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HomeMy WebLinkAbout04137 ORD - 02/02/1955S AN ORDI S CHRISTI GRANTING °1'Or , PRIVI- LEGE AND 9�` �G'8N8'PRiieT AANiii'iiPERATE= E}I�S -pnW AND MAINS ALONG THE STREETS, AVENUES, ALLEYS AND PUBLIC PLACES OF THE CITY OF CORPUS CHRISTI AS FULLY DESCRIBED IN SUCH ORDINANCE FOR DISTRIBUTION AND SALE OF NATURAL GAS - PROVIDING THAT WORK BE DONE UNDER SUPERVISION OF THE CITY'S DIRECTOR OF PUBLIC WORKS - ESTABLISHING DESIGN CRITERIA AND STANDARDS - PROVIDING FOR EX- TENSIONS TO NEW CUSTOMERS - RESERVING TO CITY THE RIGHT OF REGULATION - PROVIDING FOR GAS OF GOOD QUALITY - PROHIBITING INTERFERENCE WITH DRAINAGE - PROVIDING THAT SAID FRANCHISE IS NOT EXCLUSIVE - RESERVING TO CITY THE RIGHT TO INSPECT METERS - PROHIBITING INTERFERENCE WITH SEWERS AND OTHER PIPES AND DRAINS - RESERVING RIGHT TO CITY TO REPAIR STREETS AT CORPORATION'S COST IN EVENT OF UNREASONABLE DELAY - REQUIRING REMOVAL OF RUBBISH AND MATERIAL - SUBJECTING WORK OF REFILLING AND REPAIRING EXCAVATIONS AND STREETS TO SUPERVISION OF THE CITY'S DIRECTOR OF PUBLIC WORKS - LIMITING INTERFERENCE WITH USE OF STREETS FOR TRAVEL - • RESERVING TO CITY FULL REGULATORY POWERS - PROVIDING FOR BOND - RESERVING TO CITY RIGHT TO DECIDE CONFLICTING RIGHTS 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 FRAN- CHISE 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 STATEME m TO CITY - REWIRING PROPER MAINTENANCE OF PIPEAGE SYSTEM - PRESCRIBING TERM OF FRANCHISE AND OPTION OF CITY TO PURCHASE DEFINED PHYSICAL PROPERTIES OF THE CORPORATION AND PRESCRIBING BASIS FOR VALUATION AND PRCCEDURES TO BE FOLLOWED - PRESCRIBING TERMS OF FORFEITURE - PROVIDING FOR AN APPEAL - RESERVING RIGHT TO CITY TO REGULATE CORPORATION - SUBJECTING BOOKS AND RECORDS OF CORPORATION TO EXATIINATION AND INSPECTION - MAKING FRANCHISE BINDING ON CORPORATION'S SUCCESSORS OR ASSIGNS - FIXING GENERALLY THE RIGHTS OF THE PARTIES UNDER SUCH FRANCHISE AND FIXING PENALTIES - AND PROVIDING FOR PUBLICA- TION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THERE IS HEREBY GRANTED TO SOUTHERN COMMUNITY GAS COMPANY, A TEXAS CORPORATION WITH ITS DOMICILE AND PRINCIPAL PLACE OF BUSINESS AT CORPUS CHRISTI, IN MUECES COUNTY, TEXAS, HEREINAFTER REFERRED TO AS GRANTEE, ITS SUCCESSORS AND ASSIGNS, SUBJECT TO THE TERMS AND CONDITIONS HEREOF, THE RIGHT, PRIVILEGE AND FRANCHISE TO CONSTRUCT, EXTEND, OPERATE AND MAINTAIN, FROM TIME TO TIME AND CONTINUOUSLY 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 LOCATED IN THE-PORTION OR PORTIONS OF THE CITY OF CORPUS CHRISTI AS DESIGNATED 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 DESIGNATED 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 CONDITIONS AND STIPULATIONS SET FORTH IN THIS ORDINANCE. SECTION 2. THROUGHOUT THIS ORDINANCE THE SOUTHERN COMMUNITY GAS COMPANY IS REFERRED TO AS "GRANTEE ", THE CITY OF CORPUS CHRISTI 15 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 COVERED BY THIS FRANCHISE, WHETHER WITHIN THE BOUNDARIES OF THE CORPORATE LIMITS OF THE CITY OF CORPUS CHRISTI AT THE PRESENT TIME OR NOT, AND TO WHICH THIS FRANCHISE IS, OR SHALL BECOME APPLICABLE AS PORTIONS THEREOF ARE ANNEXED TO THE CITY OF CORPUS CHRISTI, IS DESCRIBED AS FOLLOWS, TO -WIT: AREA I BEGINNING AT THE INTERSECTION OF THE WEST BOUNDARY OF POTH LAND AND THE NORTH BOUNDARY LINE OF UP RIVER (SHELL) ROAD; THENCE, IN A NORTHWESTERLY AND WESTERLY DIRECTION ALONG THE NORTH BOUNDARY LINE OF UP RIVER (SHELL) ROAD TO ITS INTERSECTION WITH THE NORTHEASTERLY EXTENSION OF THE BOUNDARY LINE BETWEEN THE MEANY 55 ACRE TRACT AND THE DUNN 100 ACRE TRACT, SAID BOUNDARY LINE BEING THE EAST LINE OF SAID DUNN TRACT DESCRIBED IN A DEED RECORDED IN VOLUME K, ON PAGE 90, OF THE DEED RECORDS OF NUECES COUNTY, TEXAS; THENCE, SOUTHWESTERLY WITH THE AFORESAID EXTENSION OF THE COMMON BOUNDARY LINE BETWEEN THE MEANY AND DUNN TRACTS AND CONTINUING ON ALONG SAID COMMON BOUNDARY LINE TO A CORNER, SAID CORNER BEING THE MOST SOUTHWESTERLY CORNER OF THE JOHN DUNN 14.5 ACRE TRACT AND BEING THE SOUTHWESTERN CORNER OF THE TRACT DESCRIBED IN A DEED RECORDED IN VOLUME 153, PAGE 421, NEED RECORDS OF NUECES COUNTY, TEXAS; THENCE] IN AN EASTERLY DIRECTION WITH THE SOUTHERLY BOUNDARY LINE OF THE SAID DUNN 14.5 ACRE TRACT TO ITS INTERSECTION WITH THE NORTHERLY EXTENSION OF THE MOST WESTERLY BOUNDARY LINE OF EBONY ACRES ADDITION NO. 3, AS RECORDED IN VOLUME II, PAGE 35, OF THE MAP OR PLAT RECORDS OF NUECES COUNTY, TEXAS; THENCE, IN A SOUTHERLY DIRECTION WITH THE NORTHERLY EXTENSION OF THE WEST BOUNDARY LINE OF SAID EBONY ACRES ADDITION N0. 