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
