HomeMy WebLinkAboutOrdinance 2663 b; •'/����'/00 /1 fox h�
ORDINANCE NO'.
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AN
AN ORDINANCE AMENDING ORDINANCE NO . 703 TO AMEND C�T�CM�✓✓J 0/>
THE FRANCHISE ASSIGNED TO AND UNDER WHICH ARKANSAS C( F�LLY rQ �
WESTERN GAS COMPANY HAS THE RIGHT , PRIVILEGE AND FRAN�lYi1
TO CONSTRUCT , MAINTAIN AND OPERATE A NATURAL GAS SYSTEM
AND TO LAY GAS MAINS ALONG THE STREETS , AVENUES , ALLEYS ,
ROADS AND HIGHWAYS AND OTHER PUBLIC PLACES IN THE CITY
OF FAYETTEVILLE FOR THE PURPOSE OF DJ,S�Is$,i}T�iJkffk:) 1
SELLING NATURAL GAS . ��YY ��1199//��LL yy tt�� 1lAA�� eeLi
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE , ARKANSAS :
Section 1 , That Ordinance No . 703 is hereby amended to
read as follows :
( 1 ) Subject to the terms , conditions and stipulations
specified herein , the City of Fayetteville hereby
grants to Arkansas Western Gas Company , a corporation
organized and existing pursuant to the laws of the
State of Arkansas , Grantee , and to its successors ,
lessees , and assigns the right , privilege and authority
\J within the present and all future expansions of the
a corporate limits of the City of Fayetteville , ( a ) to
sell , furnish , transmit and distribute natural gas to
all inhabitants and consumers within the said corporate
1 limits ; ( b ) to lay , construct , equip , operate , repair
s� and maintain a system of gas mains , pipes , conduits ,
feeders and appurtenances for the purpose of supplying
and distributing natural gas for light , fuel , power and
heat and for any other purpose to the residents or
inhabitants of the said City ; and ( c ) to lay , construct ,
operate and maintain a system of gas mains , pipelines ,
conduits and feeders and the necessary attachments ,
connections , fixtures and appurtenances for the purpose
of conveying , conducting or distributing natural gas
from any point within said city limits in order to
enable the said Grantee to distribute and sell natural
gas to the said City and to the residents or inhabitants
thereof , and to others . As used in this ordinance the
terms " natural gas " and " gas " shall be defined as
including , in addition to natural gas , such alternate
substitute or supplemental fuels as , but not limited
to , liquified natural gas , liquified petroleum gas ,
synthetic natural gas and propane-air . This franchise
shall be exclusive insofar as it pertains to natural
gas but shall be non- exclusive insofar as it pertains to
such alternate , substitute or supplemental fuels as , but not
limited to , liquified natural gas , liquified petroleum
gas , synthetic natural gas , and propane-air .
(2 )_ The Grantee herein is expressly given the permit
( subject to the proviso hereinafter contained ) to use
the streets , avenues , roads , highways , alleys , 'sidewalks
and other public places , as now laid out , or hereafter
to be established , for the purpose of laying gas mains ,
pipelines , conduits and feeders , and the necessary
attachments , fixtures , connections and appurtenances
for the purpose of conveying or conducting natural gas
from any point within the said City or to any point
beyond the City limits of the said City , or to any
other point , through and beyond the City limits of said
City ; and to operate and maintain a system of pipelines ,
pipes , conduits , feeders and the necessary attachments ,
connections , fixtures and appurtenances for the distribution
of natural gas within said City to serve the said City
and the residents and inhabitants thereof , and others ;
provided , however , that where alleys are accessible for
laying mains and pipes , the City shall have the right
to require that the mains and pipes shall be laid in
® 1C-29 785
MICROFILMED
2
the alleys instead of the streets , so long as this is
economically feasible ( does not create an economic
hardship ) ; and , provided further , the streets , avenues ,
roads , highways , alleys , sidewalks and other public
places as now laid out or as hereafter established ,
shall not be unnecessarily and unreasonably impaired or
obstructed thereby .
( 3 ) No fees or charges of any kind shall be imposed by
Grantor upon the Grantee or upon any successors , or
upon any consumer of natural gas for the breaking or
opening of any highway , street , road , avenue , alley , or
other public places , or for the laying of any main ,
service pipe or other connections therein , except as
would be generally imposed on others performing similar
work under similar circumstances and conditions .
Nothing in this franchise shall be construed in such
manner as to in any manner abridge the right of the
City to pass and enforce the necessary police regulations
for the purpose of protecting the citizens of said City
and their property and the property of the Grantee .
Grantee shall at all times keep and display the necessary
danger signals and property guards around all excavations
and obstructions and shall keep sufficient space in
good condition for the travel of vehicles on at least
one side of all excavations and obstructions , and shall
as soon as practicable restore all openings on the
highway , road , street , avenue , alley and other public
places to condition equally as good as before said
openings or obstructions were made . Anything to the
contrary notwithstanding , when in the judgment of
Grantee it is necessary for the safety of the citizens ,
to divert or detour traffic from the area of excavations
it shall have the power to so do upon notice to said
City .
(41 The Grantee shall do no injury to any highway ,
road , street , avenue , alley , lane , bridge , stream or
water course , park or public place , except as specifically
allowed , nor with any public or private sewer or drainage
system , or water lines , now or hereafter laid or constructed
by the said City or by any authorized person or corporation ,
but no sewer or water pipes , electric conduits , telephone
or TV cables shall be so laid as to interfere unnecessarily
with any gas main or pipes which shall have been laid
prior to the time of laying such electric conduits ,
telephone and TV cables , sewer or water pipes . The
Grantee shall fully indemnify and save harmless the
City from any and all claims for damage for which said
City shall or might be made or become liable by reason
of the granting of this franchise , or any negligence or
carelessness on the part of said Grantee , or because of
any act or omission of the Grantee in the construction
and operation of its system of mains and pipes .
C51. Natural gas service shall be provided under the
terms and conditions herein specified and pursuant to
the rules and regulations of the Arkansas Public Service
Commission governing utility service , as well as Grantee ' s
rules and regulations governing natural gas service on
file with the Arkansas Public Service Commission and as
interpreted and enforced by Grantee . All utility
OM' C29 "l66
3 -
services shall conform with these rules and regulations ,
as well as any other applicable rules and regulations ,
federal or state laws , including but not limited to the
Arkansas Plumbing Code .
The rates which are to be charged by Grantee for natural
gas service hereunder shall be those which are now
lawfully approved or prescribed , and as said rates may ,
from time to time , be lawfully approved or prescribed
by the Arkansas Public Service Commission or any successor
regulatory authority having jurisdiction thereof ,
The Grantee shall have the right to make and enforce as
a part of the conditions under which it will supply
natural gas for heat , power , light , fuel or other
purposes as herein provided , all needful rules and
regulations not inconsistent with law and the provisions
of this franchise ,
( 6 ) The Grantee shall furnish promptly to the proper
authorities any and all information which may be asked
for by them in regard to the size , location or depths
of any of the pipes , mains , conduits , or service pipes ,
in any form whatsoever , and any other information in
regard to its occupation of roads , highways , streets ,
avenues , or public grounds of said City , which they may
demand . Whenever the word Grantee occurs in this ordinance ,
it shall mean and it shall be understood to be the
Arkansas Western Gas Company , its successors , lessees ,
or assigns , and whenever the words " authorities " or
" proper authorities " occur in this franchise they shall
mean and shall be understood to mean the authorized
officer or officers , committee or board representing
the City of Fayetteville , Arkansas , or Grantor ,
C7 ). During the life of this franchise the Grantee
shall pay to Grantor each year a franchise tax in an
amount equal to four percent ( 48 ) of its sales before
taxes , of natural gas to residential and commercial
consumers within the corporate limits of the City of
Fayetteville and one percent ( 18 ) of its sales , before
taxes , of natural gas to industrial consumers within
the City of Fayetteville ; provided , said franchise tax
may be increased after June 30 , 1986 , by the City of
Fayetteville . Payments shall be made by the Grantee to
the Grantor in quarterly installments and Grantee shall
have thirty (30 ) days after the end of each calendar
quarter within which to make such payment . Residential ,
commercial and industrial gas revenues are those revenues
so classified pursuant to Grantee ' s uniform classification
standards , Grantor shall have the right to examine and
verify , from the records of the Grantee , any data
relating to the gross revenues of Grantee from customers
on which said franchise tax is due , In the event of a
controversy between the Grantor and Grantee as to the
amount of gross revenues received by Grantee in the
City of Fayetteville upon which said tax is due , such
controversy shall be referred to the Arkansas Public
Service Commission , or such successor regulatory agency
which may have jurisdiction over the Grantee , for final
determination , and the decision of said Commission
shall be binding upon both parties hereto ,
w14029 787
4 -
It is expressly agreed and understood by the Grantor
and Grantee that the aforesaid payment shall constitute
and be considered as complete payment and discharge by
the Grantee , its successors and assigns , of all licenses ,
fees , charges , impositions or taxes of any kind ( other
than automobile license fees , improvement districts ,
special millage taxes , and general ad valorem taxes )
which are now or might in the future be imposed by the
Grantor under authority conferred upon the Grantor by
law . In the event such other tax or taxes are imposed
by Grantor , the obligation of the Grantee set forth in
Section 7 hereof , to pay the franchise taxes annually
shall immediately terminate .
( 8 ). This franchise shall take effect and continue and
remain in force perpetually as provided in Section 44
of Acts of 1935 , No , 324 , Acts of the State of Arkansas ,
as same may be amended from time to time , and upon the
written acceptance by the Grantee of the terms and
conditions of this franchise .
Section 2 . If any section , paragraph , subdivision ,
clause , phrase or provision of this ordinance shall be
adjudged invalid or unconstitutional , the same shall not
affect the validity of this ordinance as a whole , or any
part or provision , other than the part so decided to be
invalid or unconstitutional .
Section 3 . All ordinances and resolutions or parts
thereof in conflict herewith are hereby repealed .
1980 . PASSED AND APPROVED the day of
APPROV
/ MAYOR
4L
C I C� ERIE 1
i,
The Arkansas Western Gas Company , a corporation , Grantee ,
ereby' accepts the above franchise sub' ect � the terms and
conditions therein this -3 day of ,
1980 .
