HomeMy WebLinkAboutOrdinances Book 9, Page 572, No Ordinance Number... - Page 572
AN ORDINANCE PF OVIDING FO}; THEM CREAT10N ANT) Sr LE Ow A
FRANCHISE AND.PRIVILEGE OF FURNISHING IND DISTRIBUTING NATURAL GAS
IN TRF CITY. OF PAMICAH, KENTUCKY, AND PROVIDING FOR THE INSTALLATION
OF ALL EQUIP1VTNT AND OTHFR NFANS OF PT T]?TBUTING AND FUPNISHTNG
SAID GAS FOR TT7 USE OT•' THE PFOPLF AND BUSTN"FES '''ITHIN SPID CITY,
AND REGULATING THF NrTITOD AND NATPFP OF DIFTT'IbU`i'ING SAME, 1HF
PPICE TO BE CHARGED THFRFFOR, AND TFF, CONITSIONS UNDFP. '"ITICH SAID
PP.AI'CPISF. MAY F?Y OFTATED AND TIFF TFRP4 THAI' IT "-ALT. CONTINUE.
BY IT OFDPINED BY THF BOARD OF COisTdIFt IONTRS
OF' THE CITY OP PA DUCAH, 'KTNTUCKY:
SECTION 1.
Definitions: "Purchaser'' as used. in this ordinance
means the person, persons, association, company or corporation
which shall be the holder and owner of this franchise. "City" as
used in this ordinance means the City of Paducah, Kentucky as
now organized and as may be hereafter organized or reorganized.
"Board" 'as used in this ordinance shakl mean the board of
Commissioners or other legislative body of the City of Paducah
as the same nor exists under.the charter .of said city, or as may
be hereafter organized or reorganized. "BTU" as used in this
ordinance means British Thermal Units and has reference to the
volume of heat or heating intensity per cubic foot of gas at
60 degrees Fahrenheit.
SECTION 2. -
There is hereby.created and established in the City
of Paducah, Kentucky, and subject to the terms and conditions
of -this ordinance, a franchise for the purpose of furnishing
and distributing natural gas for lighting, heating, domestic,
manufacturing and other commercial uses in the City of Paducah,
Kentucky. The holder or owner of this franchise shall be vested
with the power,. authority snc1 privilege of installing all necessary
eauipment and other mems of furnishing and distributing said -gas
and gases for the use of the people and business within said city.
SECTION 3.
.The term of this Pre-chise shall be t^enty (20) years
from the date of its sale and of the approval of some by the hoard
of "o-missioners of the pity of Paducah.
SFCTION 4.
The privilege and right is hereby granted to the
purchaser to locate, lay, construct, maintain, operate, relocate
and reclaim all such pipes, pipe lines and connections, fixtures,
appliances and devices in, upon, along, through, over, across and
Page 573
under the public ways, streets, grounds, avenues and alleys of said
city as may be necessary or convenient to enable the purchaser to
carry inn in an economical and convenient manner thn business of
transporting, distributing, selling, furnishing or marketing said
natural gas for lighting, heating, domestic, manufacturing and other
commercial uses and purposes to all persons, firms, associations
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and corporations desiring to use the same. 'lhe right is hereby I
granted to install qnd maintain all equipment, plants and properties
necessary in the furnishing and Iistributing of said gas and gases.
SECTION 5,
All pipes, pipe lines, connections, fixtures, appliances
and devices of whatsoever nature or description shall be so located,
placed, constructed, arranged and maintained as not to interfere with
the free and convenient use by the public of said public ways, streets,
grounds, avenues and alleys of said city as now laid out or as may
hereafter be extended or improved, or nny other rights heretofore
granted, either by franchise or otherwise, to any other corporation,
association, firm or indivilual.
SECTION 6.
