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HomeMy WebLinkAboutOrdinance 30- 598, Granting Privilege and Fixing Terms Under Which Citizens Gas Company Can Lay Pipes and Sell Natural Gas 22' '8 i\ .' .' 01 \""~"0. , ~oO\l-"" . \\oil-a. >J'l) ----."' . f '. ,-"' ~,() <! ;.,,- . .- '~';.I" ,.,......... ,'; 0 "..;.' ..~r eJ ,P .., ~..~ ~' .Q.;."'~"'~ ~~ ~~~ ..~ ORDINANCE NO. 598 AN ORDINANCE GRAN!ING THE PRIVILEGE AND FIXING THE TERMS UPON WHICH THE CITIZENS GAS COMPANY MAY LAY PIPES IN AND OCCupy THE STREETS AND ALLEYS OF THE CITY OF BOZEIlAN AND DISTRIBUTE AND SELL NATURAL GAS TO SAID CITY AND THE INHABITANTS THEREOF. BE IT ORDAINED BY THE COMMISSION OF THE CITY OF BOZEMAN, I; MONTANA: ' " AR!ICLE I PRIVILEGES GRANTED SECTION 1. That, subJeot to the terms and conditions hereinafter spec- ified, there is hereby granted to the Citizens Gas Company: 1. The privilege of laying neoessary pipes and mains in the streets and Alleys of the City of Bozeman and the use and oocupation of said st~.eets and alleys f.or the purpps'e of cons-truct...- 1ng, operating and maintaining an adequ~~e dis- tributing system for the sale of natural gas within the city limits of the City of Bozeman as they now exist or as said limits may be here- a:fter extended. 2. The privilege of selling latural Gas to the City of Bozeman and the ihhabitants thereof. SECTION 2. That the privileges hereby granted are .not exolusive and are t..o continue only for the period of twenty-five years from the passage of I,..,....; this ordinanc${unless sooner terminated as herein provided) and shall: be subJeot to the terms and conditions as hereinafter set torth: ARTICLE II CONSIDERATIONS SECTION 3. That the privileges herein enumerated are granted for, and in consideration of, and are contingent upon: 1. The acquisition by the Citizens Gas Company of an adequate supply of natural gas to supply the needs of the City of Bozeman and \ its inhabitants for the lite of this grant. Z. The oonstruction by the Citizens Gas Company of a supply pipe line of adequate capacity and first class construction from the Little Buffalo Field in Wyoming or other natural gas field, to the City limits of Bozeman. 3." The maintenance of the main office of the Citizens Gas Company in the City of Bozeman. 4. The construction and maintenance of a distributing system and a storage reservoir in the City of I.... Bozeman as hereinafter provided. ::, ARTICLE III . " CONDITIONS SECTION 4. Supply Line. That the Citizens Gas Company shall begin the construction of the supply pipe line specified in Section 3 on or before April 15th, 1931, and shall prosecute said oonstruction with due diligence and vigor and " 1 .-"--.'-. .. ' ,- - . ...._.~ ..-.-. -'-~-~.........,.-' .._._---~-_.__.... -.--.- .... -.---....-..--.-..--- _m .~_ "_~,_.__... __._ ..__ .___._. _._._ ..-..-, . - ~ .., 229 shall complete said supply pipe line tcrthe city limits of' Bazeman on or before November 1, 1931. SECTION 5. Distribution System. 'I That construction of the distributi~n system within the gity of Bo zeman shall nO,t be begun prior to the completion of the supp,ly line ; , except by special p,ermission of ~he City Commission. SECTION 6. Arrangeme nt o,f Mains. That all pipes shall be laid in the alleys. rather than in the streets. so far as is economically practicable, and such pipes shall be arranged so .as to interfere as ~ittle as possible with laying, repairing or replacing water or sewer lines and all other structures. SECTION 7. Construction. That all construotion shall be aocording to best known economical standards and specifioations and shall be subject to the rules and regulations of the Public Servioe Commission and shall be subject to all ordinances now or in future effeotive in the City of Bozeman. SECTION 8. Conduot of Business. That the Citizens Gas Company shall in the conduct of the business herein contemplated, at all times be subjeot to such ordinanoes and rules and regulations as are now in force, in the City of Bozeman, or which the I City Commission may in the future adopt. -. SECTION 9. Assurance of Continuous Service. j:..'