3, TO THE NORTH BOUNDARY LINE OF SAID EBONY ACRES ADDITION NO. 3; THENCE, IN A WESTERLY DIRECTION ALONG THE WESTERLY EXTENSION OF.THE MOST NORTHERLY BOUNDARY LINE OF SAID EBONY ACRES ADDITION NO. 3, AND CONTINUING ALONG THE NORTH BOUNDARY LINE OF THE JAMES MCBRIDE PARTITION A DISTANCE OF 300 FEET TO A POINT FOR CORNER; THENCE; IN A SOUTHERLY DIRECTION ALONG A LINE WHICH IS 300 FEET WEST OF AND PARALLEL TO'THE WEST BOUNDARY LINE OF SAID EBONY ACRES ADDITION ND. 3, TO THE INTERSECTION WITH THE NORTHEASTERLY EXTENSION OF THE NORTHWEST BOUNDARY LINE OF THAT CERTAIN 6.689 ACRE TRACT AS DESCRIBED IN A DEED RECORDED IN VOL. 600, PAGE 326, DEED RECORDS OF NUECES COUNTY, TEXAS; THENCE, IN A SOUTHWESTERLY DIRECTION ALONG THE SAID EXTENSION OF'THE SAID NORTHWEST BOUNDARY OF THE SAID 6.689 ACRE TRACT AND CONTINUING ALONG THE :AID NORTHWEST BOUNDARY OF SAID TRACT TO THE MOST WESTERLY CORNER OF THE SAID TRACT; THENCE, IN A SOUTHEASTERLY DIRECTION ALONG THE SOUTHWEST BOUNDARY LINE OF THE SAID 6.689 ACRE TRACT AND ITS SOUTHEASTERLY EXTENSION TO THE POINT OF INTERSECTION WITH A LINE PARALLEL TO AND 360 FEET SOUTHWESTERLY FROM THE CENTER LINE OF THE RIGHT OF WAY OF LEXINGTON BOULEVARD AS NOW EXISTING; THENCE, IN A SOUTHERLY DIRECTION ALONG SAID LINE 360 FEET SOUTHWESTERLY AND WESTERLY FROM AND PARALLEL TO THE CENTER LINE OF SAID LEXINGTON BOULEVARD RIGHT OF WAY TO A POINT IN THE CENTER LINE OF STATE HIGHWAY ND. 44 AS NOW EXISTING; THENCE, IN AN EASTERLY DIRECTION ALONG THE CENTER LINE OF STATE HIGHWAY NO. 44 AS NOW EXISTING TO A POINT OF INTERSECTION WITH WEST BOUNDARY LINE OF OLD ROBSTOWN ROAD; THENCE, IN A NORTHERLY DIRECTION WITH THE WEST BOUNDARY LINE OF OLD ROB5TOWN ROAD TO THE MOST SOUTHERLY CORNER OF GLEN ROYAL ADDITION; THENCE, IN A NORTHWESTERLY DIRECTION ALONG THE SOUTHWEST BOUNDARY LINE OF GLEN ROYAL ADDITION AND THE SOUTHWEST BOUNDARY LINE OF VILLA GARDENS ADDITION TO THE MOST WESTERLY CORNER OF SAID VILLA GARDENS ADDITION- THENCE, IN A NORTHEASTERLY DIRECTION ALONG THE NORTHWEST BOUNDARY LINE OF VILLA GARDENS ADDITION (SAME BEING THE SOUTHEAST BOUNDARY LINE OF THE PAUL STURM TRACT) AND THE SOUTHEAST BOUNDARY LINE OF WESTCHESTER PLACE TO THE PLACE OF BEGINNING. THE WEST AREA OR AREA 3, ABOVE DESCRIBED, SHALL ALSO INCLUDE ALL CONTIGUOUS TERRITORY LYING AND SITUATED NORTHEASTERLY, NORTH AND WEST OF SUCH AREA, WHEN SUCH TERRITORY IS HEREAFTER ANNEXED BY THE CITY OF CORPUS CHRISTI, BUT SHALL NOT INCLUDE TERRITORY LYING AND SITUATED SOUTH OF AGNES STREET (STATE HIGHWAY NO. 44). IN THE EVENT OF THE EXTENSION OF THE PRESENT CITY LIMITS OF CORPUS CHRISTI, HOWSOEVER THE SAME MAY BE BROUGHT ABOUT, ALL OF THE RIGHTS, DUTIES, LIABILITIES, OBLIGATIONS AND COVENANTS HEREIN SET FORTH SHALL LIKEWISE APPLY TO THE PORTIONS OF THE AREAS ABOVE DESCRIBED WHICH ARE OUTSIDE THE PRESENT CITY LIMITS AS THE SAME ARE ADDED TO THE TERRITORIAL LIMITS OF THE CITY OF CORPUS CHRISTI, BUT NOT OTHERWISE. SECTION 4., GRANTEE, SUBJECT TO THE PERFORMANCE BY IT OF ALL OBLIGATIONS HEREIN ASSUMED BY IT, SHALL HAVE THE RIGHT, SUBJECT TO THE CHARTER 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 streets upon which the pipes are extended, replaced, repaired or constructed, put- ting them in as good condition as before. Grantee shall be required, before doing r any work in the streets, to first notify the Director of Public Works of its inten- tion to do so; all such work shall be done under approved specifications and super- vision of said Director. To this end, The City hereby grants and concedes to Grantee the right and privilege to