ARKANSAS ESTERN GA COMPANY
� •,' By :
ATT STB X;\ PRESIDENT
-' SECRETARY--
: i : ;
zx ® 1029 788
CERTIFICATE OF RECORD
State of Arkansas
City of Fayetteville ( SS
I, Vivian Koettel, City Clerk and Es-Officio
recorder for the City of Fuyetteviiie, do iter
by certify that the annaxcd or fore=oi is
of record in my office and the sarne ap-
pears in Ordinance & Resolution book
IX at page— ('10s2. C2._„ Witness my
han ] and seal this day of
Ysaw ti soh 19 yp�p —
City Clerk and Ex-Officio Recorder
CERTIFICATE OF RECORD
STATE OF ARKANSAS
SS.
Washington County '
I, Alma L. Ko'Fnsye-, Circuit Cleft and Ex-Officio Recorder for
Washington County, do hereby certify that the annexed or fore•
going In tru ent was filej for record in myofficeon the/1-dayot ,,//1177 � �� M, and the same is
duly recorded In record / at page
Witness my hand and seal this d y of 1 c
Circuit Clerk and 97
Ex- fficio Recor ed
B
Deputy Clerk
�.e�• ktti'fia'Y }F�'��r a ' . ! o.f .• a� Uy{fit "r�; ! . i• ... - a t • "': '
t{ I�j�® - ',vi.+4.',� ^Y F ,.rv; . ,4y
. .... .� .
�`. page 6. 01 / C ���
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ARKANSAS WESTERN . 5 COMPANY
i.
w.c.u • u,Hr„„ September 17 , 1980
F'.^.
Mayor John Todd
City Manager Don Grimes
Fayetteville , Arkansas 72701
Dear mayor Todd :
Arkansas Western Gas Company has been serving your city with natural gas
pursuant to a franchise agreement between Arkansas Western Gas Company
and the city which is 51 years old . Over the past few years a number of
developments have occurred which affect this contract between the city
and the Company . The legislature has put exclusive jurisdiction over
rates into the Public Service Commission , a State Gas Plumbing Code has
been adopted , and rapid development is being made in the use of gas
obtained from synthetics such as coal and other sources . Id
WP believe these events , as well as the passage of time , dictate that a
new , up-to-date franchise contract between the city and the Company be
adopted . We . therefore , enclose a draft of a new franchise which we
would like to have adopted by the city. If you will advise us of the
next city council meeting at which this could be considered , we will be
glad to have a representative present to explain it and to answer any
cuestions the council might have .
In addition , Arkansas western Gas Company has been paying to your city a
two percent tax on residential and commercial gas sales that has not
been shown as a separate item on the gas bill because it was included
previously in the rate base . The Arkansas Public Service Commission has
now required that taxes on natural gas revenues paid to cities and towns
be shown as a separate item on the bill . A copy of Docket No . U- 3013 ,
Order No . 41 is attached for your information . This Order requires that
we ( 1 ) reduce our rates by the amount of tax in the rate base , and ( 2 )
charge individual customers as a separate item on the bill the amount of
tax paid .
In addition to the two percent tax previously referred to , there is
currently listed, as , a separate item on the gas bill , another two percent
tax on residential and commercial customers and a one percent tax on
industrial sales . In summary , a four percent tax on residential and
commercial sales and a one percent tax on industrial sales will be
charged to the customer and listed as a separate item on the gas bill .
i
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ee11 011gI 10: Ree I ,Aq IMLE ARXANSs 77701 n tnVHorvt WI 521854W
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,page : 0 ;. 1
Mayor John Todd
aY' .
September 17 , 1980
.�_ :. Page 2
3:.
The new franchise does not change the contractual relationship between
the city and the Company as to franchise taxes . However , we are required
to change the way it is charged to our customers by Order 4 , PSC Docket
No . U-3013 .
We propose to reduce the gas rates by the amount of the tax paid to your
city beginning in December , 1980 , and to start showing the tax as a
separate item on the bill from that point on. Please note that there is
no increase in the overall rate paid by the consumer , just in the way it
is shown on the bill .
This franchise tax treatment does not apply to any other taxes paid by
the Company , such as ad valorem taxes .
We would appreciate prompt action by the council and the city on enactment
of this new franchise ordinance . We believe it shortens and simplifies
the old franchise , and it will allow us to introduce the use of synthetic
natural gases as they become available .
If you have any questions or desire any additional information concerning
this new franchise ordinance , please let us know . As soon as action on
44 the ordinance can be scheduled by the council , please advise us of the
meeting time and we will have a representative present to assist or
answer any questions .
V61y truly your ,
arl� nn
Vice President
1/3/11
Enclosure
i
Wsr e<<KE q+ *0 0 (AYEITE"LE 0 A� nMI O EFLEPWO 50tW] UOO
pag74.
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a�pYEil�y
71.A f11rrM 1 MjM, ARKANSAS
OFFICE OF CITY ATTORNEY
Gh�� j.� ,�,•r. POSTAL OPAWEP F ]2]01 (SOn 52l•7700
i4
September 30 , 1980
Mr . Don Grimes
City Manager
City Administration Building
Fayetteville , AR 72701
RE : Proposed Arkansas Western Gas Company Franchise
Amendment
Dear Mr , Grimes :
Pursuant to your request , I have reviewed the proposed
franchise amendment submitted to the City by Arkansas Western
Gas Company . It is my recommendation that Section 2 of the
proposed franchise be amended by adding the following provision :
and , provided further , the streets , avenues , roads ,
highways , alleys , sidewalks , and other public places as
. � now laid out or as hereafter established , shall not be
unnecessarily and unreasonably impaired or obstructed
thereby . "
Section 8 of the proposed franchise provides that the
franchise shall be perpetual as provided in Section 44 of
Act No . 324 of 1935 (Ark . Stat . § 73 - 243 ) . This statute
provides that all franchises granted by any municipality to
any public utility authorizing it to occupy the streets ,
highways , alleys and other public ways in such municipality
for the purpose of constructing and maintaining any facilities
for the supply of any public service or commodity , shall be
unlimited as to time . l The statute further provides that
the franchise shall continue in force until such time as the '
municipality having authority to do so shall purchase the
property operating under . such franchise or until terminated
according to law for misuser or nonuser .
1 Section 40 of Act No . 324 of 1935 (Ark , Stat . § 73 -
239 ) provides that any franchise heretofore granted to a
public utility by the state or a municipality to occupy the
streets , highways , alleys or other public ways of any municipality ,
for the purpose of carrying on public services is amended in '
such manner so that the same shall continue in force until
such time as the municipality having authority to do so
shall purchase the property operating under such franchise or�
until terminated according to law for misuser or nonuser . 4
i (
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_ gam• g�
page 6. 04
Section 7 of the proposed franchise provides for a
fixed franchise fee during the life of the franchise . The
3; franchise constitutes a contract between the City and the
utility company , and the franchise fee could not be changed
q;;: ' • without the mutual consent of both parties .
g'
Sincerely ,
CITY ATTORNEY
�J
)/ ames N . McCord
JNM/ tr
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FRANCHISE page e 6. 05
ORDINANCE NO .
AN ORDINANCE TO DE ENTITLED :
_ "AN ORDINANCE REST,\TING AND AMENDING THAT CERTAIN ORDINANC1.. NO .
GRANTING ARKANSAS WESTERN GAS COMPANY OR IT'S ASSIGNORS THE RIGHT AND PRLVI -
LECE AND FRANCIIISE TO CONSTRUCT , MAINTAIN AND OPEIo\TE A NATURAL CM; SYSTEM
AND TO LAY GAS MAINS ALONC THE STREETS , AVENUES , ALLEYS , ROADS AWU LI.C11WAYS
AND OTHER PUBLIC PLACES , FOR TUEPURPOSE OF DISTRIBUTING AND SELLIN:; NATURAL
GAS AND PROVIDING THE REGULATION 1°OR TIIE CONDUCT OFSAI_ D GAS DISTni UUT' IUM
SYSPEti , AND OTHER PURPOSES . "
BE I1' ORDA] NED BY THE CITY UN OC TITY '0F FAYFTTEVILLE
ARKANSAS : �{////�IIQ�q� -�`
SECTION 1 . That the City of F vi CJ'- hereby .' rants to
the Arkansas Western Gas Company tnecexclusivp right , privilege and auLh-
ority within the present and all future nsions of the corporate limits
of the City ofFayetgatevi lie ( 1 ) to sell , furnish , transmit
and distribute natural s to all inhabitants and consumers within the said
limits ; and ( 2 ) subject to the terms , conditions and stipulations menticned
in this ordinance , consents and the right , permission and franchise is
hereby given to the Arkansas western Gas Company , a corporation organized
and existing pursuant to the laws of the State of Arkansas , Grantee , and to
its successors , lessees , and assigns to lay , construct , equip , operate ,
repair , and maintain a system of gas mains , pipes , conduits , feeders and
the appurtenances for the purpose of supplying and distributing natural gas
for light , fuel , power , and heat and for any other purpose , to the resi-
dents or inhabitants of the said City ; and further , the right to lay ,
... .. - ._ ..... .... .. . . . .... :.. .:. . . . i
construct , operate and maintain a system of gas mains , pipe lines , pipe p
conduits and feeders and the necessary attachments , connections , fixtures
A and appurtenances for the purpose of conveying , conducting or distributing
natural gas from any point beyond said Citv limits in order to enable the
said Grantee to distribute and sell natural gas to the said City and to the
residents or inhabitants thereof , and to others . As used in this ordinance
the terms " natural :gas" and "gas" shall be defined as including , in addi -
tion to natural gas , such alternate , substitute or supplemental fuels as
(without necessarily limited to) liquefied natural gas , liquefied petroleum
gas , synthetic natural gas and propane - air .
