HomeMy WebLinkAboutORDINANCE 0115-1967CITY OF KEr~AI, ALASKA
~I OP..DIhA~IC£ GF~A~ITI~(G Ali EXCLUSIVE FRAf~CHISE TO K£I'~AI UTILITY
SLI~VICE CORPORATIOfi, TO LOCAT£ , ~UILD COIiSTRUCT OR CAUSE TO
BE COUSTRUCTED, OR TO OTH£RWISE /CQL~IP, E~ PURCHASE, ~XTEI(D,
f'IAII'iTAII,~ A"D OPERATE UITHII; AI~D T)IROUGH THE CITY OF KEIJI~I,
F,L/,SK/,, ~; t LAliT OR PL/,i'ITS AIiD ~'IORKS, FOR THE PURCHASE, PROCESSII'~G,
TR,',I.;SI,1ISSIOIt AI(D DISTRIBUTIO~J OF GAS, /~riD TO FURt~ISH, SELL
DISTRIBUTE SAID r;,AS TO THE CITY OF KErIAI ,r,i:D T~IE I~HI, DITAI~TS
THEREOF, FOR HEF, TIIIG, COOKII~G, OR OTHER PURPOSES 8Y i,i£;,NS OF
PIPES, MAILS, OR OTHERWISE, OVER, UI~DER, ALONG, ACROSS /,rid
THROUGH Ally AtJD ALL STREETS, ALLEYS, VIADUCTS, BRIDGES, ROADS,
LAIIE$, PUBLIC WAYS AND PLACES Ill SAID CITY OF KE~IAI, FIXII~G THE
TERfIS THEREOF, A~ID SUBMITTIt~G S/,ID FR~IACHISE TO REFEREI(DUf4.
BE IT THEREFORE, ORDAI~iED BY THE COUNCIL OF THE CITY OF KENAI:
Section 1, Grant of Authority_.._ The exclusive franchise and
right is hereby granted by the City of Kenat, hereinafter called th(:
"City", to Kenai Utility Service Corporation, a Delaware corporation,
hereinafter called the "Company", to locate, build, construct or cause
to be constructed, or otherwise acquire, and to own, purchase,
c::utp ~nd operate into, within and through the City a plant or
F.'!':nts ~nd ;.:arks for thc purchase, proccsstng, transmission and
distribution of gas for heating, cooking or any other domestic,
cc~,.r".rcial and Industrial purposes, with the right and privileg~
for thc period a~d upon the terms and conditions hereinafter specified
to furnish, transport, sell, operate and distribute gas to th, City
and th~. inh,~bitaqts thereof for any domestic, commercial or ind~strial
purposes, (~ith the right and privilege to m~ke such connections with
said system as will enable the Company to supply gas and to furnish
service to others outr. ide the corporate limits of the City) by means
of pipes, mains, conduits or otherwise, over, under, along, across And
through any ,'.,nd all streets, .11eys and public ways and places in thc
City, and on, ovur, un,_h:r: al ~nq, across and through any extension,
connection wlth or continuation or the same, ,~nd on, over, under,
'cross end through ~.ny ,.",nr' 11 ~uch new streets, ~11uys and public ways
~s may h~reaft,.r b~. 1 td out, opened located or constructed within
the copor~te limits Or bound':ries of th~ City as they now exist ,,
or may hereafter be ext~.ndud.
The exclustv, franchise her~tn gr.~nted is not intended to
and shall not impair any of the rights of obligations of
or any other person under that certain [DA project 07-01-00058
'uthorized May 27, 1966 to provide facilities including gas
transmission f~:cilities in Lh~ Cook Inlet Industrial Air PArk.
)nsot~r ~s permissible un,er said EDA project gr~nt, th~
distribution f~cilities thereby constructed or to be construct~O
sh~ll be connected with the gas distribution facilities of th~
Company and usc m~de thereof by the Company on ~ fee basis to b~
paid by the City.
Sectio~ 2. Use of Streets, Public Places; City Not to ccmBs~j.
In consideration of Company ~ndertakings hereunder as ~viduncud by
its acceptance hereof, the City agrees not to engage in th~ business
of distributing and s~.lltng gas except to the Company during th..
life of this franc~tse or any extension thereof in competition with
the Company, The City shall provide, at no expense to the Company,
all necessary easements and rights-of-way within th~ public st)._.ts
and ways ~F th~ City ~s required to consb~uct,~'~int~n,.and operate
the gas system. If eas{.ments ar~ required over and through prop~.rty
not owned or controlled by the City, such easements sh~11 be obtained
by thc Company at its own expense through purchase or grant or by
such powers of acquisition-'as may now or hereafter b~ provided by law.
