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HomeMy WebLinkAbout1969-1147 Pacific Power and Light FranchiseORDINANCE NO. /64'7 AN ORDINANCE GRANTING TO PACIFIC POWER & LIGHT COMPANY, A CORPORATION, AND TO ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE RIGHT AND FRANCHISE FOR A PERIOD OF TWENTY-FIVE (25) YEARS TO CONSTRUCT, MAINTAIN AND OPERATE IN, ON AND UNDER THE • PRESENT AND FUTURE STREETS, ALLEYS, BRIDGES, HIGHWAYS AND OTHER PUBLIC PLACES OF THE CITY OF YAKIMA, YAKIMA • COUNTY, WASHINGTON, ELECTRIC LIGHT AND POWER LINES AND APPURTENANCES FOR THE PURPOSE OF SUPPLYING ELECTRICITY AND ELECTRIC SERVICE.TO THE CITY OF YAKIMA, THE INHABI- TANTS THEREOF AND OTHERS, SUBJECT TO THE TERMS AND CONDITIONS AND TO THE MAKING OF THE PAYMENTS SPECIFIED IN THE ORDINANCE; AND PROVIDING THAT SUCH ORDINANCE BE SUBMITTED TO A VOTE OF THE ELECTORS OF THE CITY AT A SPECIAL ELECTION TO BE CALLED AND HELD FOR THAT PURPOSE. BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The City of Yakima, Yakima County, Washington, hereinafter called the City, does hereby grant to Pacific Power & Light Company, a corporation, and to its successors and assigns, here- inafter called the Grantee, a right and franchise for the period of twenty-five (25) years from and after the effective date of this franchise to construct, maintain and operate in, on and under the present and future streets, alleys, bridges, highways and other public places of the City, all hereinafter referred to as "streets," electric light and power lines, with all the necessary or desirable appur- tenances, for the purpose of supplying electricity and electric ser- 411 vice to the City and the inhabitants thereof, and to persons and cor- porations beyond the limits of the City, subject to the terms and conditions and to the making of the payments hereinafter specified. Section 2. The right and franchise hereby granted shall not be exclusive; and the City expressly reserves the right, at any time during the term of the right or franchise hereby granted, to grant licenses or franchises for such purpose to other persons or corporations, as well as the right in its own name as a municipality to use said streets for such purposes, in the event that the City shall hereafter decide to engage in the business of supplying elec- tricity and electric service for municipal or other uses. The City may acquire the public utility property of Grantee for the exercise of which the franchise is granted, either by agreement or by condemna- tion, and if, during the term hereof, the City shall elect to so acquire the property used by Grantee in furnishing electric service hereunder, no value of the franchise shall be taken into account in fixing the price to be paid by the City. Section 3. (a) The locations and methods of installation and maintenance of all poles, wires, fixtures, underground facilities and appurtenances thereto (all hereinafter referred to as "facilities") shall be subject at all times to reasonable regulation by the Council of the City, or by such committee of the Council or such official of the City as may be designated by the Council, and all such facilities shall be so constructed and maintained as to interfere as little as practicable with street or other traffic. All of such facilities shall be installed and at all times maintained by Grantee in safe order and condition and in accordance with good electrical practice, • and Grantee, at its own cost and expense, shall promptly repair any of said streets in any way disturbed by Grantee, and shall restore the same to as good condition as the same were in prior to the doing of any work thereon or therein by Grantee. Grantee shall comply with all lawful present and future ordinances, rules or regulations of the City relating to the use or improvement of said streets. (b) The City shall have the right to order Grantee to relocate its poles, wires, fixtures, underground facilities and appurtenances to allow the City to make any of the improvements specified in Section 4 hereof in those cases where the same shall unreasonably interfere with the making of such improvements. Such relocation shall be done by Grantee at its own expense. Any reloca- tion of the installations of Grantee which may be made or required for the sole convenience of an individual property owner, however, shall be at the expense of the property owner and not at the expense either of the City or of Grantee. Section 4. The service to be furnished hereunder by Grantee shall be continuous and shall be adequate for the requirements of the City and its inhabitants, subject to accidents, interferences or interruptions beyond the reasonable control of Grantee, and shall be furnished under such reasonable rules and regulations as Grantee may make from time to time for the proper conduct of its business. Such service, and all rates and charges therefor, and all rules and 411 regulations pertaining thereto or to the making of necessary and proper extensions of service, shall be subject at all times to any rules, regulations and orders lawfully prescribed by the Washington Utilities and Transportation Commission, or by any other authority having jurisdiction in the premises. Section 5. When necessary, in order to permit any duly authorized person to move any building or other structure across or along any of said streets, Grantee shall temporarily raise or remove its wires, fixtures and appurtenances upon such street upon reasonable notice in advance from the City Building Inspector at such time and in such manner as may be necessary reasonably to accommodate such moving, consistent with the maintenance of proper service to the Grantee's customers; provided, however, that the cost to Grantee of such temporary raising or removal, or any interruption of Grantee's service to its customers caused thereby, shall first be paid or satisfactorily secured to Grantee by the owner or mover of such build- ing or other structure. Section 6. The City shall be permitted, upon reasonable notice to Grantee and without charge therefor, to attach its traffic