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93-021 ORD PROVIDING ORDINANCE NO 2564 WHICH GRANTED FRANCHISE TO LONE STAR GAS COMPANY ORDINANCE N0. 93-021 AN ORDINANCE OF THE CITY OF PARIS, PARIS, TEXAS, PROVIDING THAT ORDINANCE N0. 2564, WHICH GRANTED A FRANCHISE TO LONE STAR GAS COMPANY, PASSED Aiv'D ADOPTED ON THE 13TH DAY OF APRIL, 1981, BE AMENDED BY REVISING SECTION 9 OF SAID ORDINANCE; PROVIDING FOR QUARTERLY PAYMENTS OF FRANCHISE FEE ON ALL GAS SOLD AND UPUN THE VALUE OF ALL GAS TRANSPORTED; PROVIDING FOR AN EFFECTIVE DATE IN ACCORDANCE WITH THE CHARTER OF THE CITY OF PARIS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS: Section 1. That Ordinance No. 2564 of the City of Paris be amended by changing Section 9 therein so that the complete ordinance as amended reads as follows: "AN ORDINANCE GRANTING TO LONE STAR GAS COMPANY, A CORPORATiON, ITS SUCCESSORS AND ASSIGNS, A FRANCHISE TO FURNISH AND SUPPLY GAS TO THE GENERAL PUBLIC IN THE CITY OF PARIS, LAMAR COUNTY, TEXAS, AND THE ENVIRONS THEREOF; PROVIDING FOR THE PAYMENT OF A FEE OR CHARGE FOR THE USE OF THE STREETS, ALLEYS AND PUBLIC WAYS, AND PROVIDING THAT IT SHALL BE IN LIEU OF OTHER FEES AND CHARGES, EXCEPTING AD VALOREM TAXES. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS: Section l. That the City of Paris, Paris, Texas, hereinafter called CITY, hereby grants to Lone Star Gas Company, hereinafter called COMPANY, its successors and assigns, consent to use and occupy the present and future streets, alleys, highways, public places, public thorough- fares and grounds of CITY tor the purpose of laying, maintaining, constructing, operating and replacing therein and thereon pipelines and all other appurtenant equipment needed and necessary to deliver and sell gas to persons, firms and corporations, including all the general public, within the CITY'S corporate limits and the environs thereof, said consent being granted for a term of twenty-five (25) years from and after the date of the final passage and approval of this ordinance. Section 2. For the purpose of erecting, laying, extending and maintaining its gas lines and appurtenant equipment, said COMPANY shall have the right and be permitted to dig up the pavements, parkways between sidewalks and street curb, streets, alleys or other public highways within the City of Paris, after due written notice of such intended work is given to the City Manager, and said COMPANY shall replace and repair the same and be responsible for any and all damage that may arise therefrom to adjoining property or owners thereof, or for personal injury inflicted on any person or member of the general public caused by or resulting from its negligence in the performance of said work, and any and all damage that may arise from failure to place the same in as good repair as when dug up, and tor unreasonable delay in replacing the same. All repairing or replacing of said pavements shall be done in accordance with provisions of CITY ordinances under the supervision and to the satisfaction of the City Manager and City Engineer. Section 3. Said COMPANY expressly agrees, covenants and guarantees to said CITY that its present gas lines and appurtenant equipment, as now erected and in use in said CITY under previous grants, are equipped and constructed with the most modern safety appliances in general use in this State for the safety and protection of its employees, the customers -1- of said COMPANY and ail members of the general public in their ordinary use of any ot the premises named in Sections 1 and 2 of this ordinance, and that said COMPANY will so maintain them and all additional or new works constructed during the life of this ordinance; if not so equipped, COMPANY will so equip within ninety (90) days after passage of this ordinance, and thereafter so maintain. Said CUMPANY further expressly agrees to defend at its cost any suit or suits that may be filed against the CITY for negligence of said COMPANY or any of its employees in the maintenance, erection, use or repair of its plant, gas lines or wcrk done on or in connection therewith, or any work described in Sections 1 to 3, inclusive, of this ordinance, and pay any judgment that may be finally rendered against said CITY in any such suit or suits. Failure or refusal to comply with either or both of the foregoing provisions of this section shall constitute good and sufficient cause for