HomeMy WebLinkAboutOrdinance 6419113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6419
File Number: 2021-0112
AMEND ORDINANCE NO.2740:
AN ORDINANCE TO AMEND ORDINANCE NO.2740 TO ENSURE THAT
TRANSPORTATION CUSTOMERS ARE TREATED EQUALLY TO CUSTOMERS OF
NATURAL GAS FOR THE FEES THEY PAY TO BLACK HILLS ENERGY
WHEREAS, the City of Fayetteville pursuant to its statutory authority granted by Chapter 200,
Municipal Authority Over Utilities has for many decades granted the natural gas utility a franchise
to operate in the City and charged a franchise fee for the sale of such gas within the City of
Fayetteville; and
WHEREAS, on October 7, 1980, the Fayetteville Board of Directors passed Ordinance No. 2663
renewing and granting Arkansas Western Gas and its successors a perpetual franchise to lay and
maintain gas mains in City right-of-way and general utility easements and otherwise to operate in the
City while charging a franchise fee based upon a percentage of its sales; and
WHEREAS, on August 4, 1981, the Fayetteville Board of Directors passed Ordinance No. 2740
which amended paragraph (7) of Ordinance 2663, by reducing the franchise fee to three percent (3%)
for its sales to all customers except industrial customers whose franchise fee remained at One Percent
(1 %); and
WHEREAS, the City was just informed that a new class of customers has occurred which do not
purchase gas from Black Hills Energy, but "independently purchase their own natural gas from a third
party and then pay Black Hills Energy to deliver (transport) this gas to their premises using the Black
Hills Energy natural gas distribution system;" and
WHEREAS, in order to treat transportation customers similarly to consumers, the franchise fee needs
Page 1 Printed on 312121
Ordinance 6419
File Number. 2021-0112
to also apply to these transportation customers.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends Ordinance No.
2740 which amended paragraph 7 of Ordinance No. 2663 by repealing paragraph 7 in its entirety and
enacting a replacement paragraph 7 as follows:
"(7) During the perpetual life of this franchise, Black Hills Energy and any successor as the Grantee of
this franchise shall pay to the City of Fayetteville (Grantor herein) each year a franchise tax in an
amount equal to one percent (1 %) of its sales and transportation charges, before taxes, of natural
gas sold or delivered to industrial consumers within the City of Fayetteville; and three percent
(3%) of its sales and transportation charges, before taxes, of natural gas sold or delivered to all
non -industrial consumers within the City of Fayetteville."
PASSED and APPROVED on 3/2/2021
Attest:
I -
Kara Paxto , City Clerk Treasurer
T �i
RE
.�� G : •G�� Y 0,c •SG A'.
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-�; FAYETTEVILLE; r
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Page 2 Printed on 312121
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Text File
File Number: 2021-0112
Agenda Date: 3/2/2021 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Ordinance
Agenda Number: D 4
AMEND ORDINANCE NO. 2740:
AN ORDINANCE TO AMEND ORDINANCE NO. 2740 TO ENSURE THAT TRANSPORTATION
CUSTOMERS ARE TREATED EQUALLY TO CUSTOMERS OF NATURAL GAS FOR THE FEES
THEY PAY TO BLACK HILLS ENERGY
WHEREAS, the City of Fayetteville pursuant to its statutory authority granted by Chapter 200, Municipal
Authority Over Utilities has for many decades granted the natural gas utility a franchise to operate in the City
and charged a franchise fee for the sale of such gas within the City of Fayetteville; and
WHEREAS, on October 7, 1980, the Fayetteville Board of Directors passed Ordinance No. 2663 renewing
and granting Arkansas Western Gas and its successors a perpetual franchise to lay and maintain gas mains in
City right-of-way and general utility easements and otherwise to operate in the City while charging a franchise
fee based upon a percentage of its sales; and