All mains, pipes and pipe lines shall be laid not less than
tvo (2) feet below the surface of the street or ground, but no main
or line shall be laid until the said purchaser has been furnished r!ith
finished street, driveway or alley grades as established by said city,
and all said mnins, piP6s, pine lines, connections, fixtures,
appliances and devices of ;^rbatsoever character so used or to be used
in distributing said gas or gases shall be so lrcated, placed, arranged,
constructed and maintained as to not, interfere xith the free and
convenient use by the public of said public ways, streets, grounds,
avenues and alleys, or any rights heretofore granted therein as aforeaaid�
All openings and other excavations made in the streets or other public
places in connection r•i.th the installation of, repairing or maintaining
in any manner the mains, pipes, pipe lines, connections, fixtures,
appliances and devices shall be promptly restored in good order to the
reasonable satisfaction of the city, and such filled or replaced
excavations shall be maintained by said purchaser in as good condition
as the adjacent unrqisturbed rivement or other surface for a period of
one (1) year after the same shall be so restored. A permit shall be
procured from the city before any excavations are made, nn,' said
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excavations shall be so arranged that not more than one (1) street u?s,
intersection slinli be obstnicted rt a time, and t'r.e streets or of'-.er
,)ublic ways itn which said excavations have been made shall be replaced
:nd surfaced in accordance with the SpOcif:ications providing for the
Page 574
construction or resurfacing of said stre<,ts or other days q the
time of said excavations. If said purchaser fails or refuses to
restore a street, pavement, driveway, side;,!nik, curb, ,-utter
or other public improvement or surface which it has excavated or
disturbed to the ressonable satisfaction of the brard, or in
accordance erith the provisions of this franchise, within a
rensonnble time, the authorities of said city, at their option,
may make restoration or improvement thereof and shall collect from
said purchaser the cost of making such repairs or repl^cements.
SECTION 7.
The purchaser sh-11 indemnify and hold the city
hnr*nless and free from liability on account of any dnma es t1lat
may be sustnined by it or recovered ngninst it on nccount of the
negli7ance of the purchaser or nny of its employes in installing,
building, laying, maintainig or otbrrwise constructing or
furnishing said gas distributing system, or in 'loing any ,cork in
connection ;;•ith the installation of said system or in the furnishing
of said gas, and said nurchaser sl,, -,ll also at ell times when any
street, driveway or other public :ay or place of any kind is being
excavated or opened, place sufficient barriers, guards, warnings
and warning lights thereat and thereabouts to adequately and
sufficiently warn an' protect the public at all times against
the dangers of said excavated place and until said excavated place
has been repl^ced and restored to its former condition.
,70TION 8.
The nurchaser shall within six (6) months have in
Paducnh, by and through all necessary and adenuate pipe lines and
other means and devices of transporting and providing the same, an
adequate and sufficient supply and cuantity of natural gas to meet
and=take care of the needs and requirements of said city as
contemplated in thi6 ordinance, but the Board may grant to the
purchaser such additional time as may be necessary, but not
exceeding six (6) months, within ;:hick to complete the work, but the
3oard may take into consideration loss of time occasioned by
Strikes and other unavoidable cauualties in granting extensions of
;ime hereunder. Failure on the part of the purchaser to comply
rith the provisions of this section within the time herein provided
;hall automatically and without notice forfeit and terminn.te this
'rnnchise and all rights therein created.
SECTION 9.
The purchaser may transfer or assign t'is (rnnchise,
ut if said francrise is so assigned and transferred the same
Page 575
shall be done by an instrument of writing or resolution b^ the seller,
and said sole and nurebase shall not be effective until the some has
been furnished and delivered to the Board and received by it and a
record thereof made upon the minutes of the legislative proceedings of
the city, and no such sale or transfer or assignment shall brcome
effective until the
Purchaser under such sale, assignment or transfer
has designated in writing an agent or agents resident in the City
i
of Paducah upon: om all notice of legal proceedings and proceedings of
any and every kind required to be hod. upon notice by the city has been
filed with the city and received of record by it upon the minutes of its
le„islntive proceedings. No agent for the service of notice and
process as herein mentioned and described shnll be removed, or his
agency discontinued in any W17 until his successor has been appointed
and designated and the appointment therf-of received by the city as
herein provided.