forfeiture of this franchise and same may be forfeited by CITY, if, after thirty days' written notice to COMPANY of CITY'S intention to forfeit, compliance is still refused. Section 4. In addition to the rates charged for gas supplied, COMPANY may make and enforce reasonable charges, rules and regulations for service rendered in the conduct 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 payment for, any and all of the gas piping from the connection thereof with the COMPANY'S main in the streets or alleys to and throughout the consumer's premises. COMPANY shall own, operate and maintairi all service lines, which are defined as the supply lines extending from the COMPANY'S main to the Customer's meter where 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 COMPANY'S customer meter to the point of connection with consumer's house piping. Section 5. COMPANY shall not be required to extend mains longitudinally on any street more than one hundred (100) feet for any one consumer of gas, nor shall COMPANY be required to connect consumer to high-pressure lines. Section 6. COMPANY shall be entitled to require from each and every consumer of gas, before gas service is commenced, a deposit of twice the amount of an estimated average monthly bill, which said deposit may be retained by COMPANY until service is discontinued and all bi11s therefor have been paid. COMPANY shall then return said deposit to the consumer, together with six percent (6%) interest thereon from the date of said deposit up to the date of discontinuance of service. COMPANY shall be entitled to apply said deposit, with accrued interest, to any indebtedness owed COMPANY by the consumer making the deposit. Section 7. The rights, privileges and franchises granted by this ordinance are not to be considered exclusive, and CITY hereby expressly reserves the right to grant, at any time, like privileges, rights and franchises as it may see Iit to any other person or corporation for the purpose of furnishing gas for light, heat and power to and for CITY and the inhabitants thereof. -2- Section 8. COMPANY shall furnish reasonably adequate service to the public at reasonable rates and charges therefor; and COMPANY shall maintain its property, equipment and appliances in good order and condition. Section 9. COMPANY, its successors and assigns, agree to pay and CITY agrees to accept on or before the 15th day of May, 1993, a sum of money which shall be equivalent to three percent (3%) of the gross receipts received by COMPANY from the sale of all gas within the corporate limits of said CITY from January l, 1993, through March 31, 1993, and for the period, May 17, 1993 to June 30, 1993, COMPANY, it's successors and assigns, agree to pay dnd CITY agrees to accept on or before the 15th day of August, 1993, a sum of money which shall be equivalent to three percent (3%) of the fees received by the COMPANY for the transportation of gas to a customer within the corporate limits of the CITY and three percent (3%) of the customer purchase price of the gas transported by the CUMPANY into the corporate limits of the CITY; with a like payment for each quarter thereafter to be made on the 15th day of the second month following the end of each quarter, which payment shall be based on the preceding quarter's gross receipts from gas sold, regardless of its ultimate end use, including compressed natural gas, hereinafter referred to as CNG, transportation fees, and on the purchase price of transported gas, and continuing throughout the life of this franchise up to and including the May 15, 2006, quarterly payment, which quarterly payments shall be for the rights and privileges herein granted to COMPANY including expressly, without limitation, the right to use the streets, alleys and public ways af said CITY. The May 15, 2006, quarterly payment shall be based on gross receipts from gas sold, transportation fees, and on the purchase price of transported gas for the period January l, 2006 through April 13, 2006. The May, August and November quarterly payments shall be for the calendar year in which the payments are made. The February payment shall be for the quarter ending December 31st of the previous year, and the May 2006 quarterly payment shall be for the rights and privileges herein provided for the period this franchise is in effect in the year 2006. It is also expressly agreed that the aforesaid