enter upon, and to construct, operate and main - twin its mainsand 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 Director of Public Works, 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 terri- tory described in SECTION 3 hereof. All excavations made in any of said streets, squares, parks, 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 ex- pense of Grantee, and to the satisfaction of the Director of Public Works. Grantee shall hold the City harmless on all claims for loss due to property damage or personal injury occasioned by the acts of Grantee, its servants, agents, contract- ors, and employees in exercising the rights herein granted. Wherever feasible, all paved street crossings shall be bored or punched but not eased,-and all pipe lines laid in any street area shall be laid between the curb and sidewalk whenever it is possible to do so. SECTION 5. Each of the provisions herein stipulated is accepted by Grantee as a condition to the grant, and failure to comply herewith after being notified in writing through action by the City Council shall, at the option of the Council, subject this franchise to cancellation in accordance with the provisions of Section 28 hereof. SECTION 6. Grantee shall extend its pipes within the territory des- cribed in SECTION 3 hereof and shall furnish services, from time to time, as -7- City Council may demand, upon a showing that one new customer for gas for every one hundred (100') feet of new extension has made an application in writing to take and use gas on such extension. ' SECTION 7. 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. Any restriction or limitation on the Grantee, or reserving powers in the City by reason of the State Constitution or laws, or by reason of the City Charter, as such constitution, laws or charter now exists, or as the same may be hereafter amended, are hereby made a part hereof as restrictions and limitations on the grant hereby made and as reserving rights, privileges or options in the City to the same effect as if written herein. SECTION 8. Grantee shall furnish gas with a minimum 900 B.T.U. per standard oubic foot heating value with not more than 20 grains of total sulphur or more than one (1) grain of hydrogen sulphide per 100 standard cubic foot, as ascertained and determined, from time to time, by the City Council under its present or future regulatory powers. SECTION 9. Grantee shall not impair in any manner the natural or arti- ficial drainage of The City or its underground fixtures, and in crossing any stream, canal or waterway 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 satifaction of the City Council. SECTION 10. The rights herein granted shall not be exclusive and The City reserves the power to grant like rights for similar uses, subsequent grants, and further reserves the right to extend its own lines and distribute gas in the territory covered by this franchise. SECTION 11. 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 ordinances that may be hereafter passed by the City Council. SECTION 12. 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, alley, public easement, or other city -8- - property, nor shall the same be disturbed or molested in any manner except with the consent and under the direction of the Director of Public Works. SECTION 13. If, in the opinion of the City Council, there is an un- reasonable delay by Grantee in restoring streets, highways, bridges, etc., after excavations, repairs and /or 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 14. All dirt, rubbish, and material left after the streets, highways,.alleys or other public property 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 15. In the construction, maintenance and repair of its lines, Grantee, without express consent of the Director of Public Works, shall not per- mit the existence of any unfilled excavation or ditch in excess of a total distance of five hundred (5001) feet on any public street, alley, thoroughfare and /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 dis- patch and in such manner as not to interfere unnecessarily with the use of the street for travel. SECTION 16. 