The City of Rockwood (the "city") grants to DTE Energy Marketing,
Inc. ("DTE"), its successors and assigns, subject to the terms and
conditions set forth below and to the extent permissible and approved
by the Michigan Public Service Commission, the nonexclusive right,
power and authority to conduct an electric power business in the City
by supplying electrical power to customers in the City over electric
lines consisting of towers, masts, poles, cross-aims, guys, braces,
feeders, transmissions and distribution wires, transformers and electrical
appliances (the "electrical system") that are owned either by Detroit
Edison or by any other electric utility which has the necessary authority
from the Michigan Public Service Commission and a valid franchise
from the city, which electric systems exists on, along, across and
under the highways, streets, alleys and bridges of the City (the "public
rights-of-ways").
This franchise shall be for a term of 10 years, subject to revocation
at will by the City Council.
DTE covenants and represents that it will sell and distribute
its electric product only through the current and existing electrical
system owned by third parties already in place in the City of Rockwood.
DTE does not intend, nor shall it erect, construct or maintain its
own power distribution system or electrical system under, over, through
or in any of the public rights-of-way under this grant of franchise.
Violation of this section shall be a material breach of this franchise
giving cause for revocation if so determined by the city.
DTE shall, at the time of ownership or construction of any systems,
equipment, lines, and/or building independent of its use of the existing
Detroit Edison transmission and distribution system, obtain and maintain
in full force and effect, for the entire effective period of this
article, the following insurance covering all insurable risks associated
with its ownership and use of its electric system:
A. A comprehensive general liability insurance policy, including completed
operations liability, independent contractors liability, contractual
liability coverage and coverage for property damage from perils of
explosion, collapse or damage to underground utilities, commonly known
as XCU coverage, in an amount not less than $5,000,000.
B. An automobile liability insurance policy to cover any vehicles used
in connection with its activities under this article, in an amount
not less than $2,000,000.
C. Workers' compensation and employer's liability insurance
with statutory limits. The City shall be named as an additional insured
in all applicable policies. All insurance policies shall provide that
they shall not be canceled or modified unless 30 days prior written
notice is given to the city. DTE shall provide the City with a certificate
of insurance evidencing such coverage as a condition of this article
and shall maintain on file with the City a current certificate. All
insurance shall be issued by insurance carriers licensed to do business
by the State of Michigan or by surplus line carriers on the Michigan
Insurance Commission approved list of companies qualified to do business
in Michigan. All insurance and surplus line carriers shall be rated
A+ or better by A.M. Best company.
(1) Each policy which is to be endorsed to add the City as an additional
insured hereunder, shall contain cross-liability wording, as follows:
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"In the event of a claim being made hereunder by one insured
for which another insured is or may be liable, then this policy shall
cover such insured against whom a claim is or may be made in the same
manner as if separate policies had been issued to each insured hereunder."
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(2) If the insurance policies required by this section are written with
deductibles, the deductibles shall be approved in advance by the city.
DTE agrees to indemnify and hold harmless the City from and against
the payment of any deductible and from the payment of any premium
on any insurance policy required to be furnished by this article.
(3) City shall require that its contractors and subcontractors working
in public ways carry, in full force and effect, workers' compensation,
comprehensive public liability and automobile liability insurance
coverage of the type which City is required to obtain under the terms
of this section with appropriate limits of insurance.
The rights, power and authority granted herein are not exclusive.
DTE shall be entitled to charge the inhabitants of the City
for electricity furnished at the rates approved by the Michigan Public
Service Commission, which body, or its successors, have authority
and jurisdiction to fix and regulate electrical rates and promulgate
rules regulating such service in the city. Such rates shall be subject
to review and change any time upon petition being made by either the
City acting through the Council or by DTE.
The franchise granted by this article is subject to revocation
at the will of the City Council upon 60 days' written notice
to DTE.
DTE shall be and remain subject to all ordinances, rules and
regulations of the City now in effect or which might subsequently
be adopted for the regulation of land uses or for the protection of
the health, safety and general welfare of the public; provided, however,
that nothing herein shall be construed as a waiver by the grantee
of any of its existing or future rights under Michigan or federal
law or a limitation upon the existing or future posers of the City
pursuant to its Charter or Michigan or federal laws.
This article shall take effect 30 days after adoption by the
council and shall continue in effect for a period of 10 years thereafter,
subject to revocation at the will of the City at any time during said
ten-year period; provided, however, it shall cease and be of no effect
unless and until within 15 days after adoption DTE shall file its
written acceptance of the same with the Clerk, and pay to the City
the sum required by §
95-48B hereof.
A violation of any provision of this chapter shall be a municipal
civil infraction, punishable as provided in Chapter
1, General Provisions,
Article
II.