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1982-056 9630A (174A) This ordinance has been amended by Ordinance No 90-108 (attached) AN ORDINANCE GRANTING TO LONE STAR GAS COMPANY A FRANCHISE TO SUPPLY AND DISTRIBUTE GAS IN THE CITY OF DENTON, TEXAS, REGULATING THE SALE AND DISTRIBUTION OF GAS, PROVIDING OTHER REGULATIONS FOR THE CONDUCT OF THE COMPANY'S OPERATIONS, PROVIDING FOR THE PAYMENT OF FEES FOR THE USE OF THE STREETS, ALLEYS, AND OTHER PUBLIC WAYS, REPEALING ALL PREVIOUS GAS FRANCHISE ORDINANCES, AND DECLARING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I Sub]ect to the terms and conditions mentioned in this ordinance the City of Denton, Texas, hereinafter called "City", hereby grants to Lone Star Gas Company, a Dlvls~on of Enserch Corporation, hereinafter called "Company", consent to use the present and future streets, alleys, highways, public places, public thoroughfares and grounds of the City for the purpose of laying, maintaining, operating therein and thereon p~pe lines and all appurtenant equipment needed and necessary to deliver and sell gas to persons, firms and corporations, ~nclud~ng all of the general public within the C~ty's corporate l~mlts and the environs thereof, said consent being granted for a term of nineteen (19) years from the effective date of th~s ordinance SECTION II Company agrees to pay and City agrees to accept, on or before the f~rst day of April, 1983, and on or before the same day of each succeeding year during the life of this franchise, up to and including the year 2001, a sum of money to be known as a street and public property rental charge which shall be equivalent to two percent (2%) of the gross receipts received by Company from the sale of gas to its domestic and commercial consumers in said City, expressly excluding, however, receipts derived from sales to industrial consumers in said C~ty for the preceding calendar year, which annual payment shall be for the r~ghts and priv~leges here~n granted to Company, Including expressly the rights to use the streets, alleys and public ways of the City in accordance with the terms and conditions con- talned herein It is also understood and agreed that during the life of this franchise the above charge, measured in the manner herelnabove provided, shall be the entire and maximum charge which the City shall be entitled to receive for the use of the streets, alleys and public ways regardless of whether said charge shall be designated as a rental or otherwise, and whether measured by gross receipts, units of Installation or in any other manner, provided, however, should the Legislature of the State of Texas authorize cities and towns within the State to levy and impose a greater charge than two percent (2%) of the gross receipts derived from the sales of gas, then City and Company agree to enter into negotiations for the purpose of determining whether all or any part of such increased gross receipts charge should be applied in the City of Denton, Texas If the parties are unable to agree, City shall have the right to impose such additional charge upon ninety (90) days notice to Company In any event, the Company is not exempted by this franchise from the usual general and special ad valorem taxes which the City is authorized to levy and Impose upon real and personal property "Industrial Users or Consumers", as herein used, are those generally and commonly classified as such by Company, and who are billed on a schedule of rates less than the Company's domestic and commercial schedules In order to determine the gross receipts received by Company from the sale of gas (expressly excluding sales of gas to industrial consumers within the corporate limits of City) Company agrees that on the same date that payments are made as provided in this Section II, it will file with the City Secretary a sworn report showing the gross receipts received from the sale of gas to its domestic and commercial consumers within said City Limits for the calendar year preceding the PAGE 2-LONE STAR GAS COMPANY FRANCHISE ORDINANCF date of payments City may, if it sees fit, have the books and records of Company examined by a representative of said City to ascertain the correctness of the sworn reports agreed to be filed herein SECTION III Company shall lay its pipes, mains and laterals ~n the alleys where practical but when laid in the streets and avenues, they shall be laid ~n a line parallel with the curb line thereof and such work shall be subject to the approval of the C~ty Engineer or such representative as is designated by the City SECTION IV In the opening and refilling of all openings made by the Company, sub]ect to the ordinances applicable thereto, it shall restore the pavements and do all other work necessary to complete restoration of the streets, pavements, sidewalks, or grounds to a condition equally as good as when d~sturbed All restoration of streets shall be done within a reasonable period of time and if not done, then the City is authorized to make such restoration and charge the Company the cost thereof When the Company shall open any ground in said C~ty for the purpose of laying any gas pipes, or for any other purpose whatever, the Company shall open no more space at any one time or at any one place than is necessary for the work for which same shall have been opened In all cases where work requires the ex~rclse of sk~ll, as in the restoration of