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 of The City and the laws of the State of Texas. SECTION 17. If Grantee, in laying its pipes, comes in conflict with the rights of any other person or corporation having a franchise from The City, the City Council shall decide all questions concerning any conflicting rights of the respective parties, and shall determine the location of the structures of said parties and what changes, if any, should be made and at whose cost, and shall -9- reconcile the differences of the parties in such matter. SECTION 18. If The City, in constructing its sewers, streets, or other public works, should require any pipe or pipes of Grantee to be shifted or relo- cated, such pipe or pipes shall be promptly shifted or relocated by Grantee, at its own expense as and when required by The City. SECTION 19. For any and all moneys which may be justly due, or become due to The City under the provisions of this ordinance, as well as any lawful taxes which may be imposed and become due and payable to The City upon this-franchise, and /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 20. 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 Director of Public Works, will restore same to good condition; and upon Grantee's failure so to do, The City 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 21. In granting this franchise The City reserves its rights to regulate all public utilities, including Grantee, and to regulate the rates, installation and service charges within the City agreeable to the constitution and laws of the State of Texas. SECTION 22. 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 receipts from the sale of gas to ultimate con- sumers at sale delivery points located witbdn 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 23• Grantee shall furnis#,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 simultaneously with the furnishing of the aforesaid statement, make payment to The City of the two per cent (2%) of the gross receipts as provided for in the preceding section. The books of the Grantee shall be subject, at all times, -10- to inspection by the City Council and other authorized City officials. SECTION 24. The City, at its option, after the expiration of this fran- chise may purchase the gas distribution system of Grantee upon the terms and con- ditions hereinafter set out: A. PROPERTY The property covered by this option during the time when such option may be exercised shall include the following: (1) All gas mains then owned and used by Grantee in its distribu- tion systems within the City of Corpus Christi, whether within or without areas covered by this franchise, save and except Grantee's gas mains located in the area: described as "Area 3, West Area ". (2) All gas mains then owned and used by Grantee in its distribution systems outside the City of Corpus Christi when such gas mains are directly con- nected to and dependent for gas supply upon Grantee's gas mains located inside the areas of the City described in (1) above. (3) All gas appurtenances then affixed or connected to the gas mains detailed in (1) and (2) above, including regulators, valves, fittings and meters. (4) All easements and rights of way that are then owned by Grantee and which are used exclusively in the operation of the gas mains defined in (1) and (2) above. No value shall be allocated to easements acquired by gift. (5) Such additional items of property as may be mutually agreed upon in writing between The City and Grantee. (6) For all purposes herein "gas mains" are defined to mean, and shall mean, all gas feeder and gas distribution pipe lines that are normally operated by Grantee at inlet pressures up to 25 p.s.i.g. and normally having inlet peak load operation up to 60 p.s.i.g., and being located and found in the areas specified in (1) and (2) above. This definition shell neither be construed to include any of Grantee's gas measurement and