TC Ord. No. 1983-19i
ORDINANCE NO.#83-19
AN ORDINANCE GRANTING A FRANCHISE BY THE TOWN OF AVON,
COLORADO, TO ROCKY MOUNTAIN NATURAL GAS COMPANY, INC.,
ITS SUCCESSORS AND ASSIGNS, TO LOCATE, BUILD, CONSTRUCT,
ACQUIRE, PURCHASE, EXTEND, MAINTAIN AND OPERATE INTO,
WITHIN AND THROUGH THE TOWN OF AVON, EAGLE COUNTY,
COLORADO, A PLANT OR PLANTS, AND WORKS FOR THE PURCHASE
OF GAS, EITHER NATURAL, ARTIFICIAL, OR MIXED, AND TO
FURNISH, SELL AND DISTRIBUTE SAID GAS TO THE TOWN OF AVON,
AND THE INHABITANTS THEREOF, FOR HEATING, COOKING, OR
OTHER PURPOSES BY MEANS OF PIPES, MAINS, OR'OTHERWISE,
OVER, UNDER, ALONG, ACROSS AND THROUGH ANY AND ALL'STREETS,
ALLEYS, VIADUCTS, BRIDGES, ROADS, LANES AND OTHER PUBLIC
WAYS AND PLACES IN SAID TOWN OF AVON AND FIXING THE TERMS
AND CONDITIONS THEREOF.
WHEREAS, Rocky Mountain Natural Gas Company, Inc. has filed
its application with the Town of Avon, Colorado, for the granting
to it by the Town of Avon of a franchise in terms as hereinafter
set forth; and
BE IT ORDAINED BY THE TOWN COUNCIL OF AVON, EAGLE COUNTY,
COLORADO:
ARTICLE I
Section 1. Short Title. This Ordinance shall be known and may
be cited as the "Rocky Mountain Natural Gas Company, Inc. Franchise
Ordinance".
Section 2. Definitions. For the purpose of this Ordinance, the
following terms shall have the meaning given herein.
"Town" is the Town of Avon, Eagle County, Colorado, the grantor
of rights under this franchise.
' "Company" is Rocky Mountain Natural Gas Company, Inc., the grantee
of rights under this franchise.
"Person" is any person, firm, partnership, assocication, corpora-
tion, company or organization of any kind.
"Commission" is the Public Utilities Commission of Colorado or
its successor in interest and authority over public utilities.
ARTICLE II
Section 1. Grant of Authority. There is hereby granted by the
Town to the Company the right, privilege and authority to locate,
build, construct, acquire, purchase, extend, maintain, and operate
into, within and through the Town a plant or plants, works, systems
and facilities for the purchase, manufacture, transmission and distri-
bution of gas, either natural, artificial or mixed, with the right
' and privilege for the period and upon the terms and conditions herein-
after specified to furnish, sell and distribute gas to the Town, and
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its inhabitants, for heating, cooking or other similar purposes, by
means of pipes, mains, or otherwise, over, under, along, across and
through any and all streets, alleys, viaducts, bridges, roads, lanes
and other public ways and places in the Town and over, under, along,
across and through any extension, connection with or continuation of
the same and over, under, along, across and through any and all new
streets, alleys, viaducts, bridges, roads, lanes and other public ways
and places as may be hereafter laid out, opened, located or constructed
within the territory now or hereafter included in the boundaries of
the Town; provided, however, that the Company shall have no right to
construct any building, dwelling, or manufacturing facility upon-any-such
street, gas easement or other public property.-
Section 2. Manner of Use and Repair. The Company is further
granted the right, privilege and authority to excavate in, occupy and
use any and all streets, alleys, viaducts, bridges, roads, lanes,
parkways, and other public ways and places under the supervision of
the properly constituted authority for the purpose of bringing gas
into, within and through the Town, and supplying gas to the Town and
its inhabitants and in the territory adjacent thereto; provided, how-
ever, that the Company shall so locate its plants, works, transmission
and distribution structures, equipment, mains, and pipes within the
Town in accordance with Ordinances including digging and trenching
ordinances and Regulations of the Town and its sister governments and
further in locating said facilities shall do so in such a manner as
to cause minimum interference with the proper use of streets, alleys
and other public ways and places, and to cause minimum interference
with the rights of reasonable convenience of property owners whose
property adjoins any of the streets, alleys, or other public ways and
places. Should it become necessary for the Company, in exercising
its rights and performing its duties hereunder, to interfere with any
sidewalk, gravelled or paved streets, roads or alleys, or any other
public or private improvement, the Company shall promptly repair at
its own expense in a workmanlike manner and in accordance with Ordin-
ances and Regulations of the Town and its sister governments, such
sidewalk, gravelled or paved street, road, alley or other improvement
after the installation of its pipes or other structures. The Company
shall use due care not to interfere with or damage any water mains,
sewers, or other structures now in place or which may hereafter be
