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HomeMy WebLinkAbout1978-49 Granting a Franchise by the Town of Vail to Holy Cross Electric Association, Its Successors and Assigns, to Locate, Build, Construct, Acquire, Purchase, Maintain, and Operate Into, Within and Through the Town of Vail* ,a ORDINANCE NO . `~ Series of 1978 ~ AN ORDINANCE GRANTING A FRANCHISE BY THE TOWN OF VAIL, EAGLE COUPdTY, COLORADO, TO HOLY CROSS ELECTRIC ASSOCIATION, INC., ITS SUCCESSORS AND ASSIGNS, TO LOCATE, BUILD, CONSTRUCT, ACQUIRE, PURCHASE, MATN- TATN, AND OPERATE INTO, WITHIN AND THROUGH THE TOWN OF VAIL HEREIN DESCRIBED, ALL NECESSARY, NEEDFUL AND CONVENIENT POLES, POLE LINES, POSTS, WIRES, TRANSFORMERS, GUY POSTS AND GUY WIRES, APPARATUS, APPLI- ANCES AND C~10RKS, FOR THE PURCHASE, GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICAL ENERGY, AND TO FURNISH, SELL AND DISTRIBUTE SAID ELECTRICAL ENEP,GY TO THE INHABITANTS OF THE TOG^TN OF VAIL HEREIN DESCRIBED, FOR LIGHT, HEAT AND POWER OR OTHER PURPOSES BY MEANS OF CONDUITS, CABLES, POLES AND L~IIRES STRUNG THEREON, OR OTHERWISE, ON, OVER, UNDER, ALONG, ACROSS AND THROUGH ALL STREETS, ALLEYS, VIADUCTS, BRIDGES, ROADS, LANES AND OTHER PUBLIC WAYS AND PLACES IN SAID TO4'~N OF VAIL, FIXING THE TERMS AND CONDITIONS THEREOF, AND SETTING FORTH DETAILS RELATING THERETO • WHEREAS, the operation of electrical utilities involves substantial use of the public streets and rights-of-way, frequent excavations in the public streets and rights--of-way, and the regular installation, maintenance and repair o.f many poles, lines and cables in, under and above the public streets and rights-of-~ way; and WHEREAS, the operation of electrical utilities places a substantial burden on the Town in its efforts to provide for the public safety, and efficiently maintain and administer the public streets and rights-of-way; and WHEREAS, considering the nature of electrical utilities and the burdens placed by such utilities on the Town, the provid- ing of franchises for such utilities separately from other busines- ses and occupations is reasonable and necessary for the protection of the public; and WHEREAS, after study and negotiations by and between the Town of Vail and Holy Cross Electric Association, znc., the parties have agreed to the following franchise; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: ~.~ ~ Ord . Page ~ ~ Section 1. Definitions. Whenever the word "Town" is hereinafter employed, it shall designate the Town of Vail, Eagle County, Colorado, the Grantor, and whenever the word "Company" is used, it shall designate not only Holy Cross Electric Associ- ation, Inc., a Colorado corporation, the Grantee, but also its successors and assigns. Section 2. Franchise Granted -- Use of Public Way. A. There is hereby granted to the Company the right, privileges and authority to locate, build, construct, acquire, purchase, extend, maintain and operate into, within and through all of the said Town as the same is now constituted or as the same may be enlarged or expanded from time-to-tame, all necessary, needful and convenient poles, pole lines, posts, wires, transformers, guy posts and guy wires, apparatus, appliances and works, for the pur- chase, generation, transmission and distribution of electrical energy, with the right and privilege far the period and upon the terms and conditions hereinafter specified to furnish, sell, and distribute sand electrical energy to the inhabitants of the Town in all areas, far light, heat and power or other purposes, by means of conduits, cables, poles with wires strung thereon, or otherwise, on over, under, along, across and through any and~all streets, alleys, viaducts, bridges, roads, lanes and other public ways and places in said Town, and an, over, under, along, across and through any extension, connection with ax continuation of the same and/or on, over, under, along, across and through any and all such 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 inclu- ded in the boundaries of sand Tawn. B. The Company is further granted the right, privileges and authority to excavate in, occupy and use any and all streets, alleys, viaducts, bridges, roads, lanes and other public ways and places described in Section A of Section 2 hereof, in accordance with the ordinances of the Town of Vail, and under the supervision of the Public Works Director of the Town for the purpose of bring- ~~. • Ord. Page ~ ing electrical energy into, within and through the Town and supplying electrical energy to the inhabitants of the, said Town and in the territory adjacent thereto outside of the said Town, and further as may be approved by the Town's Environmental Com- mission to trim ox cut down such trees and shrubbery and to control the growth of same as may be reasonably necessary to effect said purpose ar purposes, provided, however, that the Company shall so locate its plants, substations, works, trans- mission and distribution structures, lines, equipment and conduits within said Town 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 or reasonable