control, fire alarm and police signal wires and supporting span guys to the poles of Grantee in said City, but at the City's own risk and 410 only in accordance with standard safety practices. If there is not sufficient space available thereon for said purposes, Grantee's structure may be so changed, altered or rearranged at the expense of the City as to provide proper clearance for such wires. Such facili- ties shall be subject to interference by Grantee only when and to the extent necessary for proper construction, maintenance, operation or repair of Grantee's electric utility property and facilities. Section 7. Grantee hereby agrees and covenants to indem- nify and save harmless the City and officers thereof against and from any and all claims, and all damages, cost and expense to which it or 2 - they may be subjected by reason of any acts or neglect of Grantee, its agents or servants, in any manner arising out of the construction, maintenance or operation of any property of Grantee in or on any of said streets. Section 8. Grantee shall pay to the City a franchise fee or charge equivalent to two per cent (2%) of Grantee's gross operating revenue as the same is defined herein. (a) "Gross operating revenue," as used herein, shall be defined as the gross revenue from the sale of electricity and electric service within the corporate limits of the City, other than such revenues which are derived from the sale of electric energy at wholesale in interstate commerce, or from business done with the government of the United States or any agency thereof, and after deducting therefrom any amounts paid by Grantee to the United States, the State of Washington or the City as excise, occupation or business taxes upon the sale or distribution of electric service in the City. At the election of Grantee, Grantee may also deduct uncollectible revenues from customers within the City in computing gross operating revenue. (b) The amounts so payable by Grantee shall be in addition to any other license, business, occupation, franchise or excise taxes or charges which might other- wise be levied or collected by the City from Grantee with respect to Grantee's electrical business within the corporate limits of the City; provided, that nothing herein contained shall be construed to prevent Grantee from passing on and collecting from Grantee's rate payers within the corporate limits of said City any such other license, business, occupation, franchise or excise taxes or charges. (c) The franchise fee due hereunder shall be paid on or before the tenth (10th) day of each month during the term hereof and shall be in the amount of one -twelfth (1/12th) of two per cent (2%) of the gross operating revenue accruing during the previous calendar year. Section 9. (a) Grantee shall submit to the City Council within sixty (60) days after the first of January of each year hereafter a report verified by the oath of the president, treasurer, general manager or other responsible officer of Grantee, which report shall contain such detailed information as may be prescribed by the City Council to enable it to determine the amount of compensation to be paid to the City for the exercise of said franchise, based upon such income and deductions during the preced- ing calendar year or fractional portion thereof pursuant to the provisions of the foregoing section. Payments for the remainder of the current calendar year shall be based upon the income and deductions information given by Grantee to the City in the preceding January of such current year. (b) The books and records of Grantee's sales of electricity and electric service within the corporate limits of the City shall be open to inspection at Grantee's office during ordinary business hours by the City for the purpose of verifying any statements or reports submitted or required to be submitted by Grantee pursuant to the provisions hereof. 3 Section 10. The franchise hereby granted shall not be leased, assigned or otherwise alienated without the express consent of the City Council by ordinance passed for the purpose, and no rule of estoppel shall ever be invoked against the City in case it shall assert the invalidity of any attempted transfer in violation of this section; but the consent of the City is hereby expressly given to the mortgaging of said franchise, together with the electric utility 410 property and facilities of Grantee within the City, under any present- ly outstanding or future mortgage or mortgages given to secure any bonds or other bona fide indebtedness of Grantee. Section 11. If Grantee shall fail to perform or comply with any of the obligations and requirements imposed by this franchise, and shall continue to so fail after the receipt of written notice from the City specifying the respect in which Grantee is deemed to be in default hereunder, and demanding that such default be remedied within a reasonable time as fixed in such notice, the right and franchise granted hereby may be terminated and annulled by the City Council; provided, however, that Grantee shall be afforded reasonable opportunity to be heard before appropriate determination is made with respect to such alleged default. Section 12. This ordinance shall be published once in the official newspaper of the City, in the manner provided by the Charter of the City, and shall thereafter be submitted to a vote of the electors of the City at a special election to be duly called and held for that purpose; and if this ordinance is approved by a majority of such electors voting on the question at said special election, it shall constitute a valid and effective ordinance of the City of Yakima upon the terms specified herein as of the date of said special elec- tion; but this ordinance shall not become operative unless so approved, and if so approved, it shall nevertheless become null and void in the event Grantee shall fail to file its written acceptance of the ordi- nance within sixty (60) days from and after said effective date. PASSED BY THE CITY COUNCIL, signed and approved this 28th day of July, 1969. ATTEST s' Mayor