placed in said streets, alleys or other public places, and the Company
shall, at its own expense repair in a workmanlike manner and in ac-
cordance with ordinances and Regulations of the Town and its sister
governments, any of such water mains, sewers or other structures which
are damaged through the action of the Company. In the event that the
Company fails to make said repairs within a reasonable period of time,
Company hereby authorizes the Town to assume, in whole or in part
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and at the expense of the Company, the work of repairing public
improvements, sidewalks, streets, alleys, roads, highways, or other
surfaces excavated, broken, torn up, or otherwise damaged by the
' Company. Upon the granting of a franchise under this Agreement,
the Company shall deposit with the Clerk of the Town of Avon, and
shall maintain in force through the term of this franchise, a cash
deposit of $3,000, which shall be in addition to any bonds required
under this Agreement, from which the Town shall be reimbursed for
any cost or expense incurred in repairing any public improvement,
sidewalk, street, alley, road, highway or other surface excavated
or otherwise damaged in the event that the Company shall fail to
promptly repair the same in accordance with the Ordinances and
Regulations of the Town Council, or in the event the Town assumes
the work of making these repairs. The Company shall never excavate
or tear up any public improvement, sidewalk, street, alley, road,
highway or other surface without permission from the Town Council
' or Town Manager or his authorized representative, given in writing,
except in event of emergency when the Town offices are closed.
The permission of the Town Council or Town Manager shall not be
unreasonably withheld. This granting of authority shall apply
to all streets and alleys presently platted or otherwise of record,
all gas easements presently owned by or dedicated to the Town or
to the public within the Town limits, and shall extend to future
streets, alleys, gas easements within territory annexed by the
Town unless served by another Company or the Town notifies the
Company in writing that its franchise shall not be automatically
extended to such annexed territory. The Company shall be responsi-
ble to remedy any defects in repair work done.by the Company for
a period of two years after completion. The Town shall have the
right to inspect and supervise any work on Town property and im-
provements.
Section 3. Town Held Harmless. The,Company shall so maintain
its structures, apparatus, mains, pipes and other equipment as
to afford all reasonable protection against injury or damage to
persons or property therefrom, and the Company shall save the Town
harmless from all liability or damage and all reasonable expenses
necesarily accruing against'the Town arising out of the exercise
by the Company of the rights and privileges hereby granted; provided
that the Company shall have had notice of the pendency of any action
against the Town arising out of such exercise by the Company of
said-rights and privileges and be permitted at its own expense
to appear and defend or assist in the defense of the same. -Upon
the'granting of a franchise under this Agreement, the Company shall
maintain public liability insurance in an amount not less than
' $500,000, with an umbrella for not less than $1,000,000, and shall
furnish a certificate to the Town so showing which insurance shall
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cover the Company's liability under this Agreement. In lieu of
said certificate, the Company may furnish the town evidence in
writing of self insurance meeting the amounts set forth immediately
above, together with the name of its insurance carrier and amounts
of public liability insurance for amounts in excess of its self
insurance.
Section 4. Changes at Company Expense. If at any time it
shall be necessary for the Company to relocate any facility within,
on, over, under, across or above any street or public way to permit
the Town to make any public improvement or build any public project,
including the installation or replacement-of any water or sewer
lines, owned by the Town or its sister governmental bodies, such
relocation shall be made by the Company, at its own expense,
promptly after request by the Town. Such relocation shall be
accomplished by the Company after consultation with and approval
of the Town and shall be accomplished in such a manner as to be
consistent with the use of the public ways as herein provided.
Section 5. Non-Exclusive Nature of the Franchise. The right
to use and occupy the streets, alleys, public ways and places for
the purposes herein set forth shall not be exclusive and the Town
reserves the right to grant similar uses and other uses by way
of franchise, revocable permit, or as otherwise authorized by law
in said streets and public ways to any other person, partnership
or corporation.