Should City street construction oK improvement requir~ r~location of
ony of thc Company's focii~ties, reasonable notice shall be given ~nd
tho relocation m~d~ at no cost to the City.
Section 3. Location of '.:ains~ cC~:~ The Company, prior to
entering into construction ~f the underground f~cilities, shall file
-2-
with the City ?1aris of the proposed cdnstruction and secur~ th. apLroval
o- Tho City therefor, which approval shall not b~ unreasonably ~vi~,~.c u.
The Company sh.-ll, within sixth (60} days after completion of
construction of any linc in the public ways, fil~ "as-built" plans in
duplicate with th~ City. Thc Company shall lay its pipes, mains, and
other gas ~quipmcnt and apparat.~s aris so locate the same in, under,
along and across the streets, avenues, alleys and public places of th~
City, and, so far as may be practicabl~, avoid interfering with thc
,se of any street, alley or othc~ public place (or with the rights or
facilities of any other person or utility rightfully in the public
~dys) for the purpose of laying, maintaining or repairing gas mains,
:~ipes and oth~r appurtenancos, including service pipes. Except in
c:se of emergency, it shall apply to the City £or a permtL to do so
a~:~ shall give the City at least three (3) days' notice in writi~)g
thereof, and shall not, during the progress of the work, unnesessarily
-bstruct the passag~ o~ proper use of such street, alley or other
:)lace and shall file with the City duplicate ~aps or prints s,~owin9
thL proposed location thereof.
Upon completion of any construction or repair in the streets
or public ways, and without unn~sessary dealy, the Company shall r~store
said area to a condition equal t~ that existing prior to such construc-
:ion or repair. If, by reason of soil or temperatur~..conditions,
~ermanent repairs cannot be made, temporary repairs shall be made and
t.~e area restored as soon as prac':tcable after the limiting conditions
~ longer exist. Should any repair of the streets fail during the
t:,elve (12) months next succeeding th~ excavation in question, the
City shall notify the Co~))pany and '.f additional repairs are not made
:,i~htn thirty (30) days the ~.ity may hace the repairs made and the
Co.:)pany shall be obligated to reimburse the City for the full cost
t~ereof.
i
-3-
Section 4. Odoriztnq of Gas: Any gas which does not naturally
possess a distinctive odor to the extent that it~ presence i~ the atmo-
sphere is readily detectible at co~centrations of one-half that
required to produce an explosive mixture shall have an odorant added
to it by the Company to make it detectible at such concentrations.
Section $. Service Standards and Controls. The Company agrees
to provide and maintain its entire plant and system tn such condition
that it will furnish safe, adequate and continuous service.
A. Pressure. Gas pressure, as measured at the outlet
the Company's service to any consumer, shall never be less than two
inches nor more than eight tnch~s of water column where supplied for
domestic purposes, and in the case of industrial usage, such other'
pressure necessary to provide efficient service as agreed to by the
Company.
_ Whenever it is
B. ~rs~]ce 9~ Interruptions...
necessary to shut off or interrupt service for the purpose of making
repairs or installations, the Company shall do so at such time as
cause the 'least amount of incoventence to its patro~s,..~nd unless
such repairs are unforeseen and tm~nediately necessary, it shall give
reasonable notice thereof tc the customers.
C. Meter A~curacv. All gas service shall be supplted
t~rough meters which shall measure the amount of gas supplied to any
consumer accurately :~ithfn a tolerance of plus~r minus two pe~ cent.
