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HomeMy WebLinkAboutAtlanta Gas Light Ordinance (Ordinance NO. 06-11-64)ORDINANCE NO. 06-11-64 AN ORDINANCE AN ORDINANCE, GRANTING TO ATLANTA GAS LIGHT COMPANY, A GEORGIA CORPORATION, HEREINAFTER DESIGNATED AS "GRANTEE", ITS SUCCESSORS AND ASSIGNS, THE RIGHT AND FRANCHISE FOR USE OF RIGHTS-OF-WAY AND OTHER PUBLIC PROPERTY OF THE CITY OF MILTON, GEORGIA, FOR CONSTRUCTING, MAINTAINING, RENEWING, REPAIRING, AND OPERATING GAS DISTRIBUTION SYSTEMS, AND OTHER NECESSARY MEANS FOR TRANSMITTING, DISTRIBUTING AND SELLING GAS WITHIN AND THROUGH THE CITY OF MILTON, GEORGIA; TO FIX THE TERMS AND CONDITIONS OF SUCH GRANT; TO PROVIDE PROVISIONS GOVERNING THE FRANCHISEE CALCULATION; TO PROVIDE AN EFFECTIVE DATE; AND FOR OTHER PURPOSES WHEREAS, the City of Milton, Georgia, hereinafter referred to as the City, and the undersigned warrant and represent that there is no franchise granted by the City and in force and effect, to any other person, firm or corporation and that the City is under no contract or obligation to any other person, firm or corporation, in anywise relating to the installation of gas service in the City of Milton, Georgia; now, therefore: BE IT ORDAINED by the Mayor and Council of the City of Milton, Georgia, as follows: SECTION 1. (a) Base Year means the fiscal year ending September 30, 2006. (b) Base Year Franchise Fee Factor means St 3.:y. (c) Dedicated Design Day Capacity or "DDDC " means 1-1j'701. 1 16S , which represents the sum of the individual capacity in the dekatherms (Dt) attributable to all firm customers located within the city limits of the City, as of the last day of the previous fiscal year. (d) Firm Customers means all residential and business customers who purchase gas service that ordinarily is not subject to interruption or curtailment. Page 1 of 7 (e) Fiscal Year means the 12 months ending September 30, of each year. (f) Inflation Index means the percentage change in the Consumer Price Index for all Urban Consumers as published by the Bureau of Labor Statistics, or any successor index, for the period from September 30, 2006, to the beginning of the then current fiscal year, as reduced by any productivity factor adjustment for the same time period determined by the Georgia Public Service Commission for the Company. (g) Productivity Factor Adjustment or PFA means the percent change in the cost of service due to productivity either explicitly or implicitly determined by the GPSC. SECTION 2 The right is hereby granted to the Grantee, its successors and assigns, to lay, construct, extend, maintain, renew, replace and repair gas pipes, valves, manholes, service boxes, posts, lamps, structures, appliances and all appurtenances and appendages under, along, through and across any streets, avenues, roads, public highways, alleys, lanes, ways, parks, rights-of-way and other public places in the City (hereinafter collectively referred to as the "City's Rights -of -Way") and to use and occupy the City's Rights of Way for the purpose of therein laying, constructing, extending, maintaining, renewing, replacing and repairing mains, pipes, valves, manholes, service boxes, posts, lamps, structures, appliances and all appurtenances and appendages thereto, used for the manufacture, transmission, distribution and sale of gas within and through the present or future territorial limits of the City, such right, when exercised as herein provided, to continue for a term for thirty (30) years from the date of approval of this ordinance. SECTION 3. Grantee shall be entitled to charge for gas furnished by it such rates as are prescribed by the Public Service Commission or other lawful regulatory Body of the State of Georgia. Page 2 of 7 SECTION 4. The total dollar amount of franchise fees paid by the Grantee to the City shall be calculated as follows: The current Fiscal Year total franchise fee shall equal the product of the Current Franchise Fee Factor and the Design Day Capacity. The Current Franchise Fee Factor shall be equal to the product of the Base Year Franchise Fee Factor and one plus the Inflation Index expressed as a decimal to three significant digits. DDC Where, The following formula quantifies this payment: FF = FFFbY x (1 + (CPI -PFA)) x FF = total franchise fees due City for the current Fiscal Year FFFby = the Base Year Franchise Fee Factor = FFbY / DDCbY FFbY = the total franchise fees paid in the Base Year DDCbY = the Design Day Capacity of the Base Year CPI -PFA = the Inflation Index DDC = the Design Day Capacity as of the last day of the previous fiscal year The Grantee as the holder of the franchise privilege hereunder is responsible for the payment of all franchise fees payable hereunder, and shall file such reports and returns as required by this franchise ordinance. In addition, the Grantee shall report annually to the City the names of all gas marketers for which Grantee is transporting natural gas on the distribution system within the City. The franchise fee payments required hereunder shall be in lieu of any franchise fee, license fee, permit fee, administrative fee, occupation tax or other payment for the use of the rights-of-way by the Company for the provision of gas service, but shall not prohibit imposition of a license fee or an occupation tax on gas marketers. The Mayor Page 3 of 7 and Council of the City through its authorized representative or representatives shall have the right to inspect and audit the books and records of Grantee for the purpose of determining the amount of its revenues received from the sale of gas as set forth above within said territorial limits. SECTION 5. All rights herein granted and authorized by the City shall be subject to and governed only by this ordinance; provided, however, that the City expressly reserves unto itself all power to adopt general ordinances necessary to protect the safety and welfare of the