ARTICLE III
Section 1. Service Standards and Controls. The Company shall
maintain and operate its plants and system and render safe, adequate,
continuous and efficient service in accordance with the rules and
regulations of the Commission and the terms and conditions of this
Ordinance, including specifically, but without limitation, the
' following requirements:
a. Heating value. Gas sold, supplied and delivered under
this franchise shall be maintained at a monthly average of not
less than 950 British Thermal Units of heat value per cubic foot.
A cubic foot of gas means that amount of gas which when saturated
with water vapor at a temperature of sixty degrees (600)` Fahrenheit
and subject to an absolute pressure equal to thirty inches (30")
of mercury, at thirty-two degrees (32°) Fahrenheit (14.73 pounds
per square inch) occupies a volume of one(1) cubic foot. Gas
sold under this franchise shall be accurately measured utilizing
metering equipment of a-type approved by the Commission, and the
Company shall provide the Town with copies of calorimeter and pres-
sure reports on request.
' b. Pressure. Gas pressure, as measured at the outlet
of the Company's service to any consumer shall never be less than
required by the regulations of the Commission. The Company shall
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maintain a graphic recording pressure gauge at a point in'the
distribution system to be designated by the Town as typical of
average pressure. Charts from the same shall be made available
to the Town periodically at its request. The Company shall also
keep and maintain a portable graphic recording gauge which shall
be used at the request of the Town or of any customer of the Company
within the limits of Avon, to test the pressure at any point in
the distribution system where it connects with the service of a
customer. A copy of the tests and reports from these gauges shall
be kept and shall be made available for inspection in the hands
of the Company by any customer concerned therewith.
C. Expense of Adjustment. If, after natural gas has been
made available, it should later be necessary to revert to manu-
factured, artificial, or other suitable, or mixed gas, the Company
shall defray all necessary expenses incident to the adjustment of
domestic, commercial and governmental appliances, including the
changing or redrilling of orifices-and burners.
d. Maintenance of System. The Company shall maintain
its gas plant equipment and distribution system in good condition
and repair at all times.
e. Repairs - Notice of Interruptions. Whenever it is
necessary to shut off or interrupt service for the purpose of making
repairs or installation, the Company shall do so at such time as
will cause the least amount of inconvenience to its patrons, and
unless such repairs are unforeseen and immediately necessary, it
shall give reasonable notice thereof to the customers. If the-
Company is unable to confirm receipt of such notice to any customer
prior to the interruption of service to that customer, then in
no event shall service to that customer be restored until such
time as that customer has been notified of the interruption.
f. Repair After Destruction. In case the system of the
Company shall be partly or wholly destroyed or incapacitated, the
,Company shall at once repair said system so as to render satis-
factory service within the shortest practicable time.
g. Meter Accuracy. All gas service shall be supplied
through meters which shall accurately measure the amount of gas
supplied to any consumer. The Company shall at any time when re-
quested by a consumer make a test of the accuracy of any gas
service meter free of charge; provided first that such meter has
not been tested within the twelve-month period prior to such request,
and second, that the consumer will agree to accept the result of-
such test made by the Company as the basis for settling differences
claimed. A written report giving the results of every such test
shall be made to the consumer who requested it, the original record
' being kept on file at the office of the Company for a period of
at least two years. The Company shall make periodic tests of
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meters in Avon in accordance with the requirements of the Commission.
Any meter found inaccurate upon any test beyond a tolerance-of two
percent shall not be returned to service until properly adjusted.
The Company shall make available at any time to the Town statements
indicating the number of meters removed for all tests and the number
removed for complaint tests, together with the meter complaints
received and the results of tests on meters that are the subject
of complaint.
h. Maps. The Company shall prepare and submit to the
Town a map showing the location of its distribution system, showing
location of shutoff valves and gates, and all appurtenances incident
to the distribution system, so far as such facilities can reasonably
be projected. The map shall be kept current by addition of the
information hereby required as the system is extended or revised.
If the Company fails to keep such map current and provide the re-
quired information, the Town can cause such work to be done, and
' charge all cost thereof to the Company.
i. The Company shall make adequate provision for providing
service to customers, and it shall be the responsibility of the
Company, in accordance with its service extension policies in effect
and on file with the Commission governing gas utilities, to extend
gas lines to the property lines of customers who have ordered gas.
