ORDINANCE NO. EF1
AN ORDINANCE GRANTING AN ELECTRIC FRANCHISE TO THE CITY OF HOLLAND
THE TOWNSHIP OF PARK, OTTAWA COUNTY, MICHIGAN, ORDAINS THAT THE FOLLOWING
ELECTRIC FRANCHISE IS HEREBY APPROVED AND GRANTED TO THE CITY OF HOLLAND:
ELECTRIC FRANCHISE
A franchise granting to the City of Holland, a municipal corporation of Ottawa and Allegan Counties, Michigan, its successors and assigns, the right to acquire, construct, maintain, and operate in the streets, alleys, and public places of the Township of Park (the "Township") and its successors, electric lines consisting of towers, masts, poles, crossarms, guys, braces, feeders, transmission and distribution wires, transformers, conduits, and other electrical appliances, together with all appurtenances related thereto, for the transmission and distribution of electrical energy to the Township and its inhabitants.
BE IT RESOLVED by the Township Board of the Township of Park, Ottawa County, Michigan, and it is hereby ordained by authority of the same that:
The City of Holland, a municipal corporation of Ottawa and Allegan Counties, Michigan, its successors and assigns (hereinafter called grantee) is hereby granted the right, privilege, and authority to acquire, construct, maintain, and operate in, under, across, and along the streets, thoroughfares, alleys, bridges, and public places as the same now a exist or may hereafter be laid out in the Township electric lines consisting of towers, masts, poles, crossarms, guys, braces, feeders, conduits, transmission and distribution wires, transformers, and other electrical appliances and all related appurtenances for the transmission and distribution of electrical energy by any means with all the necessary or desirable appurtenances for the purpose of supplying electrical energy to the Township and the inhabitants thereof, and to persons or corporations beyond the limits thereof for any purpose for which electrical energy is now or may hereafter be used, and the distribution of the same within, through, or across the Township, all subject to such reasonable regulations as the Township Board shall prescribe from time to time.
All such electrical equipment, services, and appurtenances shall be constructed so as to interfere as little as possible with the proper lawful use of the streets, alleys, and public places. Location of all electrical equipment and appurtenances shall be made under the supervision of the Township Board and shall be subjected to such reasonable regulations as shall be prescribed by the Township from time to time and shall be subject to all provisions of the ordinances of the Township and of the laws of the State of Michigan.
The rights, privileges, and franchise hereby granted shall not be construed to be exclusive and the Township Board hereby reserves the right to grant similar rights, privileges, and franchises to any other person or persons, firm or firms, corporation or corporations.
Said grantee shall save the Township harmless from any and all liability arising in any way from negligence in the erection, maintenance, or operation of any of the electrical distribution equipment and/or appurtenances.
Whenever said grantee shall begin the erection of any electrical distribution equipment or appurtenances, it shall promptly and diligently prosecute the work to completion and leave the streets, alleys, and public places where such work is done in as good condition of repair as before said work was commenced. If the grantee shall fail to complete such restoration within 30 days after the completion of the erection of any electrical distribution equipment or appurtenance to the reasonable satisfaction of the Township, then the Township may at its option cause such restoration to be done and the grantee shall in such event pay to the Township all costs thereof in the itemized amounts reported by the Township to the grantee. Such payment shall be made within 30 days after mailing of the itemized report to the grantee. Should the grantee elect to move any of its electrical distribution equipment because of street construction or the placement of other municipal utilities, the grantee shall move such electrical distribution equipment at its sole expense provided, however, if (a) the electrical distribution equipment is located at the proper location in the right of way as specified by the applicable county and/or local standards; and (b) an engineer representing the Township certifies in the exercise of reasonable engineering judgment that it is necessary that such equipment be moved for such construction or placement of utilities to proceed, then such equipment shall be moved at the expense of the Township or its third-party contractor(s).
Whenever in this franchise reference is made to the Township or the grantee, it shall a be deemed to include their respective successors or assigns of either and all rights, privileges and obligations herein contained by or on behalf of the Township or on behalf of said grantee shall be binding upon and inure to the benefit of the respective successors or assigns of the Township or of said grantee whether so expressed or not.
Grantee shall furnish electrical energy to all customers requesting such service within the Township pursuant to distribution line extension rules and regulations adopted by the grantee, which said rules shall apply uniformly to all customers and potential customers of the grantee. The furnishing of such electrical energy shall be in a continuous, adequate and workmanlike manner except for interruptions caused by acts of God, riot, war, strikes or other causes beyond the control of grantee.
The rates and charges for electrical energy and other commodities or services provided by the grantee within the Township shall be based upon the actual reasonable cost of such commodities and services and shall not exceed the rates and charges for similar commodities and services to similar customers within the grantee unless, as a result of peculiar or unforeseen circumstances, such costs are greater than within the grantee, in which case such additional costs may be charged. In the event that the Township does not agree to such additional rates and charges, grantee and the Township agree that the questions of whether there are peculiar or unforeseen circumstances in the Township which occasion additional costs and whether the charges related to such costs, if any, are reasonable may, at the option of the Township, be submitted to binding arbitration under the rules and procedures of the American Arbitration Association or its successors.
In the event that the grantee shall seek to increase any rates or charges for electrical energy and/or other commodities or services provided pursuant to this franchise, it shall notify the Township in writing at least 15 days before the effective date of such increase. Such notice shall specify all changes in rates or charges sought by the grantee. In the event that the Township does not agree to such changes, it may, at its option, submit to binding arbitration under the rules and procedures of the American Arbitration Association the question of whether the proposed rates or charges are in compliance with the criteria and limitations referenced in Section 8 above. Pending outcome of such arbitration, grantee may institute such changes and shall hold all funds represented by any rate or charge increase in a special interest bearing escrow fund, for refund, in whole or in part, with interest, if the result of the arbitration is to deny all or part of the rate or charge increase.
Grantee shall promptly furnish to the Township the annual report of the Holland board of public works and the audited financial statement of the Holland board of public works for each year of the term of this franchise.
In the event that the grantee shall provide secondary services related to its electric generating facilities (such as district heating), such services shall be furnished to customers within the Township on the same basis as the same are offered to customers within the grantee. In the event of the availability of such services, the rights herein granted to a the grantee shall be deemed to include all rights reasonably necessary to provide such services to customers of the Township.
The grantee shall make due provision for the passage of any structure over or under its lines by the raising or protection of such lines as may be necessary to accommodate such passage at the expense, however, of the party requesting the movement of the structure.
Plans showing the location of overhead and underground lines and appurtenances installed in public rights-of-way and public places by grantee shall be filed with the Township within 15 days following installation.
Grantee shall furnish and install street lights within public rights-of-way and public places within the Township at the request of the Township Board subject to such rates and charges for the same as are customary throughout the grantee's service area.
This franchise shall be irrevocable for a period of 30 years commencing with the date the same is approved by the electors of the Township at a duly called special or general election within the Township, provided that the same is accepted by the grantee in writing and filed with the Township within 60 days following such approval.
The foregoing ordinance was approved and adopted by the Township Board on September 2, 1982. This ordinance shall be effective one day after publication.