HomeMy WebLinkAbout85 Franchise for Intermountain Gas Company
236
ORDINPNGE NO. 85.
AN ORDINANCE OF THE CITY OF MERIDIAN, IDAHO GRANTING TO
INTERMOUNTAIN GAS COlViPANY A THIRTY (30) YEAR FRANCHISE TO
CONS'l'RUCT, MAIN'fAIN, AND OPERATE A GAS TRANSMISSION AND
DISTRIBL~ICN SYSTEM:: PROVIDING FOR THE USE OF STREETS AND
RUIES GOVERNING THE Sl:~lII.E: SUBJTi:GTING- THE TR~ TEE TO ALL
PONERS Qi' THE CITY: SETTING FffiTH THE RULES GOVERNING
REPAIRS AND RECOKSTRDCTION OF THE STREETS: PROVIDING FOR
. THE TERM OF THE FRANCHISE AND GRANL: PROVIDING ,ti'OR THE
RIGHT OF INSPECTION BY THE CITY OF GRANTEg' S PLANS"
ACCOVNTS, AND BOOKS: RE~UIRING GRANTEE TCFlJRNISH GE.RTAI N
MPS:: SE'rTING FORTH THE ANImAL PAYlIiEN'I 'fO THE CITY, AND THE
FILIKG OF ANNUAL r,EPORTS WITH TH3: CITY: ftE~.GIRING GRANTEE
TO INDE1IIJNIFY CITY, AND FILE EVID~NCE OF INSUHANCE:: RE~(jIR-
ING CO~LPLIANCE WI'rHoAFE'l'Y REGULATICNS: SETTING TIME LI!vlIT
IN WHICH TO CO~PLY WITH FRANCHISE: SETTING B'ORTH AN AGR.~E-
LLENT NOT 'ro CObi,PETE, RESERVD~G POWER OF E1ilNENT DOMAIN:
PRCYIDING j!"'OR SURRENDER OF FRANCHIS!!,: GRANTING RIGHT OT
SALVAGE AF'rER FOSTIJ\'G BOKD: RE~1JIRING WRI T'rEN ACCEP'rAN GE:
PROVIDING Fon CONSENT TO SAIE, ASSIGN~ENTOR L8ASE: SETTII\G
F'ORTH CITY I S RIGHT TO ADDITI~NAL PAYM.rl;NTS: ROVIDING FOR THE
PlJ:fiCf.AS~ BY TH:~ CITY AT ITS EL3CTlON OF THj1; GRANTc:I~IS GAS
SYSTE~, WORKS, PLANT AI~ PROPERTY WITHIN THG CORPCHAfE LIMITS
OF lIiEHIDIAN, IDAHO, WITH 'fEE&X.CEP'IIUN OF PROFERTY N.t<.;ITHER
uSED l\OR USEFuL IN 'rHS PUBLIC S :;RVICE, CASH ON HAND OR IN
BAI\'KS, NOTES ,- BONDS, SHARES OIi' STOCK, OR OThER SECURITIES,
AJ\D N-"iY ACCOlJNTS RECE1VABLE O'rFJ2R TfAN CUSTOMERS ACCOUNTS
REGElV AELl!: LESS 'rHAN SIXTY (60) DAYS OLD: THE MANNER, 1tETH@,
TERlV.3, AND Cor~DITIoNS Tf.EREOfl', AND FOR THE: RELEASE OF PROEftTY
SO PDRCHAS8D FROM. MORTGAGES, 'rRUS'f Dfi:@S AND OTHE:R ENCLilViliRANCES:
PROVIDING B'OR THE APPOINTUENT Q1i' A BOARD OF THREE (3) APP?:'\IS SRS
TO I'I:JU<E INVgN'l'ORY AND VALUATICN, AND THEIR ~UALIFICATIONS,'
PUNE:.HS, Al\~D DuTIES:: PROVIDI:NG FOR THE DETERldNATION B,;{ SAID
APPRAIS2BS o.F' THE PVRCliASE PRICE TO BZ PAID BY THE: CITY, AND
RIGHT OF PARTIES TO SUB1\;8:T c;,UESTION TU COlJR'f DETERl\tJNATION:.
THE PAY1V:~T OF SUCH PURCHASE HUCE AND THE CONVEym CE AND
DELIVERY OF POSSESSION OF THE PROPER'ry so PURCHASED: THE TEHMIN-
ATION OF THIS AND ALL O'rlllI:R GAS j;t1RANCHISES H2:LD BY GRA.NTEE FRuM
IV"ERIDIAN UPON FINAL CONS1Jll:J~ATI0N OF SUCH SALE, DELIVERY OF
POSSESSI01 TO THE CITY AND PAYJ.\J.rENT OF THE FULL PURCHASE PhICE:.
PROVIDING Tf.J\T NOTHING IN 'I: IS ORDINANCE BE CONS'l'hUlW AS PRE-
VENTING 1'1-'.-2: SALE 'ro TJ:-lS CITY OF GM~ TEE'S GAS SYSTEk,'WOhKS,
PLANT AI\D PROPii:RTY BY VOLljN'fARY AND lIil'UTLAL AGREEMENt S BETW.2;EN
THE ,CITY AND THE GRANTEE: PROVIDING FOB PAYlvlENT Of PuBLICATION
COSTS:: PROVIDIKG ii'OR CITY IS CONSENT TO GAS STORAGE FACILI'rIJS:
SKI'rn:G ?ORTliI PE:NALTlili AND li'ORFEI'IUElES, SEPARABILITY, AND
REFEAL.
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BE IT ORDAINED 13; THE lIiAYOR AND COllNCIL OF MERIDIAN, ID.AHO.
SECTION 1.
GRAN TS 01'" AUTHORITY
There is h~reby granted to intermountain gas compmy,
a corporation, lts successors and assighn (hereinafter collectively
referred to. as lIgrantee ") the right and authority to construct,
install, malntain and operate a gas transmission and distribution
system"including mans, pipes, conduits, services and other
necessary structures and appliances appertaining in, under, upon,
over, across and along the streets, alleys, bridges, and public I
places within the ITeS8nt. and future corper ate lirrlts of the City
of IE. ridian, idci1 o! (J:1erelnafter referred to as "Ci tyll) for the
furn.lshing, transmlssn..on, distribution and sal e of e;as, whether
,:",tificlal, natural, mixed or otherwise, for heating, domesti c, "~
lndustrial md other purposes and for transmitting gas into ttlI'ough
/IDd beyond said clty. '
SEC'fION II
USE OF. STREETS AND RULES GOVERNING S~~E
Grm tee shall secure a permit for m y opening it shall make
in ~he streets, alleys and public places in the city and shall be
_~SPJ<;3ct _to... eJ.l ~pplicable ordipWQ~$, but. no fee shall be required
of' ~rantee for any such permit. The location a' relocation Or all
1'aci1i ~ies sr.all ?e mad: under the supervision and Wi. th the approval
of suc~_ rep;reseJ;ltattves,:,ascthe goveri_:1ng body of the City may deSignate
for such purpose, but not so as unreasonably to interfere with the .
prop3 r operation of Gral. tee's facilities and s =:;rvice . Whenever
the ci ty shall pave or repave en y street or shall change the grade
or line of any street or public place cr shall cons true t or
reconstruct any conduit, water mmn, sewer or water connection
or other city public V'OI'ks or utility, it shall be the duty of
the Grantee when so ordered by the City to change its mains,
services and other property in the streets or public places at
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237
Ordinance. No 85 Contld
its avn expense so as to conform to the established grade or
line ot such street or public place and so as not to interfere
wi. th the conduits, sewer s and 0 theI' mains of the ci t Y as c on-
structed or reconstructed;: however, the Grantee shall not be
required to relocate pipes, malns and appurtenances when the
street, alley or pUblic ground in which they are located is
vacated for the convenience of abutting proprty owners and
not as an incident to a public improvement, unless the reasonable
c;ost of such relocation and the loss and expense reSll1ti ng there
from is: first pai d to Gran tee. Whenever the City grants a per-
mit for an excavation in a street., alley 0: other pUblic ground
and the work contemplated by the p:ermit m~ expose gas pipes,
mains apd appurtenances of the Grantee, the City shall promptly
furnish a copy of the pErmit to Grantee.
