HomeMy WebLinkAbout02969 ORD - 01/16/1951TITLE OF AN ORDINANCE GRANTING A FRANCHISE
TO HOUSTON NATURAL GAS CORPORATION
An ordinance of the City Council of the City of Corpus Christi grant-
ing to Houston Natural Gas Corporation the right, privilege and fran-
chise to construct and operate gas pipes and mains along the streets,
avenues, alleys and public places of a portion of the City of Corpus
n
Christi fully described in such Ordinance for distribution and sale of
natural gas - providing that work be done under supervision of City
Engineer - providing for extensions to new customers - reserving to
City the right of regulation - providing for gas of good quality - pro-
hibiting interference with drainage - providing that said franchise is
not exclusive - reserving to City the right to inspect meters - prohibit-
ing interference with sewers and other pipes and drains - reserving
right to City to repair streets at Corporation's cost in event of unreason-
able delay - requiring removal of rubbish and material - subjecting
work of refilling and repairing excavations and streets to supervision
of City Council - limiting interference with use of streets for travel -
i
reserving to City full regulatory powers - providing for bond - reserving
to City right to decide conflicting Sights under this franchise and other
franchises - requiring relocation of pipes to accommodate public works -
reservation of lien by City to secure monies due City under franchise
and for taxes - providing franchise shall not impair right of City to
prescribe charges - prescribing consideration for franchise - providing
for payment by said Corporation to City of two per cent (2%) of gross
receipts from sale of gas in territory covered by and included in this
franchise - requiring annual statement to City - requiring proper mainte-
nance of pipeage system - prescribing term of franchise and option of
City to purchase physical properties of the Corporation and prescribing
basis for valuation - prescribing terms of forfeiture - reserving right to
City to regulate Corporation - subjecting books and records of Corporation
�9�9
to examination and inspection - making franchise binding on Corpora-
tion's successors or assigns - repealing ordinances and portions
thereof in conflict herewith, and fixing generally the rights of the partie s
under such franchise and fixing penalties.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CORPU&CHRISTI:
SECTION 1. There is hereby granted to Houston-Natural,
Gas Corporation, a Texas corporation with its domicile and principal
place of business at Houston, in Harris County, Texas, hereinafter
referred to as Grantee, its successors and assigns, subject to the
terms and conditions hereof, the right, privilege and franchise to con-
struct, extend, operate and maintain, from time to time and continu-
ously during the term hereof, a plant and pipeage system, including all
lines, connections and other equipment necessary and incident thereto,
for the distribution and sale of natural gas to the people residing in
and the industrial, commercial, educational and other institutions lo-
cated in the portion or portions of the City of Corpus Christi as desig-
nated and described in SECTION 3 hereof at such rates as the City
Council of the City of Corpus Christi shall make, from time to time,
and for the transportation and sale by Grantee of natural gas in, into
and through the portion or portions of the City of Corpus Christi desig-
nated and described in SECTION 3 hereof, upon, beneath, over and
across the streets, avenues, thoroughfares, bridges, streams, alleys,
parks, lanes and squares of said City of Corpus Christi located in the
territory designated and described in SECTION 3 hereof, upon the con-
ditions and stipulations set forth in this ordinance.
SECTION 2. Throughout this ordinance the Houston Natural
Gas Corporation is referred to as "Grantee ", the City of Corpus Christi
is referred to as "The City ", and the City Council of the City of Corpus
Christi is referred to as "City Council", and shall be so understood.
SECTION 3. The territory within said City covered by
this franchise and to which the franchise is applicable is described
as follows, to -wit:
Beginning at a point 180 feet northwest of the intersec-
tion of the centerline of Ayers Street and the present City
Limits line, same being 180 feet south of the centerline of
Gollihar Road;
Thence southwest parallel to and 180 feet northwest of
the centerline of Ayers Street to a point in the northeast
line of Lot 3, Section 4, Bohemian Colony Lands;
Thence Southeast, crossing Ayers Street at right angles,
continuing on with the northeast line of Lot 6, Section 3,
Bohemian Colony Lands to the most northern corner of South-
land Estates Subdivision;
Thence southwest to the most westerly corner of South -
land Estates Subdivision;
Thence southeast along the southwest line of Southland
Estates Subdivision and the Moravian Village Subdivision and
its southeasterly extension to a point 180 feet southeast of the
centerline of Kostoryz Road;
Thence northeast with a line 180 feet southeast of and par-
allel to the centerline of Kostoryz Road to a point in the north-
east line of Lot 6, Section 2, Bohemian Colony Lands, said
point being 180 feet southeast of the centerline of Kostoryz
Road;
Thence southeast along the northeast lines of Lots 6 and-
3, Section 2, Bohemian Colony Lands crossing Weber Road at
right angles and continuing on to a point 180 feet southeast of
the centerline of Weber Road;
Thence northeast parallel to and 180 feet southeast of the
centerline of Weber Road to its intersection with the present
City Limits line of the City of Corpus Christi;
Thence in a northwesterly direction with the present City
Limits line to the place of beginning.
