Subject to all terms and conditions in this article and the
individual franchise ordinance, a franchise grants the grantee the
right to transact a local business of supplying electricity or gas,
as designated in the individual franchise ordinance, to customers
in the Township using facilities of an identified utility to the extent
that it is lawful under applicable legislation, administrative rules,
including those of the MPSC, and express or implied contract or agreement
with the utility. A franchise does not grant the right to own, construct,
operate, maintain or repair facilities in the Township.
The term of a franchise, which shall be stated in the individual
franchise ordinance, is subject to revocation at the will of the Township
and may be surrendered and terminated by the grantee on 30 days'
written notice to the Township. Any unsatisfied obligations of the
grantee to the Township shall survive revocation or termination and
be enforceable by the Township as provided in the franchise, as amended.
A franchise is nonexclusive and does not restrict the Township
from approving additional franchises or establish any priority between
grantees to transact local business and the incidental use of right-of-way.
A franchise may not be sold, leased, assigned, transferred or
used by any person other than the grantee without the written approval
of the Township by ordinance amendment.
A franchise requires grantee compliance with all applicable
current and future Township, state and federal ordinances, laws, rules
and regulations and any permit, approval, certificate or license requirements
and conditions under such laws and shall not be construed as a waiver
by the grantee of any of its rights under state or federal law.
Disruption or obstruction of, and physical entry in or upon
a right-of-way by a grantee, its personnel or equipment is prohibited.
A franchise and the rights granted by it shall at all times
be subject to the paramount rights of the Township in its right-of-way,
and shall be subject to immediate suspension or termination by the
Township in the interest of the public health, safety and welfare.
If a right-of-way is vacated, discontinued, abandoned, terminated
or released, a grantee's incidental right to use the right-of-way
shall immediately terminate.
Without prior notice, the Township has the right to remove,
damage, destroy or otherwise disrupt and/or order a cessation of use
of facilities used by grantee or its customers, when necessary due
to a public emergency. "Public emergency" means any situation which,
in the opinion of the Township official authorized to declare an emergency,
presents an immediate threat to persons or property in the Township.
The Township shall have no liability or responsibility for repairing
or restoring facilities damaged by actions taken under this section.
A franchise shall not be construed in any manner as a waiver
or limitation of the Township's discretion and authority or rights
to regulate and control the use of right-of-way.
A grantee assumes all risks of damages or injuries to its officers,
employees, agents and contractors from dangerous right-of-way conditions,
if any.
The Township and its officials, employees, agents and contractors
shall have no liability for damages or injuries to any person or property,
including the grantee, that arise from the granting, enforcement or
exercise of rights under a franchise.
A grantee shall, at its sole cost and expense, defend, indemnify
and hold harmless the Township and its officials, employees, agents,
contractors, right-of-way and property from all claims and liability
for damages or injury to persons or property caused by or resulting
from the actions or omissions of the grantee and/or its officers,
employees, agents and contractors. This obligation extends to all
costs and expenses, including attorney fees that may be incurred by
the beneficiaries of the grantee's obligation. The Township shall
notify the grantee of any claim or liability that is covered by the
grantee's obligation, and shall not be prevented from participating
in the defense of any claim by its own attorney, the cost of which
shall be the grantee's responsibility.
The Township reserves the right to require the grantee to have,
maintain and provide specified liability insurance coverages.
A grantee shall provide and update written disclosure to the
Township of its contact person, address, telephone numbers, fax numbers,
e-mail addresses, if applicable, and procedures for service requests
and complaints, together with a written disclosure of pricing, billing,
warranty and contract rates, terms, policies and procedures.
A grantee shall supply electricity or natural gas in accordance
with all applicable laws.
Every three years commencing after December 31, 2001, the Township has the right, after providing prior notice and an opportunity to comment to a grantee, to require the payment by a grantee on a periodic basis, of a franchise fee, provided that any such fee is applied equally to all grantees under this chapter that are supplying the same commodity (electricity or natural gas) as a grantee. Such a franchise fee would be an additional franchise term and condition, to be adopted and presented to the grantee for acknowledgement, agreement and acceptance as an ordinance amendment as provided in § 184-9. In any such fee review, the grantee shall disclose and the Township may consider if the grantee pays a franchise fee, charge or other periodic payment for a franchise to any other state municipalities and the manner in which such fees are computed. It is a condition of a franchise that the grantee notify the Township of any such fees that are paid and the Township shall have the right to inspect a grantee's books and records to monitor, enforce and determine a grantee's compliance and the accuracy of amounts paid or to be paid by a grantee under this section.
A grantee shall reimburse the Township for any costs it incurs,
including reasonable attorney fees, in enforcing franchise terms and
conditions.
A franchise shall at all times be subject to the rights of the
Township, which are hereby reserved, to make all regulations, take
all actions and do all things provided for in the Charter Township
Act[1] or by law.
[1]
Editor's Note: See MCLA § 42.1 et seq.
No franchise granted under this chapter shall be for longer
than 10 years. The term of each franchise shall be stated in the individual
franchise ordinance.
There is no right to a franchise renewal or extension. Franchise renewal or extension may be applied for and approved as provided in Article II of this chapter.
