HomeMy WebLinkAbout800 Idaho Power Franchise
ORDINANCE NO. 800
"AN ORDINANCE IN ACCORDANCE WITH IDAHO CODE 50-328,50-329 AND 50-329A
GRANTING A FRANCHISE TO IDAHO POWER COMPANY, A CORPORATION, AND TO ITS
SUCCESSORS AND ASSIGNS, TO CONSTRUCT, MAINTAIN AND OPERATE IN AND
UPON THE PRESENT AND FUTURE STREETS, HIGHWAYS AND OTHER PUBLIC
PLACES WITHIN THE CORPORATE LIMITS OF THE CITY OF MERIDIAN, IDAHO,
ELECTRIC UTILITY PROPERTY AND FACILITIES FOR SUPPLYING ELECTRICITY AND
ELECTRIC SERVICE TO THE CITY, THE INHABITANTS THEREOF, AND OTHERS FOR A
TERM OF 25 YEARS, INCLUDING THE NONEXCLUSIVE RIGHT TO PHYSICALLY LOCATE
AND MAINTAIN TELEPHONE, CABLE, FIBER OPTICS OR OTHER COMMUNICATIONS
FACILITIES; SETTING FORTH AN AGREEMENT NOT TO COMPETE, RESERVING
POWER TO EMINENT DOMAIN; PROVIDING FOR THE PAYMENT OF FRANCHISE FEES;
AND SPECIFYING OTHER LIMITATIONS, TERMS AND CONDITIONS GOVERNING THE
EXERCISE OF SAID FRANCHISE"
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF MERIDIAN, IDAHO
THAT;
SECTION 1. The City of Meridian, Idaho (hereinafter called the "City") hereby
grants to IDAHO POWER COMPANY, a corporation, and to its successors and assigns
(hereinafter called the "Grantee") the right (subject to the rights of the City set forth in Section
14 hereof), privilege and franchise for a period of twenty-five (25) years from and after
November 1, 1998, however, with the right to amend by mutual agreement in
accordance with Section 15, to construct, maintain and operate in and upon the present and
future streets, alleys, highways and other public places within the corporate limits of the City,
electric utility property and facilities for supplying electricity to the City, and the inhabitants
thereof, and to persons and corporations beyond the limits of the City, including the
nonexclusive right to physically locate and maintain telephone, cable, fiber optics or other
communications facilities of the Grantee or other parties, (provided, that Grantee shall comply
with the City's requirements for cable system franchises) all subject to the terms and
conditions hereinafter. specified. In the case of annexation of property to the corporate limit,
such area will be considered under this agreement, upon effective date of the annexation,
subject to Section 9 hereof. All such electric utility property and facilities now maintained by
the Grantee within the streets, alleys, highways and other public places within the corporate
limits of the City shall be deemed covered by this ordinance as provided herein.
SECTION 2. All of the Grantee's electric property and facilities in and upon the
present and future streets, alleys, highways and public places within the corporate limits of the
City shall be constructed and at all times maintained in good order and condition and in
accordance with standard engineering practices and all applicable safety codes and lawful
governmental regulations, including all applicable state and federal regulations and all
CITY OF MERIDIAN/IDAHO POWER FRANCHISE ORDINANCE
construction standards presently in effect by the Idaho Public Utilities Commission or adopted
by that Commission during the term of this franchise agreement.
SECTION 3. Upon request of the City, the Grantee shall relocate its facilities as
necessary within the present and future streets, alleys, highways and other public places
owned by the City. The City shall have no responsibility for the costs of such relocations. The
Grantee shall bear the cost of relocating its facilities at the City's request, unless the facilities
are to be relocated for the benefit of a third party, in which case the third party shall pay the
costs of relocation. In the event federal, state or other funds are available in whole or in part
for utility relocating purposes, the City shall apply for such funds and the Grantee will be
reimbursed to the extent any such funds are actually obtained.
SECTION 4. It shall be lawful for the Grantee to make all needful or convenient
excavations and/or installations in any of the present and future streets, alleys, highways and
other public places within the corporate limits of the City for the purpose of erecting and
maintaining the posts, poles, towers, or other supports for its wires or for the purpose of laying,
maintaining and operating conduits, vaults and wires and other conductors underground for the
purpose aforesaid, or to repair and improve such electric power and light system and to extend
the same; provided that when the Grantee or any person or corporation under the authority of
this franchise, shall disturb any of said streets, alleys. highways or other public places for the
purposes aforesaid, h.e, it or they shall restore the same to good order and condition as soon
as practicable and without unnecessary delay and failing to do so after five days' notice from
the City, or its duly authorized officer or officers, then the City may place said street, alley,
highway or public place in such condition at the cost and expense of the Grantee, and said
Grantee will forthwith pay the full cost and expense thereof upon demand of the City. All
facilities constructed under this ordinance shall be placed and maintained at such places and
positions in or upon such public ways and public places as shall not interfere with the passage
of traffic and shall conform to all applicable laws, rules and regulations.
