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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.