(2%). The Company shall at any time when requested by a consume, make
a test of the accurancy of any ~as service meter free of charge; pro-
vided first that such meet has not been tested within the Lweiv~
months prior to such request, and second, that the consumer will agree
to accept the result of such te~t made by the Company as the basis for
-4-
.~ttlin2 diffcrcncc~:o ^ ,;ritt~rc. port ,;tvifi~ t..- rc~ult~",X ~ac.~'~.~
bcinq k~* ~ fi )z ;~ r~ ,Jfl i~ of thc (~)any for :, period of at lea_st
t,',, /,.'ars. 'l',m City ~'lr r~uire cq)i2s of ~y ~ all
t~sts ru~l ,~ r~im ~ri~ic s~t ~ts of ~y ~tcr but no
-/~cti~ 6. Coq,'m/ Liaoilitg: %:¢ (~ay shall so mintr~ir, its
qtr,~turcs, ~paratus auJ ¢quil)~;~nt. r~ to afford all
~ in ti~u r~t ~ SZO0,O00 for ;~ p.:rscm aaC ' l~O00,ilO0
m~.n~ for bodilt injur~s, a~, pr~y ~'~tge i. nsuronce
t. ~ diacrctic:n of t,~
Ta¢ City~ ~ ',J;~o~ bw City ~d tlw C~y~ slmll not bc
li~D to =y ~ird pa~ for fai~a~ to pr~rly sm~isc or inspect
'i~ mstmctim or .m~tcmm~ o¢: ,. -,,..;,~-mv's physic:ti plmt. Sit,mid
~ City bo su.~joct t, :ub' suit o~ ~,wsc qr~n~ thc o.~W:my t~ill
~s~ t,~c ~fgma¢ . f ~lc sam and p',y a~y final jud~nt including
costs rm.: attomey*s fgv.; rcndJrc' ag-.~':t thc City on suc,~ Er, amd.
:kcti~ 7. ialcs mid l~lr:tions of C~y[ 'H~'c
rrm ti~ to tim~ as t,l~ ~l)~y s,all ~lcct, ~ty pr~lgato
lis,~ rv:ts.Jnru>lc ~ll.J5 al!d rv~lati, ~s f.,r t~tc condor of thc
~sinuss qnd ~ly prescribe ~ fora of nl)l,l, icatio~, rm..i ~ntrncts t,~
cxom~t,.,, by applic~ts before tm:v sh: I b,., ,mtit ed tr, rccoivc
:as or ,?5' se~J.~ fy, t,, tilt: Compri' i~t [u im~ rcquJ ~g~,llts for
1
be .~sblnatc' Dy I i. CJty~ q c(Dy .f ,;uc,~ mits '111; reolle~l.i,;ns
a~n,~acnts thcr.,t ~ taJ~ty (3q) 2~ys prY, r t~ t,~: cff~,ctivc, d'tt;~
:raj saall k.:cp on fil,: in its (,ffi~ tw:~il,ble tc tac pui~lic~
~mt su~! rates, rce~lqti(-~s, ~m~; ~l~ crm. litJcns stroll n,,t ,~ in c(.nflict
;~ith thc p ,~isi(~s ,wrcof, tiw (;mrtcr of Ox~ of
~2m:~s of h~c City of Kcn'd or tac iq'~s ,~ fi~c State ~f gl~kn.
Such ml~s :m,l m~lati,~s sardl bc effective ~creaf~r mtil
sul~rse2c2 ~:r su~sc~aently dis~provc.~ for q,~2
It is swcificall/ understotd teat ta~ C~y shall h~e
ri~lt ;nd pc~cr t~, require of ever/ c~,r ct c~trac~al ri~j~t
fllgruss mid ¢qrcss up~.n~ ~.; from, taw cvnsumr~s pretties for t~lc
h~s~cting, ~naintttining or retniring r~ters, ~g f{.r Lw i,u~.scs
Wstinq~ e~t~uining .~r insl~cting the c, anectin3 pii~, pi~ lines
later:rD c~u ~pli.mccs .,f thc ciasa,er, if, qs ~d ~hen thc
~c~ion 8. .'IA px'~cr~,,c~ Snvaa: Thc Como~a~y s. mll m~t, :~ r,~ ra~s,
dlargos, so,ice f:tci.}itics, gilc~, rc~llati,,.s ur iii any otaer r~sp~ct
prohibit tac cst;tl>l, is,~mnt, fr0n ti. to ti.~m~ .f n 2rMuate; scale
of c, mrgcs rulu cl:usific2 rate scavdules t,, tqi~ic,1 au/ c~st~r
c~ing .eitifing sue, cl,ssific:~tions ,/dll~ ,)c
-6-
Section g. ~a.s .S o_u__r c_,: _... Thc City has entered trite a Gas Sales
Contract v¢tth i.larathon 0il Company and Union Oil Company of California
dated 14ay 17, 1966, (Thc "Gas Sal~s Contract") providing for sale and
delivery of gas to thc City. Th~: City agrees to s~:ll and delibcr all
gas vihtch tt has the right to purchas~ under the Gas Sales Contract
to tho Company at the takeoff p~tnts t~ has a right to dosigna~ at
the same price and of thc sapac, quality specified therein. Thc Company'
agrees to specify the quantt~y of gas tt will require annually so that
the City may comply ~h thc'r~q~4r~u~s'ef.-arttcle VI of the Gas
Sales Contract. The Company agra:es to pay thc City for repayment to
the Seller under thc Gas Sales Contract any amout~ts ~hich may be. come
due as a result of spectficatto~ of excessive requirements and will
receive credit therefor tn accordance with said Article V] of the Gas
Sales Contract. Thc Company shall not bc obligated to treat gas
or improve Its q.alt~y above the heating value or quality of thc gas
sold and delivered to it by thc City.
