The Grantee agrees to repair all property, public or private, altered or damaged by it, its agents or employees in the performance of its duties herein in as good or better condition as it was before being damaged or altered. It is agreed, however, that in the event of the closing or abandonment of any street, alley or other public way by the Grantor to accommodate the request of private persons or corporations solely for the benefit of such private persons or private corporations containing Grantee gas transmission lines, distribution lines, metering or other facilities, that the Grantor will require as a condition for granting such request that such private persons or corporations defray and pay the actual cost of removing or relocating the same. SECTION 15. PROPER OPERATION. All plants, transmission lines, distribution lines, fittings, appliances, appurtenances and all components and installations of Grantee shall be maintained in reasonably good condition and repair. SECTION 16. RELOCATION AT DISTRICT EXPENSE. The Grantee agrees that, in all cases, the location or relocation of all plants, transmission lines, distribution lines, fittings, appliances, appurtenances and all components and installations of the Grantee, and the construction thereof, or any change or extension, removal, or relocation necessitated by a change by the Grantor of the grade, width or location of any street, alley or other public way, except as provided In Section 14, it will promptly, at its own expense, change or move its structures so as to conform thereto, and further agrees to restore any and all public rights of way disturbed by the Grantee to their original condition as determined by the Grantor. The Grantee further agrees that it will, in advance of any paving or repaving of any streets, alleys or other public way, and upon reasonable notice thereof, install and construct, at its own expense, all conduits, transmission lines, distribution lines and other installations reasonably necessary for its future use in said street, alley or other public way, so as to prevent, so far as possible, the disturbance by the Grantee of any 6 pavement; provided further, however, that the Grantor further agrees that it will in advance of any such paving or repaving, advance and coordinate same with the Grantee for the purpose of joint planning to achieve maximum economic cost savings to both parties. SECTION 17. SAFETY REQUIREMENTS. A. Grantee shall at all times employ due care and shall install and maintain in use commonly accepted methods and devices for preventing failures and accidents which are likely to cause damage, injuries or nuisances to the public. B. Grantee shall install and maintain its gas system in accordance with the requirements of the Minimum Federal Safety Standards of the United States Department of Transportation found in Parts 191 and 192 of Title 49, Code of Federal Regulations, as amended from time to time. C. All structures and all lines, equipment and connections in, over, under and upon the highways, sidewalks, easements, dedications or other public property shall at all times be kept and maintained in a safe, suitable, substantial condition and in good order and repair. D. Grantee shall conduct its other installation and service operations, those beyond the meter, in accordance with the requirements of the Standard Gas Code, incorporating the International Fuel Gas Code, as adopted by Grantor's City Council, as amended from time to time. SECTION 18. SERVICE POLICIES. A. Grantee shall not deny service to any person within the franchise area who requests service based solely upon the service location, except where not feasible based upon the same feasibility requirements for service throughout the service area of Grantee. Grantee shall not deny service to any person within the franchise area who requests service except for reasonable and good cause shown by Grantee. B. Grantee shall render efficient service, make repairs promptly and interrupt service only for good cause and for the shortest time possible. Such interruptions, insofar as possible, shall be preceded by notice and shall occur during periods of minimum use of the system.