general public in relation to the rights hereby granted not inconsistent with the provisions of this ordinance. QVOTTn'KT or, Grantee upon making an opening in the City's Rights -of -Way, for the purpose of laying, repairing or maintaining gas mains, shall use due care and caution to prevent injury to persons, and shall replace and restore the City's Rights -of Ways to their former condition as nearly as practicable, and within a reasonable time, and shall not unnecessarily obstruct or impede traffic upon the streets, avenues, roads, public highways, alleys, lanes, ways, parks and other places of said City. The Grantee shall comply with the City's utility right-of-way permitting process, as enacted, so long as such process does not conflict with O.C.G.A. §32-4-92 and is not more restrictive than rules and regulations as promulgated by the Georgia Department of Transportation. SECTION 7. Grantee shall save and keep harmless the said City from any and all liability by reason of damage or injury to any person or persons whomsoever, on account of negligence of the Grantee in the installation, maintenance and repair of its mains and pipe lines located in the City's Rights -of -Way, provided the Grantee shall have been notified Page 4 of 7 in writing of any claim against the City on account thereof and shall have been given ample opportunity to defend the same. SECTION 8. This ordinance, after its passage according to law, in writing duly filed with the City Clerk, shall be effective and in full force on December 1, 2006. SECTION 9. Unless 90 days written notice is given by one party to the other prior to the expiration of this agreement, this franchise shall be considered as renewed and binding in all its provisions for ten (10) years after such expiration and this franchise shall so continue in operation and effect for a further and second term of ten (10) years unless such notice be given by either party prior to the expiration of the first such renewed term. SECTION 10. If the City grants a franchise to any other person, firm or corporation, for the distribution and selling of gas, or if the City elects to establish a municipal system for the distribution and selling of gas, any proposed facilities within the certificated area of Atlanta Gas Light Company must receive prior approval by the Georgia Public Service Commission (GPSC). City shall notify, or shall require any other person, firm or corporation franchised for the distribution and selling of gas to notify, the GPSC and Company of their intent to install facilities parallel to and within the rights-of-way with Company facilities at least thirty (30) days prior to installation and such installation shall not be initiated without the written consent of the Georgia Public Service Commission provided, however, that the GPSC shall act on such notice within a reasonable amount of time and such consent shall not be unreasonably withheld. SECTION 11. Page 5 of 7 In the event that any provision of this ordinance should be ruled void, invalid, unenforceable or contrary to public policy by any court of competent jurisdiction, the remaining provisions of this ordinance shall survive and be applied, and together with the invalid or unenforceable portion shall be construed or reformed to preserve as much of the original words, terms, purpose and intent as shall be permitted by law. SECTION 12. Any and all notices required to be given under this agreement shall be in writing and shall be delivered by U.S. Mail, return receipt requested, commercial overnight courier or hand delivery and shall be deemed delivered when received or rejected for receipt by the recipient. The parties' addresses are set forth below and can be changed upon thirty (30) days' notice to the other: City: Milton, GA , Attn: Company: P.O. Box 4569, Atlanta, GA 30302-4569, Attn: Rates and Regulatory SECTION 13. All ordinances or parts of ordinances in conflict herewith are hereby repealed. ADOPTED by the Mayor and Council of the City of Milton this 30th day of November, 2006. Approved: Joe LockWood, Mayor Page 6 of 7 I, Jeanette R. Marchiafava, Clerk of the City of Milton, Georgia, hereby certify that I was present at the meeting of the Mayor and Council of the City of Milton, Georgia, held on November 30, 2006, which meeting was duly and legally called and held, and at which a quorum was present, and that an ordinance, a true and correct copy of which I hereby certify the foregoing to be, was duly passed and adopted by the Mayor and Council of the City of Milton, Georgia, at said meeting. IN WITNESS WHEREOF, I hereunto set my hand and the seal of the City of Milton, County of Fulton, State of Georgia, this 304-14 day of -�) g""�� , ette R. Marchiafava, Clerk (SEAL) Q Accepted on behalf of Atlanta Gas Light Company, this day of f 4ou , 2001 Atlanta Gas Light Company By: Name: SLtZA-%CLCt Sq4Ue.,eap Title: V&E';( (X" -T Page 7 of 7 AGL Resources Atlanta Gas Light Chattanooga Gas Elizabethtown Gas Elkton Gas Florida City Gas Virginia Natural Gas AGL Networks Sequent Energy Management Ms. Jeanette Marchiafava City Clerk City of Milton 115 Perimeter Center Place NE, Suite 785 Atlanta, GA 30346 404 584 4000 phone www.aglresources.com January 3, 2007 Ten Peachtree Place Atlanta, GA 30309 Re: Atlanta Gas Light Company ("AGLC'g Franchise Agreement with the City of Milton Dear Ms. Marchiafava: As requested in your letter of December 11, 2006, please find enclosed 2 counter -executed copies of the Franchise Agreement for Atlanta Gas Light Company in the city of Milton. Thanks for your and Mr. Bovos's assistance in negotiating and finalizing this agreement. Please feel free to contact me with any further questions. Best regards. Yours truly, William A. Palmer III Senior Corporate Counsel and Director of Real Estate Enclosures cc: Mr. Rick Lorin (w/ copy of enclosure) Mr. Phil Buchanan (w/ copy of enclosure) Ll� AGL Resources