It is specifically understood that the franchise granted hereby relates
to and covers only the above described portion or portions of said City
and the rights and privileges granted hereby are applicable to such
territory only and no other portion or portions of said City.
SECTION 4. Grantee, subject to the performance by it of
all obligations herein assumed by it, shall have the right, subject to
the Gharter and Ordinances of The City, and the terms and conditions
hereinafter set forth, to extend, replace and repair its pipeage system
now in use and hereafter constructed coextensive with the limits of
the territory described in SECTION 3 hereof, but shall restore the
Page 2.
streets upon which the pipes are extended, replaced, repaired or '
constructed, putting them in as good condition as before. Grantee
shall be required, before doing any work in the streets, to first '
notify the City Engineer of its intention to do so; all such work shall
be done under approved specifications and supervision of said Engineer.
To this end, The City hereby grants and concedes to Grantee the right
and privilege to enter upon, and to construct, operate and maintain its
mains and pipes in, upon, across and along any and all of the streets, -
squares, parks, lanes, alleys and public thoroughfares of The City, and
over and across any stream or streams, bridge or bridges, owned or
controlled by The City, when approved by the City Engineer, and to
take up paving and sidewalks in and upon said streets, alleys, and lanes,
and over and across any stream or bridge, and to make such excavations
as may be necessary, and to take up, construct, repair, replace, operate
and maintain its pipes and lines in, along, over and across the same,
such rights and privileges being restricted, however, to the territory
described in SECTION 3 hereof. All excavations made in any of said
streets, lanes, alleys and bridges shall be done in such a manner as
to give the least inconvenience to the public, all work shall be done
speedily and all excavations and openings shall be replaced in good
condition at the cost and expense of Grantee, and to the satisfaction of
City Council.
This grant and.franchise to so use the streets, alleys, lanes
and avenues is based upon and the consideration therefor is the sum of
One 11 —dyed ($100.00) Dollars paid by Grantee to said City and-the
further consideration of the strict performance by Grantee of all of the
obligations undertaken by it under the terms and provisions of this fran-
chise.
SECTION 5. Grantee shall extend its pipes within the ter-
Page 3.
ritory described inBECTION 3 hereof and shall furnish services, from
time to time, as City Council may demand, upon a showing that one ,
new customer for gas for every one hundred (100') feet of new exten-
sion. has agreed in writing to take and use gas on such extension.
SECTION b. In granting this franchise The City does not
waive its regulatory powers, or any other rights, under its Charter as
it now exists, or as it may be amended hereafter, nor any of its rights
under the laws, present and future, of the State of Texas, nor any of its
rights under present or future Ordinances of said City.
SECTION 7. Grantee shall furnish gas of a good, high grade,
first class quality, as ascertained and determined, from time to time,
by the City Council under its present or future regulatory powers.
SECTION 8. Grantee shall not impair in any manner the
natural or artificial drainage of The City or its underground fixtures,
and in crossing any stream with its lines it shall do so in such manner
as not to impair navigation or the natural drainage of the stream, and
to the satisfaction of the City Council.
SECTION 9. The rights herein granted shall not be exclus-
ive and The City reserves the power to grant like rights for similar
uses, subsequent grants, however, not to interfere unreasonably with
the proper exercise of the rights and privileges herein granted, and
further reserves the right to extend its own lines and distribute gas
in the territory covered by this franchise.
SECTION 10. Grantee's meters shall be subject, at all
reasonable times, to inspection by the authorized agents of The City.
Grantee shall be subject to all ordinances now in force and all ordin-
ances that may be hereafter passed by the City Council.
SECTION 11. In making extensions or repairs to its pipeage
system Grantee shall not interfere with any sewer, water or heating
pipes or public or private drains in any street, highway or alley, nor
Page 4.
shall the same be disturbed or molested in any manner except witty
the consent and under the direction of the City Council.
SECTION 12. If, in the opinion of the City Council, there
is as unreasonable delay by Grantee in restoring streets, highways,
bridges, etc., after excavations, repairs and extensions have been
made, The City shall have the right to restore or repair same and to
require Grantee to pay the reasonable cost thereof.