delivery facilities then functioning as city gate stations and /or as industrial delivery stations nor be construed to include any gas pipe lines then operated by Grantee as gas transmission lines, industrial gas transport lines, or industrial gas delivery lines. (7) All assignable customer contracts, security deposits, and accounts receivable of customers located in the areas above described who are -11- a then being served by Grantee. (8) No part of Grantee's industrial gas system or any of its con- tracts which provide for the sale of gas for industrial purposes shall be in- cluded within the terms of this option, it being intended that Grantee shall continue to operate its industrial gas system and to sell gas for industrial purposes within the then city limits subsequent to the date of the expiration of this franchise under such franchise as may then be granted to Grantee. B. OPTION PRICE The price to be paid for such property, for purposes of this option, shall be the sum of: (1) The fair and reasonable value of items (1) through (6) above, inclusive, when used for the purpose for which it was intended, determined as of the date of the inventory hereinafter mentioned. Due regard shell be given to the physical condition of such property, but no allowance shall be made for "going concern ", "franchise ", or good will value; (2) The book cost of all additions and improvements made to such property subsequent to the date of the inventory and prior to the consummation of the purchase; (3) The book value of accounts receivable and security deposits -of customers located in the areas covered by this option who are then being served by Grantee. C. PROCEDURES (1) If the City elects to exercise its option to buy such property, the City shall, at some time between the date three years and nine months from the effective date hereof and the date four years from the effective date hereof, give notice to Grantee in writing that the City contemplates the acquisition of such property. (2) Within sixty (60) days from receipt of such notice, Grantee shall submit to the City its determination of the fair and reasonable value of such property, accompanied by a map or maps showing the locations of such proper- ties, together with a summary inventory of the various items comprising items (1) through (6), inclusive, of such property. (3) In the event no agreement is reached as to the fair and reasona- ble value of the property within sixty (60) days after receipt of Grantee's pro- posal and inventory, or by earlier agreement of the parties, an independent -12- engineering or valuation firm shall be engaged to make an appraisal of such value of the property reported in said inventory. Such independent engineering or valuation firm shall be selected by a majority vote of a committee of five persons, two of whom shall be named by the City and two by the Grantee; the fifth member shall be selected by a majority vote of the other four members of the committee. Selection of committee members and engagement of such engineering or valuation firm shall be completed not later than ninety (90) days after the above mentioned inventory is delivered. The engineers, or valuation firm, in arriving at the value of the inventoried properties, shall be governed by the following: (A). The fair value of the inventoried properties shall be the then replacement cost, less depreciation. (B). Depreciation under (A) shall be computed on a straight line basis at three per cent (3 %) per annum from be- ginning of calendar year of installation or acquisition to end of calendar year preceding date of inventory. The City shall not be required to purchase, and the Company shall have the right to remove any meters or regulators included in the properties sub- ject to the option which, in the opinion of the independent engineers, or valuation firm, are deemed to be obsolete. The engineering or valuation firm shall make its report to such committee within thirty (30) days after engaged, and upon approval of a majority of the members such appraised