1
SECTION 2 . The Grantee herein is expressly given the permit ( subject
to the proviso hereinafter contained ) to use the streets , avenues , roads ,
highways , alleys , sidewalks and other public places , as now laid out , or
hereafter to be established , for the purpose of laying gas mains , pipe
' lines , conduits and feeders , and the necessary attachments , fixtures ,
connections and appurtenances for the purpose of conveying or conducting
natural gar. from any point within the said City or to any point beyond the
City limits of thetsaid City , or to any other point , through and beyond the
City limits of Baia City , and to operate and maintain a system of pipe
linea , pipea , conduits , feeders and the necessary attachments , connections ,
fixtures and appurtenances for the distribution of natural gas within said
City to serve tholjoaid City and the residents and' inhabitants thereof , and
others ; provided , .'however , that where alloys are accessible for laying
mains and pipes , the City shall have the right to require that the mains
and pipes shall bd laid in the alloys instead of the streets , so long as
this is economically feasible (docs not create an economic hardship) . 1
SECTION 1 . No fees or charges of any kind shall be imposed by Grantor
upon the Grantee or upon any successors , or upon any consumer of natural
gas for the breaking or opening of any highway , street , road , avenue ,
alley , or other public places , or for the, laying of any main , service pipe
or other connections therein , except as would be generally imposed on
others per forming similar work under similar circumstances and conditions .
Nothing in this franchise shall be construed in such manner as to in
any manner abridgb the right of the City to pass and enforce the necessary
fP� police regulations for the purpose of protecting Che citizens Of said City
nod their property and the property of tliu Grantee .
e3Y 1 ' C 1 . .
S
page 6. 06 I
Grantee shall at all times keel) and display the necessary d.nnµ• r
� r ..
4" - - signals and proper guard:: around all excavations and oL:: Lruct ionr. and ::hall
, keep snf. I:icicnL sp:mu in good condition for the travel of vehicle:: on aL
' least one side of all excavations and ubntructions , and ::hall as noun as
S?:..
practicable restore all openings on the highway , road , :;treat , av,vulc ,
np+ alley and other public places to condition equally as good as bol'oic ::aid
opening:; or obstrue Cions were: :nude . Auything to the contrary nolwit.li-
'{> . standing , wllLn in Lhe judtlmunt of Grantee it is necessary for the G:Ill: ty of
the citizunu , to divert or detour traffic from the arca of cxcavati, n0: they
r� have the power Co so do upon notice to said City .
c
L
SECTION A . The Grantee shall do no injury to any highway , road ,
street , avenue , alley , lane , bridge , stream or water course , park, or ; public
place , except as specifically allowed , nor with any public or privy Lo ::Omer
or drainage system , or water lines , now or hereafter laid or con:: Cru\: T.eel by
the said 'Town or by any authorized person or corporation , but noC.:ur or
water pipes , electric conduits , telephone or TV cables shall be so l :lid as
to interfere unnecessarily with any gas main or pipes which shall have been
laid prior to the Lille of laying such nlectric conduits , telephone oild 'TV
cables , sewer or water pipes . The Grantee shall fully indemnify and ::ave
harmless the City from any and all claims for damage for Which said City
shall or might be made or become liable by reason of the granting of this
franchise , or any negligence or carelessness on the part of said Grantee ,
or becaunu of any act or omission of the Grantee in the constructio0 and
operation of its system of mains and pipes .
SECTION S . Natural gas service shall be provided under the terms and
conditions herein specified and pursuant to the rules and regulaC ices of �
the Arkansas Public Service Commission governing utility service , as well t
as Gran Lcc ' s rules and regulations governing natural gas service on file
with the: Arkansas Public Service Coru:l.ission and as interpreted and enforced 1
^'• " " """" by grantee . All utility services shall conform with these rules and iegu- 'r
lations , as well as any other applicable rules and regulations , fc:leral or
` state lava , including but not limited to the Arkansas Plumbing Co(:.- . �
The rate.: which are to be charged by Grantee for natural gas scrvic:0 F
hereunder shall be those which are now lawfully approved or presrribcd , and
as said rates nay , from time to time , be lawfully approved or prescribed by
the Arkans.'Is Public Service Commission or any successor regulatory autllorf -
ty having jurisdiction thereof .
The Grantee shall have, the right to make and enforce as a part of the
conditions under which it will supply natural gas for heat , power , light ,
fuel or 01.11017 purposes as herein provided , all needful rules and regula-
tions not inconsistent with law and the provisions of this franchi ::c .
SECTION G . The Grantee shall furnish promptly to the proper authori-
ties any and all information which may be asked for by them in regard to
Oil, sire , location or depths of any of the pipes , mains , conduits , or
service pipes , in any form whatsoever , and any other information in regard
to its occupation of roads ,, highways , streets , avenues , or public grounds
of said City , which they may demand . Whenever the word Grantee occurs in
this ordirmnce , it shall mean and it shall be understood to be the Arkansas
-. western Can Company , its successors , lessees or assigns , and whenever the
words "au Chorit. i.Ls" or " proper authorities " occur in this franchise they
shall mean and shall he undcrs Cood to mean the authorized officer or
officers , committee or board represen Ling the City of Fayetteville
Arkansas , or Gran Cor ,
SECTION 7 . During the life of thin franchise the. (;rantue s11a11 pay to
Grantor each year a franchise tax in an amount equal to : Four percent
( 4 'P ) of the Grantoo ' s revenues betncn taxes Por. renidenCral;4 t for
commercial and 1 l for industrial. revenues an paid to the Cri-7 by
1'CFiidenti .nl , collllnecclal • alld industrial customern located within thu Cel:-
poratc limits of Lhu City ofFavetttville 0 Payment.:: shall
be made by the Grantcc to the (:rentor ♦ I quarterly r.nntallmentn and Gl antra
shall have thirty ( 30 ) dayn al i tur the and of each calendar quarter Within
" which to make mall payment . Ho!;idential , commercial and industrial .lax
rcvenuu:l aro Lho::a revcsuou no clamtil: fud pur::ucult to Grantee ' s unit"ora
cla:::; [ [ ica Cion :a.uula rds . (: reulLor ::hall have the riglrL to ex.nmine .nal
verify , loom the rocurdu of the Grantee , any data relal. ing to Lill: areas
2 -
x �` ?J Y^Alr r/ Yl r Jr1�F� M/ to r Alnay<g `gtimid
vs
Page 6. 07
rcvcuno:; of Groh Lor. fYOm cu:aomcr:: on which Said frnachisr Ca>: is dor. . In
n.
Che even (. Of a Leu LYOV ivvd he Cwc all tbu Grand ur and f -w Lee e:: LO Lac .uuunu .
Craw Lee in the C1t OC Fayette_i lle
Of, gr0:::: ravcuae:: racci vud LY Y
upon which is due , such run (:r. ovc r ::y :;Ilall Ill! rcicr rv•d Lo L1 :• •
Yln, u
rap. . A, kole l '; Public . Crvici: (:Onnni s:u uu , ur r.uul: ::ucr,r.; :aur rn• Inlat ury .r lru' °Y r.l
which racy have 'iuri. ::d is Linn over. I.he Grants..• , for I .in.+ l d•: tc Yw : n.iL iuu .
4 Lhc dCCJ.:liOu of ::aid COIIIILI ::S: i On ::ha Ll bo biu.li. lvl upon Loll: lactic:: 114: 1 • ' t
IL is cxpre.-nly agreed and understood by Lhc. Granl.or and ::ran Luc
i.i the aforesai.al payment shall con:aiLutu and In: Con:: ide>'cd as cumplulo I •.:_'-
f :
wenL anal di.sch:u'.�e by the GI'antee , its succus^.oars and m::: ign„ Of nll
li cenncs , f.ces , charges , imposition; or l:a rrs of any kinJ (ocher than GtG, C}�
' s enial Ivil.la.le taxes , •uul
auCo:oo!+ i. lc licca sc Lcc:: , iugn-ov ccwnl: district:: ,L:: , p ': -
ay:r
theyacncral ad v (.occur ta>:c ::) which are now or might i.11 Lhc• Cut-Il:(: in:
i.:nposed by the Ccantor under author. i. ty conferred upon t.hc Grantor b'; + ,
la Lho CV elft such other La OY Ca>:us are imposed by GI:.l11tor , tlo.: Obli •i. : l
Of the Grantee s:: t forth in See Lion 7 hereof , to pay the franchiec
annually shall lam:edlatell, termlllat(: .
SECT10:1 0 . This franchire shall. take effect and continue an'
in force perpetually as provide:l . ill Section 44 of ACLS Of 1935 , liO . .'• 2d ,
he Cs of the Stne.c of A[k;nlsas , as same may be amended f. rO11 Lime Lc. r. i :l•: ,
.toll upon the e:rittc:n acceptance by the Grantee Of the Cerlas and Condi Li.O: �n
of this: franchise .
gra ra 1 Subdivision , clmlea • >hrar.c Or
SIiC'1' : ON 9 , If any ::cc L ion , I>` S Pl •
provi :: :011 of, t!: i.s Ord inn ncc shall b:: adj 'd,iyod invalid or us a ...b.i Loricn:: 1 .
Lhc shall r,nt affect the volidi Ly of this ord ala •ten aS a s:bo . c , Ur :any
port or i>rov inicn , ot:':cr than tilc part so l.0 raided to be invalid u' :u:crn..
sti tut �oual .
SEC'P10� 1D . It is hcrebv alaterminCd by the City Of _ Favettevil-le . __
thac this Fran:!t.ise is neCessnry
in oYder. that Lhc ncad : of the c,. cy r.:a7 :..-
,� (C/ prOparly protea. •r.cd . The.efore , an emer9encY is declared to exist acd Lhc
Franchise be .ulg ne.:essilry for thr: preservo Lion o ; the public i'.L:.,
lean Lh
and safety shall tale effect and ba in full force fl:om the date of its
s sa,'e and approval .
ATTEST : N
PASSED AND APPROVED the day Of
, 19
_—
/V,f��,�}� '� Mayor
The Arkansas l:Ostern Gas COrmany , a Cor-
poration , grantee , hereby accepts the
above franchise subject to the terms and
conditiOnn therein this 1141v Of
, 19_
ARKANSAS WCS'I'ERN GAS COMPANY
By
president
:
z
page 6.03
ARKANSAS
PUBLIC SERVICC CO:-AISSIOII
IN Tilt MATTER OF THE ELIMINATION
OF MUNICIPAL TA%CS FROM BASE. ) DOCKET N0. U-3013
RATES OF UTILITIES AND Tilt ADOPTION ) ORDER NO. 4
OF UNIFORM TAX ADJUSTMENT CLAUSES
Participants: C. 0. Pugh for the City of Van Buren, Arkansas; Fir. Gary
Canfield and Mr. Steve Lee for the City of Fort Smith; Fir. Ben McMinn
for the ArL;,:sas Louisiana Gas Company; Mr. Larry Phillips and Mr.