SECTION 13. All dirt, rubbish and material left after the
streets, highways or alleys have been restored or repaired by Grantee
shall be removed by it at once. If, after such restoration or repairing,
the places excavated and refilled become depressed or sink because
of work done by Grantee so as not to be in as good condition as before
the excavations were made, then, and in such event, Grantee shall
again, and from time to time, as necessary, restore said streets,
highways or alleys so that same shall be in as good condition as before
the excavations were made, and upon Grantee's failure so to do The
City shall have the right to make such restorations, for the reasonable
cost of which Grantee shall be liable to The City.
SECTION 14. In the construction, maintenance and repair
of its lines, Grantee, without express consent of City Council, shall
not permit the existence of any unfilled excavation or ditch in excess
of a distance of five hundred (500') feet on any public street, alley,
thoroughfare or other public place. Any work being done, whether
extensions or repairs, necessitating the excavating or tearing up of
a -street shall be done with all reasonable dispatch and in such manner
as not to interfere unnecessarily with the use of the street for travel.
SECTION 15. The enumeration herein of special duties
required of Grantee shall not be construed as a limitation of the powers
and duties conferred upon The City by its Charter, the laws of the
State of Texas and all present and future ordinances, and Grantee shall
perform all duties required of It by the ,Charter and all valid ordinances
page 5.
of The City and the laws of the State of Texas, '
SECTION 16. If Grantee, in laying its pipes, comes in con-
flict with the rights of any other person or corporation having a fran-
chise from The City, the City Council shal4 decide all questions con-
cerning any conflicting rights of the respective parties, and shall de-
termine the location of the structures of said parties and what changes,
if any, should be made and at whose cost, and shall reconcile the dif-
ferences of the parties In such matter.
SECTION 17. If The City, in constructing its sewers, streets
or other public works, should require any pipe or pipes of Grantee to
be shifted or relocated, such pipe or pipes shall be promptly shifted or
relocated by Grantee, at its own expense as and when required by The
City. ,
SECTION 18. For any and all moneys which may be justly
due, or become due to The City under the provisions of this ordin-
ance, as well as any lawful taxes which may be imposed and become
due and payable to The City upon this franchise, or any other property
of Grantee, situated within the corporate limits, The City shall have a
valid and enforceable lien upon all of Grantee's property as well as
the franchises and rights herein granted.
SECTION 19. If any pipe or other equipment of Grantee should
get out of order or in bad condition so as to affect or threaten to affect
the public health, safety or conveniences of the public, Grantee, on
request of the City Council, will restore same to good condition; and
upon Grantee's failure so to do, The Gity shall have the right to remove
such pipe or equipment, or put the same in good condition, for the
reasonable cost of which Grantee shall be liable.
SECTION 20. In granting this franchise The City reserves
its rights to regulate all public utilities, including Grantee, and to
regulate the rates or charges for services within The City agreeable
Page 6.
to the constitution and laws of the State of Texas.
SECTION 21. As further consideration for the granting
of this franchise, Grantee shall pay to The City annually, during the
period of this franchise, two per cent (2 %) upon its annual gross re-
ceipts from the sale of gas within the territory covered by this fran-
chise, such payment to be made on or before sixty (60) days after the
end of each calendar year.
SECTION 22. Grantee shall furnish, on or before sixty
(60) days after the closing of each calendar year during the life of
this franchise, to the City Council, a written statement showing its
gross receipts from the sale of gas in the territory covered by this
franchise, for the previous calendar year, and Grantee shall simul-
taneously with the furnishing of the aforesaid statement, make pay-
ment to The City of the two per cent (2%) of the gross receipts as pro-
vided for in the preceding section. The books of the Grantee shall be
subject, at all times, to inspection by the City Council and other au-
thorized City officials.
SECTION 23. Upon the termination of this franchise The City,
at its option, may purchase the gas distribution lines of Grantee then
owned and used by it within the area covered by this franchise, includ-
ing service lines, meters, house regulators and other property used
in connection with distribution of gas used in such area at the then
fair and reasonable value thereof. If The City elects to exercise
its option aforesaid the fair and reasonable value of such property
shall be determined by agreement between Grantee and the City
Council. In the event Grantee and the City Council cannot agree
upon the fair and reasonable value of said property such value shall
be determined by a Board of Arbitrators consisting of five (5)
members, two (2) of such members to be selected by Grantee, two (2)
of such members to be selected by the City Council and the fifth (5th)
Page 7.
member to be selected by the four (4) members so selected by Grantee
and the City Council. In the event the .four (4) members so selected by
Grantee and the City Council cannot agree upon a fifth (5th) member then
such fifth (5th ) member of said Board of Arbitrators shall be selected by
the Senior judge of the United States District Court in and for the District
in which the City of Corpus Christi is then situated. The five (5) members
of the Board of Arbitrators shall .then fix the fair and reasonable value of
said properties and Grantee and The City agree to abide, and be bound,
by the value so fixed by the Board of Arbitrators, and a decision by a -
majority of said Board of Arbitrators shall be considered the decision
of said Board. Infixing such value, as herein provided, Grantee shall
not be entitled to any payment or valuation because of value derived
from the franchise herein granted, or the fact that Grantee may, at the
time of said valuation, be a going concern duly installed and operating.