SECTIOK III
GRANTEE SUBJ--ECT TO ALL POW~RS OF
CITY - RULES GOVERNING REPAIR Ar~D
RECONSTRUCTION OF S'rREgTS
The exercise or privileges herein granted shall be subject
at all times to all of the pO~,flerS of the City and all regulatory
ordinm ces adopted pursuant, ~hereto. The Grantee shall not unneces-
sarily or unreasonably opstruct the use of or damage any street
or alley, al d shall wi thin a reasDnable time and as early as p;rac,ti-
cable upon completion of any construction or repatr VD rk, restor e -all
City streets and al~ys to the same order and condition as they
were before the excavation was made insofar as reasonably possib~,
and shall maintain, rep~r and keep in goad condition for a period
of one year all portions of streets and alleys disturbed by it or
its agents. The Grantee shall be responsible for alY obstruction
or any defect in any stre8t, alley or other public place caused
by it in the operation and maintemn ce of its properties occurring
at any time and shall promptly remove wy such obstruction or defect.
Any 8J ch obstruction ar defect which, after prO}E r notice to GrEll tee
demanding removal at' repa1 I' as the case may be, is net promptly
removed or repalired by the Gra1 tee may be tffi. en care of b'J the
City 31 d the costs thereof shall be charged against, Gratee and
may be enforced as a lien upon al y of its pro}B rtles or assets.
SOC:TION IV
TERM. OF l:i'RANCHISE AND GRANT
The r.i ght , authority and grID t herein and hereby made to
said,Grantee, its successors and assigns, is granted fa, and
limited in time to, a period or thirty (30) years from the date it
tam s effect.
SECTION V
CITY HI GHT TO INSPECXIIlN OF
GRAN'rES IS PLANS I ACCOUNTS l_
AND BOOKS -,GlliU~TEE TO
FURNISH CERTAIN ~~PS
The City shall have access at all reasonable hours, to all
o.f the Gra1 tee IS plans, contracts and engineerir:g, accounting,
final. ce, statistical, customer and service recordS relating to the
property ffl d operations of' Grantee wi thin the City. The Grm tee
shall furnish the City with ,a complete set of maps, including plans
and profile of the distribution system of the Grantee and ay future
extensions.
, SECTION VI
PAYlIiENr TO CI TY {,iliD FILING OF' AI\'NUAL
WRI'l'TEN REPORT WITH THE GrTY
as consideration for this franchise and grant said Grantee,
its successor s and assigns, during the frm chise period, shall pay.
to the Ci. ty the following stipulated p9 rcentage ci.' the gros s annual.
receipts received from all sailes of gas wi thin the corper ate linli ts
of the City through use, operation cr possession of 1:l:his franchise-'
and grm t.
(1) Three p3rcent (310) per each year during the life of this;
franchise and grm t. .
Such annual p~ments shall be in lieu of a1 Y and &1 other
fees" charges, licenses or taoces (other than ad valorem taxes)
which the City ~ impose for the rights and privileges herein
granted or for the privilege of doing buSiness ~hin City.
The Grantee shall file by March 31 of each year wi. th the
Ci ty a written repa:' t for the lI' eceding . caiLendar year, verified
by the affidavit of the general manager, auditor, treasurer, or
assistant treasurer of 5& d Grantee,. whic-h repa- t shall contiEl a
statement in such form and detail as shall from time to time be
prescribed_ by the City, of all the gross recelpts ari~g from all
sale s d' gas by sm ~l Grantee within the City for the cal endar year
,preceding such report, and. at the same time the Grantee shall pay
to the City the stipulated 1:8 rcentage of the gr'os::> annual receipts
due for the year for mich sal d report is ma.de and fild. The word
238 Ordinance No 85. Con'td
"year as. used in this Section VI means the CaL endFtr year, exe-eFt
fer the first yea:r which will commence on the date when this .
franchise and g,ran,t is in effec;t and end on the follovli. ng December 31.
'" 8ZGTION VIr
~ANT&g LIABILITY - INDEWillIFICATION
It js, expressly understooi and agreed by end between the .
Grantee and the City that the Grantee shall save the City hax;mJe 5S
from all loss sustained by the City on account of any suit, JUdgment,
execut:Lon, claim, or demand whatsoever, resulting from,negligence
on the IRrtof the Gr1l1 tee in the constrtl..Ction, operatlon er main.-
ten1l1 ce cf it s gas system in the City. The City shall notify the.
GrEfl Lee IS representative in the City within ten (10) day s after the
presentation of any claim or demand, either by suit a' otherwise,
made against the City on account of any negligence as afor.csaid on
the IR'rt of the Grantee.
SECTION VIII
INSURANCE
Uoon acceptance of this franchise by Grantee and before .
Grantee shall have any rights hereunder, Grantee shall file with
the City C]erk a certificate evidencing the ins urance of the Grantee
against property damage in an amount not .13 S8 than $50,000.00 ad
bOdily inj_ury with limits of not ]Jess than $50,000.00 per 1il rson and
5000,000.00 total for each occurrenc e.
SEC'rrON IX
. SAFETY hb,;GUIA'I'ION COMPLIANCE
. Grentee Shall comply with and conform to all safety regulations
promulgated by the City cr any regUlatory body hav:ing jurisdiction
thereof.
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SECTION X
TIME. LIMIT IN \NHICH TO COl1PLY
WITH TEIUilS CF FRANCHISE.
Grantee shall have until August 1, 1957 within which to
lay gas. mm ns and to otherwise comply with the terms of this
franchis e, unless such time is 8~,~t'3nr:1e:1 "Y th3 City.
'. ..:' SEC[' I OlLJa: '
. AGREEIvENT Nor 'ro COl\iJPETE
RESERVE TO CI TY POWER CF E.MlNENT DOMAIN
In conSideration d' Grantee's undertaking hereunder as
evidenced by its acceptq) ce hereof the City agrees. not to engage
in the business, of distributing and' selling gas. during the life
of this franchise or any extension thereof in competition with
the grantee,. its successC[' s, am assighn;: but nothing herein con-
tained shall be construed or de"3med to prevent the City from.
exercising at my time any power of eminent domain grm ted to it
under the llws of the State of Idaho.
SECTION XII
SliltRENDER CF FRANCHISE - GRANTEE'S.
RIGHT TO SALVAGE Aft"TER POSTING BUND
In the event natural gas at my time sahli ceas.e to be
available. to Grantee for the distributioI'. and sal e hereunder,
Grantee reserves the right to surrender this franchis e and in
the event cf such surrender prior to any explra tion cr termination
of this frrn chise, or. in 00. y of such events, Grantee r8serves the'
right to SaL vage all of its plants, works m d facilities. after
posting bond satisfactory to the City to insure restoration 0f
City's s.tre'ets and aLleys damaged by SVCf;. sP,lvage OPEration.
; . .$ECTIQN::;XIII .
WRITTEN ACG8pr~CE
The Grantee shall wi thin thir ty (30) days af'ter the
passage and publication of this ordinance file with. the City
ClErk its acceptonce of' this franchise in writing signed by its,
prayer officers and attes.ted by its corparate seal.
SECTION XIV
SAlli. ASSIGNIvlENT ill LEASE ai' FRANCHISE
No:: sale, assignment, or lease of this franchise shall be
effective until it is appro~ad by ghe City, provided., however, that
nothing herein cont81. ned shall be: construed to require consent or
to prevent the Grantee of this franchise and grant from 1.nclucli.. ng
it in a mortgage or trust deed executed for the purp03 e of
obtaining mon~y for corpar ate objects..
SECTION XY
RI GHT OF Crry TO ADDITIONAL f'AYMENTS
In the event the G:r:antee Shall pay any other City E1'1 Y
greater stipulated IE rcentage of gas sal.es. than hereinbefore
provided the City shall have the right upon demand of requnring
Grantee to pay for the same JEriod of time such higher pErcen-
tages So pai d to such other city.
SECTION XVI
RIGHT OF CITY TO PURCHASE GAS t>Y3T..E:M
At the expiration of this franchise and grant, or at any
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Ordinal ce No. B5 Cont Id 239
time during the ,.f'in'st:'siSxmonths 'of:;tha;'twenty-first (21) or the
twenty-sixth (26) year .of this franchise or the thirtieth (30)'
year during the term of this franchise, the City, at its election
and upon th8 payment o.f the .fair valuation to ue made in the m1:inner
hereinafter: provided, may purchase and take over to itself the
gas, system, works, plant and proIB rty of the grantee in its en-
tirety, as hereinafter defined and provided. The fair, valuation
of said gas system, V'O rks, plant and proIBrty, wi. thin the City
of MeridiEm, Idch 0, Cus,tomers Accounts Receivable and Accrued
UnbilJe d Revenue, shall be ascertained and determined by a Board
of, Apprai se;rs compo sed of three '(3) profes sional engineers, each'
of whom shall have had at least fi va (5) years experience in the
design, cons truction am operation of gas works s,ystems in cities,
and at least five (5) years experience in the valuation of public
utili ties prope rties of equal magnitude to that to be apprai sed,
one to be selected by the City, one by the Grantee, and the two
thus chosen shall select the third which sai d third appra1 ser shall
not be otherwise employed by ar connected directlya' indirectly
with the City or Gral tee.