pavements and sidewalks, the Company shall employ skilled workmen, familiar with the execution of such work, and all of such work w~ll be done at Company's expense, and subject to the approval of the City Council of the City of Denton, Texas, or other proper authority designated by it The Company hereby agrees to fill up with tar or some other suitable substance any and all holes made ~n the pavement by PAGE 3-LONE STAR GAS COMPANY FRANCHISE ORDINANCE driving bars through the pavement in checking for leaks in the gas mains and service lines Company, at its optlon, may also use permanently placed covered bar ho]es for the Durpose of testing for leaks Company shall obtain a Dermlt from the City Engineer prior to disturbing the surface of any street, alley, public way, or any City right-of-way, however, no permit fee shall be required for such permits SECTION V This franchise is granted subject to any and all valid provisions of the existing City Charter and the Code of Ordinances of the C~ty of Denton, Texas, and all of sa~d provlslons~ which are not Inconsistent with the Constitution or general laws of the State of Texas, are aDDl~cable hereto and are hereby made a part of this franchise as fully as though copled at length here~n Nothing in this franchlse shall be construed ~n such a manner as ~n any way to abridge the police power of the C~ty of Denton, Texas, to pass the necessary ordinances for the protectlon of the citizens of Denton, Texas, their property, and the property of this Company, and this franchise shall be subject to any lawful ordinances which may hereafter b~ passed which are not Inconsistent herewith SECTION VI The Company shall do no permanent injury to any street, avenue, alley, lane, bridge, stream, water course, park or public place or C~ty r~ght-of-way nor in any manner disturb or interfere unnecessarily with any electric lines, conduits, or equipment or w~th any water or other p~pes, nor with any public or private sewer now or hereafter laid or constructed by said C~ty of Denton, or by any authorized person or corporation, but all electric conduits or water or sewer p~pes or other pipes shall be so laid as not to lnterfere unnecessarily w~th any gas mains or pipes which shall be laid prior to the time of laying such conduits, sewer or water lines or other pipes PAGE 4-LONE gTAR GAS COMPANY FRANCHISF ORDINANCE SECTION VII The Company shall at all times keep and display the neces- sary danger s~gnals and proper guards around all excavations and obstructions and whenever possible shall keep sufficient space in good condition for travel of vehicles on at least one side of all excavations and obstructions, and shall, as soon as practicable, restore all openlngs on the hfghways, streets, avenues and alleys and other public places and rIght-of-ways to a condition equally as good as before said openings or obstructions were made Company shall hold the City harmless from all expense or liability for any act or neglect of the Company hereunder The City shall not be liable for any damage caused by electrolysis to Company's system by the City of Denton's utility system, but if a condition is found to exist where damage is being caused by electrolysis the City will use reasonable diligence to correct the situation causing such damage SECTION VIII All service pipes shall be constructed and maintained by the Company at its own expense to the curb line where ~ts ma~n is located in a street or to the property line where its main is located in an alley Company shall have the right to contract w~th each customer with reference to the Installation of, and payment for, any and all of the gas piping from the connection thereof with the Company's main in the streets or alleys to and throughout the consumer's premises Company shall own, operate and maintain all service lines, which are defined as the supply 31nes extending from the Company's main to the customer's meter where gas is measured bv Company The consumer shall own, operate, and maintain ali yard lines and house piping Yard lines are defined as the underground supply lines extending from the point of connection with Company's PAGE 5-LONE STAR GAS COMPANY FRANCHISE ORDINANCE customer meter to the point of connection with consumer's house piping SECTION IX Company shall not be required to extend its plpe lines or laterals more than 100 lineal feet in order to serve any one consumer The Company shall maintain its gas system and equipment in good operatIng condition at all times, and meters shall be ma~ntained w~thln the range of accuracy required by the laws and regulations of the State of Texas SECTION X The Company shall furnish to City annually a map showing the add~tions, changes and extensions to its gas plant in the City of Denton SECTION XI The City reserves the r~ght to require and the Company agrees to make reasonable reports in the same manner as to other regulatory authorltles including the Railroad CommIssion of the State of Texas w~th respect to Company's gas dIstribution system in the City of Denton, Texas The City also reserves the right to have Company's books, records and accounts examined and audited by Its authorized agents and representatives, such examinations or audits to be done and performed after reasonable not~ce to Company and within Company's usual hours of operation SECTION XII Th~s franohlse shall not be transferred by Lone Star Gas Company except