.-.... That the Citizens Gas Compa.ny shall constnuot and maintain and keep filled a storage plant, within the city limits, to assure continuous service in case of accident to the supply line. Said storage plant to have sufficient capacity to supply the consumers of Bozeman for a period of not less than 36 hours. SECTION 10. Indemnity Bond. ~hat the Citizens Gas Company shall file, and keep on tile, during the life of this grant, -with the Clerk of the Commission, a bond in the amount of $20,000.00, with security satisfaotory to the City } Commission, as security and assurance th~t it will hold the ~ity of Bozeman harmless from all losses, expenses ordamage.s in any amount to persons or property (including-city property) by reason of construction, maintenance and / or operation of its 41stributing system. "I SECTION 11. Bond to Assure IansilrueUon. . That it is hereby recognized and agreed by the City Commission and the Citizens Gas Company that from the nature of .the case, it would be impracticable or extremely difficult to fix the actual damage sustained by the City of Bozeman in the event of the failure of the Citizens Gas Company to do either of the two things in this secttoD specified and it is therefore agreed that the amount of said damage shall be presumed to .. ...-- ._~,~.,..,_.._~.,~._,......~--_.. '" ._.~ .,. 230 be $10,000.00. That the Citizens Gas Company shall fil~ a bond, to be known as the Construction Bond, with the Clerk of the Commi.ssion, in the aforesaid amount of $10,000.00, with security satisfactory to the City I: Commission, as security and assurance that it, the Citizens Gas Company, will, on or before the 15th day of April, 1931,. begin, and will, on or before the first da.y of Novembe_r, 1931, complete the c.onstruction of a supPl-y pipe line a~ provided in Section 3 and 4 of this ordinance; and " in the event that the Citizens Gas Company shall fail to do either ot \ these two things then, all and singular, the rights, privileges and franchise her~in granted shall become null and void and be forfeited; the amount of the aforesaid Construction Bond shall ~mmediately be paid to the City of Bozeman as liquidated and agreed damages and not as penalty. The Citizens Gas Company and its surety shall be released on said Construction Bond by resolution of the City Commission whenever it shall have fulfilled the conditions of said bond. SECTION 12. Rates. Tha,t rates to consumers shall as determined by the Montana Public Service Commission and, to the end that said Commission may be fully advised as to the oonstruction costs, the Citizens Gas Company I shall report at the end of each ~onth to the said Commission and to the City Commission all expenses inourred during that month in the construction of its works. PROVIDED that the Citizens Gas Company shall file with the Montana Public Servioe Commission as required by said Commission, an initial rate not in excess of the following: ~First 2000 cu. ft. per month -------------- 75~ per 1000 cu. ft. Next 98000 R It " n ---------------651 " 1000 n n " 100000 " n " " ______________ 60~ " 1000 "I" It 1:)0000 " " " " .______________ 55\l' " 1000 " n " 100000 " " " " _______~______ 50\l' " 1000 It n Allover 400000 " " " n ____~_________ 45\l' It 1000 " " Minimum Bill: $1.50 per meter per month. SECTION 13. Value of Franchise. That, in the determination of the value of used and useful property for the IJurposes of fixing proper rates to the consumer, or for the purpose of selling, transferring or assigning any property, in- volved in the service herein contemplated, no value shall be assigned or accredited to the franchise herein granted. SECTION 14. Reservation of Right to Purchase. I That before the sale of any property, essential to the service herein contemplated, shall be consummated, the City of Bozeman shall have the right of refusal to purchase at the value, and on the terms of a bona fide offer by a responsible prospeotive