~he City and the Grantee' shall bear jointly, share and share
alike, . the cas t including fees and expenses of the third appraiser
and the cost and expenses of the JJoard, but the cost, including
fees and expenses of each of the other two memb::rs of the .doard
of appraisers, shall be pal d by the Party by or on where behalf
such evidence is introduced.
If tt": City elects, so to purchase, it shall wi thJ..n such time
give written notice to the Grantee at its office in HoiD, Iddlo,
and at the same time, or with::Ln fifteen (15) days thereafter appoint
an appriaser, and Wi. thin ~;ai d time give written notice cf such
appointment to the Grantee, at its office in Boise, Idaho. The
Grantee shall, within fifteen (15) d~s after the receipt of sad
last notice, appoint an apprFiiser and give wI'itten notice of sad
appointment to theMawor or Cllerk of said City. These two appraisers
wi thin thirty (30) days after service of the last mentioned Notice,
shall select the third apprai ser and wi thin ~a1 d t:Lme give written
notice to the Mayor or CIlerk of sat d City and to sa:id Grantee of
~uch appointment. Said third appraiser shall ,be Chairman of said
Board. If any appraiser so appointed shall die, resign, or refuse
or fail to act, the party by whom he shall have been appointed
shall within thirty (30) days after written demand by the other
party appoint his succesoor. If the appraiser so dying, resigning
or refusi.. ng or failing to act shall be the third apprais er his
successor Shall be selected in like manner. In event no agreement
can be reached as to the appointment ofa third appraiser, he
shall be appointen by the District Court in 8:1 d for Ada County
upon application of either party.
The board of three appraisers, when selcted, Shall forthwith
proceed diligently to inventory and ascertain the fair valuatfon
of Gran tee' 5 gas system, works, plant and prop3 rty, except Custo-
mers Accounts receivable and Unbilled Revenue as it existed on the
flrst.of the month immediately preceding the date of' the appoint-
ment of'said third appraiserr and within ninety (90) days after
the appointment of sai. d third appraiser aai d Dcard shall file wi. tl1
the Clerk of Meridicn, and with the Grantee identical written and
signed reports of such inventory and valuation, together with the
basis, rule or forlLula used by the Ba3. rd in arriving at Sl ch i'33ir
valuation. Provided that the value of this i'ranchise and grant
shall not be considered or taken into account in fixirlG such
valuation.
The Grantee shall permit the Board at all reasonable times,
free and complete access to and examination of ~. its books, records,
files, dates and pro,gerties, which may relate to or have any
bearing on, or relevancy, 'for the making of san inventor y and
valuation. The Board may make such investigation and, on reasonable
noti ce to the City m d the Grantee, hold st.i ch hearings as in the
Board IS discretion may be necessary .for the purposes or making
sal d inventory anq appraisement. J30th the City and the Gran tee
may be present at any such hearing by their officers, agen ts, or
attorneys, and may examine and cross-e,xamtp9 witnesses and
introduce such other ~vidence as tLey desire.
Within thirty (30) days after the filing of such report,
inventory and valuation as above providt3d , either OI"OO th the City
and the Grm tee may serve upon the other and the Chairma: or sa:1:.d
Boa~ written exceptions to all or any part thereof. The Ch~rman
shall fix a. time, which time shall be wi thin thirty (30) days followiYJg
the expiration of the time for filing exceptions giving not .lEs than
ten (10) days notice thereof to the Board members to the City ,and ~o
the Grantee and ,at said time and place or S1 ch other time and place
in .MeridiEt1, IdMO, to which the sm d hearing may be postponed
by the Chairman, the Board shall proceed diligently to hear and
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240 Ordinance No 85. Cont'o.
determine such exceptions and tho City and Grantee shall be entitBd
to appear, be represented and be. heard t~ereat. ~'_
Upon the close oJ _.suCh i?-earlng ~he .dOar:d ,Sh::~, Wltlll~ thirty
(30) days thereafter, 111e wlth tile CJerk 01 1.erld.J.m, ldano, and.
wi th the Gran tee e1 ther identical written and sign:~d statements ~f
any changes or modifications of the rep~t, inventor? and valu~tlon
previously made, or at its. election revised repa' t, ~nventory en d
appraisement in the same form as provided for the original,
showing such changes and modifications, whereupon sm.. d r:port,
inventory and valuation as so revised, changed, or modi~led shall
stand as the Board's final report, inventory and valuatlon. . In
the event no changes or modifications are nade by the Board ln
the repar t inventory and valuation previously made, a written
and signed' statement to that efi'ect shall within saidtllir:ty (30) day s
period.. be likewise filed with" the City C.lI!rk and the Grcrl tee and
appended to the original report, inventory and appraisement which
shall thereupon stand as the Eo ard 's final repor t, lnvent ory and
appraisement.
The valuation so fixed by the Board, or by any two members
thereof in accordance with the terms hereof, shall be final and
binding upon the City and the Grantee and such valuation, together
'Wi th the cost to the Grantee of .. additions to its proIE rty subsequent
to the first of the month precedi,ng the date of the appointment of
the third appraiser, the cost of abstra.cts of tl tJe or title insurance
policies hereinafter required, plus the amDlmt of Custon:ers
Accounts receivable, Ie ss the s;Lxty (60) days past due and Accrued
Unbilled Hevenue of said gas sysLem and plant as of the date on
which payment. for Grantee's property is made, shall constitute the
fafu valuation of the said gas system vorks, plat and property
to be purcha~ed by the City and the purchase price therefor;
profided', however, that if either party is dissatisfied with the
valuation therefixed:, it may appeal to the Distri c:t Court in and far
Ada County, Idaho, for determination b:y such court after trial as
by law provided in the case of an appeal from the Probate Court; or
such party may file in the District Court ~ Ada County, an
appropriate type of action for judicial determination of the Va1J.e
of said gas system, with rie.:ht of appeal to Idaho Sup:r>emc Court.
After final deteJ;'mination, the Grantee shall be bound to sell
and the City bound to buy, the Grantee's gas system wo.rks, plant
and proJ:6 rty for such purchase pr ice to be p:lid in law1-'ul money of
the Unlted States. of America and ob the terms and conditions
hereina.fter spec:ified wi thin ,six (6) months after the Board's soo
valuation becomes final, or. upon final court determination, or
wi thin any extension of such time for which provis,ion is herein
made, provided the City has sufficient f'unds legally aVailable
therefor wi thin said time. If Sl ch funds are not so available then
all right, option and obligations, if any, of the City to purchase,
and all obligations' of the' Grantee to sell or require the City to
buy alIaI' my part, of the Grantee I s gas system, works, plan t and
property on such valuation and purchase price so deterrtined shall
be thereby and thenceforth released, discharged and terminated.
The Grantee shall, however, and not less than thirty (30)
days; prior. to the expiration oE the six (6) month.s period so fixed far
the payment of-said purchase price, 3ubmi t to the 0.1 ty for its appro-
val forms of deeds, as'stgnments, bills of sale releases and
conveyances, good and sufficient when executed to convey and transfer
to the City the fee simple marketable title to all real estate and
good title to. all the remainder of' Gran tee's gas system, works, plant
and property lncluded in slJch sale and trans.fer, free and clear of_
all encumbrances except such as. are payable from the purchas.e
price as. hereinafter provided, together wi th the abstracts of title or
ti tIe insural ce policies on such real ,~state, showing such titJe 'to
said real estate to be in Grantee~ The City shall within (30) days
after delivery of such instruments and abstracts make any objection
thereto, otherwise the title of Grantee Shall be de'2med approved
and accepted., In case of' any Val.. ld 0 bjectlons the Gran tee shall
proceed wi th reasonalbe diligence to remove the same. Should
valid objections be made and,the City hare flmds legally available
fer the purchase price within the -.said six (6) months period limited ,
or. extended therefor, the .~ime for the payment of said purchase
pr lce shall be extended un t il all val id 0 b j ec tions to s UC h. tit Je or
ti tl;; s are~ removed. Upon the re.ITloval of such 0 bjcet.tons and the
payment of the purchase price as herein provided, the sale shall
be con.sul11111Cl.ted and ;posseSSion of Grant:~e I s gas system, works,
plant and prop8I'ty So purcilased and all books of account reJa ting
to the Customers Accounts. Receivable purchased, anj construc:tion
maps, datal and tltJe pollcles or abstracts delivered to the Gi ty
toge"Gher Wl th conveyan ces duly executed by the Grantee
The Grantee also 8.,;1'8<.;5 that u n f 11 ..
truS.t by the City ct' said 1. po U payment or deposl t in
.. purc lase price in the manner hereinafter
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Ordinance No. 85 Cont'd . 241
provIDed, the said gas. system, works, plant an d pro:p= rt~T so
purchased shall become the property of the City by virtue of this
grant and payment thereunder and without the execution of any
instrument or conveyance, but in no event shall the City have any
rights whatever in or to Grantee' s gas system, works, pIm t and
property until such purchase price is paid in full to Grantee or
depos ited in trust as hereinafter provided.
