City of Holland, MI
Ottawa County
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Table of Contents
Table of Contents
[Ord. No. 1582, 5-16-2012]
Subject to all the terms and conditions of Sections 12.1 and 12.2 of the Charter of the City of Holland, except as otherwise provided herein, the City of Holland grants to the SEMCO Energy Gas Company, a division of SEMCO Energy, Inc., a corporation organized under the laws of the State of Michigan ("Grantee"), a franchise to transact local business in the City of Holland for the purposes of conveying gas into and through and supplying and selling gas in the City of Holland and all other incidental matters including a franchise to lay, maintain, operate, and use gas pipes, mains, conductors, service pipes, and other necessary equipment (hereinafter "gas distribution system") in the highways, streets, alleys, and other public places in the City of Holland, Ottawa and Allegan Counties, Michigan. Notwithstanding this grant, the grantee must comply with the permit requirements of Section 32A-4 and must comply with all provisions of the Code and rules and regulations of the City which regulate the use of public ways in the City of Holland.
[Ord. No. 1582, 5-16-2012]
The term of the franchise granted by these Sections 32A-1 through 32A-14 is for 30 years after it takes effect, subject to revocation at the will of the City at any time during the thirty-year period upon 60 days' written notice by the City.
[Ord. No. 1582, 5-16-2012]
If the provisions and conditions of these Sections 32A-1 through 32A-14 are accepted by the grantee, then the grantee shall furnish gas to applicants residing in the City in accordance with applicable laws, rules and regulations; and provided further that the initial installation and any extensions shall be subject to the main extension provisions, the area expansion program provisions (if and where applicable), and other applicable provisions now or from time to time hereafter contained in the grantee's rules and regulations for gas service as filed with the Michigan Public Service Commission or successor agency having similar jurisdiction.
[Ord. No. 1582, 5-16-2012]
Except in cases of emergency, notwithstanding any implied or explicit rights granted by this franchise, no road, street, alley, or highway shall be opened for the laying of trunk lines, lateral mains, or other gas pipes, mains, conduits, service pipes, or other equipment, except upon application to the City of Holland or other authority having jurisdiction in the premises, stating the nature of the proposed work and the route and issuance of all necessary permits to the grantee to do the work proposed. In all situations, the grantee shall minimize the disturbance to all infrastructures while working within the right-of-way. Prior to issuing a permit for work within the right-of-way, the City may direct the grantee to revise its application in order to minimize the disturbance to infrastructure within the right-of-way and minimize the need for future maintenance. Ongoing work being performed under the permit to grantee may be immediately halted by the City of Holland until such time as the grantee can demonstrate to the City that the work will be conducted in a manner that minimizes the disturbance to infrastructure within the right-of-way to the greatest extent possible. The grantee shall, within a reasonable time after making an opening or excavation, repair the same and leave it in as good condition as before the opening or excavation was made. For maintenance and inspections not requiring an opening or excavation the grantee shall not unnecessarily obstruct the passage of any of the highways, streets, alleys, or other public places within the City of Holland. For maintenance and inspections, the grantee may not occupy any right-of-way of the City until it has obtained all permits required for occupancy, except in cases of emergency. In cases of emergency, the grantee shall notify the City of the emergency, and the nature of the work performed, in writing as soon as reasonably practical. The grantee shall use due care in exercising the privileges herein contained.
[Ord. No. 1582, 5-16-2012]
If the City vacates or consents to the vacation of a street or alley within its jurisdiction and such vacation necessitates the removal and relocation of grantee's facilities in the vacated right-of-way, grantee agrees to consent to the vacation and to move its facilities, at its sole cost and expense, when asked to do so by City. Grantee shall relocate its facilities to such alternative route as the City, acting reasonably and in good faith, designates after first consulting with the grantee.
[Ord. No. 1582, 5-16-2012]
If the City requests grantee to relocate its facilities because of street, utility work, or otherwise in the exercise of its governmental functions, grantee shall promptly relocate its facilities within the time specified by the City, at its sole expense to such alternate route as City, acting reasonably and in good faith, designates after first consulting with the grantee.
[Ord. No. 1582, 5-16-2012]
The City shall have the right to address emergencies in accordance with Act 53 of the Public Acts of 1974, as amended, MCLA § 460.701 et seq. Grantee shall be responsible for repair, at its sole expense, of any of its facilities damaged pursuant to any such action taken by the City that was reasonably necessary to respond to the emergency.
[Ord. No. 1582, 5-16-2012]
(a) 
MISS DIG. Grantee shall subscribe to and be a member of "MISS DIG," the association of underground utilities formed pursuant to Act 53 of the Public Acts of 1974, as amended from time to time, MCLA § 460.701 et seq., and shall conduct its business in conformance with the statutory provisions and regulations promulgated thereunder.
(b) 
Marking. Grantee shall mark both the above-ground and underground portions of its gas distribution system in accordance with Act 53 of the Public Acts of 1974, as amended from time to time, MCLA § 460.701 et seq., and applicable gas safety standards.
(c) 
Request for information. Nothing herein shall prohibit the City from requesting, and the grantee from providing, information on the location of its existing facilities in a designated area, including maps and as-built/record drawings depicting such locations, on terms that protect such confidential information from public disclosure. Upon request by the City pursuant to this subparagraph, the grantee shall promptly provide the requested information to the City and in no case shall the grantee take longer than one week to fulfill the request.