with the approval of the C~ty Council of the City of Denton expressed by ordinance SECTION XIII The City reserves the right by resolutlon or otherwise to designate the location of any gas mains or gas service lines w~th reference to other municipal street facilities such as PAGE 6-LONE STAR GAS COMPANY FRANCHISE ORDINANCE sewer and water mains and services, in such a manner as to promote the public safety and to protect public property Any designation or location or inspection authorized herein shall be accomplished so as not unnecessarily to delay the Company any of its operations Whenever the City shall pave or repave any street or shall change the grade or line of any street or public place or shall construct or reconstruct any conduit, water main, sewer or sewer connection or other municipal public works or utility, shall be the duty of the Company, when so ordered by the City, to change, replace, repair, recondltlon or relay Its maln~, services and other property in the streets or public places at its own expense so as to conform to the establIshed qrade or line of such street or public place and so as not to interfere with the conduits, sewers and other mains as constructed or reconstructed and so as to properly protect said new pavement and make the normal life of such p~pe equal to the normal l~fe of such new pavement SECTION XIV In addltlon to the rates charged for gas supplied, Company may make and enforce reasonable charges, rules and regulations for service rendered in the conduct of its business, lncludlnq a charge for services rendered in the Inauguration of natural gas service, and may require, before furnishing service, the execution of a contract therefor Company ~hall be entitled to require from each and every consumer of gas, before qas service is commenced, a deposit of twice the amount of an estimated average monthly bill, which said deposit may be retained by Company until service is discontinued and ail bills therefor have been paid Company shall then return sa~d deposit to the consumer, together with six percent (6%) interest thereon from the date of said deposit up to the date of discontinuance of service Company shall be entitled to apply said deposit, with PAGE 7-LONE STAR GAS COMPANY FRANCHISE ORDINANCE accrued interest, to any indebtedness owed Company by the consumer making the deposit SECTION XV All ordinances or parts of ordinances heretofore adopted by the City Council of the City of Denton, Texas, granting gas franchises to any person, firm or corporation, are hereby expressly repealed and are of no further force or effect SECTION XVI Each section of this ordinance and each part of each section hereof ~s hereby declared to be an ~ndependent section or part of section, and the holding of any section or part thereof to be unconst~tutional, void, illegal, Ineffective or contrary to law, for any reason, shall not affect any other section or part of section of this ordinance SECTION XVII Nothing contained herein shall change the present rates now in effect in the City of Denton, Texas, but it is understood that such rates and charges shall be subject to revision and change by either the Clty or the Company from time to time in the manner authorized by law SECTION XVIII The City Council of the City of Denton shall have the right to select and engage rate consultants, accountants, auditors, attorneys, engineers, or any combination thereof, to conduct investigations, present evidence, advise and represent the City of Denton on public utility rate making proceedings under this ordinance and/or to assist wlth litigation on public utility rate making proceedings, appeals and rate cases, and Lone Star Gas Company shall be required to relmburse the City of Denton for the reasonable costs of such services SECTION XVIV This franchise ordinance shall be effective thirty (30) days after its final passage and approval, pending such time PAGE 8-LONE STAR GAS COMPANY FRANCHISE ORDINANCE the full text of this ordinance shall be published once each week for three consecutive weeks in the Denton Record- Chronicle, the official newspaper of the City of Denton, Texas Company shall file ~ts written acceptance of this franchise ordinance w~th the office of the C~tv Secretary of the City of Denton within thirty (30) days after its effective date and this ordinance shall be of no force and effect if not accepted within sa~d period S~__ PASSED AND APPROVED on first reading this the day of ~.~,~.- , 1982 PASSED AND APPROVED on second reading this the ~-'day PASSED AND APPROVED on third reading thi~ the day of ~ , 1982 ATTEST C~Rn0TTE' ~LLEN, CY~? SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM C J TAYLOR, JR , CITY ATTORNEY CITY OF DENTON, TEXAS PAGE ~-LONE STAR GAS COMPANY FRANCHISE ORDINANCE ORDINANCE NO ~__~ AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SECTION II OF THE FRANCHISE GRANTED TO LONE STAR GAS COMPANY BY ORDINANCE NO 82- 56 TO PROVIDE FOR AN AMENDED FRANCHISE FEE TO BE PAID BY LONE STAR GAS COMPANY FOR THE USE OF THE PUBLIC STREETS, AND DECLARING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I AS of the effective date of this amendatory ordinance, and upon acceptance by Lone Star Gas Company of the provisions hereof, Section II of the aforesaid captioned franchise ordinance enacted on July 20, 1982, shall be changed to substitute a three percent (3%) gross receipts fee for the use of streets