The City shall not be 1table to the Company at law or othcr~ise
tf the Gas Sales Contract hctcin referred to is t~rmtnat,~ for any
reason other than a breach thereof on the part of the City and in
that event only tf thc breach was not induced or contributed to by
:he Company.
Section 10, ~. in Rates: If, during the term of this
franchise, the cost to the Company of thc gas sold under this franchise
ts increased or decreased from ~h~ rates specified in Article V of
the Gas Sales Contract, th~ Company will pass on to its customers
any savtng~ ~r add~ttonal ~osts resulting therefrom whether r~r not
such increase or decrease may occur within five (5) years of thc
focttve dato of this franchise.
Section il. Rates: Thc schcdulu of fa:cs anne, xed hereto as
"Exhibit A" will b~, cff,.,ctiv, ~ur'ing thc first five (5) years after
the
effective &itu of t~;i, fr;i,~chi,;c .md .;,~ i~m5; t.J,:rcnftur :t,; sucu
sl~-~ll yield a re:~sol~ble r~tc of return,
Thc O~y ~rcscntly coutumplatcs t~::~t thc C~pany si~t~lld
cntitled~ un~r cf fi.cleat ~irtuigci.~cnt~ to c:trn m ~crall rr~tc of return
of eight :md ~t'cc-t~ltl~s )crccnt (8.5';;J ou t.,c original cost ~' thc
pl~t used or useful and devoted to fur:.ishiml so. ices un~r ti~is
frm~l~ise, less acc~.~,.o d,:prccJztti, on. .~ter thc first five {5)
of ~rr~tion~ tit, tot mrty my a:~ply for r,~ adjastm~t of ~.tcs
sfffici~nt to cam .q rcason~ic rate of rcmm. 8.5g shall by a prim
f~i~ reasonable rate off r;tum, but either Imrty my ~tr~ce
c~i~e as ts 's~t c~stitatcs ~ rcaao~r~blc rate of reutm at thc tim
of t,~c licar~g tacrcon mid ti~c pcmissibl,, r:t~ of return my bc adjusted
able or bclo~ 8.3g based ul~on th~ cvkdc~cc so subsdttcd. Thc return to
fl~e C~any s~mll bc thc :m~t rcminin~ after &~ting all otlmr ~Iross
rc~cmue n~ukr~munts, includ~g pr~r o~'ratinq cxpenses~ &pr~iatian
and S~tv and Fe&ral I~omc
l;m re~latow body for ~tcnnination of rates stmli bc thc
~ncil as provided h~ Alaska S~ttutcs Section 29.10.144 unless
legisla~r~ shall pr~id~ or a c~ of coherent jurisdiction shall
~at r~lati~ oq rates un&r t,~is franchise ts un&r ti~c jurisdiction
~ the Alaska ~blic So.icc
kction 12. Extension Poli:c~: II, rim: t~c tern of this fr~chisc tht,
to tile City m~d to i~. ]nn':~it:u~ts subject to thc Co. ruby's talcs
re~lations ,ts filed. In ;tdOitJon~ t,~,x tSo.,o:my sts'tll file ~viti~ tl~c
City Clerk thirty (50) d:tys l>rior to thvir effective dttte its ~Ics
md re.latins rc,~nnlim~ l;xtcusion I%1 icy,, m~d,p if required, sh:tll
file ti~¢ same ~lith ti~ ,Xlrtska l'ubli.c S~icc t;oimission. Sucl~ ml. cs
r~latio~s ~,[11 provi;~, for t,k, lu~is,~in~l of suci~ sc~icc docs
require thc laybl~l of ~rts mahts~ l'~t.:r'tl,;~ r~r conn~.('tio~u for :,
~con~cally fo'ts [blc so tn.~t it' ~Id~l,.l ;mt p~lt 'tddit[onal cost hur~t,u
O1~ CXiStiH2 Cu~:to~I~')'S~ :lilt[ tile (~t21h:l:lll7 'q, rtl l
upon acceptance of tills fr?.nc, lisc, thc tJomp:~ny will keep .~J~ail,blc for
insp~ctim ot m/ consu~r desiring samv its mits md rv~lnticns as
rcgar~ its cxtcnsh)n policy.