WHEREAS, on August 4, 1981, the Fayetteville Board of Directors passed Ordinance No. 2740 which
amended paragraph (7) of Ordinance 2663, by reducing the franchise fee to three percent (3%) for its sales to
all customers except industrial customers whose franchise fee remained at One Percent (1%); and
WHEREAS, the City was just informed that a new class of customers has occurred which do not purchase
gas from Black Hills Energy, but "independently purchase their own natural gas from a third party and then pay
Black Hills Energy to deliver (transport) this gas to their premises using the Black Hills Energy natural gas
distribution system;" and
WHEREAS, in order to treat transportation customers similarly to consumers, the franchise fee needs to also
apply to these transportation customers.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends Ordinance No. 2740
which amended paragraph 7 of Ordinance No. 2663 by repealing paragraph 7 in its entirety and enacting a
replacement paragraph 7 as follows:
City of Fayetteville, Arkansas Page 1 Printed on 31212021
File Number: 2021-0112
"(7) During the perpetual life of this franchise, Black Hills Energy and any successor as the Grantee of this
franchise shall pay to the City of Fayetteville (Grantor herein) each year a franchise tax in an amount equal
to one percent (1 %) of its sales and transportation charges, before taxes, of natural gas sold or delivered
to industrial consumers within the City of Fayetteville; and three percent (3%) of its sales and
transportation charges, before taxes, of natural gas sold or delivered to all non -industrial consumers within
the City of Fayetteville."
City of Fayetteville, Arkansas Page 2 Printed on 31212021
Legistar ID No.: 2020-
AGENDA REQUEST FORM
FOR: Council Meeting of March 2, 2021
FROM: Paul Becker and Kit Williams
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
AN ORDINANCE TO AMEND ORDINANCE NO.2740 TO ENSURE THAT
TRANSPORTATION CUSTOMERS ARE TREATED EQUALLY TO CUSTOMERS OF
NATURAL GAS FOR THE FEES THEY PAY TO BLACK HILLS ENERGY
APPROVED FOR AGENDA:
`Qa.A 0.
Paul Becker
-Y
City Attorney it Williams
FE e. 8 zd zi
Date
Date
41
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY ATTORNEY
TO: Mayor Jordan
City Council
CC: Susan Norton, Chief of Staff
FROM: Kit Williams, City Attorney
DATE: February 8, 2021
Kit Williams
Cit , Attorney
Blake Pennington
Assistant City Attorney
I Batker
'araleKal
RE: Natural Gas Franchise Fee Should be Expanded to Cover Transportation
Costs if Customer Purchases the Natural Gas from another Supplier
Black Hills Energy sent the City a letter we received on February 5, 2021
which I have attached. It described a fairly new situation in the natural gas
distribution system that I had not previously heard about. Apparently, some of
their customers purchase natural gas from a source other than Black Hills Energy,
but use and pay for the transportation of their gas through Black Hills Energy's
pipes to deliver their gas to them. Since our franchise for the natural gas utility
only assesses a franchise fee for the sale of natural gas to customers and no such
actual sale of gas occurs when Black Hills Energy only transports a client's gas to
the client's facility, these entities are unfairly receiving favored treatment.
The Mayor and Paul have authorized me to draft and present to the City
Council an ordinance to make Black Hill Energy transportation charges to be
subject to the franchise fee. I believe that only major customers such as industries
or maybe the University would try to reduce their costs by buying natural gas
from an outside source and then pay Black Hills Energy to transport it for them to
their facilities. Regardless, the City should endeavor not to treat its traditional
businesses and consumers less well than those which buy their natural gas from
another supplier. They should have to pay a franchise fee through Black Hills
Energy to the City for the transportation costs just like everyone else pays our
franchise fees.
ORDINANCE NO.