Every mortgage, trust deed or other encumbrance hereafter
created upon the property o.f the Grantee shall besu bject and
subordinate to the City's right to purchase su ch pror:er ty hereunder
free and clear of all su ch mortgages, trus.t deeds or otre r uncum-
brances. as herein provided. If there be no such mortgage, trust
deeds or other encumbrances at the time the purchase price is
payable, it shall be paid to the Grantee j: otherwise the City shall
deposit said purchase price with a bank at BoTIse, IdaJo, in trust
for and, to be pai d over to the trustee n& ed in such mortgages,
trus.t deeds and other encumbrances and the Gran tee, as tp.:.ei.r
respective rights may be agreed upon or determined between ~;-,_._
themselves without further obligation on the part.of~he-~~ty.~~~The
depcs it of said purchase price in trust by the City as j)pev'-e' p!.~ided
... shall. release ani discharge all property so purchased by t,he Gi.:ty:
from the lien of all such mortga~es, trust deeds and ota:e,r- enCUrri~::
brances, but the holders thereof Shall also, upon 3.;: ch deposit- in
trust being made and upon the City'S demand, execute, aaknowJerrge
and deliver to the City corresponcIlng releases and discJ;1arge$'. in '
. . '. "-
writing, and any mortgage, trust deed, or other encumbl'3l" .ce,,"-,-
hereafter na de upon the proIS rty of the Grantee shall 'contaili
appropriate provisions requiring the mortgagee, trustee, cr' other
lien-holder, as the case may be, to release from the lien thereof
the gas system, work.s, plant andproIE rty to be sold to the City
in the event cf a saL. e and upon the City' s compliance with the above
provisi ons as to depo si t of' t he purchase price in trus t.
Upon the final consummation of the saile and delivery ct:
possession of Groo tee's gas system, works, plan t and property to
the sat d City and payment of the full purChase JI' ice therei'or, as
provided herein, this franchise and all other gas franchises from
the City of Meridian, Idaho, held by the Grantee shall cease and
become void and of no further force or effect.
'rhe time limited in this section for the doing of any act or
thing may be extended by written agreement of the City alu the Grantee
Whenever the phrase "gas. sy::;tem, works, plant en d pror:er ty .
of the Grantee in its entirety" is used in this Section XVI, the same
shall comprise and consE t at' all the gas system, wor'ks, plant
and property of Grantee situated within the corporate limits of
Meridian, Idaho" a.s the san eexist as or the date of 8ai d Cit y' s
Notice of E~ction to purchase as provided herein excepting therefrom
and the same shall not include, property neither used nor useful in
the public service, nen:' cash all hand or in bank, notes, bonds,
shares cf stock, or other securities, nor 31 y accounts receivable
other than Customers Accounts Receivable le 58 than sixty (60)
days old as provided herein and none of said items so excluded
from the meaning of said plu'ase Shall be included in 3:}f sale made
to the city, nor any valuation under the provisions hereof, but the
Same shall remain the property of the grantee. .
nothing herein shall be construed as preventing the sal e to
the City of any or all oi'Grantee 's gas system, works, plant al d
property for such purchase price and on ~ ch terms and conditions
as may hereafter be voluntarily and mutually agreed upon between
the City and the Grantee.
SECT ION XVII
PUBLICATION COSTS
The Grantee Shall assume the cost of publication of this
franchise as such publicatio~ is required by law.
SECTION XVII
GAS STORAGE
The' Grantee shall not construct, erect or use cmy gas storage
facili ties in or Wi. thin three (3) miles of the City without first
obtaining the written sonsent of the City to the erection, constructio
and use of such gas storage faciIi ties..
SEGTION XIX
FORFEITURE
Any violation by the GrCHltee, its vendee, lessee <T succesS) rs
of the proviSions of this ordinance, franchise and grant or any meteri
portions thereof cr the fai lure promptly to IE rform any of the
provisions thereof shall be cause for the forfeiture cf this franchise
and grm t and all rights hereunder by the City after sixty (GO) doy- s
written notice to the Gr!B1tee end the continuance of 31 ch violation
failure or default; however, this provis.1on Shall not prevent the '
Grantee ~rom submitting such question of forfeiture t
determination. 0 proper court
242 Ordinance No. 85 t;ont'd .
SECTION XX
SEPARAEILrTY
if any part or parts of this ordinance shall be adjudged by
the courts to be uncons ti tutional cr invalid, the same shall not
effect the validi_ty of 3l1Y other part or parts her'eof WJ.lch can be
given effect wlthout the part or parts ad.iudged to be unconstitutional
or invalid. The City decl~res, that it would have passed the remaining
parts! of this ordinance if it had been known that ,such other p3.rt or
parts thereof would be ~~5T~t)N-drllconGti tutional or invalid.
,HEPEAL
CAll ordinances, am. parts of 'ordincn css of City in conflict
herewL th shall be, and the same are hereby 'repealed.
PASSED BY TH~ CI1Y CODNCIL, JANDI\UY 7-.,
~L 1957.
SIGNED BY TH~ N.tAYOR,
JA1'UAHY 7 1957.
."-,....~
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A1'.rE.3'l~ .'
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.~~
{/ovl
-iA}I ORDINAI{CE OF THE CITY OF hERID]AN., IDAIIO GRANT]NO TO
II{TERIiOUNTAIN GA.S.-O!"PANf A fH]RTY (50) YEAR FRANCHISE TO
CONSTRUCT, MAIN,IAIN, AND OPERA,IE A GA.S TRANStr|IISSION AND
DISTBIBLIIuN SYSTEITi:: PROVIDJNG FOR THE USE 0F STBESIS AND
RUIES GOVEBNING THE SIIME: SUBJTCTING 'IIIE 'IRA{TEE TO ALL
POJVERS CF THE CITYI SETT]NG FMTH THE RUL-AS GOVERNINO
REPATITS AND RECOI;STRIJCTION OF T}.IE STRESTS: PHOVIDI}]G PCH
IHE TERU OF .IIIE FRANCHISE A}iD GRANT: PROVIDIIIG dOR TJ1E
RIGHT OF INSFJCT]ON BY IHE CITY OF ORAI{TEAiS PI.AI!S,
ACCOI,iNIS, A]]D tsOOKS, REq,UIEING GEANIES TO Fi-/RNISH CERTAIN
x"\PS:: SE',ITt\G PORtil THE ANIiUA! pAy&JtNT tO TitE CITY, Al\D r',iii
FIL-ti\G L,F AI;I\UAI nEPCRTS /{IIH TtlJ CITY: ftEqUIftlI(G GRA},;TEE
T0 h-DE&NI].'Y CjTy, AID FILE EVIDSNCE 0!' INSUFANCET REQTJIR-
IIfG OO,r,PLIANCE ''/VITH SAI'E'I'Y REGITLI$IONS! SEITII'r-G IIIUE IJ!;IT
I],J i"lHICH T0 CO]uPLY 'flI'IIi FFANCHISE: SETIING irORTI{ AN AGRTE-