S~tim 15. Tr~sf~r by ~;on~>~y: !,lc Co~an/ s, ial! not s~ll or
trmsfer its pl~t or system to :mother without the prior consent of
fi~c City :m~ witn~t giving t.ic City first option to purc, rtsc thc
system :tt a price :mC on t~ no less frwor'fl)lc tn:m m~y v:tlid offer
~n&red to thc ~:my.
T~ City s.mll imvc sixty (00) days witi;k~ wi~i~ to give notic~
of h~c o~rcis~ of s~i~ optio~ after notice by the C~y to mc
City of s~h offer. Notn~g herein cont2~ed s}mll be construed to
rquire consent or to pr2vent ti~c Comply from i~lud~g tills fr~mchisc
or its plaint or sys~m or m~y part thereof ~ any mortgage or trust
~cu e~tcd for thc pu~ose cf obtainh~g money for co,rate pu~oscs.
Not wi~st~d~g thc for~go~g paraqrnph, thc C~y shall have
no ~f3t to sell, as:;i.~, mble~ or allow a~o~er to ~c or opcrato
~r rids frmmhise witnmt ti~o consent ef ti~c City, which
slmll nog bo unr~onably wit,fl~cld. Sale of ~c cmtrolling inter;st
hl ~ snares of til~ s:~k of ttlc C~an7 tv ~y ~vn or
s,all ~e c~st~d ~ ~alo fur :h: 2u~u~ ~f this s~cLiua.
S~[tio~ !4. ~ ~rch~o bi C.i.[z: Upon tho o¢ir~tion or t~mina~iun
of h~is fr~ci~isc in w, iat~wcr way su,',' tcmi~atiu~ ~,y b~ br~g,~t ~t,
or apm fllo surr~,d~r h~crcof cx~,~ under c~nc~[ domain, tho
rcsv~vcs ~c right to s~lvago ail of its plants, works anu fxiliti~s,
aftor post~g rc~onabi.2 bond ~atisfacto~ to ~ Citf to
rostoratioll of t,~u City's struuts ~ alleys danmgcd by suo~ salvage oper-
ation.
lt¢~ever, at tho expiration or uthor re.nation of t,~i~ frmIcaisc
~d gr~t, if m~utnur frm~c,~is¢ agcvpt,~blc to tn.. Cumpm~y n;m not
grmltod to it ~d it d~s not dcsiru to salwt3o its system, t~c City,
· tfl..2
upon h~¢ payment of the fair valua~ ion t',~urof ~.mf purc,~;m~ ~,.;C '
to itself t,~ 3~ sy~[v:n, worlis, ;)i:~l~t "~1.:, lu'opurt/ of tile Co;,~[)~l~
gnu City h~ its cntJrcl;,,, ]n suc,~ ~vc:t~., tn. (:i;'/ Council may
upoli t,~irgy (30) daTs' notice t.~,,; t.~c [.o,;ll~t,;./ is '..I;lling [o accept
as tale price t.~ereof upon sale to tn.' City.