The City shall give Grantee six (6) months written notice of its election
to exercise the option hereby created.
SECTION 24. In addition to the rights, privileges, and fran-
chise granted to Grantee, as hereinabove set forth, Grantee is hereby
granted the right of ingress and egress for the purpose of operating,
maintaining, repairing, and replacing that portion of Grantee's gas
transmission line located within the corporate limits of The City, which
transmission line Grantee is now using for the purpose of serving the
areas described herein and areas beyond the present City Limits, includ-
ing the U. S. Naval Air Training Station.
SECTION 25. The rights, privileges and franchise herein
granted to Grantee shall extend to and include its successors and assigns,
and-the terms, conditions, provisions, requirements, and agreements in
this ordinance contained, and each of therm shall be binding upon the
successors and assigns of Grantee. No assignment of this franchise,
however, shall be binding upon The City without its consent and approval
thereof having been obtained.
Page 8.
SECTION 26. Grantee shall make no unnecessary excavations
and any and all excavations made or obstructions placed in any street,
alley, or public grounds of The City, under this franchise, shall at all .
times be properly guarded by Grantee, and any and,all pavements, side-
walks and intersections that may be opened or torn up by Grantee shall
be replaced speedily, properly and safely, with all reasonable dispatch
and in first -class manner. The bond heretofore filed by Grantee with
the City, in- the sum of Twenty -five Thousand ($25,000.00) Dollars, in
accordance with Section 26 of that certain franchise heretofore granted
by The City to Grantee under date of May 1, 1949, shall extend to and
cover the obligations imposed upon Grantee under this Section 26 of '
this franchise.
SECTION 27. If Grantee fails to maintain its plant and pipeage
system, including all of its lines, connections and other equipment in
good condition, or fails to operate the same with efficiency and at reason-
able rates, or if Grantee fails to comply with the provisions of this
• franchise, such failure to be judicially determined, then at the option of
the City Council the Grantee shall forfeit and surrender all the rights,
franchises and privileges herein granted, and the same shall thereupon
immediately terminate{ the power here given to forfeit the franchise
herein granted is in addition to powers reserved or given to The City
by other parts of this ordinance and by the Charter of said City and
the laws of the State of Texas, and this section shall not be construed
as limiting or restricting such other powers.
SECTION 28. All ordinances and parts of ordinances which
in any manner conflict with the provisions of this ordinance are hereby `
repealed insofar as they may be in conflict With this ordinance or any -
part thereof.
SECTION 29. Upon the faithful compliance by Grantee with
the terms and conditions of this ordinance, Grantee shall have and en-
joy the rights, powers and privileges herein granted for a term ending
Page 9.
and expiring five (5) years -from and after the effective date of this
ordinance.
SECTION 30. Simultaneously with the final passage of this
ordinance Grantee has filed its written acceptance of same with the City
Secretary. -
-SECTION 31. This Ord' —r shall be effective immediately
upon its passage and approval as provided by the City Charter.
The foregoing Ordinance was read the first time and passed
to the second reading on the SEGO a D day of ,jgv on R ^f ,195x,
by the following vote:
- Leslie Wasserman
Jack DeForrest i�waal
Barney Cott _ 01 ti-,
Sid Herndon
George Lowman LL
The foregoing Ordinance was read the second time and passed
to the third reading on the 01 day of , 195(, by the
following vote:
Leslie Wasserman
Jack DeForre st lLta
Barnet Cott
Sid Herndon
George Lowman Q.CU
The foregoing Ordinance was read the third time and passed
��n -j a
rv.
and ordered approved by the Mayor. on the . �lv ' day of
1951, by the following vote:
Leslie Wasserman 0 -A--J"
Jack DeForrest OW" ,
Barney Cott 04.o.
Sid Herndon Ql.41-
George Lowman 9..6
Page 10.
.�9�9
APPROVED this day of n 1954.
NEST: G
( \vj OR Ro -Tp
ity of Co-VO4_1
o Christi, Texas.
Aty Secretary
APPROVED AS TO LEGAL FORM:
City Attorn
Page 11.