SFCTI OTT 10.
'ithin sixty (60) days after consummation o" the s -le of
this franchise the purchaser shall commence in Food faith to install,
erect and construct the eystem for distributing and furnishing natural
gas in said city, and the failure on tre part of the purchaser to
comply with the provisions of this section shnll act as a forfeiture
of this frnnchise.
SrCTIOrr 11.
The purchaser shall furnish such nntural gas for fuel,
lig'ting and commercial purposes ^rithout discrimination to any and all
persons, firms, associations and cornorations -ithin the city as herein
provided.
FOR RESIDENTIAL PUhPOSFS.
For the first 1000 cubic ft, per month..................$;1.00
For the next 1500 It
if if " per 1000 cubic ft. ,85
For the next 2500 cubic ft.ner month per 1000 cubic ft. ,75
For the nett 5000 cubic ft.' pFr month per 1000 cubic ft. .65
For all over 10000 cubic ft.per month per 1000 cubic ft. .50
A discount of 10°p will be allowed upon the first 1000 cubic feet if the
bill is paid within 10 days from :its dating.
A discount of 3% will be allowed on all of the excesp of 1000 cubic
feet, provided said bill is paid viitPin 10 days from its dating.
A minimum charge of x;'1.00 sholl be made on account of all bills, subject,
however, to a discount of 10% if paid within 10 days from the dating
of the bill.
FOR _COI:IAEPCIA L PUF POSES
35¢ per 1000 cubic ft. per month ^pith mi.mimum charge of ?3,50
All bills shall be rendered monthly sn, mailed or furnished to the
customer on the date of said bill or statement.
The purchaser shall have the right to renuire a denosit
sufficient to cover the possible amount used in any two months by any
customer who is not the owner of the premises where the gas is to be used
Page 576
as a prereouisite to installing said gas and meters on nny rented
premises, and the purchaser may refuse to sunoly, or may discontinue
the service of any customer -+ ose bill for the previous month has
not been paid on or before te,enty (20) days after the same became duel
and payable.
SDCTIOPi 12.
The purchaser shall make and furnish to the city an
acceptable surety bond, which allall be continued and kept in force
during the life of this franchise, conditioned thai: it and its
surety indemnifies and holds the city harmless and free from
I
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liability on account of any and all damages caused by the construction,
mnintenance anal operation of said system and any and all .,ork '
connected ^it!, tre installation, construction and maintenance thereof,
i.ch bond shall be in the nenal sum of T-enty-fine Thousand l
($25,000.00) Dollars, and u -on which bond tre city may maintain an
action for dmmnges for breach of eny of the provisions of this
franchise. And upon the Cailure to furnish such bond �Fdthin sixty
(60) days from the consummation of the s•,le of this franchise, said
frnnclise shall automnticnlly be and become null and void and
of no effect.
SECTION 13.
If the purchaser shall furnish gas as herein provided
to be distributed by any other person, firm, association, cor-oration
or agency of any sort, the terms, provisions and limitations of this
franchise shall apply 1,0 all slich gas so distributed.
SROTION 14.
It is understood that; natural tas as referred to in this
franchise has a heating ,o�-er largely in excess of heating po,rier
and capncity of artificial gas, n� the rates herein provided to be
charged for such n^turn). gns are based unon a minimum of 800 FTU
per cubic foot of gas as delivered at the point of consumption.