Section 2. Adequacy of Supply. The Company will at all times
during the term of this franchise take all reasonable steps to
insure an adequate supply of natural gas, but if unable to reasonably
procure the 'same, the Company shall be and is hereby authorized
and required to supply an adequate amount of artificial or mixed
gas to satisfy the requirements of the Town and its inhabitants.
The Company shall have the right and obligation to supply artificial
or mixed gas, at periods of peak usage or at such other times or
for such other purposes as will result in efficiencies in operation
of the Company's system, provided that the supply of said other
gas will not impair service to the Company's customers nor un-
reasonably increase the rates or charges to said customers. Such
other gas, or mixtures thereof, shall be supplied by the Company
in accordance with applicable rules and orders of the Commission.
If the Company, within a reasonable period after the failure of
the supply of natural gas, shall fail to supply artificial or mixed
gas, to its then existing customers or to a substantial number
of the then residents of Avon requesting,gas service, the franchise
rights granted herein shall be terminated and the Town may acquire
the Company's property and facilities upon payment of just compensa-
tion as herein defined in Sections 1 and 2 of Article VI.
/ ARTICLE IV
Section 1. Rates-Regulation. The Company shall furnish
gas within the corporate limits of the Town or any addition thereto,
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except as provided on Article II, Section 2, to the Town and its
inhabitants, and to any person or persons or corporation doing
business in the Town or any addition thereto, at the rates and
under the terms and conditions set forth in-the Rate Schedules,
r~
Standards for Service, Rules and Regulations, and Service Con-
nection and Extension Policies as are from time to time filed with
or fixed by the Commission. In the event that any regulatory power
presently vested in the Commission shall hereafter be no longer
within said Commission's authority, or any successor agency, then
said power shall be deemed vested in the Town Council of Avon or
in such agency as may be deemed mutually acceptable to the Company
and the Town.
Section 2. No Discrimination. The Company shall not, as
to,rates, charges, service, facilities, ruins, regulations or in
any other respect make or grant any preference or advantage to
any corporation or person or subject any corporation or person
' to any prejudice or disadvantage, providing that nothing in this
grant shall be taken to prohibit the establishment from time to
time of a graduated scale of charges and classified rate schedules
to which any customer coming within an established classification
would be entitled.
Section 3. Savings to Customers. If during the term of
this franchise the cost to the Company of any natural, artificial
or mixed gas sold under this franchise is decreased by the Federal
Energy Commission or any body having competent jurisdiction below
the cost previously established by the Federal Energy Commission,
the Company agrees that it will pass on to its consumers hereunder
and refund to them all moneys by credit to the consumers' bills
or otherwise arising from such reduction or refund, including any
excess revenues resulting from pass-on increases where increased
revenues have exceeded the increased cost of gas, in accordance
with the Rules and Regulations of the Commission.
Section 4. Extensions. The Company shall from time to time
during the term of this franchise make such enlargements and extensions
of its distribution system as the business of the Company and the
growth of the Town justify, in accordance with its Standards for
Service, Rules and Regulations, and Service Connection and Extension
Policies for gas service currently in effect and on file and as
are from time to time filed with or fixed by the Commission or
other competent authority having jurisdiction of the premises.
Section 5. Compliance. The Company, prior to construction
or major replacement of any gas distribution or transmission lines,
regulatory station or other structure within the area of Avon,
including the Town limits, shall furnish to the Town plans for
' such facility or facilities and the landscaping proposed therefor.
Such plans shall be reviewed by the Town to ensure that all applicable
laws, including building and zoning codes and air and water pollu-
tion regulations, are complied with and, further, that aesthetic
and good planning principles havd,"been given due consideration.
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The Company, in_the construction and maintenance of all its
gas works and facilities, will install, operate and maintain all
' such facilities to comply with applicable laws and regulations
of local, state and federal governments.
Section 6. Cooperation With'Other Utilities. The Company,
when undertaking a project of construction, repair or replacement
involving the installation of facilities underground or upon the
surface, shall cooperate with the Town and utilities having fac-
ilities in the same area with the express understanding that the
Town's installation upon and below ground shall have priority in
the public ways and streets.