AN ORDINANCE TO AMEND ORDINANCE NO. 2740 TO ENSURE THAT
TRANSPORTATION CUSTOMERS ARE TREATED EQUALLY TO CUSTOMERS OF
NATURAL GAS FOR THE FEES THEY PAY TO BLACK HILLS ENERGY
WHEREAS, the City of Fayetteville pursuant to its statutory authority granted by Chapter 200,
Municipal Authority Over Utilities has for many decades granted the natural gas utility a
franchise to operate in the City and charged a franchise fee for the sale of such gas within the
City of Fayetteville; and
WHEREAS, on October 7, 1980, the Fayetteville Board of Directors passed Ordinance No.
2663 renewing and granting Arkansas Western Gas and its successors a perpetual franchise to
lay and maintain gas mains in City right-of-way and general utility easements and otherwise to
operate in the City while charging a franchise fee based upon a percentage of its sales; and
WHEREAS, on August 4, 1981, the Fayetteville Board of Directors passed Ordinance No. 2740
which amended paragraph (7) of Ordinance 2663, by reducing the franchise fee to three percent
(3%) for its sales to all customers except industrial customers whose franchise fee remained at
One Percent (1 %); and
WHEREAS, the City was just informed that a new class of customers has occurred which do not
purchase gas from Black Hills Energy, but "independently purchase their own natural gas from a
third party and then pay Black Hills Energy to deliver (transport) this gas to their premises using
the Black Hills Energy natural gas distribution system;" and
WHEREAS, in order to treat transportation customers similarly to consumers, the franchise fee
needs to also apply to these transportation customers.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends Ordinance
No. 2740 which amended paragraph 7 of Ordinance No. 2663 by repealing paragraph 7 in its
entirety and enacting a replacement paragraph 7 as follows:
"(7) During the perpetual life of this franchise, Black Hills Energy and any successor as the
Grantee of this franchise shall pay to the City of Fayetteville (Grantor herein) each year a
franchise tax in an amount equal to one percent (1 %) of its sales and transportation charges,
before taxes, of natural gas sold or delivered to industrial consumers within the City of
Fayetteville; and three percent (3%) of its sales and transportation charges, before taxes, of
natural gas sold or delivered to all non -industrial consumers within the City of Fayetteville."
PASSED and APPROVED this 2Id day of March, 2021.
APPROVED: ATTEST:
LIM
LIONELD JORDAN, Mayor
KARA PAXTON, City Clerk/Treasurer
A]
Black Hills Energy
k,<')c.
Jeff Dangeau
Associate General Counsel
Jeff Dangeau@blackhiliscorp corn
December 18, 2020
Mr. Kit Williams
113 W. Mountain St
Suite 302
Fayetteville, AR 72701
Dear Mr. Williams:
RECEIVED
FE88520,
CRY ATTORNEy'S OFFICE
655 E Millsap Rd..
Fayetteville. AR 72703
P 479-601-8174
C 479-409-7265
Periodically, Black Hills Energy audits the utility franchise agreements with cities across our service
area to make sure the franchise fees we're collecting on behalf of our communities are accurate.
In a recent audit of the City of Fayetteville's franchise agreement we discovered a clause that
requires clarification based on current interpretation of the language.
The franchise agreement, which was last updated in 1981 states:
"During the life of this franchise, the Grantee shall pay to Grantor each year a franchise tax in an
amount equal to three percent (3%) 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 (1%) of
its sales, before taxes, of natural gas to industrial consumers withing the City of Fayetteville."
This language lists the customer classifications that were active at the time the agreement was
executed. Since this agreement was last updated, the transportation customer class has been
added.
Transportation customers do not purchase gas from Black Hills Energy. They independently
purchase their own natural gas from a third party and then pay Black Hills Energy to deliver
(transport) this gas to their premise using the Black Hills Energy natural gas distribution system.
Therefore, they would not be charged a franchise fee on the sale of natural gas as defined in the
City's agreement.
If it was the City's intent for all customer types to be included in the franchise fee collection, we are
asking that the City provide official clarification of this or amend the franchise agreement language
to reflect all customer types.