ILENT NOT TO COI,PETE, HESERVIIG POWffi 0F dli.INEifLDOUAlN:
PRCVIDING l'0R SURRENDER 0F FRANCiiIST: GRAIIIII\G RIGiIT 0T
SALVAGE AF'IER P0STfliG BO\D: REqUIRING IIRITTEN ACCEFTANCE:
YROVIDIJ,iG FOR COJ'i]SEI\j-T TO SAIE, A.SSIGNI!:I]\.T OH LEA.SEI SET,II]IG
FORIH CLIIY'S RIGiiT TO ADDIfI.NAL PAYMTf,{TS: ROV]DII\:G i'OR T}iB
PUhCF,ASJ BY THI CIIY AT ItS EL]CTION O!'Tlli GHANT:E'S GA,S .-
SYSTEU, irirORKS, PLANT AI\ID PROPmTY WITHTN THIl CoRPotA'Its LIUITS
0F IEFIDIAI{, IDIdlO, WITH '.llliE DXCEPTIIrN OF PROIEIiTY N$ITHER
US3D NOR ITSEfiIJL IN THE PIJBLIC SIRVICE, CA.9H ON HAND OIi rN
BAtrX.S, NOTES, BONDS, SHARES Ol- S'IOCK,'On O:l'iiER SECURITIES, -
A}iD AiY ACCOUN,IS HECEIVABLE O flIR TIAI\I CUSTOAGHS ACCOUNTS
RECEfVAELI I.ASS fHAN SIXTY (60) DAys OtD:. rrlE UAI{NER, UElii@,
I
Tffitris, AI{D CoI;DITIONS IETEREoF, AID }-oFi 'Ilii REIEASE 0F PROEnTY
SC l'}LRCIi/LSED FROII. MORTGAG.ES, TRIJST D[lmS Al(D oTHEli ENCUI]iRANCESI
FROVIDIIVG I'OR TIIE APPO]NTI,IEIIT OF'A tsOARD OF IHREE (5) AFFR\ISSFtS
T0 IU/UG INVEIT}ORY AID VALtATIaN, A{D 'lI:nIR QUAIIfICAIIoNS,
PO,YEi|.S, A{D ,UTI:,S:: PROVfDII\G Foii IliI DdTEftr.JI,,ATIoN Ei SAID
APPRAISiNS OF TIiE PL'RCHA.SE PRICE TO BE PAID BY IHE CITY, A\D
RIGHT oF PARTIE^S T0 Si.jSXiIT ,aITESTION TO CoUn'I DETffi.trJNATILIll:
ThE PAYIIXII 0!' STJCH PURCI{^A"SE FRICE AI{D 'Il-ta CON\IEYA,I CE Al,D
DEI,MRY Ol- POSSBSSIoN o.f- '-lHE PROPEfiTY S0 PURCIIASSD: IIiE IERh[N-
ATION OF THf,S AND AI,I O'IilUH GAS FHAI\ICETSES H]'!D BY GRII]'J'ITE I'EUITi
hiiiltIDIAN UPOll tfINAL C0i'iSLtuJdTlON 0F Si,Cii SiLE, DELMRy 0l'
POSSESSION TO IiiE C].IY ANJ PAYh..I\JT Or.. IirJ FIJLI PL]HCHA.sE F]1ICE:
PNUVIDING Tj.T.IIT NOTHI],JG IN T IS ORDINAI\CE .tsE CUNS..IhUIID A5 PRE-
\rEi\lTI1,rG 'Ii'iE SAI"E T0 'Ii.j-I CITY 0!' OhAiTEEtS GA.9 SYS'IEtr(, !'uOI:,KS,PLAllf AND FROPJRIY 3Y VCLLII'-IARY AND IiU1LAL AcREEnTEI\ii S BETVr-iili
Th,g CITY Ai{D ,IitE GRAIITEE: PROVIDI}IG I..OI1 PAYIdNT Of PLBL]CaTICN
COSTS:: P]IiOVIDING FOR CITY'S CONSENT TO GAS STOBAGE FACIL]T]N3:
SE-[TII';G FonTH PEIjALI'II':j AND i,'ORt'iiIT (m89, SEPAtr1ABMTY, ANI)
BEPEAI.
BE IT OfiDAINED .o llii, LAYOh AND CCIJI,ICIL OF IEfiIDIAII, IDAtriu.
SECTION 1.
OF AUTHORIIIhere 1s hereby gr imt to ntermountai-n gas coapany,a corporatlon its successors and assl ghn (herelnafter coll-ective 1yrefe ri e d. to as rrgrantee, ) the ri ght and authorl-t y to cons truct ,1nsta11 , maintaln and o perate a gas transmisslon and dlstributlonsystem, inc].ud.lng lxad.ng , plpes, condul-ts , sorvl-ces ani othelnecessaiy stru ctures antl appllances appe ttalning ln, untier , upon,over , across and alon g the streets ,a[eys, blldges and publlcp]-ac es wlthln the F esent and fu ture co rpe ate 11r'1
,of the C1t vof E llallan 1d&o (here i ed to as u0ityr) for thefurnishJ-ng , trang&,l-s sLon.,and sal e of gas whetnerart lf1cla1 natural,rrixed for heattng , d.onestl c,indus trla1 and other purpo ransmlttlng g as into, tl]Ioughand beyond salil city.
0Fs i1l,r r Rq ,4ri,SdrEGral tee shall_ se cure a permlt for ar y openi.ng lt sha nake1n the streets , alleys anit public places 1n the city and. shal_l besub
of gnqrjec.t to al-l l-cab].e ordlnqnc es, but no feo sha]-l be re o-uir ed,Elrantee for any suc h perrnlt.the locatlon c relocatlcn d allfac1l1ties sr'-a ILbem ede uhder the su pervlsion 6nd vti th the approvalof suc repr"eseSthttves:.ag cth6 gover::lng body ctr the CIty me$/ desl8nate
nafter refem
d 1s trlbutloncr otheflri s eses and for t
SECTION II
I
for such purpose, but nd so as unreasonably to lnterfere with thepropr operatlon of Gran teers facll-1ties and s rv1ce. Wheneverthe city shall pave ox r epave Eny street or shal 1 chur ge the graaleo! line of any street or pubJ-1c place e shal-l cohstr uct orreconstruct an y condult , water mad- n sewer or water connectlcnor other clt y public rc j'ks or uti1l Vt 1t si'rall be the dutl' 61'the Grantee when so ordereal brr the C 1tv to ch&l ge its mailns
,t
servlc.:s and other property ln the s treets cr publlc places et
UfOlnAnCe. IIO oo trQIrL'uits cFn expense so as to conform to the establlsheal grade orline oS rch street or pub)-lc place and 9o as not t interfere
wr,th th+-condults , seEers ar]d other naans of ttle d !./ as c on-structed or reconstructed; holtever, the Gr B.htee sha1l not be
requlreil to rel-ocate plpes, m&r s and appurtenances when thestreet, alley or publlc grounat ln whl.ch they are ]-ocated. is
vacated for the convenience of abuttlng profty oltners eld
not as an inclalent to a pubIlc lmprovenent, unless the reasonable
cost of such relocatlon and the loss &td expense resulting there
from 1s; ftrst pdd to Grrrtee. V,henever the Clty grants a per-Elt for an excavation ln a street,, alley a other publ-ic 8! ounal
an'1 the work contemplated by the pErmlt m€y elq)ose gas plpes,
mahs afial s,ppurtenances of the Graltee, the Ctty shall promptly
furnlsh a copy of the pernlt to Grertee.
SMTIOA- III
a.) a
I at a1I tlnes to aIL of the pcr,ters of the Clty and aIL regulatory
ordlna ces adopted pursuant thereto. The Grertee shaI1 not unneces-sarlly o! unreasonably obstruct the use of or damage err y streetor a]-ley, ar tl shaLl withln a reasonable tjre and as early as prac.ti-
cabl€ upon com.pletl on of any constructloh or repdx vo rk, rest@e aIlClty streets and alle ys to the s afle order and conditlon as they
were before the excavatlon was made lnsofa! as reasonably posslb]e,
and shall nalntaln, repd.r ard keep ln good condltLon for a perlodof one year all portlons of streets and all-eys dlsturbed by lt <nlts agents. Ihe Grantee shau be responslble for rry obstructlonor ery Aefect 1n any streetr alIey or other public pl-ace causedby lt 1n the operatlon and malnt enan ce of lts propertles oc currlngat any tloe and sha.L I promptly remove eiy such obstruction or defect.
Any sr eh obStructlon <r defect whJ.ch, after propr notlce to Gral tee
deoanding removal ca rep4r as the cage may be, j-s nct prorrptly
removed or repad-red. by the Gral tee may be td,r. en care of b, theClty md the costs thereof sha1l be charged agalast Grstee and
may be enforced as a llen upon Eny of lts prop rtJ-es or assets.
SECTTON W
\rl t TE] S DIECT TO Pol'v OF
AiD
S
The exerclse cf prlv ges hereln granted shall be subjec
OF HISE
The d. ght,
sald Grantee, 1
l1m1tod ln tlne
tale s effect.