SECTION 5. The City shall have the right and privilege to string and maintain
wires for its internal communications for its fire, police, airport and other services upon the
poles and other facilities erected and maintained by the Grantee hereunder, subject to the
Rules and Regulations of the Idaho Public Utilities Commission. The City shall string, maintain
and operate such wires at its own expense, risk and responsibility, and in accordance with all
legal requirements and good engineering practices and in such manner as not to impose and
additional expense upon Grantee of its said poles and facilities. Any such wires of the -City
shall be subject to interference by the Grantee only when necessary in the maintenance,
operation or repair of the Grantee's own fixtures, wires, facilities and appurtenances.
SECTION 6. The Grantee shall at all times indemnify and hold the City, its
officers, employees and agents, harmless from any and all expenses or liability arising from or
by reason of any negligent act or omission of the Grantee, its representatives or employees, in
the construction, operation or maintenance of any of the Grantee's electric utility property or
facilities.
CITY OF MERIDIAN/IDAHO POWER FRANCHISE ORDINANCE
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SECTION 7. Upon acceptance of this franchise by Grantee and before Grantee
shall have any rights hereunder, Grantee shall file with the City Clerk a Certificate of
Insurance evidencing General Liability Insurance which covers claims for Bodily Injury,
Property Damage and Personal Injury. Such insurance shall have minimum limits of
$1,000,000 per occurrence. The City of Meridian shall be named as an "Additional Named
Insured" under Grant~e's insurance policy. Should the minimum limits of insurance as set
forth herein be increased above $1,000,000, pursuant to the Idaho Tort Claims Act (Idaho
Code Section 6-901 et. Seq.) or any similar legislation, the Grantee shall be required to
provide the City with a new Certificate of Insurance evidencing the higher limits upon the City's
request.
SECTION 8. The electric service to be furnished to the public hereunder, and all
rates and charges therefor, and all regulation of the Grantee hereunder, shall at all times be
subject to all rules, regulations and orders that may be lawfully prescribed by the Idaho Public
Utilities Commission or by any other governmental authority now or hereafter having
jurisdiction over such matters. During the term of this franchise, Grantee shall at all times
assure that customers within the City have access to customer service from the Grantee as
required by the Idaho Public Utilities Commission.
SECTION 9. As compensation for the right, privilege and franchise hereby
granted, Grantee agrees to pay to the City on or before the 30th day of January, April, July and
October, an amount equivalent to one percent (1 %) of Grantee's "gross revenues" for the
preceding calendar quarter. For purposes of this Section, "gross revenues" shall mean the
amount of money billed by the Grantee for the electricity it sells within the corporate limits of
the City to customers, less uncollectibles. The City shall provide appropriate information to the
Grantee to allow the Grantee to identify which of its customers are located within the corporate
limits of the City for purposes of paying franchise fees. Grantee shall not be responsible for
any failure to pay franchise fees which results from deficiencies in such information provided
by the City. In the event the City annexes a new area into its corporate limits, the terms of this
Section 9 regarding franchise fees shall not apply to the annexed area until sixty (60) days
after the City has supplied the Grantee with appropriate information for the identification of the
Grantee's customers within the annexed area.
The Grantee's franchise fee payment obligations hereunder shall commence with the
start of the Grantee's first full billing cycle following the effective date of this ordinance;
provided, that the Grantee must first receive approval from the Idaho Public Utilities
Commission for the collection of the franchise fee in the rates charged by Grantee.
SECTION 10. The City shall have the right during the term of this franchise.
agreement to increase the franchise fee hereunder up to three percent (3%), by obtaining
approval of a majority of voters of the City voting on the question at an election held in
accordance with chapter 4, title 50, Idaho Code. Any such vote to increase the franchise fee
hereunder shall provide that the increased franchise fee will apply to any electric service
provider (other than the City) who utilizes the City's streets, alleys or other public places to
provide electrical service within the City, during the term of this franchise agreement.