value shall be accepted by both the City and the Grantee as the value of the properties included in said inventory. (4) In the event the appraised value reported to the committee is not approved by a majority of the members, another engineering or valuation firm shall, within thirty (30) days after the first report is received, be se- lected in the same manner as the first firm and for the same purpose to report within thirty (30) days after engaged. (5) If the second appraised value is not approved by a majority of the committee within fifteen (15) days after reported, then within five (5) days thereafter an average of the two appraised values shall be determined by the committee and reported to the parties as the value of the properties included in said inventory. (6) To the value of the properties reported in the inventory fur- nished to the City, however determined, there shall be added: -13- (a) The book cost of all additions and improvements to such property made subsequent to the date of the inventory and prior to the consumma- tion of the purchase; and (b) The book value of the accounts receivable and security deposits of customers located in the areas covered by this option who are then being served by Grantee. (7)_ The cost of the first appraisal shall be borne by the City; the cost of the second appraisal, if rejected by less than a unanimous vote, shall be borne by the party whose representatives constitute a majority of the members who disapprove of the appraised value. If the second appraisal is rejected unanimously by the City and Grantee's representatives, the cost thereof shall be borne equally by the City and the Grantee. Copies of all valuation and committee reports shall be submitted to all parties. (8) Upon the determination of the value of the properties as of the inventory date, the City Council shall call an election and submit to the proper and qualified voters of the City, at such election, as separate propositions, the following: (a) Whether the City should acquire the property subject to this option and issue bonds sufficient to pay therefor; (b) Whether the City should grant the Company (Grantee) a 30 -year extension of its franchise without the specific option rights to purchase Grantee's properties which are contained in Section 24 hereof. Such election shall be held within ninety (90) days from the date of the determination of the value of the properties as of the inventory date. (9) In the event that the City does not elect to exercise its option to buy such property within the time and in the manner herein provided, or in the event that such option is exercised and the sale and purchase is not completed by payment of the full purchase price in cash five years and three months from the effective date hereof, or within any extension of such time by reason of any event extending such period as herein provided, then such option and all rights of the City to purchase such property and the obligation of the Grantee to sell same shall be of no further force and effect and the City Council shall, if it has not previously done so, forthwith submit to the qualified voters of the city the single question of granting a franchise to the Grantee extending -14- its then present franchise for a period of thirty (30) years from the date of its termination without the specific option rights to purchase the properties which are contained in Section 24 hereof. The cost of the election shall be paid by Grantee. (10) Failure of the Grantee to timely make and furnish the infor- mation provided for in (2) above, or to make the appointment of its committee men as provided for in (3) above, if required, shall constitute a default hereunder. In the event of such default, the City is hereby authorized, at the cost and expense of Grantee, to employ an independent engineering or valuation firm to prepare a correct inventory and appraisal of the value of such property. Such appraised value shall be accepted by both the City and the Grantee as the value of such properties. (11) Time is agreed