[Ord. No. 1582, 5-16-2012]
(a) 
Disclaimer of liability. The City shall not at any time be liable for injury or damage occurring to any person or property from any cause whatsoever arising out of the construction, maintenance, repair, use, operation, condition or dismantling of grantee's gas distribution system and due to the act or omission of any person or entity other than injury or damage solely caused by the City and its employees.
(b) 
Indemnification. Grantee shall, at its sole cost and expense, defend, indemnify and hold harmless the City, all associated, affiliated allied and subsidiary entities of the City now existing or hereinafter created, and their respective officers, boards, commissions, employees, and attorneys (hereinafter referred to as "indemnities"), from and against any and all liability, obligation, damages, penalties, claims, liens, limitations, reasonable fees and expenses of attorneys, expert witnesses and consultants, which may be imposed upon, incurred by or be asserted against the indemnities by reason of any negligent act or omission of grantee, its personnel, employees, agents, contractor or subcontractors, resulting in personal injury, bodily injury, sickness, disease or death to any person or damage to, loss of or destruction of property which may arise out of or be connected with the construction, installation, operation, maintenance or condition of the gas distribution system or grantee's failure to comply with any federal, state or local statute, ordinance or regulation.
(c) 
Assumption of risk. Grantee undertakes and assumes for its officers, agents, contractors and subcontractors and employees, all risk of dangerous conditions, if any, on or about any City-owned or controlled property, including public ways, and grantee hereby agrees to indemnify and hold harmless the indemnities for personal injury or property damage to any person arising out of the installation, operation, maintenance or condition of the gas distribution system or grantee's failure to comply with any federal, state or local statute, ordinance or regulation. This subsection shall not apply to personal injury or property damages arising from acts or omissions solely caused by the City or its employees.
(d) 
Notice, cooperation, and expenses.
(1) 
The City shall give grantee prompt notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section 32A-9.
(2) 
Nothing herein shall be deemed to prevent the City from cooperating with grantee and participating in the defense of any litigation by the City's own counsel.
(3) 
Grantee shall pay all reasonably necessary expenses incurred by the City defending itself with regard to any such actions, suits or proceedings. These expenses shall include all reasonably necessary out-of-pocket expenses, such as attorney fees, and the reasonably necessary actual expenses of the City's agents, employees or expert witnesses, and reasonably necessary disbursements and liability assumed by the City in connection with such suits, actions or proceedings.
(e) 
Survival of terms. The terms and conditions of Section 32A-9 shall survive termination or assignment of this franchise.
[Ord. No. 1582, 5-16-2012]
Grantee shall charge for gas furnished the rates, charges and special taxes as approved from time to time by the Michigan Public Service Commission, or its successors having authority and jurisdiction to fix and regulate gas rates and charges, or as otherwise permitted or required by applicable law or tariff, for the term of this franchise. Such rates shall be subject to Commission review and change at any time upon petition therefore being made by either said City, acting by its City Council, or by said grantee. Grantee shall, as to all conditions and elements of service, be and remain subject to the reasonable rules and regulations of the Michigan Public Service Commission or its successors, applicable to gas service in said City and shall provide service in accordance with the terms and conditions set forth in its applicable tariff as approved from time to time by the Michigan Public Service Commission or its successors.
[Ord. No. 1582, 5-16-2012]
Except as otherwise provided in Section 32A-10, grantee shall be and remain subject to all ordinances, rules and regulations of the City now in effect or which may be subsequently adopted for the regulation of land uses or for the protection of the health, safety and welfare of residents of the City.
[Ord. No. 1582, 5-16-2012]
(a) 
Grantee shall not assign this franchise to any other person, firm or corporation without the prior written approval of the City Council except in those cases where the Michigan Public Service Commission has granted any required approval of the acquisition, transfer of control, merger or encumbrance transaction underlying the assignment of this franchise, and the grantee has provided notice to the City of its request for approval and the City is given an opportunity to participate in the proceeding before the Michigan Public Service Commission. The City shall not unreasonably withhold its consent to an assignment if the assignee is financially able to carry out the grantee's obligations under this franchise. The assignment of this franchise to a subsidiary, division, or affiliated corporation of grantee or its parent corporation shall not be considered an assignment requiring the consent of the City Council.
(b) 
Subject to the provisions of the City Charter and Sections 32A-1 through 32A-14, the words "SEMCO Energy Gas Company" and "grantee", are intended and shall be held and construed to mean and include both SEMCO Energy Gas Company and its successors and assigns, as approved in writing by the City, whether so expressed or not.
[Ord. No. 1582, 5-16-2012]
The rights, power and authority granted by these Sections 32A-1 through 32A-14 are not exclusive. The City may grant other franchises for the same purpose or purposes after the date hereof. Nothing in this franchise shall transfer or delegate any authority which the City may have under its Charter or state law relating to the subject matter of this franchise.
[Ord. No. 1582, 5-16-2012]
This ordinance [from which this chapter is derived] shall take effect upon the day after the publication thereof; provided, however, it shall cease and be of no effect after 30 days from its adoption unless within said period the grantee shall accept the same, in writing, filed with the City Clerk. Upon acceptance and publication, the ordinance shall constitute a contract between the City and said grantee.