Included is a copy of the City's current franchise agreement with Black Hills Energy. We are happy to
answer any questions you might have regarding the franchise language interpretation and
clarification. Please contact Amiee York at 479-263-4224 should you have questions.
Sincerely,
Jeff Dangeau
Associate General Counsel
Black Hills Energy
Enclosure
CC: City Mayor
City Clerk/Treasurer
www blackhillsenergy.com
Na I In k Hills Eno rgy
Ready
Jeff Dangeau RECEIVED
Associate General Counsel
Jeff.Dangeau@blackhillscorp.com Fm 05 2021
QTl y CrF SAYMULLE
OTYCLMSORCE
February 2, 2021
Ms. Kara Paxton
113 W. Mountain St
Room 308
Fayetteville, AR 72701
Dear Ms. Paxton:
655 E Millsap Rd, .
Fayetteville, AR 72703
P: 479-601-8174
C: 479-409-7265
Periodically, Black Hills Energy audits the utility franchise agreements with cities across our service
area to make sure the franchise fees we're collecting on behalf of our communities are accurate.
In a recent audit of the City of Fayetteville's franchise agreement we discovered a clause that
requires clarification based on current interpretation of the language.
The franchise agreement, which was last updated in 1981 states:
"During the life of this franchise, the Grantee shall pay to Grantor each year a franchise tax in an
amount equal to three percent (3%) 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 (1%) of
its sales, before taxes, of natural gas to industrial consumers withing the City of Fayetteville."
This language lists the customer classifications that were active at the time the agreement was
executed. Since this agreement was last updated, the transportation customer class has been
added.
Transportation customers do not purchase gas from Black Hills Energy. They independently
purchase their own natural gas from a third party and then pay Black Hills Energy to deliver
(transport) this gas to their premise using the Black Hills Energy natural gas distribution system.
Therefore, they would not be charged a franchise fee on the sale of natural gas as defined in the
City's agreement.
If it was the City's intent for all customer types to be included in the franchise fee collection, we are
asking that the City provide official clarification of this or amend the franchise agreement language
to reflect all customer types.
www.blackhillsenergy.com
Included is a copy of the City's current franchise agreement with Black Hills Energy. We are happy to
answer any questions you might have regarding the franchise language interpretation and
clarification. Please contact Amiee York at 479-263-4224 should you have questions.
Sincerely,
Jeff Dangeau
Associate General Counsel
Black Hills Energy
Enclosure
CC: City Attorney
City Clerk/Treasurer
www.blackhillsenergy.com
ORDINANCE NO. 7�/o
AN ORDINANCE AMENDING ORDINANCE NUMBER 2663 TO
LOWER THE FRANCHISE TAX PAYABLE BY ARKANSAS WESTERN
GAS COMPANY.
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the first sentence in paragraph (7)
of Sec. Iof Ordinance No. 2663 is hereby amended to read
as follows:
i
(7) During the life of this franchise, the Grantee
shall pay to Grantor each year a franchise tax in an
amount equal to three percent (3%) 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 (1%) of its sales, before
taxes, of natural gas, to industrial consumers within
the City of Fayetteville.
Section 2. That this ordinance shall be effective thirty
(30) days after the date of publication by the Washington County
Court of the proclamation declaring the results of the election
on a county sales tax held July 28, 1981; provided, in the event
of an election challenge the effective date of this ordinance
shall be the first day of the first calendar month subsequent
to the final judicial determination of the challenge.
PASSED AND APPROVED this day of �cct��c.��� l 1981.
ATTEST:
CITY CLERK
I. .
APPROVED:
MAYOR
ORDINANCE NO. 4,&J
AN ORDINANCE AMENDING ORDINANCE NO. 703 TO AMEND
THE FRANCHISE ASSIGNED TO AND UNDER WHICH ARKANSAS
WESTERN GAS COMPANY HAS THE RIGHT, PRIVILEGE AND FRANCHISE
TO CONSTRUCT, MAINTAIN AND OPERATE A NATURAL GAS SYSTEM
AND TO LAY GAS MAINS ALONG THE STREETS, AVENUES, ALLAYS,
ROADS AND HIGHWAYS AND OTHER PUBLIC PLACES IN THE CITY
OF FAYETTEVILLE FOR THE PURPOSE OF DISTRIBUTING AND `
SELLING NATURAL GAS.