If ta:e CiLM Council decn,~ th¢ pri~ statcu ay t,~ ~omp~y to
m~lt ni~ ~a dis~vm].agecus, it m:~), require, m]at ~c questio~ of fair
va~tio~ oe refe~ed to a Board :f .,,,pvaise~ co,.yoked of ;~ree
professi~l eng~eers, e~. of ~i~ s.mll i]~e ired at least five years'
e~rien~ ~ t,~¢ ~si~, constmctia~ m~ ol~rati~ of g~ .~or~ ~yst~
~ citio~ or five )'cars' e~rien¢¢ in t~¢ val~[ioa of l~ulic utilities
pretties of ~ual capita& to h~at :o be appraised, o,.¢ to
sel~d by ~e City, one by ~ Co~a.~y, mm L~c t~o t~ cn~en saall
sel~t ~]e t;~ird, ~&ic~ s~a a~lrd ~praiser shall not o¢ o~le~ise
o~l~ed by or co,~ted directly or indirectly ~i~ u~ City or
~y. l.~ c~e U~e t~o ~rais~rs d~cs~n by ~n~ pa~ies ~ot agre~
a~ ~u~ ti{ltd ~pra~er, ~ slmll be ~pointeu by u~e pmsioing juoge of
me Su~rior Cmrt for the Tnir~ .tu~icizl ~isrrict. S~l ~ara of
Appra~ers shall inspec~ mtd m~e ~vento~ of ti~e pro~y of ~e
~my proposed to be purd~ased bi r,~e City, ~d for s~
shall nave at all tiros unrestricted access ta all proart, premises,
o~, mcor~ m~d rapcr~s of tae ~)any. Tim iloard of ~2r~s~ro
snail hear my eviden~ presented i)y either si~, ~d shall fix a value
m fl~e pr~e~y to be pura~;d b/ taa City. 'L~ ooard shall file
~o Ci~ C~c~l a ~i1 ~d a~tatlcd report r~co~nd~g ti~e i~r&c~
be paid by fl~e City for the pr~nert7 ;c be lmr~ascd. 'rh~ ~?rai~rs
sisal1 exclu& fr~ ~eir valuation :md snail not assign ~ty value
to 2ood ~ill or to the value of tac fnmci~ise bug sim11:2praisc only
~e fi~en present fair va!ut of s:t[d 2hystcal pro2e~ies. The Cigy
~d C~m/ ~mll bear jointly, share md share aliag, ~c cost,
filc~ding fees md e~c~mcs of gac taird at>praiser, ~d thc co~g ~d expenses
of ~e a~ard, trot thc costs, including the fc~s ~d e~enscs of ¢~e ether
t;~o.}mmers of thc Boa~ of ~¥prrtiscrs shall be paid by
respectiw nominators; thc ccs[ and e~)enses of ~e fl~tr~ction
ovid,,nce before B~e Board of Apt~r:t&scrs sim11 be paid bi ~a~ l):trties by
or ~n ~hosc bc~mlf suca evidence Js introduced. If thc City Comcil
det~m~acs hint tl~ ixtrca:ts,. :tt s'ac,~ :,rZcc ~emld be :~dvanta3c~s ;utd just
to thc ci;&zcns of ti~c t:i[y, it saat[ proceed w[ta such ?ur~. in thc
mrmler ?rovidcd by la,~. In t,.: :~b.;cnc,..~f Fr:tud or error of lin%
- Iii-
'~cision of lJl¢ ap,)r::isor si~.dl ,ac final.
Sil~uld t.'~is fr:mc,dso oe revo,.¢d or tenninated for :my re.on
~d saould a fr:mc,xis~ t,~cn oe zrmtcd tz ,~,~t.r, taon, md in t,~at
ownt, it shall be ;t c~dit~m of t~e ~r~ting of tae frmn~isc to said
third pa~y that ti~e grzmtoc of ti~e new frmcaise shall pure,rose from
t{e~ Otilig/ So.icc ~.ration the physical pr~e~ies suojcct to this
fr~caise ~cor~ng to t~le l~mer p~d foi~la sot fo~il in this section
for ~rdl~e by thc City.
Sectim 15. Recipro~l ~ghts on ~rch~e: In the event of
&cision by th~ CiW C~cil to ~d~ake purch~e of ~c syst~, ~orks,
pl~t ~ pr~ of t,e C~m~g as pr~idod ~ either of the ~o
preced~ sectio~ it si~all noti~ tlae Co. my ~ pr~tly ~ sucia ~cisi~
is ~ by its C~ci;, ~d in the c~e of t¢~atim by e~iratim of
tho ~ of this frPm~iso, or ~f extcnsims, thereof, such ~cisim
~d noti~ ~t be had ~d given at le~t six mmths p~or to su~
t~atim. Boti~ panics agree to pried in g~ faith to &teminc
~e fair val~tim in ~e ~mer i~ero~ove provi&d ~ e~editimsly
is rectally j~ossible. The C~)~y fu~er hereby ~gfi~atively c~cnants
to ~t~ue ~ration of its system, works, pl~t ~md pr~o~Y ~
otJ~en~ise pr~ided ~ring may su~ peri~ of dete~nation of fair value,
should ~e Ci~ so &sire or require m~d tae City ag~gs that h~
event the ~cisi~ to pu~n~e accuracies or foll~s termination at
o~irstim of the no~al te~ of ~i~ fr~c1~ise or m~y extension thereto
~e Co~y will be pe~itted to retain possession ~d opcrati~
~emof ~til ti~e purpose by tae City is finally cons~at~d.