&tr r yan gral her a:iil hereby made tots succegsors and as signsto, a perlod cf thlrty (
SECTION V
, 1s granted fo, and
30 ) years fron the date lt
of the Gra tgg rs_ p1ans, contracts_and englneerlrg, accounting,flnalce, statlstlcal, 6ustomer and servlEe record5 reJ_atlng Eo tneproperty arcl operatlong o^ orantee nlthin the C1ty. The Grarteeshal-l- furnish the Cl-ty \rtth a complete set of map3, inc ludr r-rg plansand proflle of the illstrlbutlon ststem of the Or6nt,ee and ay-fitureextensloDs .
fhe CLty s access a ieasonable hours. to all
SECTION VI
NI TY ANJ i-ING OI' AN AT
as conslder on OI anc ard grart sai d Gran te e ,lts successes anC as sl gns, dur jxg the fr an chise perlod, sirall p ayto the C.lty the foll_owl ng stlpulated pe rc entage cf the gross a nnuel-reeeipts recelved from all sa.les of gas wlthu the corpe ate l_lml.tsof the Clty through use , operatlon <r po ssesslon of thls franchiseand gran t.
I
^ .(}) three p rcent (3/.) per each year durlng the tlfe of this,lrancr]l.ge and gr€n t.
^ Such anxual- payments shalL be 1n 11eu cf any ard al1 otherIees, charggs, Ilcenses or taxes (othel than ad vaLorem taxes )whlch the Clty ry lnpose for the rlghts and prlvj.leges heretngranted, on for the p_riv1-Iege cf dolng btsineis rd,hii C1ty.the Grantee shal 1 flJ-e by trrlareh-5l of eaeh year ni th tneCtty. a q1!-ten repqt for the-pecedlng calendar-year, "eriif"aby the affidavit of the e-e1e1af managei, auffior, irea6urer, orasslstant treasurer d sd. d GrarrLee ,
-nfr ich repc- t shE-l1 cori.tar ast&tetrent 1n such fortr and aietall ai shall fr6m time to tine be
ii{ft +iii'=n{di-;;iff "i{,t*i,!T"*5il;*it**effi
*1idue for the year for,,*rich sed-d report 1s trade and f1!d. flb wbra
-R
SP
i:36 Ordinaa'rce No 85 . oon I lctyear as used in thls Sectlon VI means the cal endar year, exced
e the flrst v.a|Nch wlLl connence on the date when thls
ranchlse and i;ranYls ln effect and end on tfie follotnng Dece-6er 31.
JfCIION VII
@ANTES LIABTLTIY - INDEUNTFICATIONIt ls. exfiesffiund6rstod-andagree? by aid between the
rantee erd the Clty that the Graritee shal-1 save the Clty harmle ss
'rom a].]. loss sustalned by the Clty on aecount of any su1t, iualgnenttxeeutlon, claln, o! deursrd whatsoever, resulting from negllgencen the Frt of the Grar tee 1n the c onstructiorr, operation c maln-
enance cl 1ts gas system tn the Glty. The Clty shall notlfy the
'ral Lee's representative Ln the City wlthln ten (10) drys after the,resentatlon of ary cIa1m or demand, either by sult e otherwise,
tade agalnst the City or aecou4t of arqr negligenee as e,f cr e said on
'he Frt of the Grantee'
sEcrroN vrrr
INSUR,III'ICE
Upon acceptarce of thls fr:anchlse by Grantee anC before
irantee shaLl have any rights hereulder, Grantee shall flLe r,sith
;he CLty Clbrk a certlflcate evldenclng the insurance d the Grah.teeugalnst property tlamage 1n an amounl not ! ss than $50,000.00 ad.ncli].y inJ,ury,,vLth 1t!01ts of not lbse than $5O,O0O.00 per IE rson and.
i000r.O00.0O total for each occurrence.
SECTION IX I
S hxi(;f !t \,LI
Grar tee shaLl- concp 1('h anal c orm to aII safety regulatlons)ronirlgated by the Clty c any regulatory body havlng jurisd.ictlon
;tle ieof .
SECTIUN X
IvE i!}IICH TO Y
w. Grantee shal I
-ay gas mal ns, and t
lranchls e, unless s
have unt August ? wlthln which tothe terms of thlstho Clty.
o otherwlse comply with
r.,eh tlme 15 a--iterdel r.:.
sEofrotr. xx
1U
In cons l.d.e rat on ee I ert und.er as)vldenced hy lts acce Ftal ee hereof the C1t y agrees. not to engage-n the busl_ness of d1 strlbuting arrl se1J-lEg gas durtng the 1lferf thls flanchlse o ery exbenslon there of in competltion wlth:he grante
:al.ned sha IL be construed
lts successcr s ard asslghn but nothlng herein con-
,1
I
:xerclslng at at y tlme an
or deemed ty power cf ee of Idabro.
SECIION XII
rder the }ys of the Stat
Hi cn F HIS
fn the eve n naturawallable to Grsnteantee reserves the rlght to sumend
o prevent the C1t y frohmlnent domai n gr ar ted to 1t
IC
e for the distrlgss€n
bu t1or, and sal e hereunder
cease to be
t
:he event cf such su prender prlor to
er thls: franchis e and i n
)f thl.s frar chi se ,or1nar y of such
any exelratlon c ternlnati o!
:1ght to sar vage a!-1 of lts plant s
events, Gt,antee r?serveS theworks ar d faclllties afte !)ostlng bond satlsfactor y to t.he C y to lnsure restorat lon of
,
)Itl,ts s.tre ets and alley s demspeC bv sueh s "1vage olneratlon.sECTloD_xrrl
Ihe Grantee shal_L d,fter therassage and pub llcatlon with the cl-t v) L,erk lts ac ceptonce of irg slgned by itsrronpr offlc ers and att ested by lts co rp crrate sea1.sEcTr0I[xryASS]I{UETI'I CR I,i:r,r)ERAIi JiTSENo: sale r&S ghrne roI ease o 5 franc hlse sha1l be
*ffiu.r,
of. this ordinance fli ethls fr.anchlse ln writ I
t:ffectlve un tl1 1t ls a pp rovdd by glre C1t provlal ed , however, thattothlng here 1n contg. ne d shall- be c on s tr'u Xr
ed to requl re consent or:o prevent the Gr antee of thls fra hchl-se and ant fronr lnc]-uat n.t 1n a mort ga.ge or trust aleed e xecuted for t purpo e of_rbtalnlng mo ney for corpop ate ob Jects.SECTI 0N x/OT OF CI TY TO ADDTTTO NAI, PA Yhb-NTSIn the e vent pay any o her Clty an y;reater stipulated 1n rcenta ge of gas s&les than he re lnbeforerrovlded the Clt y shall hra rre the righ t upon demand.o-f requiirlnirantee to pay
aid to such oth
for th6 san
er. clty.e Be rloti of tlme such l1g her lcrcen-ages 50 p
NIGHT CI
SECT]CN XVI
TO PUii cli.A"9a GAS ,iY;TEllliAt the exp irat onoft archlse and gi ant or aL any
I
h1'
I
Ltrd]-ntl ce No.6b Gont 'al z6Jtltre duelnE the fltnst 'strx tronths of. tha twenty-first (21) or thetoenty txf,h (e6) year.of this franchlse or t-he tr tieth (5o)
year d,rlring the tein of thls flanchlse, the Clty, >i lts electlon
and upon the paymerlt of the fdir valuatlon to be nade l"tt the manlrex
herelnafter: provlded, may purchase and take over to 1tse1f the
gas. system, {orks, plant arrd proprty of the gra tee in lts en-tlrety, as herelnafte! deflned an tl provided.. The falr valuatlonof said gas system,. xD rks, plerrt and property, u[ thi-n the Cityof tr[er lall.dl , Id& o, Custonrers Accountg Heceivab]-e and Accrueal
llnbllle il Revenue, shall be ascertained and ileterrnlned ty a Eo arrlof Appral seps cor-npo sed of three (3 ) profes s:-onal engineels , eachof whom sha}l ha,ve had at least flve (5) years experlence ln the
design, constructlon ard operatlon of gas works slrstems 1n dtlest
antl at leest flve (S ) years exs-erlence ln the valuatlon of publ-icutllltles properties of equal magnltuale to that to be appralsetl ,one to be seleetecl by the City, one by the Grantee, a1 d the twothus chosen shel1 seleet the thild whlch sd. d thlrd appral ser sha]-lnot be otherwl se employed by or connectetl tllrectly e lndlrectlywlth the Clty or Grartee.