Larry Brewe- 'ur Southwestern Electric Power Company; Mr. Ilermann
Ivester for .,lied Telephone Company of Arkansas. Allied Utilities
Corporation, i:oone County Telephone Company and Wickes Telephone Com-
pany; Mr. Jerry Bell for Southwestern Bell Telephone Company; Mr.
J. T. Gillam and Mr. Lem Bryan for Oklahoma Gas and Electric Company;
Mr. E. B. Dillon for Arkansas Power and Light Company; Mr. Larry
Fresh for General Waterworks Management Service Company; hr. Steve
Holt for General Telephone Company; Mr. Lee F1cCulloch for the Staff
of the Arkansas Public Service Commission.
ORDER
PICKETT, Commissioner
HISTORY
By Order dated March 2, 1979, the Commission provided notice of its in-
tent to consider.the elimination of municipal taxes from the base rates of
utilities and to establish a uniform municipal tax adjustment clause. By
Order dated April 23, 1979, the Commission extended the date for filing
written comments until May 25, 1979, and scheduled the hearing on this matter
at 9:00 a.m., June 7, 1979. On this day, a public hearing was held in this
Docket.
JURISDICTION
The Commission has jurisdiction in this matter pursuant to Ark. Stat.
Ann. 973-217.
ISSUES
. There are two issues that the Commission wishes to address in this pro-
ceeding. First,. municipalities have the authority under Arkansas Statutes to
levy a fee on regulated public utilities for permitting the public utility to
.. do business inside the municipality's incorporated area. Arkansas municipal-.
M
sties do not levy a uniform fee upon all utilities providing service within
their incorporated areas. For instance, some municipalities levy the fee as
a percentage of gross revenues collected by the utility. The.pencentage levied
is not uniform among the municipalities. Others levy the fee based upon'the
number of electric, gas or water meters and on the number of telephone main
stations.
The current practice followed by our regulated utilities is to include in
the customer's base rates a maximum amount equal to four percent of gross
receipts. Since the tax base and the amount of the levy vary among the
municipalities, the inclusion of an amount equal to four percent in the base
rates, may collect from the customer more or less than is actually remitted to
the municipality. We observe that it is inherently discriminatory to include
in a customer's base rates an amount which is not the actual amount assessed by
the municipality on the public utility.
A second issue that we wish to address is to'accurately identify on the
customer's monthly bill the cha rues for services rendered by the utility and,
separately, charges unique to a municipality. The Arkansas Municipal I.eaque
has addressed our concerns on this issue by raising certain points which do not
bear directly on the Issue. FI rs t, the League asserts that our Inquiry in some
'.T[ . •}yC}YT O /N.✓q'AI\Lf /,f•."-�!�/.. �. .-, q�yy / \ ,�.�.1 �•'•/
T J4 q"rltii,L�K\ �,•y1r fT1 }" r • I. Td-.'TS{j Y -)
�CN}71'wJIvY da Y- fi r•. l- <� • 1/.[ i' f J 'X :'
i1
page G. 09
(DOCKET ItO. 0-3013, page 2
way infringes upon the nun r Pali tics' statutory right to levy a fee upon a
public utility. this position is simply not the case. We can not Lher infringe
upon the municipality's leg.11 authority to levy a Ice nor infringe. 1111011 the
State and i'edo•a1 governments' authority to levy sales and income taxes. What
is clearly our rule authority is to determine huw the municipal fees are to be
collected from the customers. lie are exercisiuq only that authority in this
IIUCCuL.
Second, the League asserts that any Order requiring that all municipal fees
must be passed on to customers would be gross discrimination in f;ivor of the
utility, and, also, that such action would m.lhe utilities corporate cititonn who
pay no municipal taxes directly but pass on all municipal taxes to their custo-
mers. The League is apparently uninformed on this point. All expenses in -
coned by a utility and allowed for ritrmaking purposes are collected from their
cuslo:rers. This is a ratemaking principle as old as'ratema'kiny.
Third. the L••ague asserts that if it is proper to show: all municipal taxes
separate from other items, then it is likewise necessary to separately identify
other iterns such as federal taxes. The response to this is by analogy. All
utility customers bear equal responsibility for the burden of income taxes, but
because municipalities do not tax public utilities unifo uly, a uniform inclu-
sion of some amount in all customer's base rates causes customers to bear
unequal treatment. Furthermore, as a matter of practicality, municipal resi-
dents do not have the same degree of responsibility for and control over federal
income taxes as over municipal rates. Finally, the fact that one tax is
"hidden" doe; not provide a basis for hiding another. However, we take the
League's concern seriously, and rte shall in the future consider an expression of
federal income taxes an utility bills.
Present consumer's concern with high and ever-increasing utility hills must
be addressed by demonstrating to the customer that his total bill includes the
cost of service rendered by utilities plus an additional amount for municipal
taxes.
CESPO:ISES
The response by public utilities may be characterized as follows. The
public utilities hold that it would benefit the body of Arkansas ratepayers
if a line item for any municipal tax was separately identified on the custo-
mer's bill.
The response by the Arkansas municipalities participating in this proceeding
may be characterized as follows: The municipalities wish to continue to include
in base rates an amount equal to 4 percent of gross revenues. They hold that
a separate line item on the customer's bill for the taxes would not be in the
public interest.
The Arkansas Municipal League recommends that the Commission establish 6
fair and equitable franchise tax equal to 4 percent of gross revenues to be In,
eluded in the base rate of each public utility. They also recommend that the
Co:,nission should provide that franchise taxes over 4 percent would have to be
passed on to the customers in the same way that the municipality levies such
• additional taxes. The Couoni ssion might he amenable to the League's first
reconvnenda tion if the Comniss ion could establish that cacti municipality levies
a franchise fee in an amount equivalent to at least 4 percent of the utility's
gross revenues. Given the different ord lnances under which nuinicipal fees are
collected, some clearly do not equal 4 percent of the gross revenues. If we
include the 4 percent of all gross revenues in the base rates for those custo-
m ma's where the actual franchise fee is an amount less than 4 percent of gross
revenues, then those cus tn:ners are effectively paying more tax than actually is
being received by the municipality. Such a procedure is inherently unequal and
disc •imluates along customers. Assuming that tlu,se disc reps ncics could he
identified and accounted for, we see no reason to require only a partial dis-
closure of municipal taxes;. Since this risks a misleading understanding of the total tax, partial Information may be worse than none at all.
t �.f S31�1 l., �spn Y3 ,-u {� ♦r wYYr �r
r wf in��rr+rw/�•'y ' Y' ' . �. �.I.r'L lr r / t` d' '.' t • `� "�M f.7. t 1 S ...
4'.;'-s �u i .+•. a '• W V'G�h,-•-b , ,.:. . .., }
po.Cl 6. 10
DOCKET 110. U-3013, pag'
llu: cities: of Van Vuren, Fordyce :old fort Smith, Arl:an;as suppu.-ted the
Arl:dnsa: Municipal I.naguC's position that a certain percentage of gross revenues
should be inclu!td in the b:,se rates.
SI a If's cuurmrn t r. ind icalc that it Frequently must reca::m'nd the proper
hand) inn of municipal franchise taxes for the different jurisdictional utilities,
and that it would be in the public interest to adopt a uniform prnced:n'r, for
handling municipal taxes. We have determined that given the diverse treatment
• of municipal franchise fees within the State, it is in the pull is interest to
adopt a uniform treatment of such fees.
We define a municipal utility franchise tax or fee as any tax, or fee levied
• on a public utility which is not levied on all businesses within the taxing
authority's jurisdiction on equal basis with tax imposed on public utility com-
panies. We specifically exclude from such taxes or fees that amount collected
as Ad Valorem taxes which are levied on all property on the basis of assessed
value and license or privilege fees charged to all businesses or individuals
on an equal basis.
6'e have determined that it could be in the public interest for each
public utility serving in the State of Arkansas to separately identify and
itemize on each customer's monthly bill, the prorated (annual fee converted
to a monthly customer charge) amount that that municipality levies upon the
public utility in the form of municipal taxes, We are aware that municipalities
may levy a charge up:ln regulated public utilities in a form different from
gross revenues. If the municipal franchise fee is not levied on gross'revenues,
then the utility shall convert the annual fee to a percent of gross revenue
which, when applied to gross revenues, shall equal in amount the annual fee.
.... .. ..... _...... , Each utility shall maintain in its general business office with the State,
records necessary to verify the annual franchise fee, the percent of Dross
revenues and the amount collected from ratepayers residing within each r..unici-
pality. If a utility over Cr under collects the fees due each municipality,
the utility shall carry the overage or shortage over into the next year's
collections, Allied Telephone or Arkansas has argued that the tax should be
collected in a lump sum annual charge levied on the customer's bill. It also
argues that monthly billing would encourage municipal governments to levy
• significantly greater taxes on telephone service than would be levied where
• billing is annual.
Neither we nor Allied have a duty or responsibility to encourage or
discourage a municipality's total dollar amount collected from regulated
public utilities. We think it is sufficient to accurately inform the customer
on each monthly bill of the municipality's levy on the utility. lloweve.r, some
tax amounts may, for the great majority of individual bills, be so small as to
permit quarterly, semi-annual or even annual identification. We shall consider
such cases individually as brought to our attention.
The League has requested that we approve that additional franchise fees
would have to be passed on to the customers in the same way that municipalities
levy such taxes. lie specifically deny this request. The municipalities can
_.............._. _, -, _.._.-....-, establish by ordinance the total dollar amount to be collected from each,
utility and the me thud for determining this amount.
The Contnission determines how this amount is to he collected from customers.
It shall be collected by a separate line item charge on each customer's monthly
bill in all amount expressed as a percentage of revenues,
?.. It was es tablished during the hearing that revenues from industrial
Cost teeters nerC sometimes excluded whnl Aclmmiui nq the nLili Ly's annual assess-
ment, if such is the language of a nunicipal ordinance establishing an assess -
nun 1, then such fees shall only be col Inc ted from those cos tlmurr classes as
referenced in the supporting ordinance.