purchaser. SECTIOll 15. transfer of Franchise; Approval of City Commission Required. That the franohise herein and hereby granted shall not be 2;jl transferred or assigned, in _hole or in part, except with the oonsent and formal written approval of the City Commission. Applioation for t~ansfer or assignment must be written and signed by both transferor and transferee ~' ~ or assignor and assignee as the case may be. The transferee or assignee I - must file written aoceptance of the terms and oonditions of this franchise ,r , before any transfer or assignment shal.l become effeotive. "'-:""-. --.. '., ,..,..... ./"1 :-: "-" ./ ,., -..--. ... SECTION 16. Revooation. - "."--, . ......,..to Tha t the franchise herein and he~8by granted may be rev9~ea-,'=' ,":;- '. by the City of Bozeman at any time within the life of this grant f~r. . . "'."~'l!. gros~ violation of City Ordinanoes or for grossly unsatisfaotory servioe to oonsumers, or for violations of, or failure to comply with the terms, oondi tions, oonsidera tions and,r:_uiiMments of this grant, or any thereof. :" - ~\. : . SECTION 17. Disposition of Property Upon Revooation or Expiration of Franohise. That, upon the revocation or expiration of the franchise hercHn granted, the ~ity of Bozeman shall have the right to purohase, at'such valuation as may be determined by the Publio Servioe Commission, all or - "" - "": -a.!!y 'property essential to the servioe herein contemplated. , - " ,- - SECTION 18. W.ritten Acceptance Required. -- - --., That before this grant shall become effective and on or before I the 15th day of October, 1930, the Citizens Gas Company shall file with the Clerk of the Commission: 1. EVidence satisfactory to the City Commission of the acquisition of an adequ~te supply of Natural Gas. 2. Evidenoe satisfaotory to the City Commission of the execution of a bona fide contraot with a competent and financially responsible oontt-actor to oonstruct both the supply pipe line and the distributing system, including a storage plant, within the City of Bozeman. 3. Bonds satisfactory to the City Oommission as required in Section 10 and Section 11. 4. Plans and specifications of the proposed distributing system in the City of Bozeman. ' 5. Written aoceptance of all and singular the terms, con- ditions, considerations and requirements of this ordinance. SECTION 19. That before this grant shall beoome effective the City Commission shall formally acoept and approve the evidenoe and bonds required in Section 18 hereof~ I SECTION 20. Effective Date. That this Ordinanoe shall be in full foroe and effect from and after sixty days after its passage. PROVIDED, that the Citizens Gas Companyaha.ll have complied with the provisions of Section 18 " """"- of this Ordinanci:/ . ../ Ftna~~passed by the Commission of the City of Bozeman this - ...- -~ 15 th day 0 f AtlgUflt;: 1 ~O . -~ - #?~ " ATTEST: .!J':""\~~i~":",:,:". 232 " . , ~. ~ Introduced, read for the first time, and PROVISIONALLY passed by the Commission of the City of Bozeman this 8th day of August, 1930 . ~~.1f~ .. ,Y' I '.~....- A~~S.T: __ . ' .' ... ~~ "-._"C';;;" - .'. '. 0: e omm ssion -' , . l!',...A.. .,...," ..... ,...... ..... -c:. ~. ~',. J:: " '~- ~~-_. . I, Elizabeth Johnson, Clerk of the Commission of the City of '.'w.'.,:....;...._. Bozeman, Montana, &0 hereby oertify that the foregoing Ordinanoe No. 598 of the City of Bozeman, Montana, was published by title in the Bozeman Daily Chronicle, a daily newspaper ot general oiroulation printed and pUblished in the City of Bozeman, in the 'issue of August 17th, 1930, and that'due proof of said publioation was made and filed in my office. IN WITNESS WHEREOF I have hereunto set my hand,. a,nd the " oorporate seal of said City this 18th day of August, 1930. , 1 t ~ ~ . -,' ~ r 0 'the. ~ J: ' /:-:- A. ~. I li'OR ORDDJAITCE NO. 599 SEE PAGE 266. I ..< . ~,:''''-'~.''',..,..~.....". ~~ ... . .I,ill" .... " ........ ~____r'..~~ . ..,/' J'''< . ,.- '- - -= .....-,' ........... ......"- ........... '- ..- -- - ,"'"' - -. -- e' _ ~~:.:",