Section.7. Rules and Regulations. The Company from time
to time may promulgate such rules, regulations, terms and conditions
governing the conduct of its business, including the utilization
of gas and payment therefor, and the interference with, or alters-
. ,
tion of any of the Company's property upon the premises of its
' customers, as shall be necessary to insure a continuous and
uninterrupted service to each and all of its customers and the
proper measurement thereof and payment therefor, provided that
the Company shall make available to the Town Clerk of the Town
upon request and in the Company's offices in'Denver, Colorado,,
available to the public, copies of its Rate Schedules, Standards
for Service, Rules and Regulations, and Service Connection and
Extension Policies concurrently in effect and as filed with the
commission or other competent authority having jurisdiction in
the premises.
Section 8. Contract Availability. A copy of any contract
to which the Company is a party for the purchase of gas from a
pipeline company or producer of natural gas to provide utility
service under this franchise and a copy of every other such contract
e of the Company filed with any state or federal regulatory agency
shall be made available to the Town upon its request.
The Company agrees that if the Town acquires the property
of the Company under the terms of this franchise the Town shall
be entitled to also acquire, at its option, an interest in said
contracts to supply gas that represents the pro rata share of gas
currently being used to the extent permissible under said contracts
and current financial obligations of the Company applicable to
those contracts.
The Town Council or any of its authorized agents shall have
access at all reasonable hours to the books and records of the
Company which in any way deal with or record the gas operations
of the Company under this franchise.
' Section 9. Reports. In addition to reports that may be other
wise required by ordinance or charter of the Town or by state or
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federal regulatory bodies, the Company shall
reports as the Town Council may from time to
respect to the operations of the Company and
shall provide to the Town, its employees and
of the gas operations as may be requested by
of the Town.
ARTICLE V
submit such other
time request with
=r this franchise and
agents, the details
the officials or agents
Section 1. Franchise Payment. As a further consideration-
for this franchise, and accepted by the Town in lieu of all occupa-
tion and license taxes, charges and all other special taxes,
assessments, excises or other impositions levied by the Town on
the right to do business or upon the pipes, mains, meters, or other
property of the Company, or other levies except use taxes or any
permit charge or inspection fee that might be imposed, either as
a franchise tax, occupation tax, license tax, or otherwise, the
' Company shall pay to the Town as franchise payments a sum equal
to three percent (3%) of the annual gross revenues derived from
the sale of gas, to each customer at one location. On or before
March 31, of each year the Company shall make an estimate of the
total franchise payments to be made to the Town for the current
year. Payments shall be made in monthly installments not more
than thirty (30) days following the close of the month for which
payment is to be made. Initial and final payments shall be prorated
for the portions of the months at the beginning and end of this
franchise. Adjustment for any differences from payment calculated
on actual revenue shall be made with the March 31 payment in the
following year. For the purpose of ascertaining orauditing the
correct amount to be paid under the provisions of this paragraph,
any official or authorized agent of the Town shall have access
to the books of the Company for the purpose of checking the gross
revenue received from operations within said Town. It is understood
that payment of such franchise charge does not excuse the Company
from payment of either sales and use taxes, or property taxes,
as such taxes are levied from time to time. The Company shall
be required to obtain any excavation permit or building permit,
if required by Town regulations and pay any fees required to obtain
the permit, such payment to be in addition to franchise payments.
The term "gross revenue" as used herein shall be construed
to mean any revenue derived under authorized rates, temporary or
permanent, within the Town from the sale of gas after the net write-
off of uncollectible accounts and corrections of bills theretofore
rendered.
ARTICLE VI
Section 1. Purchase Option. At any time after five (5) years
from the effective date of this franchise, and continuing for the
balance of the term of'such franchise or any extension thereof,
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the Town shall have the right, option and privilege of purchasing
the Company's entire plant and distribution system operating in'
the Town for a purchase price representing the fair market value
of the system (the entire system shall include all additions and
extensions to the original system). If the parties are not able
to agree to the fair market value, such value shall be determined
through binding arbitration. In case of such arbitration, each
party shall choose one arbitrator, and the two arbitrators so
chosen shall choose a third arbitrator, who shall be chairman of
the arbitration panel. The costs of arbitration shall be divided
equally between the parties. The Company and the Town agree to
negotiate means to limit severance damages, including acquisition
of system and customers outside the Town.