Pagc 6. 11
noCi:Ci I:o. 11-3013. pale 4
The public utilities shall deteruninv the amount of the municipal tax by
ealculati nq the ;mount. of the tax for a e:per.i fie period due each wonicipal taring
authority in accord•nu:c wi lb tin Lmyiagc of the appl icabl,, ordinance or other
cnabl inq legislatiun institution the tax. Once the total amount of the tax has
bee,, determined, tin' utility company will convert that ,unnunt to a percent.gn of
the total applicable revenue. The resul Lion factor wi l I be appl ird to c,ch
cos Ltxaer's rer.olar bill and the total aaumut shown as a separate line item on
the bin . Applicable revenue for electric, natural ryL:, water and sewer cnm-
panics Shall he revenues he fore the application of any adjus Linen el au:c.
Applicable revenues for tel ephuoe eomp:mi c, shall he for basic local service
excluding extension, terminal equipment, toll, yellow page and other misccll::ncous
equipment revenues.
Each utility shall file a uniform municipal tax adjustment clause which
shall collect any increase in the tax levied by any municipality after the rate
is filed according to the determination of the amount of the municipal tax and
the collection of that municipal tax as set out above.
1RPL flENTAT I Oil
Co:cacnts filed with the Coamission indicate that the Commission should
consider a transition period in order to permit each regulated public utility
adequate time to in;pl e;::ent our decision. Good cause exists to set out a
reasonable timetable to allow the public utilities to implement our decision.
On or before Dece^:Ser 31, 1900, each regulated public utility shall file with
the Cermission revised tariffs incorporatSng the decisions set out in this
Order. The filing shall include a statement of the total municipal taxes that
arc currently being paid to each municipality in the state of Arkansas, the
total municipal franchise tax due each municipality in the state of Arkansas,
thepercentage that will he applied to each customer's applicable revenues in
each municipality, a sample of the bill that the utility proposes to send to
each customer identifying the line item for applicable municipal taxes and a
uniform municipal tax adjustment clause. The Conrni ssi on Staff shall assist
the utilities in developing a uniform municipal tax adjustment clause.
1T IS, TIIEREFORE, ORDERED:
1. That regulated public utilities shall eliminate from base rates an
amount representing the municipal taxes levied in the State of Arkansas.
2. That public utility companies shall collect from customers residing
within each municipality an amount which equals the tax levied by the munici-
pality on the public utility.
3. That public utilities shall conform with all other parts of this Order.
pnge 6. 12
•0UCCCT _ 110. II -:4011, pager S
CY URUCIE 01Tilt C.0>aISC10.
This 7th day or February, 191:0.
11. M. Norton, Jr., Chairman
Robcrt C. 0o:mie, Commissioner
John C. Pickett, Comissioncr
rb'
Cheryl Uyr;. U
Secretary to Co:r..iission
. /lid—.. .. .:1�•.
inL�/le. cGn.e
. .•., . 61-x.11. rg to . ;,hi, LcCu:U oc;: a fr_r.ehJ c_ ::.•^
the LC -:1 or lift,; ..-3 to provide a CytheRtC❑ for the auSply of
gait to the CI t;: of FCyc ttCvl Il.e, '•;azhincto= County,ka3nq
__. .
and the irsabitaats o: said City,
BE IT C3DU!7B by the City Council of the CI,ty of Pay-
3ttcv1110, •i:g shSrytoa County, +irnensan:
Section 1., That there it hereby granted to John 1JeCu2—
lough, 0: LL^.L.93, C:;lzsho=a, hereinafter to celled the grantee, and
`-::.to his successors and "assigns, the franchise.. right and privilege
I: , .
of supplying gas to the City of Faycttcvi3.lc, Rashington County,
• Arkansas, hereinafter called the City, and to the Inhabitants
of said Clty, for the term of fifty (5C} years fro= the passage :
of this ordinance as required by the la -r.:.• of the State o:' Ark-
' ansaa; it being understood and n�recd that all right3 and prly-
ilegoa herein granted and all restrictions hereby imposed staL
• extend to anal be binding upon said grantee, his successors and
assigns.
Section 2. Th': grant CO is hereby grantc:t the -1ght-of-'::ay
in, through, under pad over all streets, avenues, alleys, aids -
walks and public wounds of Sall City for tha purpose o: erect-
' co:mtructing, operating and maintaining its gas plant and
supply systen, for )aytrq; mains and lrtcraln n::S other n;,eocic:
for the dl at-lbution and sugr. puly of a, with the rl;;ht and
,^, o. e?ccti.:p a:1d lnnt'tl?.1C, • n:y rn. All 11:: L'�:o ani
n
,so;,1 i:a::''" •:''Ce J3 : aoC thu Llal t0'1ICC a'C OyCrn L'. 0:: ei'
gn3 pl'•_. ari ots=. NO obzt-uctlor3 of tra--:c oa nt:'ee.s,
n •cn'lcs or sllcya zhall be for a 1 ;reatev ti:na t.^an u_1 rU
I.- ._all ae...•a :`i pal _.r':et C'/en :^3, Cllegin,
a:•1 otj:^.r y.u:l iC L.r0'-.`.is 3ha II be put 1n a p and aOndit'Ot a3
A6: :Qii� 1J
i )-�. J • J(.Tn L I�� y
,r.InTyrt�Y�Vj\ i'.. �•\ • / �V+J ii v�Y h"ti (`i j/ , �.',�I`.: '...�
vt}'1 �,' `fYr -F.' �� re /.-Y. -[µYrr r'. 1 a� r t .+f�•-Ir.F.�^. ,
f' 1
hl�
page 6. 14
i �VLr
:I.
befog.. ::l tnoutrccttn:bla cr ur. .•ccas::ry de cy, a. tile: c--
c::3e• e_' the rtu:tco; `n e,. ♦ re t.. .• tr 2.•
�.:.. .: F g- cd any r: ,1_--c _..cn�a, __pn'_s ,_1 r_
b•r:lldiug of such s..•..v,.s, aYei u'5:, all'y:', d:::nl:cz 0:•
r, other public croaids shall be at the expcnaa of the Grantce
when caused. by the K,:'_i 'e:e^:a of c--ntee73 nyatea or gas'
plants and appu.'ten^acea, Gruntac is hereby further grar-ted
the privilege of rerocine his gas plant and system, pipe3,
H. rains, laterals and other property, et the expiration of the
tern of this _':'r.c'rJse, or the earlier termination thereof;
• provided, that said grantee shall put the property of ssid City
••-• and its inhabitants from which such property shall be removed
in as good coaaition as before, at his own expense and with-
- out unreasonable or u-^-necensary delay.
Section 3. The City shall rake, adopt and enforce all
ordinances necessary to protect sale. gas plant or plants and
system and property of whatsoever kind connected therewith or
used in the operation thereof, orr4 to protect the grantee in
the sale and unrestricted use and enjoyment of all privileges
and rlrhta Unger the franchise herein granted.
Section 4. The grantee will not and chall not be required
to a:ctend his gains and facilities at ILLS soli cost, and to
furnish service to conou=ers, unlea:, such consncers in the dis-
¢` tr,4ot to ba served by such uxtensiou3 makc and c:cecuto bong
°I) flits contracts for the oonsumptlon of gas at the rates ea-
ir)
tsblialled at the time of cuktn,; a:tch c:cto::3l ens, ecountine n::-
• nutlly to'on-hilt of the cost of such cxter•31on3, and then onl::
�:. after a Is Jar! :y ':o:, rj the CS ;t COl:60j prJ': _, Lia: k. harem r n , n • rr. tt t- t.
no: LL^ hc- !n con:nl.::C al:. -11 p:•rhl la, t g.. co _ om eca-i:.c,
�•'(� into ad cr-fr• ti aa cor•:rn rt3 ar! acrccacnt3 by will ch the -
:..:.ac:.c a. ,.or-.o:t at rt.'.. near or such cr_rlc:.-a:u into
I.J '
Gia:ric:a were the annual gross revenue "hall :lot count to
t.::.
C'
-
-L _..
i. Lcife.--dq.a
kIZj..a'. ._. v.
Y . -
Il iTlw J rf_ ♦' C1 Yh �,M1
I. ': -y!R -
l\n.
S2^.".: U. y�..•. ",l 1,. 'n n _. to .G¢
J. C rl :� 0-.... 1 47 9 C: _O(; �.. .:
Y.O'
t,e r.::ht to fu. -:,1 i Gaa to the ia:ub! :..: a: or .L.
rr::n
Cat;; of Fn;:ct•Y^r1:1 a, _....n.._., .Y ti s fo11GV1r, rhte::, to-
•;14-:
For the Y!rat 544 c.::^ t^^_^.t cCr cor:', 'ii.GO 'car 1CJ4- esbic ..
For the nett 15(3 cubic fact 'n '� :.07 per 104 cubic ft.
nCJ U¢ 100 a cubic Y.
For the r.azt 5CC3 " " n „ r '�
'..
For the :_at 15,CC0 " -" " " . •C-i per 100 cubic YL
e : ♦ U. n n ,.OS ,pe 100 cubic ft
For the L Li,�04 .
.Y
0=' "7 100 cubic ft
For )._... 7 .-.. d n n n•V1 p__
the .£
.._.
,G 3 Flo , ;/
the r.e:. EO v44 " S, n n•;05 per 100 cublc ft
•For
For aa 1CO,u4Cn n n n ,02k per 100 c::b!o fy:.
ar_^_•
and nay ci3=zc an, additional ten per cent or the a ount.due in
. that the dc.s not pay for cal& service ::hen due,
th! went patroa
!. �. ............. ..... .. ..... r..A ....
'
- '
ten days ea Yterstatene ]t of the mount duG has been dep-
nitivin
..-. .-.