The C.l ty and the Grurtae shall bear jolntJ-y, share and share
a11ke, the cos t Includ ing fees and expenses of the thlrd appralser
anil the cost and expenses of the r.paril r but the cost, lnc].udl ng
fees and elcpenses of each of the othe! two merobrjrs of the doard.of appralsers, strall be paid by the Party by or on ule ce behalf
Such evidence ls lntroduced.If t):.: Clty elects. so to pruchas e, 1t shs.U with;n such timeglve wrltten notlce to the Grantee et i-ts offlce 1n rro1o, Iddr o,
ard at the satre t1me, or wlthin flfteen (15) days thereafter appolnt
an apprlaser, and rE. thln :;ai. d tl nie glve wrltten notice d such
appolntment to the Gra.ntee, at 1ts otflce 1n .l3olse, Id*l o . The
Grantee shall, wlthln flfteen (15) {4rs after bhe receipt cf sdlast notlce, appolnt an appraiser and glve wrltten notlce of sad
appointment to the ldryor or Clbrk of sald Clty. These two appraiserswlthh thlrty (3o) days after servlce of the last nentloneil Notlce,shall select the thlrd. appral ser arxl wlthin sad- al tlfle glve wrltten'notlce to the trtrayor or Clbrk of sd-d CJ-ty and to sai-d 0rantee ofsuch appolntment. Sald third appralser shal_l_ .be Chalrmel of sai.d.3oard.' If any appralser so appolnted s haU dle. resign. or re.f useoI !+1-to.act, the party by whom he shal1 hsve'been apfolntedshall within thirty (30) deys after wrl_tten denond by tire otherparty^appoint his success!. If !!re appralser so clying, reslgnlngor refud.ng or faj.llng to act sha1l tre the thlrd api:raGer hiisuccessor shalL be seLecteat in Ilke mamer. tn evi:irt no agreementcan be reached as to the appolntment of a thhd aDDralser.'hesharl be-eppolnted try the Disrrtet Court tn ara fbi la" C6""tyypon appllcation of elther party.
The boanal of three appraiseis, when selcted, shal1 forthwlthproceed d11lgenLly to lnvent oi y and ascertain the rair vir,ii-tr onor- urantee,s gas systeTr works,,- plant anat property, except Custo_mers Accounts recelvable and unu1uea Reveirue- as it ext sted on theflrst of the month lomedlately preciarng the date of the apDolnt-nent of' saltt thiril applalser,- aira *rinri "i""iv-iso) d'iJ"-5it",the appointment of sh- a t!'tn{ "ppr"fier- s8id .doard shall fl1e @ththe clerk of trbrldla.., and wlth^tne orantee raentica:. wrrlien anaplqled reports cf, such lnventorv ana-varuair;n,--i"g"ir.J"-raii. tt"basrs,.rure or rorLura. used by trr" l-"a in-ai.iivifii-.i-"i'tn ra.,valuatlon. provlded that the varue-or-iirii f"*;[iE";"f, ir*tshalI not be consldeled or taken into-account ln iGins-;u;;va1uat16n.
rhe Grantee sha11 permit the Bo ani at all reasonabre tlnes,free ard complete aecess to and examGitton,of
. ar} 1ts uooks, records,flles, dates-and proprtres, oirriiiliy-r"r"t" ro or have anvbeaxln8 on' or reievirncy, f6r tire ,.ti"g of sd lr,ventcry #dvaluatlon. rhe .uoara dal| *ri"-lu"fr*iiluE.iieifio; ;;;""il Xeasonaurenotlce to the Cltv an_d tip oriniJJ; ilia slch hearlnss as 1n theSoardts discletlci: oay be .rec.ssar;| ior- tfru _pr.po ses of mak.l.lgsald. lnventory anc apfratsemJnt.-foii'trre clty and the cralteemay be pr esent at 'a"r
atiorn ej,s, - ;iii ;;y*"%;ff 3 ;ie":15, 3I#;iI" ";i*::: s, %iii, or
lntrod.uce such otier lvlcence ai ileviestre.Wlthlh !rri::ty (eo) aays. "iie" iir"-ilfins of such repcl.tinventory ard val-uatlon as- above provraral "ltirE"-#j'*ifi*tr,; citvan al the orartee mav serve.upon th6 oinJr ana the Chab,ma- o-? saldkourd wrltten exceit'lons to';r1 oi iiv-i,"t ther"eof. The chd-rmansharl f1x a time- ,r',rcri tire-sr:ai: bI'",fihi"-i;i"iy'ts6'j"affs rolrowir:sthe explratlon oi the. tlme for fiffni eicepttons givln.o not l6s thanten (10) davs notlce tnerJoi-io-i#'fo;;d il.i"ulirs"io-tr,""Eity and !othe- Gr?r-rtee and,at saial tlm-e 9,nd plage or s.lch oil€r time arh pracell Frig.1q, Ida*ro, to whlch the iard heartng ,uy r" poripo""aby the chalrman, the loard sha11 proceed dllrgenfry-t6-neli'ana
I
i40 oritlnance No 85. Cont'd.
otermine such exce'rtlons and thc Clty ald Grantee sha1I be entitle d
o appeer, be repr--.errted antl be heard thereat.'tipon'the clbsiof sllch hearing the Boar'd shall-t within th\fty
30) days thereafterr flle wltrl tlle Cb rk ot' [.erldi an ' J'datro, and.^lth th.) Graetee either iitentlcal wrltten and slgnnd statements of
ny changes or trodlflcatj-ons of the repo t, lnventory ar valuation
revlously maCe, or at 1ts. electlon revlsed repe t, inventory al ai
ppralsement ln the same form as provlded for the or1t1naf.,
howlng such changes and modlfLcatlons, whereupon sa-d report, - _.nventory and valiatlon as so revls.ed, - changed, or mo,llfled shall
rt a.nd as the Boartl ts flnal report, inventory and. valuatlon. fn
;he event no chanzes or modlflcatlons are mde by the -bo ard 1n
,he repat, inventory and valuatlon prevlously nade, a wrltten
'rrd slgneCl -
s tatement to that effect snaU wlthirr sgi.d thlrty (30) days
rerlocl be Ilkewlse filed with the Clty ClDrk and the Gr& tee and
Wpended to the orlglna]- repoxt, lnvei:tory and appralsenent hlch
iha11 thereupon stanal as the Boardrs final report, hventory and
rppraisement.
The valu.atlon so f l.xed by the !oard., or ):y ony two me.Ibo rs
;hereof 1n accord,ance wlth the terms hereof, shall be final andrlnding upon the City and the Grantee and such valuatlon, togetherilth the cost to the Grantee of. arlalltions tc ltS proprty subsequentlo the flrst of the month preceding the date of the appolntnent ofrhe thlrd appralser, the cost of abst:ra.ets of tttb cr t1t1e insurance,olicles hereinafter requlred, plus the e.mount of Custonerslccounts receivable, Ie ss the sJ--xty (60) days past due ard Accluea
-inbLued Revenue of said. Bas sys t,em an plant as of the date onvhlch paynent foq Granteets pr6perty ts mad.e, shal-l constltute thelatr val.uatlon of the sed- d gas slstem ro rksr'p1af,, and propertybo be-purchaged bl/ the Clty and the purchase prlce theiefb;oroflied, however, that lf elther party 1s dlssatiofled w1t[ theraLuatlon thereflxetl, lt nay appea). to the Distfi-c.t C.ourt l.n ard fcE.Ada County, Idaho, for deterninitlon b1' s:ch court after trla1 asby law pr6.ird.ea ln the case of an appell lrom itre proUaie-Court;'orsrch party may fl1e Ln the Dlstrlct court d Ada county. arrllpropriate type of actlon for judlcial determlnatlon 6f the vduecf said Eas svstem. 11 th rlght of appe al to rdaho suprene -co.rt.