conven- ience of property owners whose property adjoins any of the said 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 an_y sidewalk, pavement, water main, sewer, or any other public or private improvement, the Company shall repair or cause to be repaired and restored to its original condition such sidewalk, graveled or paved street, road, alley, water main, sewer, landscaping, trees, or other public or private improvement after the installation of its poles, conduits or other structures. C. The Company shall so maintain its structures, appara- tus, equipment, poles, wires and conduits as to afford all reason- able 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 necessarily accru- ing against the Town arising out of the negligent 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. D. Tf at any time it shall be necessary to change the position of any pole, conduit or service connection of the Company to permit the Town to lay, make ox change street grades, pavements, l Y~ t Ord. Page 4 sewers, water mains or other Town works, such changes shall be made by the Company at its own expense. E, The Company shall have the right to make such use of its poles and other property, other than the uses contemplated in this ordinance as it deems proper so long as such other use does not interfere with its ability to supply electrical energy. F. The franchise granted hereunder is subject to the limitations and conditions contained in this ordinance and in any effective collateral agreement which the Town may negotiate with the Company from time to time. Section 3. A. The Company shall furnish electrical energy within the corporate limits of the Town or any addition thereto, to the inhabitants thereof, and to any person or persons or corporation doing business in the Town or any addition thereto, at the appliW cable and effective rates and under the terms and conditions set forth in the Rate Schedules, Standards for Service, Rules and Regulations, and Service Connection and Extension Policies, on file with or fixed by The Public Utilities Commission of the State of Colorado, or by any other competent authority having jurisdiction in the premises. B. The Company shall not, as to rates, charges, ser- vice, facilities, rules, 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 disadvan- tage, provided that nothing in this grant shall be taken to pro- hibit 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. C. The Company will 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 electric service concurrently in effect and on file with The £F l Ord. Page 5 Public Ut~.lities Commission of the State of Colorado or other competent authority having jurisdiction in the premises. D. The Company, from time to time, may promulgate such rules, regulations, terms and conditions governing the con- duct of its business, including the utilization of electrical energy and payment therefor, and the interference with, or alter- ation of any of the Company's property upon the premises of its customers, as shall be necessary to insure a continuous and unin- terrupted service to each and all of its customers and the proper measurement thereof and payment therefor, Two copies of all rules, regulations, terms and conditions governing the provisions of ser- vices to the residents of the Town of Vail and amendments thereto shall be filed promptly with the Town Clerk to be made available for the inspection of the public. Section ~. Franchise Tax. A. As a further consideration for this franchise, and accepted by the Town in lieu of all occupancy and license taxes and all other special taxes, assessments or excises upon the con- duits, poles, wires or other property of the Company, or other levies that might be imposed, either as a franchise tax, occupa- tion tax, occupancy tax, license tax, permit charge, or for the inspection of meters, poles, conduits or other property of the Company, or otherwise, the Company shall pay to the Town a sum equal to three percent (30) of its gross revenue derived from the sale of electricity within the corporate limits of the Town for electrical energy furnished far light, heat or power, or other purposes. Payment shall be made on or before thirty (30) days after the end of each quarter of each calendar year for the three (3) month period next previous, but shall be adjusted for the por- tions of the calendar quarters at the beginning and at the end of this franchise. For the purposes of ascertaining or auditing the correct amount to be paid under the provisions of this paragraph, the Company shall file with the Town Manager or such other official as shall be designated by the Town from time to time, a statement, in such reasonable form as the Town may require, showing the total ~ ~ ~• Ord. Page 6 gross receipts received by the Company from the sale of electric energy to consumers located within the boundaries of the Town within the preceding three (3} month period, and the Town Manager or any official appointed by the Town Council of said Town shall have access to the books of said