85 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.
~. --::.-
I
......... -."
" r.-~-:.-
.L_~,""'.~.~ '~,/ . ~'.-=-,
- ~ -~ --.
~ .::....'........
- --
"
-,"
"
.,
. "
"
"
- ~<~~
-'''-~ ",
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
I
I
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 $50,000.00 per 1il rson and
5000,000.00 total for each occurrenc e.
SEC'rrON IX
. SAFETY hb,;GUIA'I'ION COMPLIANCE
. Grentee Shall comply with and conform to all safety regulations
promulgated by the City cr any regUlatory body hav:ing jurisdiction
thereof.
I
SECTION X
TIME. LIMIT IN \NHICH TO COl1PLY
WITH TEIUilS CF FRANCHISE.
Grantee shall have until August 1, 1957 within which to
lay gas. mm ns and to otherwise comply with the terms of this
franchis e, unless such time is 8~,~t'3nr:1e:1 "Y th3 City.
'. ..:' SEC[' I OlLJa: '
. AGREEIvENT Nor 'ro COl\iJPETE
RESERVE TO CI TY POWER CF E.MlNENT DOMAIN
In conSideration d' Grantee's undertaking hereunder as
evidenced by its acceptq) ce hereof the City agrees. not to engage
in the business, of distributing and' selling gas. during the life
of this franchise or any extension thereof in competition with
the grantee,. its successC[' s, am assighn;: but nothing herein con-
tained shall be construed or de"3med to prevent the City from.
exercising at my time any power of eminent domain grm ted to it
under the llws of the State of Idaho.
SECTION XII
SliltRENDER CF FRANCHISE - GRANTEE'S.
RIGHT TO SALVAGE Aft"TER POSTING BUND
In the event natural gas at my time sahli ceas.e to be
available. to Grantee for the distributioI'. and sal e hereunder,
Grantee reserves the right to surrender this franchis e and in
the event cf such surrender prior to any explra tion cr termination
of this frrn chise, or. in 00. y of such events, Grantee r8serves the'
right to SaL vage all of its plants, works m d facilities. after
posting bond satisfactory to the City to insure restoration 0f
City's s.tre'ets and aLleys damaged by SVCf;. sP,lvage OPEration.
; . .$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
I
I
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
I
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
I
I
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.
."-,....~
" \
- -~ ----
A1'.rE.3'l~ .'
..-' '........ -
-< .
/
~-
/
)drt Y Cle rk
.~~