to be of the essence in complying with the pro- cedures outlined herein; however, the time for action by either party shall be extended for such period as (1) it may be restrained by judicial decree, (2) per- formance is delayed by acts of God or force msjeure, or (3) performance is pre- cluded by the presence of a period of time permitting no contract by restrictions of the City Charter. (12) In the event that the committee provided for under Paragraph (3) above shall fail or refuse to act within the time provided herein, then such committee shall be subject to dismissal by either party and a new committee shall forthwith be appointed for the same purpose, in the same manner and within the same time limits as are herein provided. The total time authorized for action hereunder shall be extended to compensate for any resulting loss of time. SECTION 25. In addition to the rights, privileges, and franchise granted to Grantee, as hereinabove set forth, Grantee is hereby granted the right of ingress and egress for the purpose of serving the areas described herein and areas beyond the present city limits, including the U. S. Naval Air Training Station. 4 SECTION 26. 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 them, 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 by action of the City Council. -15- SECTION 27. Grantee has heretofore filed with the City its bond and obligation, in the sum of $25,000.00, conditioned that no excavations shall be made unnecessarily, and that arty 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, sidewalks, 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, and such bond and obligation, or a replacement thereof, shall be continued in force and effect during the life of this franchise to cover the obligations imposed by Grantee hereunder. SECTION 28. 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 reasonable rates, or if Grantee fails to comply with the provisions of this franchise, 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 terminate subject to the right of Grantee within thirty (30) days of such action of the City Council to file an action in the appropriate court or regulatory body having jurisdiction for the purpose of having such failure judicially determined. Upon the filing of such action, the forfeiture shall be suspended during the pendency of such action, sub- ject however to proper orders of the jurisdictional authority; the power here given to forfeit the franchise herein granted is in addition to the 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 29. Each and every construction and reconstruction of Grantee's gas feeder pipe lines to effect delivery of gas to other than industrial consumers and to effect distribution of gas within residential areas, being such pipe lines that are located in any of the city streets, private or public rights of way and utility easements, shall be planned, constructed and completed in accordance with the following basic control standards: (1) In developing plans for such gas mains the basic criteria shall be: (a) A normal design pressure up to 25 p.s.i.g. and a peak load design pressure up to 60 p.s.i.g. without second stage regulation, (b) The length of pipe to be -16- used in calculations shall be the length between point of supply and end point in the system, and (c) Pipe lines shall be designed to carry a minimum volume of three hundred and forty (340) cubic feet per hour per acre to area to be served. (2) The specifications of materials used in constructing and recon- structing such gas mains and methods for protecting the same shall be as follows: (a) Seamless or welded black steel pipe shall be used and shall have properties as prescribed by the current American Standards Association specification B36.1, with Schedule 40 thereof to apply up to 6 -5/8" O.D. pipe sizes. (b) The coating and wrapping of pipe shall conform to the equal or better of Rosson - Richards Company minimum specifi- cation RR -1 or of Pipe Line Service Company's Bitumastic specification "A ". (c) Cathodic