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
within the present and all future expansions of the
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
limits; (b) to lay, construct, equip, operate, repair
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
- 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, oX
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.
(4) 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.
(5) 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
Ja'
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 he understood to mean the authorized
officer or officers, committee or board representing
the City of Fayetteville, Arkansas, or Grantor.
(7) During the life of this franchise the Grantee
shall pay to Grantor each year a franchise tax in an
amoyn 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 (1%) 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
quaxter 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, apy ata�
ryela�ing_�Q_tt�e_yros.s .revenues_of__Gran.tee.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.
- 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. �Q PASSED AND APPROVED the _Jd, day of 2tg&J
APPROVED:
YOR
ATTEST:
CITY CLERK
The Arkansas Western Gas Company, a corporation, Grantee,
hereby accepts the above franchise subject•to the terms and
conditions therein this `� day of ,
1980.
ATTEST
SECRETARY
ARKANSAS YESTERN GAASOMPANY
7
By:
/4L��'t/-� CZL�jv1i�'t��
-
RESIDENT
AN ORDINANCE INCREASING THE FRANCHISE TAXES PAYABLE TO
THE CITY OF FAYETTEVILLE BY ARKANSAS WESTERN GAS COMPANY.
WHEREAS, the Board of Directors has determined that an
increase in local franchise taxes is necessary on an interim
basis to supplement existing general fund revenues until such
time as statewide local enabling legislation, state legislation,
or constitutional amendments are adopted which increase the
ability of municipalities to support themselves; and
WHEREAS, the Fayetteville Board of Directors has proposed
an increase in the franchise,taxes payable to the city by
Arkansas Western Gas Company; and
WHEREAS, Arkansas Western Gas Company has consented to
the aforesaid proposed increase in franchise taxes, if said
increase is authorized by a majority vote of the electors of
the city voting on the question of said increase; and
WHEREAS, at a special election held May 25, 1976, a majority
of the electors voting on the question approved a proposed or-
dinance increasing the franchise taxes payable by Arkansas Western
Gas Company to the amount proposed by the Fayetteville Board of
Directors.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
OF THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the first paragraph of the agreement
entered into by and between the City of Fayetteville, Arkansas
and Arkansas Western Gas Company on October 24, 1955 is hereby
amended to read as follows:
That the company agrees to pay to the city
commencing July 1, 1976, for a period of ten years
certain, a sum equal to 4% of its sales of natural
gas to domestic and commercial consumers within
the corporate limits of the City of Fayetteville
and 1% of its sales of natural gas to industrial
consumers within the City of Fayetteville. The
company shall have thirty (30) days from the end
of each quarter to compute and make the payments
provided herein.
Section 2. That this ordinance shall be in full force
and effect from and after June 24, 1976 upon execution hereof
by'the Mayor and City Clerk and approval of this ordinance
by authorized representatives of Arkansas Western Gas Company.
REFERRED TO A VOTE OF' THE ELECTORS PURSUANT TO ARK. STAT.
19-2429 BY RESOLUTION NUMBER 20-76 ADOPTED P_PRIL 20, 1976.
APPROVED BY ELECTORS AT SPECIAL ELECTION HELD MAY 2�j5J, 1976.�
MAYOR
ATTEST:
Q k4 y Y"_ � �
CITY CLERK
ARKANS TE ANY
BY:
ATTEST:
NORTHWEST ARKAISAS
Demme V Gazette
F.0.30X T -C7 FA i VPILLE AP. ,C2. 47,9-' ,r170u • F„t e7;.69_�rt8. +W%Y1J.NNIAl? 77.
