[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]
[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.
[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.