protection shall be applied that is equal to the minimum or better of the several methods of practices 'generally used and accepted by the gas pipe line industry, ex- cept that D. C. rectifier methods shall not be used. (3) When the City's Director of Public Utilities and the Grantee's Chief Engineer agree in writing upon the necessity for an exception to the basic design criteria set forth in (1) above and /or to any specification set forth in (2), next above, and when their such writing also reflects their agreement upon a substituting criteria and /or specification to apply, then their agreed deviation from the basic control standards in Item (1) and /or (2) above shall be authorized, provided, how- ever, that such signed agreement shall be in the custody of the Grantee's Chief Engineer before performing deviating construction or reconstruction. Otherwise, the basic control standards provided in (1) and /or (2) above shall continue in force and effect and shall be followed. (4) Within thirty (30) days following the effective date of this franchise, Grantee shall furnish to the City's Director of Public Works two prints of its block maps showing thereon all gas feeder and gas distribution pipe lines being operated by Grantee within the design criteria set forth in (1) above. Thereafter, as to each construction and reconstruction of such pipe lines the z Grantee shall furnish the City's Director of Public Works a print of the final survey and, if available, a copy of the plan and plat for.each such gas main in- stallation or reconstruction and will reflect thereon the location and size of -17- SUCH GAS MAINy IN ORDER THAT THE CITY MAY CURRENTLY POST THE BLOCK MAPS FURNISHED BY GRANTEE. GRANTEE SHALL NOT BE REQUIRED TO SHOW THE LOCATION OF CUSTOMER SERVICE LINES EXTENDING FROM SUCH GAS MAINS. SECTION 30. NOTHING CONTAINED IN THIS FRANCHISE SHALL BE CONSTRUED TO BE A WAIVER OF-ANY RIGHT WHICH THE CITY HAS OR MAY HAVE UNDER ITS CHARTERS HOMERULE POWERS OR OTHER AUTHORITY TO ACQUIRE BY EXERCISE OF THE POWER OF EMINENT DOMAIN ALL OR ANY PART OF THE PROPERTY OR PROPERTIES OF GRANTEE AT ANY TIME. - SECTION 31. UPON THE FAITHFUL COMPLIANCE BY GRANTEE WITH THE TERMS AND CONDITIONS OF THIS ORDINANCES GRANTEE SHALL HAVE AND ENJOY THE RIGHTS, POWERS AND PRIVILEGES HEREIN GRANTED FOR A -TERM ENDING AND EXPIRING FIVE (5) YEARS FROM AND AFTER THE EFFECTIVE DATE OF THIS ORDINANCE. SECTION 32. THE GRANTEE HEREIN SHALL HAVE THE RIGHT TO APPEAL TO THE CITY COUNCIL ANY ACT OR OMISSION, DECISION OR ORDER OF ANY REPRESENTATIVE OF THE CITY WHICH MAY AFFECT,ITS RIGHTS, DUTIES OR OBLIGATIONS HEREUNDER. NOTICE OF SUCH APPEAL SHALL BE IN WRITING AND DELIVERED TO THE CITY SECRETARY WITHIN FIFTEEN (15) DAYS AFTER SUCH ACTS OMISSION, DECISION OR ORDER. SECTION 33. GRANTEE SHALL FILE ITS WRITTEN ACCEPTANCE OF THIS FRANCHISE WITHIN FIFTEEN (15) DAYS FROM THE DATE OF FINAL PASSAGE OF THE SAME) SAID ACCEPTANCE TO BE FILED WITH THE CITY SECRETARY AND IF NOT FILED BY SAID DATE, THIS FRANCHISE SHALL BE OF NO FORCE AND EFFECT. SECTION 34. THIS-FRANCHISE SHALL BE EFFECTIVE FOLLOWING ITS PASSAGE APPROVAL AND PUBLICATION AS PROVIDED BY THE CITY CHARTER, AND WRITTEN ACCEPTANCE THEREOF BY THE GRANTEE. . ,, . . - That the foregoing ordinance-was read for-the first time and passed to its second reading on this the -day of Cw., ,195d�, by the following voteo- P, C. Callaway -Ellroy King _ James S, Naismith W. James Brace x F. P. Peterson,, Jr, ( � That the foregoing ordinance -was read for a second time and passed to its third reading on this the 'L day of � p1954, by the following vote., GU� P. Co Callaway ElIM King - James S. Naismith W. James Brace F. P. Peterson, Jr That-the foregaing ordinance wa ea for the third ime and passed finally on-this the day of , 1954(, by the follow- ing votes P. C. Callaway 6 Ellsoy King - James S. Naismith Wo .dames Braes - F. P. Peterson, Jr, PASSED AND APPROVED, This the day of — ,19q" 7/71//C''_ City Ve'retark AP ED -AS 0- LEGAL FORM , Pn City attorney MAYOR THE CM OF CORPUS CHRISTI, To I q I 3� 1L.'. �