AFFIDAVIT OF PUBLICATION
I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas
Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so
related to this publication at and during the publication of the annexed legal advertisement
the matter of: Notice pending in the Court, in said County, and at the dates of
the several publications of said advertisement stated below,
and that during said periods and at said dates, said newspaper
was printed and had a bona fide circulation in said County;
that said newspaper had been regularly printed and published
in said County, and had a bona fide circulation therein for the
period of one month before the date of the first publication of
said advertisement; and that said advertisement was published
in the regular daily issues of said newspaper as stated below.
City of Fayetteville
Ord 6419
Was inserted in the Regular Edition on:
March 14, 2021
Publication Charges: $186.96
&ft _ S*6L
Brittany 9mith
Subscribed and sworn to before me
This I S day of �qa,,,— , 2021.
('-V, ('
Notary Public
My Commission Expires: 2-12-1 LPL
Cathy Wiles
Benton COUNTY
NOTARY PUBLIC —ARKANSAS
My Commission Expires 02-20-2024
**NOTE** Please do not pay lt�No.12397118
Invoice will be sent.
Ordinance: 6419
File Number: 2021-0112
AMEND ORDINANCE NO. 2740:
AN ORDINANCE, TO AMEND
ORDINANCE NO. 2740 TO
ENSURE THAT
TRANSPORTATION
CUSTOMERS ARE TREATED
EQUALLY TO CUSTOMERS OF
NATURAL GAS FOR THE FEES
THEY PAY TO BLACK HILLS
ENERGY
WHEREAS, the City of
Fayetteville pursuant to its statutory
authority granted by Chapter 200,
Municipal Authority Over Utilities
has for many decades granted the
natural gas utility a franchise to
operate in the City and charged a
franchise fee for the sale of such
gas within the City of Fayetteville;
and
WHEREAS, on October 7, 1980,
the Fayetteville Board of Directors
passed Ordinance No. 2663
renewing and granting Arkansas
Western Gas and its successors a
perpetual franchise to lay and
maintain gas mains in City right-of-
way and general utility easements
and otherwise to operate in the City
while charging a franchise fee
based upon a percentage of its
sales; and
WHEREAS, on August 4, 1981,
►he Fayetteville Board of Directors
passed Ordinance No. 2740 which
amended paragraph (7) of
Ordinance 2663, by reducing the
franchise fee to three percent (3%)
for its sales to all customers except
industrial customers whose
franchise fee remained at One
Percent (1 %); and
WHEREAS, the City was just
informed that a new class of
customers has occurred which do
not purchase gas from Black Hills
Energy, but "independently
purchase their own natural gas from
a third party and then pay Black
Hills Energy to deliver (transport)
this gas to their premises using the
Black Hills Energy natural gas
distribution system;" and
WHEREAS, in order to treat
transportation customers similarly
to consumers, the franchise fee
needs to also apply to these
transportation customers.
NOW THEREFORE, BE IT
ORDAINED BY THE CITY
COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of
the City of Fayetteville, Arkansas
hereby amends Ordinance No. 2740
which amended paragraph 7 of
Ordinance No. 2663 by repealing
paragraph 7 in its entirety and
enacting a replacement paragraph 7
as follows:
"(7) During the perpetual life of this
franchise, Black Hills Energy and
any successor as the Grantee of this
franchise shall pay to the City of
Fayetteville (Grantor herein) each
year a franchise tax in an amount
equal to one percent (1%) of its
sales and transportation charges,
before taxes, of natural gas sold or
delivered to industrial consumers
within the City of Fayetteville;
and three percent (3%) of its sales
and transportation charges, before
taxes, of natural gas sold or
delivered to all non -industrial
consumers within the City of
Fayetteville."
PASSED and APPROVED on
3/2/2021
Approved:
Lioneld Jordan, Mayor
Attest:
Kara Paxton, City Clerk Treasurer
175391421 3/14/21
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