~ction 10. C~l~,~c~ ~!i~a ~i%y ~m~er: Thc grating of this
frtmchiso ig cont~gent m~on conplim~c~ of all conditio~ precedent
contained ~ the City Charter, includin?, but no limited to &posit by
~e ~m~y of the esti,mted cost of tho referendum electi~, m~d
~cmditional mcceptm~ce of all tern; of the fr~chisc prior to said
Pefero~d~ elect~on. T,~e rights ~d¢r t~e C, mrt¢r arC subject to
pr~isions set forth in Section ~-Z of the Omrter.
Sc'ctic~ 17. Effective oate :u~d I-:ilinC ~,~f?cccpt:mce; l'l~is ordinmlc.,
shall t~c offect ns s~n m~ it shall have been &ly passed, adopted
!~blishod :md approwd '~t :: ret:er~,udu,n election as required bM 1;:w, :'nd
,:..
the acccptmlce tl~crcof duly flied ~)y t.k. Comp:u~y :ts herein set out.
Thc Comp:my, its successors, Dssccs or .tsst~s~ shall, wifi~in
days after ~c result of snid ..lcction aas bccn c:mvo_sscd publicly
ti~e City C~cil md spread upon ti~c rvcords of ti~c mbmtcs thereof
md thc result ~clarcd :u~d certified, file ~,ifl~ the City Clerk, its
accept~cc of fl~e sp~ in writ~g, si~cd by its proof officers
at~sted by its cm~oratc seal; othcndse, U~c provisions of C~is
fr~ci~ise shall be null m~rl void; tee d~te of such acceptamcc shall
~e "effective &to" of ~is frmo~ise.
Sectim 18. ~bm of Fr~d~isc; Ti~e rights, privileges m~d frm~chise
hereby grm~ted to rind conforr~4 upm ~e C~my slmll, unless this
fr~ci~ise be somer te~nated ~ l~ercin pr~idcd, extend for a tern
of Becnty (20) yca~ rrm ~c effective da~ hereof.
~ctim 19. T~os~ pemits m~d fees: 'D~e C~y shall p~v all
t=es legally assessed mim mai ~d nersonal pro)c~y ~d all fees for
lim~es m~d pemits required by any s~division of g~oment, provided,
hmeevcr, teat the rntcs set fo~t in '~ibit f' arc not devised to
pr~ido reve~me to pay m~y t~x or ~ar~c of the privileqc of doing
b~incss mx~r fi~is frmxcaisc other ~ ~c franchise t~ set forth
~ ~ction 20 of this frpnchise ordinnncc. Should m~y Other st~cil
or otarge bo levied, ~e rates cimrgcd by tim C,~y may be adjured
to pr~ide ~fficient Mditional revenue to p~ suci~ t;~ or Cmrgc.
Section 20. Fr~ci~ise Tax: ,~ considcratirm for t;;c grm:ti,g of
~is fr~chisc, fi~c C~pm~y ag2uc~ to pay to ~c City mt ~mal
frm~d~ise t~ equal to two per cen~ (2~) of its gross mwnuc
~c~ive..l from oast(~rs within ti~o co.orate li~ts ~ they no~ exist or
~ such limits m;~ be i~creaftcr extended. Sud~ pa>~[~cnts shall b~ made
within six~ [o0) days of ~e close of tl~e C~y's fiscal year.
Section Zl, Ti~ Li~t for Construction: The ~mi,
accoptm~cc of fl~i~ frm~i~c, agrees that it ~vill exercise uiligcncc
~c construction of '~ gas distributic, n system i,~ tn~ City uf ,~cnai
t,mt it will be in :~ position to supply gas t~ thc said Cit~ m~d its
~m~itm~ts ~ soon :ts practicaole, gao shall o~ availaolc t~ t,~osu
consm~rs ~iti~in ol,~-:mg-o~c-,mlf n~lus of fl~c Post Office on ti~c
side of the ilo, mi !~vcr l~ut later t,~:u~ October 15, 1907, :u~ ~ul~lcc to
" -12-
t5~¢ rcmaindar of t,,c City s.~all bo available as soon t,,cr~aftcr
practic~ld, s~jcct, h~,cvcr, t~ Acts of G~, strii.es,
ci~u~t~ces ~er :.~,~ic.~ t.~e C~M n~ ,~o control.