after, f1nal aeteluinati&,-iE ciu;i;;'shall be bound to selland, the Clty bound t9 buy, the Granteers gas syster. uorks, f,iarrtllrd prgFerty for su-ch pui6rrase p'ice to uE pai& rn-ra*i-Li.:-'mbnev ofthe l):rl.ted iitates cf arnerlca antl on tne terirs arra -"onaiii.ii"
hereinafter sDeclf,r.ed w1rhln ,ii rol-r-iioi[i "rt; ;#-il;;a,s sdva]lratlon bec6mes flnal, o".'up"ii iiria*i"o*t detero-rnatron. or'nr tbln an v exbenslo!. or' such iile- fo; whi"n -pi..]iiioii1!"iidr"rn
ma'ile, provliled the cr-tv hes sufii"iJ"t"n-d"-1;i;ii;*"iiriiurutherefor wlthln satd timel- if ai;;"i;ds are not so avalr-able tnenall rleht. ootlon ana^oriiga[i";;'ii;y, of rhe citv t6-purchase,and alr- ob11sar.10ns or t[e-urint;3 t;;dii;; riidriiJ'tr]! dity toouy aJl or €ny part of the crili;;'s-eis system, works, plmt andB:"ff;::g.fri["fn[fi"etlon ana fi*"iaEJ porce so aet*ri,riea snar.r
ii,"_[ry.ii*t*.:mii;;;trTil$,,iiliilfl:ifffi';ii#i"Fi;,_the pavmert or s,ld |wchase p"rill i"T'*rt't"-inli-ciii-Ilr'1ru uppro_val- forrs of deeals- isstgnmentil-uiril"of sale rereases anargonyeyances, 6ood 6na iriiircreit ;ff#"^to trre crtv' tf;J"iuJ. . i,pr"-ii"ii" tliiili ;ffi ilT: li.'iiJir"lflri,lxir",sooc tltle to alr rrre rbmarn*a3i"Ji"6i*itee,s
^saiiyiEJil,
-'.iJ"r.r, prantand propertv i,,cluited rn suJt-iai;;ffi'rfansfer, flree arid clear ofarr eneumbrances exeept .r.i.,"uI*il.*plvuo-t" fbom the purchasePTlge as herelnarter^!'rovialh]'11*e!tfiJ*'rritn t[u iiiiti#iJ'of t1tle orLrrr.e lnsura ce Doltcles on s,i"n-iiir-.s!?1", .h";i;;-;;;i irt:u toffi 3,"E31ri3lr";r tS,.!: r, - -c,"ii"1"."-ilJ
. :lty- "r,"ii #itiii" <io ) a.r,thereto, -"in"i*i-r" " #l iff IIT?"H##"":: Ii*"l: T*;'s-, ; o.i ru.tr6r,
sr u Lre EanI] er here lnafter
I
Ltrctlnance No. 6c uon o allprovltled., the s8LI gas system, lyorks, plant aa il prope rtr. sopurchar '. shal1 become the prop8rty of the Clty by trtue of thlsgrant drd payment thereunder and wlthout the execu!:ron of any
lnstrunent o! conveyance,. but 1n no event shal]. the Clty have any
rlghtg .whatever ln or to Grantee ts gas systetr, works, plan t atd
property untll- such purchase prlce ls pd- il 1n fuIl to Grantee or
alep6 lted ln tr,.ret as herelnafter provlded.
EVery mor.tgage, ttust aleed. cr other encumbrance hereafter
ereated. upon the property of the Crantee shal-1 be a:i,Ject artd
subordlnate to the Cttyrs rlght to purehase s:ch proSer ty hereunder
free entl clear of aLL stch mortgages, trust deed.s or otle r uncub-
brances. as hereln provlaled. If there be no such mortgage, trust
d:ed.s or other encuEbrances at the t -ll!e the prn'chase pr ice 1s
payable, it shall be patr-d to the Granteel: otherreise thc City sha1l
d.eposit sald purchase pr.lce with a bank et Boise, Idajro' ln trustfor ancl to be pd.d over to the trustee nsr ecl ln such mortSsges,trust d.eeds arrd other encumbrances and the Grtrl tee, Es t-hg 1I
respectlve r1€hts may be agreed upon or d.etermlned betwoen ' -'.
thenseLves vrlthout I\irther"obligailon o"-in -p"ti. ot-trre Cit!..'-tn"
ilepco 1t of sald purchase prlee ln trust by the Clty es hLq/-e prprided
. shal-L release ard dlscharge aIL property so pu.rchased. by the Ci*jl
from the l.1en of all such trortgagesrtrugt d.eeils and. ot he?r encuo;:
brances, but the holders thereol-shrill also, upon sj.ch deposit litrust being nade and upon the Cltyts demard, execute, acknow-letlgd
anat del-lver to the Clty conespon&rg releases aid dischargss {nvrrltlng, and any oortgage, trust deed, or other encunbi:ar:e - '
hereafter la tle upon the prop rty of the Crantee shaLJ- contdld
epproprlate proviglons requlrlng the nortgagee, trustee, e otherIlen-holder, as the case may be, to release flon the lien thereofthe tag systeru, works, pLant and proplty to be sold to the Cltyln the event cf a saLe and upon the Cltyts corpllance wl-th the aboveprovls- ons &s to deposlt of the purchase prtce 1n trust.
Upon the final eonsunrlatlon of the sa'le and dellvery dpogsesslon of Grm teers gas system, works, plert anC property tothe ssid Clty and payme nt of tire fu1] purchase F lce therefor', asplovldeil hereln, thls franch.ise and aI 1 otner gas franchlses fronthe Clty of Merldla:, Idaho, held by the Grantee sha1l cease and.
become voltl and of no further force or effect.
The ti!0e llmlteal ln thls s3ctlon for the dolng of any act ortl:ing nay be ertended by wnltten agreeoent of tire CIty ard the Grantee.
- . ivhenever the ph.rase ,rgas. sy:tetr, works , plarrt an d. proper tyof the Grantee ln 1ts entlrety't ls used 1n this Sectlon-IVi, the sanestrall cotrprlse_and consb t ct. al]. the gas system, works, plint
and.p_roperty of Grantee sltueted w1th1n the-corp6rate tinlts of
lFrldlan, I$d:o. as the see exlst as ctr the date of said Clt yrsNotlce of Eb ctlon to purchase as provided hereln exceptinr tirerefromand the sane sharl- not lnclude, pr6perty nelther used ircr Lsefur 1n!]f nutflc aervlce, ncr casir orl hand or- ln bank, no-Les, bond,s,?l3res-f stock, or other securltles, nor anl/ a6counts'reeelv6,bleotner than Customers Accounts Recelvable lesi than slxty (60)days ol.d as pr.ovlded hereln and none oi saia ltems so 6hiua"a
IloT_!h:,p9an-1ng of salcl phrase shall be lnctuded ln ay sale naale
_t9 !n9. clJy, nor any valuatlon under the provlsfu:ns heieof. but theEane snatt ]'e&ain the property of the Erantee.
_,-^ ^Tglhqg-herein gf-ra1] !e tonstrued"as preventir,g the sale tolrre u.r.Ey g any or aIl. of Grantee rs gas syitem, wcr[s, plant ar dproperty for_such. purchase prlce and"on $ ch t6rns and 'coraitrorrsas may hereafter be vorr:ntailIy and mutually "er""a ;po"--uEi*u"r.the Clty and the Grantee.
sEcTIoN )cvuJThe Glantee sfranchl se as su ch
PUBLIC o COSTS
a5 SumepubLlcatlon 1s r.e
cost ofqulred pu
bwsEctIoN xurr
bllcatlon of th1slaw.
^ . - ?he crantee .n uffiffict, erect or use any gas storagefaclrltles 1n or "d.th1n rh'a;'io) ;ii";-;i-ti,i diiytitfiSit'fl*stobtalnlns the wrltten.sorrsent of-tiie citv to-ine-;i,";ii;;;-constructlorand use of such *rr "l;Eige rac[iIiei"
-Arryv1o1at1ono,ffi*e,1tsvendee,1esseecrsucces$rs
;:,.tff"B,iX:;:B|" *"r: t hi; ;;d1 ;ii" I "i,L"r,i u6 a,,a
- ;ian-t Ji' ** me te rii
i,rovri ioni";h;;;"r,iiil',il= ]:.I;,B"iH.t['l"fr:inl"
"ii".FiL;;.
'
frffi",$"-:i#fu'f:**:.l:il+r+ry i#{,sflr#:"
forfelture to prolpr court
142 %tlt%ft"-I". 55 uon!'o
S0PAhAEILIlY1f any paxt df paffi'Iffiord.inance sha1I be adjudged\uy
,he courts' to be r:ricons bltutional cr l-nvaI1d, the same shaI1 not
rffect the val-ldi-ty of ary other paxt or paxts her:eof '.n lch can be
gLven effect wl,thout the part or parts ad.judgeil to be unconstltutionalrr lnval 1d... The Clty declqres. that lt would have passed the remal nlne
rarts: of this ordlnance l-f 1t hac been known that such other part or)axts the-r'eof would b" gatiffiirdrfficonstit,utiona]- or invalid.
-A1l- ordt.nances, ard ,HfH, ordlnar ces o-f Clty lrr corr-c:.tct
1erem. th shaI1 be, and the sane are hereby 'repealed.
PA"9SED .r:Y Tilf CII'Y COIJNCIL, JAliLAIiy Z, 19S?.
SIGNED IY ,IIiJ UAYORT JAIILARY ?1957.
1rn ir..- l,Tr-t Ior
r
I