,J ^ fi a nA A.."- • 1Ctra n, 'with ostc e
t_d in th post office ai,d. Ya_d to the p `3
031
' �
Said in hereby rurt'.er a.:t"_d the pricileoe'
ortnaid. Graxteo
-
.- .It. bill
to cut of i1[i Gr•li CG to by pa.rna i0_ nY nL-�` p G.)Y of the C
for after tha u.^ne h13 been de1ituent for f!ftetn day3,
gas,
collect a rca3onab13 fee far aGain connecting the preC-
C.".y
1333 0f ouch patron :nith has 3CfYit2; and laid aL^"_t^.e Cay r^"-
a depos!t by any co:13t:Ccr receiving ZonestiC service fa1Ia
;:�:
quire
the gra]ten'3 Flag synter3 of the cue of F•173 Dollars (.-',5,003 —sr
''
,: _tY'T� �:♦.1.^.t �:�;..!.—___?crt.t%^4.-4- ,Y_i':^y arv.]FT'Pl'9-..-" �•'.c".TO
an th•J reyuLre_Cat3 coda by the State of ,Lrlan0a3, or in-
=;
yy ! t is c:o t1::e to tic.-,, '::h^ ther atatu tory or other^,133,
poacd
'h- a !'.r2'% '•::: u'3 :::1 ri--ay b,r.!a h1_;cl:,
n% p:ori a.
of
•
ntlC G.:3.^.n:'J :1:.L :;Ji;:3 to p: V--),\ 1 t_,1 6:1 i•---••-
nlln
Aor Loth C!01^.O t!C a:d in:::]:.131 pt'ry03:3 tOr the 11^
[L'
or Vi]
:- CAL' •c, ill: L`ttu e.gr C.3 t0 enbcr !Lt0 a N::Cr]CC
.�
p:
i ...1
Ci :; of :^y:ttJ•r111G to 'Pcaich aa. -. t`t _.J ty .. th aa Co:
t: t:u
J-:
:6:C t3 tc •L.':e:.^1:: t; thtl :.._.",::'^.9 i).; .!] and.
pb"^ ::aaa ::: 1
�'^: Cl .y real... ;!l r. a..t,, city, != hln; a0n:"rp:a '.1 Y..1:
1 .
Iu V J..
Y�'1.
• • :.Y.'. 1l ::':1 7f :1:: x;33 sJn:ea r - :c
G_.y . :..p :.._.: (?a.^.::e'3
'Y..rpW.4r :.•n.., :L:ri.JL n n.ar r ..•L: .. i. y1f„
i.l
.. I� •: )l•:
•i r r ..rY r _T_�1., r..r. .r_r r.r..1\ull'r_:Y..prwl, ♦r:..
p'_.'••;:ot cas at ic:•:n prOptt• Cost c:.nl eap enae, at tht t!r..ta an!
!a the ra.^sznr ;mo•riLrby said ccntract. So: a:.c In .c:r.
.1 a ., 1 t. ^1 11 e.... ♦_t! ...'.L ..♦.' .':S to t:,^ J.!.
a Y^en O. 1.hJ t_L.t .) :Y.♦: �_ t• __ya hl. r. ...
Ztce by City 0f ca>=tte-Stria, the flald gran rcc n_r_c•.e
., the t
_
to furnish ga for light!:;, :ani hcst!:.a the Clay =0-11_' fire
free of all cost to the City for the entire 'ailed of
stations
t:Ss Yra_•N._1 se; alz'1 to 1`^ a! ah has foes light! no, heating. cooSn3
re^rt cration or any one boa f!de r_unialpal hospital owned
and
and operated by the said City at a cost of thirty _ercent discc^lt
rates as herein established for the entire term and period
of!
-.... _...... ... .. ....."-_.......
of this franchise, the City to furnish molar for the hospital at
.
its own coat.
Section 7. The grantee has the privilege ofcollce� ry
Yroo each coIIa.Lrcr a pint am rate of One Dol1a^^ (vl'CO) uer
month for gas furnished, ':''.zero connections have been ma•!e an
otters installed, even though no as is used through such meters
and connections, esccpt in case the grant shall fail or refuse
',+r
to supply gas to such consumer.'
Section 0. It is hereby agreed and understood that the
he reir. au!c and estebli•*.cd e oub ject to cir._ngt b; such
rate:,
authority as shall bu established for ouch yt:rpos0 by tht lases
ii
of the St.•i LPi �f /U•.[n r:n."
Section 9. It is further ::_recd and understood that the,!
i1
i:, haft the ri„rt to cnndctt a ran buolacsc lz:
grantee ilert s:L^.1l
of .. 1 1 a• ^!n^ the period of the
=ayctr vil_c, Irk:.tasa J, ..,t_. „
the'C1 y
h':Ytlb;,� ^:,i[..1• I.nt! i,Yla: Sill t'3 <!l 3C8':
•'•
a..• .. .' )":::)I.. ^nd
. i..... to
a: 1 r.. r ._..:' `. enc::t Jf
:'C:)'a I•l:_':J _ LLl.i:1;_♦1 .J L0: La" ••
r11
IJ t.'!::t:iJ.
•
g:=.::eQla t.�=J
-
Sec Y_u.^. 1J, T'::z g'zs ;:-:^: arc!:: r t'o v!1^.'1 for n^•• c:;.c rq
S• is ... CS :; c':^.."t•evlli:
to
.he Inr�n1� i^
♦
'
Jt t.... _..'_'�. .. _.. r..•
t; Jt:a va :.:!:: s.x moo.: _::s _.._
c_ sail ass
�Yr�/.. ,F7 f{.{� 13 ,�.. Mr.{4„ J..•S'.
r•_' TII{
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Nl / F"! ii: BI+ I II
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* Inf .1.'1.1 :1
.
tlLa fi CJa 1LL W Co 1' .I.A.. y _f LEL1, 'a'' J
cy^^! 0. yt
•
f:..."�L:..I 1] 1 of the C! iy" Of 'say-
-•
_•::.'- w eJ .Ili •.._:0!.Pl:°_
'1' WQa_J jr it ullc) •1.. ._ :%a 3:.ap:
G./ a ._i: .uJa.. `LJI
•'_. .c_ 0: eB. F_.r .._ O r,C1-
t'1' n ...1 1.n ti.a J_4 %. s .'.. na 3
of .i3 0_ .L::0_,1_ .._Oa
O_ •_e 0:1210.3 Of tbw'3 SeC 3!an, thi3 Or'1-
pl_, :tit. e1.___
P ♦ '_ t , C{'i+:n 1,
1 LL s. '_.�7, 1t .1:^. C1 i!01 OL' .~: r 'r 1i
t,... .ra2C__
....C.
beccna "11 2.'_ ':011 2.d be de012rci for?elted a.^.4 revealed.
S4Ct! l4. III tv9 C. 0113 :r'a0 `.i o2, c : erat1O1j rer'1ri.^..p o-
C1
•
9731:m, the 6..._.a-.____.11 29e every rea2o.at!.*
re.oval Of .he 113
to a7cid •' -n a Or inj1'J to per30::9 or propeYty.
. _0.^.1:!02
.31'_ 2.:. aa•re *i-1GeJ the Ci.y o'-z;3ttev!ll3 i:on
..
ani e::P1l
In 1033 or e:Te-se caised by the grantee in the
it ape9, Ja^:,
-
Co".1 t!C�1 Ce ra---a, r''•!r!nb O: rG0:Pt— of 92!i gS9 9JT9tGG1.
, t ♦ e' e"'''' any tubltc Street,
a•
•
are u, a•a::3'-?. ctrb, gu•.Str o: P_r!=u. or to bretic
alley,
i_-t0 or to tent 2. uSue_ a2;; p"•ve3er.t for
or cut a::7 pa�3aa3t,
1c t1.ou':r-_tin;;, c112sCc1 Or renovir.S
th3 r1r�06a of 30::3: g,
w:!1 P. per:.:! t 3o to do shall hava been gran...$
the svd -1:3 373tcn
C01::O!l; ao such 0:!rnl. 1i:.^.l'_ bd 30 �•='6L♦:d l'L'til
cv tL3 Cit7 P.::A. ..
lly'.
w.nn �Mnt v•• :.'. \ 1
.. ••1$•i .. v._._1 h..1......... .9•., uOaci. i3 t113 t
,
i _
' •,
•07 tLc l'it7 Co;:::3!1, P�^_ cc2d!L1o1G1 to rG-
fcr._ to b3 ap_:•r;Ja
'5I;r
Ss:a.: r3lultic;; .3 01.. • ':0_ p: r_i o: c2p::-re/1
.
pal: ar.7 t' -'.L 'fl
t0 Of=ba, O:
j
3tr,a tO, 011 )71 'r $v::nt4:1, Or 311'.'1?1::3, �VLGCC3
n::: i.!:...S 1):• \r..'�I+y1 P±�
•
.. it •r r. _!;•% .%A t'.1`: y.n :.�'.!:i•
Jr2^::y
tu o'.Ca :-X•:4i :'.:.'1::, .''.1!:.t :. .r ..:
i:.
_Iw _.. ..n ••'-l. .♦..nom•
t
/'
q'
•;e •1 •if it3 ter:.3 czar L.r37-
.l.
•.:•' b: i-�C' a _
''5
_. ... _. -. ...._. •• evil.
�1.
:f.�l r].l r�i 1_S •�!.'.:'.!: . Pf_
'/�-.. J..:r -.:i 1-�J.'J.1
v 1••I�' a1`+PI,''(r.` 1� ��F �� .. 1. i H 1: -`11a ,�.. 1?\
/' • - �� ♦ 1 Sl'Gro y�l1• a ,• liv�•� n�,iJ •J. 11 ;.Ar
4,/ .v �5 urh. �,1.St1• /v�ya\11`li ./11•.r .} f1e �\ t:t 1 \`♦ l ±V ��y
Y RrV ^„+%ST'1 (I J•^r�\r..ILbV ti r, v�r ¢ erl` iJ, � e 1 'r r •.i-=a•"\
lrlli`/r}y. i�ti� a sr "r. \'Jr ], v -n 4 ISr j - sJ y/" .r,-•Ji
1Z �I IRty Y,e 1111 •Jrl r "/ '^ I1'R ♦ 1..r V�J }j}
.>. •1. ,1 111 e 1 v ' r.r r ♦ 'k� Af P�
_ppM1
1 • . n �.... I r . M11..C. • .''{ pcvided +L•^thcr, that tidn'"orllnance shall be *dceiel to bs ':22•t
..re:cettt by the sran'rae'; rrl none of'the franccsca, r!,, :a
T.• le .. e ' 4• `_
o_ p:i•rIa 'r. .,/ „{,s�_regran.ed and conferred sail
but all of'th:l name shall eass c)d do:ermine, unless the
grartea, uitlin thi?ty (.0) e":ra after the result o_f ouch et-
ection.l- declared, shall file with the City Clerk of
of rayetteville, his written acceptance duly executed accord -`
L' f. J
in g to law,•accopticg all the terns, provisions,;,. oonditio_
ns-'.;.�s:f,�.; • ant obit sattoaa hereof, affi,. .within sis months• ...
after the'pass':-V`
3„e o: this..ordinance,. shat` -begin the construction of his ,•;' ?ry
can plant a=d pystem, in said City.. i -
2//JJ ;x?
