Article IV. NATURAL GAS SERVICES  


Ordinance of September 11, 1990

An ordinance granting a franchise for the operation of a natural gas system in the City of Monroeville to the Conecuh-Monroe Counties Gas District and providing for the payment of a franchise fee therefor

Be it Ordained by the City Council of the City of Monroeville, Alabama, (the "City") as follows:

Section 1: The city hereby grants to the Conecuh-Monroe Counties Gas District, a corporation, ("the district") and to its successors and assigns, the right, privilege, authority and franchise to acquire, construct, own, maintain, enlarge, improve and operate a natural gas transmission and distribution system (the "gas system") and in connection therewith to use the streets, avenues, alleys and public ways and places in the city for such purposes.

Section 2: The city hereby grants to the district and to its successors and assigns the right, privilege, authority and franchise at any time and from time to time during the period covered by this franchise, and without any requirement as to permit or fee therefor, to construct and extend its mains, pipes, conduits laterals and facilities over or under or along any street, avenue, alley or public way or place in the city for the purpose of constructing, repairing, improving, enlarging or extending the gas system.

Section 3: The district shall, and by accepting this franchise agrees and covenants with the city that it will, upon making any excavation in the streets, avenues, alleys, public ways and places of the city in the exercise of this franchise, restore the surface and paving at the point of such excavation in substantially the same condition as before the excavation was undertaken, within a reasonable time thereafter, and will save the city harmless from any liability arising out of any change in the condition of any street, avenue, alley, public way or place by the district.

Section 4: The rights, privileges, authorities and franchise hereby granted shall continue in force and effect for a period of thirty (30) years from October 1, 1989, which shall be deemed the inception date of the franchise herein granted, and the franchise herein granted shall be subject to the statutory provisions relating generally to gas districts as set forth in Title 11, Article 12, of the Code of Alabama, 1975.

Section 5: The city hereby covenants and agrees not to grant any other franchise for a gas system during the term of the franchise hereby granted, to the extent that an exclusive franchise is or may hereafter be authorized or permitted by law. The city further covenants and agrees that it will not, during the term of the franchise hereby granted, construct, acquire, own or operate or cause to be operated a gas system within the corporate limits of the city and the area adjacent thereto.

Section 6: The district shall, and by accepting this franchise covenant and agree to pay to the city, as a part of the consideration for the grant of the franchise herein, an annual franchise fee equal to three percent (3%) of the district's gross dollar revenues from gas sales within the city's corporate limits for the proceeding year, together with a franchise fee equal to one and one-half percent (1½%) of the district's gross dollar revenues from gas sales outside the city's corporate limits but within the city's police jurisdiction for the proceeding year. Such franchise fee shall be payable by the district to the city upon completion of the district's annual audit of gas sales and receipts, but in no event more than ninety (90) days following the end of the franchise year. For purposes of this ordinance, the district's initial franchise year shall be deemed as beginning on October 1 1989, and ending September 30, 1990, and shall begin and end on the same days of each successive year thereafter during the term of this franchise. For purposes of computation of the franchise fee hereunder, any additional taxes levied by the district upon gas sales, including state utility taxes, sale of natural gas by-products or liquids, sales of merchandise by the district or compensation to the district for repair or installation service shall not be subject to the franchise fee provided herein.

Section 7: The provisions of this ordinance are intended to be severable, and if any one or more hereof should be held invalid for any reason, the remainder hereof shall nevertheless stand as fully effective.

Section 8: All ordinances, resolutions, orders or parts thereof in conflict with this ordinance are hereby repealed to the extent of such conflict.

Section 9: This ordinance shall [be] published at the expense of the District by publication one time in the Monroe Journal, a newspaper published and having general circulation in the City.

ADOPTED this the 11th day of September, 1990.

/s/
      Mayor

   

Attest:

/s/
      City Clerk