Company for the purpose of con- firming the gross income received from operations within said Town. B. In the event the said tax levied herein should be declared invalid and/or shall be set aside by a Court of competent jurisdiction, then, and in such event, in lieu thereof, the Town may thereafter levy an occupation tax upon the Company, not to exceed in any one calendar year three percent (3%) of the Company's gross revenue derived from the sale of electricity within the cor- porate limits of the Town for electrical energy furnished for light, heat or power, or other purposes for that year. zn the event the Town shall enact such an occupation tax, in lieu of the franchise tax levied hereunder, all of the remaining terms, conditions and provisions of this ordinance shall remain in full force and effect for the period stated herein. G. The Company shall not surcharge the `3% franchise fee, herein imposed, or affirmatively promote the surcharge of the fran- chise fee to its customers within the Town of Vail, during the term of this franchise, unless ordered to do so by the P.U.C. Section 5. Term -- Review - Condemnation A. This ordinance shall be in full force and effect from and after its passage as by law required, and after approval by the Colorado Public Utilities Commission, and the terms, conditions and covenants hereof shall remain in full force and effect for a period of twenty (2Q} years from and after such approval by the Colorado Public Utilities Commission. B. In accordance with Section 12.5 of the Charter of the Town of Vail, this franchise shall be reviewed in three year intervals during the term hereof. The review shall include a consi-~ deration of all aspects of the franchise to insure that it is meet- ing the needs of the public, the Town and the Company. ti'_• ;~ {• Ord. Page 7 C. All poles, pole lines, posts, wires, transformers, guy posts and guy wires, apparatus, appliances and works, conduits, plants, substations or other materials or objects pertaining thereto, used or placed by the Company within the Town shall be and remain the property of the Company. D. Nothing in this ordinance shall be so construed as to prevent the Company from assigning all of its rights, title or interest, gained or authorized under or by virtue of the terms of this Drdinarice. D. The right is hereby reserved to the Town to adopt, from time to tame, 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 sha11 be reasonable and not inconsistent with the rights herein granted, and not in conflict with the laws of the State of Colorado, or with orders of other authorities having jurisdiction in the premises. F. ~n the event, at any time during the twenty (20) year period of this franchise, the Town shall exercise the right granted to it under its Charter to condemn the facilities of the Company within the physical limits of the Town, and thereby to revoke the privilege and authority to serve the inhabitants of the Town, as herein granted, or an any other way to revoke, rescind or limit such privilege and authority herein granted to the Company, then and in such event the Town shall, in addition to the obligation which may then exist to pay to the Company just compensation and damages by reason of condemnation, or other damages or compensation by reason of such revocation of this Company's authority and privilege here- under, be obligated to pay to the Company, as liquidated damages, and not as a penalty, the amount of $250,000 or the fees actually paid by the Company to the Town during the first five years of than franchise, if determinable, whichever amount is the greater. Pro- vided, however, that in the event any of the franchise fees paid hereunder by the Company shall be surcharged to the consumers within the Town, such fees as era surcharged shall not be refunded to the Company as liquidated damages hereunder. 1 ~• Ord. \~~ r/ ~~ Page 8 Section 6. Severability If' any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invala.d, such decision shall not affect the validity of the remaining por- tions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsec- tion, sentence, clause or phrase thereof, regardless of the £act that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 7. Public Health, Safety and tiVelfare The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. INTRODUCED, READ. ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL, this 5th day of December, 1978, and a public hearing on this ordinance shall be held at the regular meeting of the Town Council of the Town of Vail, Colorada, on the 19th day of December, 1978, at 7:30 P.M, zn the Municipal Building of the Town. ~, ~, :r ~~ f~ r , ATTEST: ~ ~4 ~~ r Town Clerk ~ ~ ~ Introduced, read an second reading, approved and ordered published by title only this 19th day of December, 1978 in the Municipal Building of the Town of 1la i 1 . 'J ~.~~ /f MAY ~ ' ( ~ ~~~ ~IOWfd CLERK C] ro ~ ~ ~• ~. ~, ~ „ ~ ~ a a ~ n ro ro . Q ~ `° r ` r 0 ~' v a ~ ro ~~ ~ r a ro ~ ~ m ... ~ '~ W ,... 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