The nurchaser shall at his oe:n cost and expense furnish, install,
maintain and keep in operation in the City Hall, or other suitable
location to be designated by the hoard, a recording calorimeter of
standard make, tested and sealed, to record the heating unit
quality of the gas consumed throughout each day of t?le year, ehich
shall remain the property of the purchaser, the city shall
designate an officer or employe, who shall keep informed as to all
matters affecting, pertni.ning or relatin,c to the heating unit
quality of the gas furnished by the purchaser, m^king accurate copies
of recording charts each dny or oftener as may be desired, and shall
keep at n place designated by the voard an accurate and cnntinuing
Page 577
record of the heating unit quality of the gas throughout each day of
the year. The gns supplied by the nurchaser shnll at no time have
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a pressure of less than three (3) ounces nor more than t,.ielve (12)
i
ounces to the square inch at point-, of consumption; subject, however,
to accident or other causes and conditions beyond the rensonnble
control of the purchaser, the purchaser shall provide, install
and maintain a recording pressure gnuge in the City hall, or at such
other place as may be directed by the Lsoaff, , rithin ten (10) days
after the date when gas is furnished to consumers, snd a separate
service shall be provided from the main to the gauge, no gas
consumption being taken from said service and no charge to be made
i
therefor. Said ^ressure gauge shall be maintnined for the Purpose of
obtaining a 'oily and continuous record of the gas pressure. Fach
chart taken from tlit gauge shall be marked :^ith the dates it was
placed and removed and shall be filed and preserved by the city as a
Public record for not less than tl-ree (3) ,years, and no such chart shall
be destroyed until after three (3) years from the date when it is so
taken from said gauge. The nurchaser s ell at all times m^intain the
pressure herein required, and when regn.ested by the city or the
consumer, it shall be the duty of the purchaser to place a pressure
gauge at the point of consumption of the consumer m^king the request,
thereby establishing the accurate recording of the pressure for a period
of trenty-four (24) hours. Should the purchnser be .found to be
furnishing gas of a lower heating power than e00 BTU, the City, at its
option, may require a reduction in the rates to be charged for such
gas pro rata in proportion to the heating units of the gas furnished.
The purchaser, however, may apply to the city for a reduction of
minimum BTU provided herein, but if such reduction is allowed there
shall be a corresponding reduction in the rates to be charged for gas
thereafter furnished.
SECTION 15.
The purchaser shall extend his mains and popes for the
distribution of natural gas on sick streets, avenues, rays and alleys
as may be insmed by resolution of the board, Provided that before such
resolution shall be adopted at least six (6) consumers on an nverage
for every 400 feet of extension of such mains or pipes sh=11 in
writing agree to take such gas from the purchaser for a period of not
less than one (1) year at the rate or r^tos provided for in this
franchise; and every such resolution providing for exten:-ion of such
mains and pipes shall set forth the names of the subscribers to said
service, and it shall further be provided in such resolution that
should such prosncctive consumers, or any of them, fail r:ithin thirty
(30) slays after the passage of such resolution to agree to enter :into
or sign a contract with the purchaser as herein required, and
the ones so failing and refusing to sign said contract sr;all be
sufficient in number to reduce the whole number reouired for the
extension of said mains below the minimum herein provided, then
such resolution skull have no force and effect. Tf the purchaser
shall fail or refuse to comply with the reouirements of said
resolution for a poriod of ninety (90) days after the passage of
some, and after said consumers have made or offered to make
agreements of subscriptions to said service, then the purchaser
shall pay to the City the sum of Five (65.00) Dollars for each
and every day that such failure or refusal continues, and the
failure to obey such resolution authorizing an extension of mains
and pipes each day shall constitute a separate violation and shall
entitle the City to the sum aforesaid, which penalty may be
recovered in any court of competent jurisdiction.
SECTION 16.
'Shen any street, avenue, alley or other public
way is about to be paved or repaved by the City, and wb en any
resolution or ordinance has been a^opted by the City providing
for such improvement, the purcbAser shall on notice from the
City make any extensions of mains and pipes in such streets, alleys,
avenues and other putlic ••ays as arc Droposed to be so surfaced
or resurfaced, and shall lay or relay said mains anO pipes ahead
of the Davin-- and Drior to the ezcavntion requireA to be made
therefor, and shall also al!ce and construct the service lines
from the mins or pipes to the property line in front of all
property whether improved or vacant; provided, however, that the
mains of said. purchaser shall not be required to be so placed
in ruch streets, avenues, alleys or other public ways unless at
the time of the adoption of said resolution or ordinance providing
for such improvement the purchaser's mains are already located
••:ithin two hundred (200) feet from the street, avenue, alley
or other public way proposed to be improved.