quarterly payments shall be in lieu of any and all other and additional occupation taxes, easement and franchise taxes, or charges (whether levied as ad valorem, special or other character of tax or charge), in lieu of municipal license and inspection fees, street taxes and street or alley rentals or charges, and all other additional municipal taxes, charges, levies, fees and rentals of whatsoever kind and character which CITY may impose or hereafter be authorized to levy and collect, excepting only the usual general or special ad valorem taxes, which CITY is authorized to levy and impose upon real and personal property and charges for repair and damage caused by COMPANY in using the streets, alleys, public ways and public properties. Should CITY not have the legal power to agree that the payment of the faregoing sums of money shall be in lieu of taxes, licenses, fees, street or alley rentals or charges, easement or franchise taxes or charges aforesaid, then CITY agrees that it will apply so much of said sums of money paid as may be necessary to satisfy COMPANY`S obligations, if any, to pay such taxes, licenses, charges, fees, rentals, easement or franchise taxes or charges. In order to determine the gross receipts received by COMPANY from the sale of gas within the corporate limits of CITY and from the fees received by the COrIPANY for transporting gas to customers within the COMPANY'S lines into the corporate limits of the CITY, and in order to determine the customer purchase price of all gas transported by COMPANY into the -3- corporate limits of the CITY, COMPANY agrees that on the same date that payments are made as provided in the preceding paragraph of this Section 9, it will file with the City Clerk a sworn statement showing the gross receipts received by the COMPANY from fees for the transportation of gas within the COMPANY'S ]_ines to customers within the corporate limits of the CITY, and from the sale of all gas, within said corporate limits, and will include the customer purchase price of all gas transported by the COMPANY into the corporate limits of the CITY, for the calendar quarter preceding the date of payment. 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. Each transportation customer of the COMPANY shall disclose to the COMPANY the purchase price of said gas. Should the transportation customer fail or refuse to disclose or furnish such purchase price to COMPANY, COMPANY shall establish same by utilizing 110% of the Houston Ship Channel index of prices for large packages of gas published each month in "Inside FERC's Gas Niarket Report" (or a successor publication or another publication agreed upon by the CITY and COMPANY) for the period of time the transportation service is performed. COMPANY shall use all due diligence in collecting from traiisportation customers any and all fees required by this franchise agreement, but shall not be responsible for paying same to the CITY if the COMPANY'S custamer refuses to pay. Provided, however, that if the COMPANY'S transportation customer refuses to pay the fee imposed on the purchase price of the gas transported, and remains delinquent in payment of such fee for a period greater than thirty days, COMPANY shall be responsible for the uncollected fee of any gas thereafter transported through the rights of way of the CITY to COMPANY'S transportation customer, but in no event shall the customer be relieved of its obligation to reimburse the COMPANY for any fees paid to the CITY. For all customer classes other than transportation customers, COMPANY shall collect charges and franchise fees from customers in accordance with COMPANY'S Quality of Service rules, as amended from time to time. Section 10. The franchise granted herein shall be subject to the valid provisi.ons of Section 122 of the Charter of the City of Paris and other applicable valid sections therein, which are hereby incorporated by reference and expressly made a part hereof, the same as if copied verbatim. Section 11. This franchise ordinance shall not change the COMPANY'S rate or charge currently in effect within the city limits of Paris, Texas. The rates currently charged by COMPANY may be changed and amended at any time by either the CITY or COMPANY furnishing g,as in the manner provided by law. Section 12. This franchise ordinance shall be considered effective sixty (60) days from arid after the date of its final