and alleys instead of two percent (2%), as now provided in said section The other provisions of Section II shall remain un- changed ~ The terms and provisions of th~s amendatory ordinance shall be deemed to be severable, and if the validity of any section, sentence, clause or phrase of this amendatory ordinance should be declared to be invalid, the same shall not affect the validity of any other section, sentence, clause or phrase of this amendatory ordinance ~ Except as heretofore and herelnabove changed and amended, the terms, provisions, conditions and requirements of the aforesaid franchise ordinance shall remain in full force and effect SECTION IV This amendatory ordinance shall become effective thirty (30) days after its final passage and approval, pending such time the full text of this ordinance shall be published one each week for three consecutive weeks in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas Only gas sold by the Company after the effective date of this Ordinance shall be assessed at three percent (3%) The payment made for gas sales prior to the effective date of this ordinance shall remain at two percent (2%) Lone Star Gas Company shall file its written acceptance of this amendment to the franchise ordinance with the office of the City Secretary of the City of Denton within thirty (30) days after its effective date and this ordinance shall be of no force and effect if not accepted within said period  APPROVED on first reading this the ~day of , 1990 ~PAS~ED AND APPROVED on second reading this the /~4~day of --~~ , 1990  APPROVED on third reading this the __~_~ day of , 1990 BOB CASTLEBERRY, MAYO~ ATTEST JENNIFER WALTERS, CITY SECRETARY DEBRA' A DRAYOVITCH, CITY ATTORNEY ACCEPTED LONE STAR GAS COMPANY, GRANTEE ATTEST lonestar 2/7/19/90 PAGE 2 AMENDED FRANCHISE ACCEPTANCE STATE OF TEXAS COUNTY OF DALLAS WHEREAS, there was finally passed and approved on August 7, 1990, Ordinance No 90-108 amending the Lone Star Gas Company franchise enacted by the City of Denton, Denton County, Texas, on July 20, 1982, of record ~n the M~nutes of the City Council, to change the street and alley rental fee ~n Section 9 of sa~d franchise, which ~s recorded ~n Book of the M~nutes of the City Council of sa~d City, and WHEREAS, Section IV of sa~d amendatory ordinance prowdes as follows "SECTION IV Th~s amendatory ordinance shall become effecbve thirty (30) days after its final passage and approval, pending such brae the full text of th~s ord;nance shall be published one each week for three consecutive weeks in the Denton Record Chronicle, the official newspaper of the C~ty of Denton, Texas Only gas sold by the Company after the effective date of th~s Ordinance shall be taxed at three percent (3%) The payment made for gas sales prior to the effective date of th~s ordinance shall remain at two percent (2%) Lone Star Gas Company shall file ~ts wntten acceptance of th~s amendment to the franchise ordinance with the office of the C~ty Secretary of the City of Denton w~th~n thirty (30) days after its effective date and this ordinance shall be of no force and effect ~f not accepted w~th~n sa~d penod AND WHEREAS, ~t ~s the desire of Lone Star Gas Company, a D~ws~on of ENSERCH CORPORATION, to comply w~th the above quoted prows~ons of Secbon IV thereof NOW, THEREFORE, premises considered, Lone Star Gas Company, a D~ws~on of ENSERCH CORPORATION, acting by and through ~ts duly authonzed officers, and w~th~n the bme prescnbed by Section IV quoted above, does hereby accept the prows~ons of the above amendatory Ordinance No 90-108 ~n accordance w~th ~ts terms prows~ons conditions and requirements, and subject to the sbpulabons and agreements there~n contained WITNESS THE EXECUTION THEREOF, on th~s the 12 ~ day of ATTEST LONE STAR GAS COMPANY, A DIVISION OF - / ?.~ ENSERCH CORPORATION ~ AssiStant Secr~r~/ V ident STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, ~ [~(l~lm5 L~,~,J¢~,, City Secreta~ of the City of Denton, Texas, do hereby ce~ that the above and foregoing ~s a true and correct copy of a formal acceptance of Ordinance No 90-108 finally passed and approved by sa~d City on August 7, 1990, and of record ~n Book of the Minutes of the City, and I do fu~her ce~ that sa~d acceptance has been duly presented to the C~ty Council and filed ~n connection w~th and as a pa~ of sa~d amendatow ordinance iOF WHICH, w~tness my official s~gnature and the seal of sard C~ty on th~s the City S~ctetary City of Denton, Texas accept the franchise granted to it by the above-described ordi- nance, ~n accordance w~th its terms, provisions, conditions, and requirements, and subject to the stipulations and agreements there~n ~ntalned WITNES~ THE EXECUTION HEREOF, on this the ~1 day of ATTEST LONE STAR GAS COMPANY, a D~v~s~on of ENSERCH i s ta ~t Secretary STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON I, ~~~ ~/j~_--~, Se crc ts ry of the Clty of DentoS, Texa~, do hereby certify that the above and foregoing is a true and correct copy of a formal acceptance of a franchise finally passed and approved by said City on July 20, 1982, and of record ~n the M~nutes of the Clty, and I do further certify that sa~d acceptance has been duly presented to the C~ty Council and f~led in connection w~th and as a part of sa~d franchise ordinance OF WHICH, witness m~ offlclal~lgnatu~e and the seal of sa~d City on this the /~--'_ day of ~~_~ 1982 C~ty of Denton -2-