Section 2. Acquisition of Company Property. The purchase
price of the system set forth in Section 1 of this Article is a
method of acquisition of the system by the Town, which is alterna-
tive to any other lawful means of acquiring title to the system
by the Town, and said right and privilege of purchasing the
Company's entire system shall be in addition to all of the rights
and privileges granted and reserved to the Town by the laws,of
the State of Colorado in all matters relating to franchises. The
Town'Council may authorize the acquisition of such property by
ordinance. The Town retains the right to acquire property outside
the Town limits by condemnation or otherwise', as granted by the
Colorado Constitution, regardless of whether the system within
the Town is acquired pursuant to this Section by condemnation or
otherwise.
Section 3. Term - Effective Date. This Ordinance shall
be in full force and effect from and after its passage, approval
and publication, as required by law, and the terms, conditions
and covenants hereof shall remain in full force and effect for
a period of twenty (20) years from and after the effective date
following final passage.
Section 4. Procedure After Termination or Revocation. If
the Town Council shall at any time revoke this franchise or at
the end of the term the Town Council shall determine (a) whether
the Company shall continue to operate and maintain its plant and
system for distribution to provide gas service to the residents
of Avon, pending the decision of the municipality as to reletting
the franchise or the purchase by the Town of said plant and distri-
bution system, (b) whether the plant and distribution system shall
be taken over and maintained and operated by the Town in trust
for the Company until such decision has been reached, or (c) whether
the Town Council shall designate another party to take over, maintain
and operate said plant and distribution pending such decision.
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Section 5. Removal. Upon the expiration of this franchise,
if the Company shall not have acquired an extension or renewal thereof
and accepted same, it is hereby granted the right to enter upon the
streets, alleys, bridges, viaducts, roads, lanes and other public
places of the Town for the purpose of removing any or all of its
plants, structures, pipes, mains, or equipment pertaining thereto,
at any time after the Town has received written notice of the Com-
pany's intent to remove any of the above and the Town has had ample
time and opportunity to purchase, condemn or replace them. Prior,
to the removal of any of its plants, structures, pipes, mains or
equipment, the Company shall post a bond with the Town Clerk in an
amount equal-to two ,(2) times the estimated cost of removal and
restoration. The Town Council shall have the right to review and
adjust any such estimates of the cost of removal and restoration.
In so removing said pipes, mains or other property, the Company shall,
at its own expense, and in a workmanlike manner and in accordance
with Town Ordinances and Regulations and those of its sister govern-
ments, refill any excavations that shall be made by the Company in
the gravelled or paved streets, alleys, bridges, viaducts, roads,
lanes and other public places after the removal of its mains, pipes
or other structures. If the Company has not acquired an extension
or renewal of its franchise within one year after its termination
and has not removed its plants, structures, pipes, mains and equipment
pertaining thereto within said year, the Town may at its option require
the Company to remove said facilities at the Company's expense, or
the Town may acquire all the rights of the Company in said property
in accordance with Sections 1 and 2 of this Article.
Section 6. Rates. Rates charged by the Company for service
hereunder shall be fair and reasonable and designed to meet all
necessary costs of service, including a fair rate of return on the
net valuation of its properties devoted thereto, under efficient
and economical management. The Company agrees that it shall be subject
to all authority now or hereafter possessed by any regulatory body
having jurisdiction to fix just, reasonable, and compensatory gas
rates. The Company further agrees that the system shall be so de-
signed and constructed and sources of gas utilized as to provide
the most economic development and favorable rate structure possible,
taking into account deliverability of gas, reserves and other pertinent
conditions.
Section 7. Assignment. The Company shall not assign this
franchise, or the rights granted hereunder, without first obtaining
written approval of the Town Council; provided, however, that,this
condition shall not be construed to restrict or prevent the issuance
of bonds, debentures or other evidence of indebtedness, or the issue
' of additional stock, needed or useful for the purpose of financing
the sytem or any portion of it.
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Section S. Bond. Within fifteen (15) days after the Town has
' adopted this Franchise Agreement the Company shall deposit with the
Town Clerk a bond in the penal sum of Fifty Thousand Dollars
($50,000.00) executed by the Company with surety to be approved by
the Town, conditioned upon compliance with the terms of this or-
dinance and further conditioned that the Company and its surety shall
pay to the Town all costs, expenses and damages resulting to the
Town from the failure of the Company to comply with the terms of
this Ordinance, and further conditioned that the Town shall recover
all costs and expenses incurred in enforcing collection of said bond.