passage and approval by the City Council and the Mayor of the City of Paris and shall cancel, repeal, supersede, nullify, take the place and be in lieu of that certain franchise Ordinance No. 2564 passed and approved on April 13, 1981, recorded in Ordinance Book 9, Pages 148, 149, 150 and 151 of the City of Paris, and being styled: "An ORDINANCE GRANTING TO LONE STAR GAS COMPANY, A CORPORATION, ITS SUCCESSORS AND ASSIGNS, A FRANCHISE TO FURNISH AND SUPPLY GAS TO THE GENERAL PUBLIC IN THE CITY OF PARIS, LAMAR CGUNTY, TEXAS, AND THE ENVIRONS THEREOF; PROVIDING FOR THE PAYMENT OF A FEE OR CHAKGE FOR THE USE OF THE STREETS, -4- ALLEYS AND PUBLIC WAYS, AND PROVIDING THAT IT SHALL BE IN LIEU OF OTHER FEES AND CHARGES, EXCEPTING AD VALOREM TAXES." Section 13. CUMPANY shall file its written acceptance of this franchise ordinance within sixty (60) days after the effective date of this ordinance as provided in the Charter ot the City of Paris, Paris, Texas. Section 14. This ordinance shall become effective sixty (60) days after third and final reading at three separate regular meetings of the City Council of the City of Paris, the last of which shall take place not less than thirty (30) days from the first. INTRODUCED AND READ at a regular meeting of the City Council of the City of Paris at the Council Chambers thereof on the 12th day of April, 1993; read at a regular meeting of the City Council of the City of Yaris at the Council Chambers thereof on the 6th day of May, 1993; and third and final reading at a regular meeting of the City Council of the City of Paris at the Council Chambers thereof on the 17th day of May, 1993, the last reading being not less than thirty (30) days from the first. Section 15. All ordinances or parts of ordinances in conflict herewith are hereby expressly repealed. Section 16. This ordinance shall become effective in accordance with the Charter of the City of Paris. FINALLY passed, adopted and approved by the City Council of the City of Paris, at a regular meeting, this the 17th day of May, 1993. , Ggkrge'Fisher, Mayor ATTEST: ~ Mattie Cunningham, City Cler APPROVED AS 'FO FORM: T.` . ay es, ity Attorney -5- STATE OF TEXAS § § COUNTY OF DALLAS § WHEREAS, there was finally passed and approved on May 17, 1993, Ordinance No. 93-021 granting to Lone Star Gas Company, a Division of ENSERCH CORPORATION, a corporation, its successors and assigns, a franchise to furnish and supply gas to the general public in the City of Paris, Lamar County, Texas, for the transporting, delivery, sale and distribution of gas in, out of and through said municipality for all purposes, which is recorded in the Minutes of the City Council of said City; and WHEREAS, Section 13 of said ordinance provides as follows: "SECTION 13: Company shall file its written acceptance of this franchise ordinance within sixty (60) days after the effective date of this ordinance as provided in the Charter of the City of Paris, Paris, Texas." AND, WHEREAS, it is the desire of Lone Star Gas Company, a Division of ENSERCH CORPORATION, the holder of the rights, privileges and grants under the aforesaid franchise ordinance, to comply with the above-quoted provisions of Section 13 thereof. NOW, THEREFORE, premises considered, Lone Star Gas Company, a Division of ENSERCH CORPORATION, acting by and through its duly authorized officers, and within the time prescribed by Section 13 quoted above, does hereby agree to and accept the franchise granted to it by the above-described ordinance, in accordance with its terms, provisions, conditions and requirements and subject to the stipulations and agreements therein contained. WITNESS THE EXECUTION HEREOF, on this the day of 19 -T-`, ' LONE STAR GAS COMPANY ATTEST: A DIVISION OF ENSERCH CORPORATION ~ ~ . K c 4si nt ecreta / ice President ~ STATE OF TEXAS § COUNTY OF LAMAR § CITY OF PARIS § I, City Secretary of the City of Paris, Texas, do hereby certify that the above and foregoing is a true and correct copy of a formal acceptance of a franchise ordinance finally passed and approved by said City on May 17, 1993, and of record in the Minutes of the City; and I do further certify that said acceptance has been duly presented to the City Council and filed in connection with and as a part of said franchise ordinance. OF WHICH, witness my official signature and the seal of said City on this the day of 19 f City ecretaryCity of Paris, Texas 2