Passed dnd :.op-oved this day of fs-rte
(„t ILM1� J
. 1 f n
4 a2,.if,
lrt•JUr or Lre L.tl! of Sa�CLtv`Y1118'.•.•i''
Jt.
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0
u ty tlarx
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1 1,
I,.
MICROFILM®
DATE IIn
REEL iY#h13
AN ORDINANCE granting to John McCullough a franchise for
the term of fifty years to provide a system for the supply of
gas to the City of Fayetteville, Washington County, Arkansas,
and the inhabitants of said City,
BE IT ORDAINED by the City Council of the City of Fay
etteville, Washington County, Arkansas:
section l: That there is hereby granted to John MoCul-
lough, of Tulsa, Oklahoma, hereinafter called the grantee, grid
yam'%. -.to his. successors and assigns, the franchise right and privilege
of supplying gas to the City -of Fayetteville, Washington County,
Arkansas, hereinafter called the City, and to the inhabitants
of said City, for the term of fifty (50) years from the passage
of this ordinance as required by the lens of the state of Ark-
ansas; it being understood and agreed that all rights and priv-
Section 2. The grantee is hereby granted the right -of -say
in, through, under and over all streets, avenues, alleys, side-
walks and•publio grounds of said City for the purpose of erect -
privilege of erecting and installing any and all fixtures and
avenues or alleys shall be for a greater time than shall be
actually necessary, and all streets, avenues, alleys, sidewalks
and other public grounds.ehall be put in as good condition as
ME
before withoutreasonable or unnecessary delay, at the ex-
panse of the grantee; and any replacements, repairs and re-
building of such streets, avenues, alleys, sidewalks or
other public grounds shall be at the expense of the grantee
when caused by the requirements of grantee's system or gas
plants and appurtenances, Grantee is hereby further granted
the privilege of removing his gas plant and system, pipes,
mains, laterals and other property, at the expiration of the
term of this franchise, or the earlier termination thereof;
provided, that said grantee shall put the property of said City
and its inhabitants from which such property shall be removed
in as good condition as before, at his own expense and with-
)
out unreasonable or unnecessary delay;
.Section 3. The City shall make, adopt and enforce all
ordinances necessary to protect said gas plant or plants and
system and property of whatsoever kind connected therewith or
used in the operation thereof, and to protect the grantee in
the sale and unrestricted use and enjoyment of all privileges
and rights under the franchise herein granted.
Section 4. The grantee will not and shall not be required
to extend his mains and facilities at his so]& cost, and to
furnish service to consumers, unless such consumers in the die-
trdot to.be served by such extensions make and execute bona
fide contracts for the consumption of gas at the rates es-
tablished at the time of making such extensions, amounting an-
nually to one-half of the cost of such extensions, and then only
after a Majority vote of the City Council; provided, that
nothing herein contained shall prohibit the grantee from entering.
into and enforcing contracts and agreements by which the con-
sumers shall pay a portion of the coat of such extensions into
districts where the annual gross revenue shall not amount to
one half the cost of such extensions.
4
Section 5. The City shall and does hereby grant to the
grantee
the right to
furnish gas
to
the
inhabitants of
the
City of
Fayetteville,
Arkansas,
at
the
following rates,
to -
wit:
For
the
first
600 cubic
feet
per
month,
For
the
next
1500 cubic
feet
It
It
For
the
next
5000 It
n
it
p
For
the
next
13,000 n
:„
n
„
For
the
next
10,000 9
n_
n
e
For
the
next
)0 ,000 -'(in
, qa
R )
For
the
next
60,000 °-
n
„
For
ALA
aver
100,000°
n
e
a
$1.00 per 1000 cubic ft
• .07 per 100 cubic ft.
• .05 per 100 cubic ft.
.04* per 100 cubic ft
.04 per 100 cubic ft
.031 per 100 cubic ft
03 per 100 cubic ft
.02fr per 100 cubic f2
the event that the patron does not pay for said service when due;
within ten days after a statement of the amount due has been dep-
osited in the.post office addressed to the patron, with postage
prepaid. Said grantee is hereby further granted the privilege
to out off the service to any patron for non-pe'ment of the bill
for gas, after the same has been delinquent for fifteen days,
habitants of the City of Fayetteville.
State of Arkansas, or Lm -
statutory or otherwise;
and firmly binds himself,
L1 times an adgquate supply
purposes for the in -
Section 6. The grantee agrees to enter into a contract
with the City of Fayetteville to furnish said City with gas for
public uses at a rate to be determined by the grantee herein and
the City Council of said city; it being contemplated that the
t
purposes at its own proper cost and expense; at the times and
in the manner provided by said. contract. ?or and in consider-
ation of the rights and privileges herein extended to the said
grantee by the City of Fayetteville, the said grantee agrees
to furnish gas for lighting and heating the City 8allant' ire
stations free of all cost to the City for the entire period of
this franchise; and to furnish gas for lighting, heating, cooking
and refrigeration of any one bona fide municipal hospital owned
and operated by the said City at a cost of thirty percent discount
off rates as herein established for the entire term and period
of this franchise, the City to furnish meter for the hospital at
its own cost;
Section 7. The grantee has the privilege of collecting
from each consumer a minimum rate of One Dollar (.$1.00) per
month for gas furnished, where connections have been made and
meters installed, even though no gas is used through such meters
and connections, except in case the grantee shall fail or. refuse
to supply gas to such consumer.
Section 8. It is hereby agreed and understood that the
rates herein made and established are subject to change by such
authority as shall be established for such purpose by the laws
of the State of Arkansas.
Section 9: It is further agreed and understood that the
grantee herein shall have the right to conduct a gas business in
the City of Fayetteville, Arkansas, during the period of the
franchise herein and hereby granted; and that the City may make
all reasonable rules and regulations for the management of
grantee's gas business.
Section 10. The gas system herein provided for nay extend
to and cover all territory in the City of Fayetteville embraced
within its corporate limits:
Section 11. The grantee agrees to commence the inatallation
of said gas system,within six months from the date of the pass-
• age of this ordinance and to complete said gas system, and be
ready to furnish gas to the inhabitants of the City of Fay-
etteville within twelve (12) months from the date of passage
of this ordinance,agd upon the failure of the grantee to com-
ply with either of the provisions of this Section, this ord-
inance and franchise may, at the option of the City Council,
become null and void and be declared forfeited and repealed.
Section 12. In the construction, operations repairing or
removal of the gas system, the grantee shall use every reasonable
precaution to avoid damage or injury to persons or property,
and. shall hold and save harmless the City of Fayetteville from
. damages, injury, loss or expense caused by the grantee in the
construotioh, operation, repairing or removal of said gas system:
The grantee shall not be permitted. to excavate any public street,
alley, avenue, sidewalk, curb, gutter or parking, or to break
or out into any pavement, or to tunnel under any pavement for
the purpose of constructing, operating, maintaining or removing
the said gas system until a permit so to do shall have been grantd
by the City Council; and no such permit shall be so granted until
the said grantee shall have executed bond, in the amount and
form to be approved by the City Council, and conditioned to re-
pair any and all damage resulting to either paved or unpaved
streets, alldya or avenues, or•to sidewalks, curbs, gutters or
parking by reason of such excavation, tunneling or breaking; and
all such excavation, tunneling and breaking shall be done under
the direct supervision of the City Engineer, or such other agent
or representative appointed for the purpose by the said City
Council:
Section 13. This ordinance and all of its terms and proves
ieisna, and the franchise hereby granted, shall be in force and
effect from and after its passage, approval and publication, and
i
e
provided further, that this ordinance shall be deemed to be
rejected by the grantee; and none of the franchises, rights
or privileges hereby granted and conferred shall be effective,
but all of the same shall cease and determine; unless the
grantee, within thirty (30) dggs after the result of such el-
eotion it declared,
shall file with the
City
Clerk of
the City
of Fayetteville, his
written acceptance
duly
executed
accord-
ing to law, accepting all the terms, provisions', conditions
..: .. ..: .: :. :.. . . 11.. .: .: .:
,.. ' a
ATTEST:
�O.
y er
3/.-/f
• .;. October 7, a"'.,! page F
1980
page G
•
CAS COMPANY
rRANCFIISE: An ordinance restating and amending
ordinances which give Arkansas Western Gas Company an exclusive previous
in
• the city. [Materials beginning at 6. 01]
This proposed ordinance is to replace one which was
originally ratified in 1928.
While the intent of much
.0 V
tU
. 1dsame, the proposed ordinance makes e language two noteworthy
changes.
First, it expands the product sold from "gas" to "natural
as. , 1lgaifled natural j such alternate,
substitute or supplemental fuels
as. . liquified
naturalgas gas, liquified petroleum gas,
Synthetic
and propane -air". This change in
wording
ords g is necessary, according to AWG, because "rapid
pment is being made in the use of gas obtained from
synthetics such as coal and other sources••,
A second change would be to take the utility franchise tax
paid to the city (4% on residential and commercial accounts;
1% on industrial, as approved by the voters on May 25, 1976)
and show it as a separate item on the customer's bill.
There
would be no increase in the taxes paid b
although the amount would gas customers,
amount is now carried in debase ratte fo pear to double the
gas service.
Adoption of this provision would be consistent with, and is
mandated by, a February 7, 1980, Order of the Arkansas
Public Service Commission.
qJ 'NOMINATIONS: A report from the Board Nominating
70 appointments to the Bicycle Task Force and the Ele trial Licensing Board.