SECTION 17.
"'he purchaser sha71 make all service connections
from the street mains or pipes to the property line -f the
consumer. `i'he purchaser shall furnish a coTrect, registering
meter to Asch consumer, All meters shall be of standard make,
tested and sealed, and skull be furnished free of cost to the
consumers and shall remain the property of the purcl-:aser. "hould
the correctness of a gas meter at any time be disputed by a
consumer it shall be t sted by the purchaser, and if requested by
the consumer, by an expert to be appointed by the hoard, and a
Page 579
certificate shoving the result of such test shall be furnishe,' to the
consumer demanding such test. 'ihe consumer shall pey the Coe of
such expert if tte meter is found to be accurate. If the motor is
found to be fast the purchaser shall pay bis own expense and pay the fee
of such expert, an` shall credit the consumers ac••ount rrith the total
meter eycess for the month since tie last meter reading. If the meter
is found to be slow the consumer shall pay the fee of such expert and
shall pay nt the existing rate for the gas consumed as in,li-cated by the
meter, plus t`e deficiencies for the month shown by the test. The
expert appointed by the Poard s1nn17 receive not to exceed $3.00 for each
meter tested by same. All meters wittin tl r,, per cent (3;) of
accuracy shall be treated es accurate.
SECT IoN 18 .
The purchaser at the sale of this franchise shall deliver
a certified -.heck, payable to the City, for the sum of 1,'Jve Thousand
(L5000.00) Dollars, plus the purchase price of said frananise, which
check and the purchase price of said franchise shall be held by the
City for sixty (60) days, and if ^ritbin said sixty (60) days said.
purchaser shall forfeit any of his rihts under said franchise, said
live "b ousand (x5000.00) Dollars shall be and become the property of
the City as liquidated damages for breach of said franchise by the
purchaser; otherwise said Five Thousand U5000.00) Dollars shall be
delivered, to the nurchaser after the expiration of sixty (60) days from
the effective date of said sale, but the purcl-sse price of said
franchise shnll, unon the acceptance of the bid of the purchaser,
automatically become tre property of said City.
SECTION 19,
Ten (20) days after the passage and publication of this
ordinance the i.'5yor of the city is authorized and directed to advertise
this franchise or privilege for sale in the official ne,;vspaper of said
city for a period of not less then ten (10) clays, It shall be
sufficient advertisement for the Milayor to describe the title of this
ordinance and to name the terms and conditions of the sale thereof,
together ts,ith the time and place of sale in such notice. Said sale
shall be conducted by public auction at th6 door to the entrance of
the City Hall on the north side of said building fronting upon
Kentucky Avenue, and shall be. conducted betveen the hours of 10:00 a.m.
and 4:00 p.m. on the date of said sale. S -id sale shnl
l be to the hi.ghcst.
and best bidder. Said bidder being reo';ired to deposit frith his bid
the certified check for Pive Thousand (.5000.00) Dollars and the
amount
of his bid for said franchise at the time said bid is received. -aid
bid shall be reported to the Hoard, as soon .^.s said csoard can be
assembled, and submi t.ed to it for its approval or rejection. The City
Page 080'
reserves the right to reject any and all bids.
SECTION 20.
In all proceedings involving questions arising under
this franchise it shall be permissible and lawful to refer to
this franchise as "The Natural Gas Franchise" of the City of
Pa-'ucnh. Any action for the benefit of nny patron or person
against the purchaser for any relief to --,hich such person or patron
m..^y appear to be e -titled may be mnintsined in the narm of the City
or by the City for the use and benefit of such person having
or claiming any such right.
SRCTION 21.
This ordinance shall be in full force and effect 10 days
after its passage and publication.
Signed
Mayor
Passed by the Board of Commissioners August le, 1930
Recorded by i?unt Crossland, Clerk, August 19, 1930