Section 22. l~yoc~tio~: 'li~is fr~c,,isc ~ ~ rcvo~o~ if
bac~s i~ulvc~t er ~laros bm~l;~ptcy or m~es m~ ;~ssig~u,~ent for
Lte bei~fit of c~3it~r~, out tni~ s~c~ion ~hall not be ca~st~c~ to
prevent ~ration unCer the frm~ise of mM mortgage, or
~,mficia~ or t~stee m~r a ~ed of t~t give,~ oM t, le
s~re fm~ for co,orate lmrOos(,~. Su~ mo~gagee or bc~eficia~ s~all
~ suvj~ct to all tae te~ of t,ie fr~is~,
~ction 2% F~i~. P~port~g l~e ~2~y shall
~ City upon ~'~d ~d not less re~larly th~ once a ),ear ~dited
fAnm~cial stat~ngs ~ ~e fora generally prescribed by the Fe~ral
P~er Ca~ssi~, ~lass diffe~ng ~ o~r fo~ are r~quired by la;v.
In my evant, h~e statc~nt shall h~cl~, but not oe
(1) Nm,~s of all oar~oas o~ming ag le~t iOg of
~tst~ding s~la~s of fl~o Ce~my together with
percentage of
(2) N~s of offi~rs md di~ctor~.
(5) ~1 profit ~d loss
(4) ~ual bal~ce
'ra~ rigat to ac~ss ~o ~=~f f~lal ~d e~gi~eoring ~cor~
is also ~xte.~d~d to m~f paint or subsidia~ c~l~m~}' buyL~g or
sellin~ g~ or o~cr so,vices to the
Section 24. ~l~y. tion Costs: Ti~e costs of paolic;lti~t
a~rtising of mit ~cial ~loction to ratify t.li~ Ordinm~co mid the
cost of i)r~idi~2 cle~tio.~ officAals m~d booths thorofor or
pr~ortionato part of ~e costs of pubJica~ion ~d mlvcrtishig of
g~neral election i~l whi~ the ratification cf this Ordin~c~
to tile electors of the City of Konai, will be bom~ ~d assmed
Soct~on 25. Consulting Pec_~: Thc ccsg of c¢~sultAng m~d c~lfin~cring
fees, not to exceed $24,000, for thc Prc!imint~, l~si,cn Phase ~d
co~lctod '?ortion of tnu Final a~sign Pint,sc o[ the c~ntract
fl~e City m~d ,Villiam F. ll~suck dated l~cc~)cr 7, 1906,
in Sectioii 1V, "Payl~nts to t~? l~lginc~.r", para?r,~? 0).)
-15-
contract ~¢ill bc paid )y t,~c C~,~)a~>'.
Secti,.on 20. Frz~d~isc Subject t~ State ~m~: 'rim tc~ ~f tais
frad~ise arc hereby subjected tz ali valid en~tmnts of L,c Logishtturc
of ~ka m~d of any properly created or e~a~cred ~lic
~ssion of thc State. Said tc~ are bil~ino ~n the parties,
~eix' successom md assi~.
~ctim 27. ~alidity_; If m~y section~ subsection, paraar~h~
senten~, close or pi~e of this 0rdin:u~ is &elated mconstitutimal
or invalid for ~y m~on, suci~ ~cisi~ saall not affect ti~c validity of
~e rc~ing ;,¢~i~ of tais ~dim~, h~e gity ~cil hereby
~clarin3 tlmt it ~ould ,rove p~sed
~d~ce if it a~ been kaolin Bmr suo~ otiter pa~ or pa~s B~ereof
~q~ld be &elated ~c~mtitutional or ~valid.
Sectia~ 28. ~feren~: This fraO~ise ordina~ shall be
s~ffittcd ~ tire qualified electors of ti~c CiW ~ gen~ at a
~fe~n~ clecgi~ to be held .... , 1967, ~d if
~;,r~ed by a sidle majority of the votes c~t at such election, shall
bec~ eff;c~iv~ ~ herein praised, or
Publication of this Ordinance shall be made by posting a
copy on the City Hall Bulletin Board for a period of ten days
following it's passag~ and approval.
Passed for first re~.~!~lg by the City Council of thc City
of Kenai, Alaska, this 7t~ .day of June ,1967
Public hearing held on the 21st.day of June
, 1967.
Passed on second and final reading by the City Council of
the City of Kenai, Alaska this 7th. day of July ., 1967
James G. Dye,
,,,f// ~f.,, I ,
Frances Torkilsen, City Clerk
CITY OF KENAI
Attest: L//'
;:E. ~^I UTI LI'IY SI~I~I CE C~RPOR~TI
~t.~ ly ~;
$3,00 for the first g~.lO0 c~ic lC. ct or less,
$o, 18 per l~dred ~oic fy. vt for the next 3sO00 ~ic feet,
$0.11 per lmdr. d ~ic fcct for all ~diti~l g~,