]Applications included separatelyregarding
in Directors' packets]
SIGN APPEAL kl•
regarding A 4 : An
appeal from the literal provisions of the Si
7, g sign located at 400 S e8.Ordinance,11
North College Avenue, See 8. 0lJ
Petitioner; Dave Tackett Service Stations, b
Zoning District: Y Dave Tackert
C-2 Thoroughfare Commercial
Variance requested:
non -conforming free-standin t sign replace aone 43- s9uare f
in size, at a setback of 14'g from North wtge Avenue
College Avenue
,r
:an.. 11Y" Pegulatiorx5
amral gas service on file
Arkansas Public Service Ci
and as interpreted and ee
Grantee. All utility services
form with these rules and Is
as well as any other applk
TO
AND
I FIE
BEI.._ -- -- _.
HF, IT ORDAINEDTORS BY THE BOARD
rA ETEtVILL OF THE CITY OF
F'AYETnFI. ardina ARKANSAS:
Section I. That read
a as follows:
No. sW is
hereby S amended to rear as. conditions
ond it
111 Subject ttons the tern's, erein,i he
and of ipFayettes specified herein, the
k' Fayetteville has Company. grants N
Arkansas We rgan Gasnd g
corporation the awed and existing
f
pursuant to the laws of the State of
essorsYrkaras. Gse s, tee,and and toes its src
prison, lessees, and assigns the right.
sent and n .arid authotuture ey within the pre
soot il the
City nsof of the
ayet-
teN ale to limits of the City t nsmit
die i to selt, gas, to all in
and distribute natural gas all he
in-
habitants and Consumers within the
said t.eqcorporateuip,
limits. operate, rn tar, nd
maint ea sys f gas repair and
maintain a eedtem of gas mums, aipes,
conduits, Feeders and appurtenances
fordistthe ributinaturalngsupplying
and gas light, purr
pnwetrand h e i en foranyinhabitants
Miter put
pow to the residents Cr to t v. construct,
o erated arid
antcn to system
of
gas
operate ipe maices co a syand feeders gas
mares, essa atuac and ts.an
and the necessary m ppurtn, con
pert ions, urtores and conveying, appurtenances con'
for i the Air dose of ngove turn cons
ducting or within
itlimits gas
from any points le the said city ee o
in order to sell
the said Grantee to
saidCiyr and tort natural gas 01 the
hard ('its and to the t6otheLa As it
us-
ed ihabn this and tc others. Aat rte
Mss thisordinance a'slthetedmsenatsrnl
vas' and "gas' shall o tura as in.
coding, a addition to i natural Ogas,
such sal fuels substitute or cep
pgmenUl fuels ra but as, limited liquified
lictru u natural gas, natural
andpro a gas. synthetic cisegas
and propane -air. This per a shall
AS
n exclusive shat as it n.exclus to
e
insofar
gas but shall be such
alternate,
le n ter,
Insofar asto it pertains tl uela,
or supplemental fuels at as,
nut not limited m, liquified natural
gas. liquified petroleum gas, synthetic
UR DINANCE NO, zsaa
AN t)RDINANCE AMENDING OR
DINANCE NO. fiJ TO AMEND THE
FRANCHISE ASSIGNED TO AND
UNDER WHICH ARKANSAS
WESTERN GAS COMPANY HAS THE
RIGIt9'. PRl\'t1.F:II F: AGI FHd\
t2) Tor Grantee herein is expressly
given the permit (subject N the pro-
viso hereinafter contained) to use the
streets, avenues, roads, highways.
alleys, sidewalks and other public
places, as now laid out, or hereafter to
be estaolished, far the purpose of lay-
ing gas maim, pipelines, conduits and
feeders, and the necessary at-
Iachinents, fixtures, connections and
appurtenances for the purpose of coo'
veving or conducting natural gas from
my pound within the said City or to any
point beyond the City limits to the said
city, or eo any other point, through and
beyond the City limits of said City; and
to operate and maintain a system of
pipelines, pipes, conduits, feeders and
the necessary attachments, sonnet
t ions, fixtures and appurtenances for
the distribution of natural gas within
said city to serve the said City and the
residents and inhabitants thereof. and
others: Provided, however, that where
: lless are accessible for laying mains
find pipes, the City shall have the right
II, require that the mains and pipes
shall he laid in the alleys instead of the
streets, so long as this is economically
leanble dyes Na create an economic
uardshipi; and. Provided further, the
stress, venues, roads, highways,
alleys, sidewalks and other public
places as now laid out or as hared leT
"tabli ,IS, shall not be unnecessarily
and anreaeonably impaired or
III' ;fed thereby.
48 —Legal Notices
tL No fees or charges of any kind
shall be imposed by Granter upon the
Grantee or upon any successors, or
upon any consumer of natural gas for
the breaking a opening of any
highway, street, road, avenue, alley,
or other public places, or for the laying
of any main service pipe or other con-
nections therein, except as would be
generally imposed on others perform-
ing similar work under similar car
cumstances and conditions
Nothing in this franchise shall be
construed in such matter as to in any
manner abridge the right of the City to
pass and enforce the necessary police
ns regulatiofor the purpose of protec-
ting the citizens of said City and their
property and the property of the
Grantee
Grantee shall at all times keep and
display the necessary danger siQnais
and properly guards around all ex-
cavations and obstructions and shall
keep sufficient space in good condition
for the travel of vehicles on at least one
side of all excavations and obstruc-
tions, and shall as soon as practicable
restore all openings on the highway.
raed, street avenue, alley' and other
public places to condition equally as
good as before said openings or
obstructions were made. Anything to
the contrary notwithstanding, when in
the judgment of Grantee it is
necessary for the gaiety of the citizens.
to divert or detour traffic from the
area of excavations it shall have the
power to so doupon notice to said City.
141 The Grantee shall do no injury to
any highway. road. street, avenue,
alley, lane, bridge, stream or water
course, park or public place. except as
specifically allowed, nor with any
public or private sewer or drainage
ow
system. or water lines. nor
hereafter laid or constructed by the
said City or by any authorized person
or corps anon, but no sewer or water
pipes electric conduits, telephone or
TV cables shall be so laid as to in-
terfere unnecessarily with any gas
main or pipes which shall have been
laid prior to the time of laying such
electric conduits, telephone and TV
cables, sewer or water pipes. The
Granite shall fully indemnify antd save
harmless the City from any and all
claims for damage for which said City
shall or might be made or become
liable by reason of the granting of this
franchise, or any negligeilee or
carelemr9 an the part of said
Grantee, or because of any actesamts'
if of the Grantee in the cnuucnon
and operation of its system of trim
The rates which are to be charged by
Grantee for natural gas service
hereunder shall be these which are
now lawfully approved or Wesert
and as said rates may from
time. )r lawfully appml.
t iii ,s L11 .'(1. JP I!I bb if[I, hLu
n1 hoslreadn, r.
tsi The Grantee shall furnish promo
11v ti the prP. r authorities any and el
1 11
re+\aver. aid un
in regard to its Ott a I
highways. streets, an+ .. I
grounds of said City. NIIICI- Ift'
ills
demand. the word Granter
ordinance,
occurs in this ordinance, it shall mean
and it shall be understood to be the
Arkansas Western Gas Company. its
successors, lessees, or assigns, and
whenever the words "authorities or
''proper authorities'' occur in Uts
he
-
4.
Iranchtxe they shall mean and shall
to mean the authorized of
understood
ricer or officers. committee or board
t\„
representing the City of Fayetteville. I
so II
Arkansas. or Grantor.
C) During the life of this franchise
sloI'
eat
the Grantee shall pay to Granter each
Safi
year a franchis:. tax in an amount
th,i
equal to four percent 4%l d its sales
tlr It,
before taxc of natural gas to maiden
deC)d-I or rl. Ilia IF I.
bat and commercial consumers within
Ilona]
the corporate limits of the City of
Section s All ordinances,,,,
Fayetteville and one percent II'61 of
bons or parts thereof hl
its sales, before taxes, of natural gas to
herewith are hereby repealed
industrial consumers within the City of
Fayetteville. provided, said franchise
PASSED AND APPROVED the n.
day of October. Tien.
tax may he increased after June m,
APROV
APROVEDr
19as, M the City of Fayetteville
d
Paynnnts shall be made by the
MAYOR
Grantee to the Grantor in quarterly in
ATTEST
stallments and Grantee shell have
yivian Koenel
thirty Im' days after the end d each
CITY CLERK
calendar quarter within which to make
term
such payment. Residential. ewntner
cial and industrial gas revenues are
these revenues as classified pursuant
to Grantee's uniform classificaion
standards. Grantor shall have the
right to examine and verify, from the
records of the Grantee, any data
relating to the gross revenues of
Grantee from customers on which Saud
franchise tax is due. In the event of
controversy between the Grantor .n..
Grantee as to the amount of gross
revenues received by Grantee in the
City of Fayetteville upon which said
tax is due, such controversy shall be
referred to the Arkansas Public Sir
vice Commission, or any such s,r
cessor regulatory' agency which II
have jurisdiction over the Grantee.
final determination, and the decnaroo
of said Commission shall be binding
upon both parties hereto.
It is expressly agreed and
understood by the Grantor nor'
Grantee that the aforesaid papal'
shall constitute and be considered
complete payment and discharge h,
the Grantee, its successors and
assigns. of all licenses, fees. charges.
Imps it ions or taxes of sty kind other
than automobile home fees, improve
men' districts, special mdlage taxes
and general ad valorem taxes' which
are new or might in the future be im
posed by the Grantor under aulhorlt
conferred upon the Granter by law. It
the event such other tax or taxes ar
imposed by Grantor, the obligation o
the Grantee set forth in Section
hereof, to pay the Franchise taxes an
natty shall immediately terminate
Si This franchise shall take offer
and continue and remain in fore.
perpetually as provided in Section 440
Acts of 19:15, No TN, Acts of the Stall
of Arkansas. as same may be emends
from time to time, and upon the writ
ten acceptance by the Grantee of IM
5) Naturalps service Yale be pro-
vided under the terms and condillan
herein specified and pursuant to the
rules and regulations of the Arkansas
Public Sen'ice Commission governing
utility service, as well as Grant"'s