Such bond shall be maintained in full force and effect during the
'period of this franchise, and additional security may be required
from time to time, or security may,be adjusted, revised or substi-
tuted upon written consent of the Town.
Section 9. Forfeiture. The Town reserves the right to declare
a forfeiture of this franchise for the breach of a substantial and
material provision thereof. No forfeiture shall be declared until
the Company shall have had an opportunity to be heard and to correct
the alleged breach. Upon failure of the Company to exercise reason-
able diligence to correct such condition, the Town may declare this
franchise forfeited. In the event that this franchise is forfeited,
then the.Company agrees to continue to render service for a period
of six (6) months to give the Town time to decide upon its course
of action.
Section 10. Severability. If any portion of this ordinance
is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate
distinct and independent provision, and such holding shall not affect
the validity of the remaining portion of this Ordinance.
' Section 11. Reserved Rights. The right is hereby reserved
to the Town to adopt, from time to time, in addition to the provisions
herein contained, such ordinances as may be deemed necessary in the
exercise of its police power, provided that such regulations shall
be reasonable and not destructive of the rights herein granted and
not in conflict with the laws of the State of Colorado, or with
orders or other authorities having jurisdiction in the premises,
except as permitted in the exercise of the Town's "home rule" powers
granted by Article XX of the Colorado Constitution. This franchise
shall be subject to all valid and effective provisions of the Town
Charter whether enumerated here or not.
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PASSED on first. reading this26th,-:day of April 1983
PASSED on second reading .hday of May 1983.
ATTEST: `
TOWN LERK
ACCEPTED this 24th day of May - 1983
ROCKY MOUNTAIN NATURAL
GAS COMPANY, INC.
ATTEST:
'~~~~MAYOR
By
Orville M. Shockley
President
Secretary
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PASSED on first reading this26th day of April 1983
PASSED on second reading this day of May 1983.
MAYOR
ATTEST:
i
TOWN CLERK
Y
ACCEPTED this 24th day of May
1983
ROCKY MOUNTAIN NATURAL
GAS COMPANY, INC.
gy WA"
Orville M. Shockley
President
ATTEST:
Secretary
- 13 -
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON )
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO, AT 7:30 P.M. ON THE 24TH DAY OF MAY,
1983 AT THE MUNICIPAL BUILDING, 400 BENCHMARK ROAD, AVON, COLORADO FOR
THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. #83-19,
SERIES OF 1983:
AN ORDINANCE GRANTING A FRANCHISE BY THE TOWN OF AVON, COLORADO, TO
ROCKY MOUNTAIN NATURAL GAS COMPANY, INC., ITS SUCCESSORS AND ASSIGNS,
TO LOCATE, BUILD, CONSTRUCT, ACQUIRE, PURCHASE, EXTEND, MAINTAIN AND
OPERATE INTO, WITHIN AND THROUGH THE TOWN OF AVON, EAGLE COUNTY,
COLORADO, A PLANT OR PLANTS, AND WORKS FOR THE PURCHASE OF GAS, EITHER
NATURAL, ARTIFICIAL, OR MIXED, AND TO FURNISH, SELL AND DISTRIBUTE SAID
GAS TO THE TOWN OF AVON, AND THE INHABITANTS THEREOF, FOR HEATING,
COOKING, OR OTHER PURPOSES BY MEANS OF PIPES, MAINS, OR OTHERWISE, OVER,
UNDER, ALONG, ACROSS AND THROUGH ANY AND ALL STREETS, ALLEYS, VIADUCTS,
BRIDGES, ROADS, LANES AND OTHER PUBLIC WAYS AND PLACES IN SAID TOWN OF
AVON AND FIXING THE TERMS AND CONDITIONS THEREOF.
A copy of said Ordinance is attached hereto and is also on file at the
office of the town clerk and may be inspected during regular business
hours.
Following this hearing, the Council may consider final passage of this
Ordinance.
This notice given and passed by order of the Town Council of the Town
of Avon, Colorado.
Dated this 27th day of April, 1983.
TOWN OF AVON, COLORADO
B r
Patricia J. D6ylle, Town Jerk
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
April 28th , 1983
THE MAIN ENTRANCE OF THE POST OFFICE,
THE MAIN ENTRANCE TO CITY MARKET,
THE PESTER GAS STATION: AND
THE MAIN LOBBY IN THE MUNICIPAL BUILDING