CITY OF MERIDIAN/IDAHO POWER FRANCHISE ORDINANCE
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SECTION,11. The Grantee shall keep accurate books of account for the
collection of the franchise fees hereunder and the City shall have the right to inspect the same
at all times during
business hours, and from time to time audit the same for the purpose of determining gross
revenues under Section 9 above.
SECTION 12. The franchise fees paid by the Grantee hereunder will be in lieu of
and as payment for any tax or fee imposed by the City on the Grantee by virtue of its status as
a public utility including, but not limited to, taxes, fees or charges related to easements,
franchises, rights-of-way, utility lines and equipment installation, maintenance and removal
during the term of this franchise agreement.
SECTION 13. The Grantee shall have the right and privilege, insofar as the City is
able to grant the same, in accordance with National Arborist Association standards, of the
pruning of all trees which overhang the present and future streets, alleys, highways and other
public places within the corporate limits of the City, in such a manner and to such extent as will
prevent the branches or limbs or other parts of such trees from touching or interfering with its
wires, poles and other fixtures and equipment. However, except in an emergency, no pruning
shall be undertaken without giving the occupant of the adjacent property written or oral notice
that such pruning will be performed.
SECTION 14. In consideration of Grantee's undertaking hereunder as evidenced
by its acceptance hereof, the City agrees not to engage in the business of providing electric
seNice during the life of this franchise or any extension thereof in competition with the
Grantee, its successors and assigns; but nothing herein contained shall be construed or
deemed to prevent the City from exercising at any time any power of eminent domain granted
to it under the laws of the State of Idaho. The City shall not grant a franchise to another
electric seNice provider during the term of this franchise agreement unless the eleçtric seNice
provider has received approval to provide electrical seNice within the City from the Idaho
Public Utilities Commission, and the City has imposed the same franchise fee on the electric
seNice provider as paid by the Grantee.
SECTION 15. In the event of an amendment to the laws, rules or regulations of
the City of Meridian, the State of Idaho or the Public Utilities Commission of Idaho applicable to
this franchise, or for periodic review of any section of this agreement, the terms of this
franchise and the rights and privileges hereby conferred may be changed, altered, amended or
modified upon mutual'agreement between the City and the Grantee. In all cases, 60 days
notice shall be required on the part of City or Grantee to reopen the agreement pursuant to this
section.
SECTION 16. Any violation by the Grantee of the provisions of this ordinance,
franchise and grant or any material portions thereof of the failure promptly to perform any of
the provisions thereof shall be cause for the forfeiture of this franchise and grant and all rights
hereunder by the City after sixty (60) days' written notice to the Grantee and the continuance
of such violation, failure or default; however, this provision shall not prevent the Grantee from
CITY OF MERIDIAN/IDAHO POWER FRANCHISE ORDINANCE
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submitting such question of violation or forfeiture to the appropriate forum (which may include
the district court ~aving jurisdiction or the Idaho Public Utilities Commission) for determination.
SECTION 17. Sale, assignment or lease of this franchise is prohibited without
notification and approval by the City.
SECTION 18. . The Grantee shall assume the cost of publication of this franchise
as such publication is required by law.
SECTION 19. The Grantee shall within thirty (30) days after final passage of this
ordinance, file with the City Clerk its acceptance of this franchise in writing signed by its proper
officers and attested by its corporate seal.
SECTION 20. The existing franchise agreement between the City and Grantee set
forth in Ordinance No. 214, dated November 4, 1979, shall terminate upon the adoption and
acceptance of this ordinance.
SECTION 21. Inasmuch as the Grantee has constructed and now is maintaining
and operating the electric utility property and facilities in and upon the streets, alleys,
highways, and public places in the City, it is hereby adjudged and declared that this ordinance
is necessary for the preservation of the public peace, health and safety, and therefore this
ordinance shall take effect on November 1, 1 998 .
PASSED AND ADOPTED by the Council of the City of Meridian this 6th
October , 1998.
day of
APPROVED by the Mayor this 6 th
day of October
,1998.
ATTEST:
(SEAL)
CITY OF MERIDIAN/IDAHO POWER FRANCHISE ORDINANCE
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ACCEPTANCE
IDAHO POWER COMPANY, as the franchisee, accepts the franchise set forth in the
above Ordinance and agrees to abide by the terms and conditions thereof.
DATED this :?S-H, day of C c+ o-bw , 1998.
w.
Secretary
(SEAL)
081298
CITY OF MERIDIANIIDAHO POWER FRANCHISE ORDINANCE
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