[Adopted 10-28-2019 by Ord. No. 244]
The City of New Buffalo (the "City") hereby grants to SEMCO
Energy Gas Company, a division of SEMCO Energy, Inc., a Michigan corporation,
its successors and assigns (the "Grantee"), the right, power and authority
to construct, lay, operate, maintain and replace in the public streets,
highways, alleys and other public places in the City of New Buffalo,
Michigan, all needful and proper gas pipes, mains, conductors, service
pipes and other apparatus and facilities requisite for the manufacture,
transmission and distribution of gas for all purposes to the City
of New Buffalo, and the inhabitants thereof, and for conducting gas
elsewhere to supply neighboring cities, villages and other territories
supplied with gas by said Grantee, subject to the terms and conditions
of this ordinance.
In consideration of the rights, power and authority hereby granted,
the Grantee shall faithfully perform all things required by the terms
hereof.
A. The Grantee and its contractors and subcontractors shall not unduly
burden or interfere with the present or future use of any of the public
rights-of-way within the City and shall interfere as little as possible
with public travel. The Grantee and its contractors and subcontractors
shall, at the Grantee's sole expense, repair the public rights-of-way
and leave them in as good condition as before the opening or excavation
was made.
B. If the Grantee damages, harms or injures any street, highway, alley
or other public space, or in any manner disturbs or interferes with
any water main or public or private sewer lines currently constructed
or that may be constructed in the future, the Grantee shall repair
that property to at least the same condition.
C. The Grantee shall notify the City, in writing or by electronic mail,
at least 48 hours prior to undertaking any work in the City involving
excavation in or the closing of any public rights-of-way. The City
shall, upon the effective date of this ordinance, provide, in writing,
the individual's name and method of communication by which the
Grantee will provide notice. The notice shall state the intended duration
of any rights-of-way obstruction, which obstruction shall not continue
for more than four hours beyond the stated time unless the City grants
an extension of time. The Grantee shall, at the City's request,
provide plans and specifications showing the nature and extent of
the proposed excavation and construction. The Grantee is solely responsible
for obtaining any necessary governmental permits for such excavation
or construction.
D. This ordinance shall not be construed to prevent the Grantee from
immediately commencing construction or repair work from a severe weather
event or other emergency when deemed necessary to prevent danger to
life or property and, in such case, the Grantee shall notify the City
of the construction or repair work as soon as reasonably practical.
E. Upon the City's request for a public improvement project, and
only to the extent the Grantee's facilities physically interfere
with such public improvement, the Grantee shall relocate components
of its facilities within the public rights-of-way at no charge to
the City.
F. Any easements over or under private property necessary for the construction
or preparation of the Grantee's facilities shall be arranged
and paid for by the Grantee. Any easements over or under property
owned by the City other than the public rights-of-way shall be negotiated
with the City.
G. The Grantee and its contractors and subcontractors may exercise all
of the Grantee's rights and perform all of the Grantee's
duties and this ordinance in compliance with all applicable laws,
ordinances, rules, regulations, permit or license requirements, and
orders of any governmental agency or official of competent jurisdiction
and including, without limitation, those of the Michigan Public Service
Commission.
H. The Grantee shall keep accurate, complete and current maps and records
of its facilities. Subject to the Homeland Security Act and other confidentiality protections under state and
federal law, the Grantee shall furnish a copy of the maps and/or records
of its facilities to the Grantee within two months of the effective
date of this ordinance and upon reasonable request thereafter. To
the extent permitted by law, the City will ensure that the confidentiality
of any maps and records provided to the City is maintained.
The Grantee and its contractors and subcontractors shall use
due care at all times in exercising the privileges herein. The Grantee
shall hold harmless, defend and indemnify the City and its officers,
agents, and employees from and against all costs, claims, damages,
liabilities, expenses, and judgments of proceedings of whatever nature,
including, without limitation, attorneys fees, arising from the Grantee's
exercise of its rights pursuant to this ordinance (whether by the
Grantee or the Grantee's contractors or subcontractors). However,
the Grantee need not indemnify, defend, or hold harmless the City
from claims, demands, losses, and expenses arising out of the negligence
of the City, its employees or agents.
The rights, power and authority herein granted are not exclusive.
Either manufactured or natural gas may be furnished hereunder.
The 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 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 therefor being made by either said City, acting by its
City Council, or by said Grantee.
The franchise herein granted shall be revocable at the will
of the governing body of this City as provided in the Michigan Constitution.
The Grantee shall, as to all other conditions and elements of
service not herein fixed, be and remain subject to the reasonable
rules and regulations of the Michigan Public Service Commission or
its successors applicable to gas service in the 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.
The words "SEMCO Energy Gas Company" and "SEMCO Energy, Inc.,"
wherever used herein, are intended and shall be held and construed
to mean and include SEMCO Energy Gas Company and its parent, subsidiaries,
successors, affiliates, and assigns, whether so expressed or not.
The word "Grantee," wherever used herein, is intended and shall be
held and construed to mean and include SEMCO Energy Gas Company, SEMCO
Energy, Inc., and the successors and assigns of each, whether so expressed
or not. The Grantee may assign the rights and obligations under this
agreement as long as the Grantee provides prior written notice to
the City of any such assignment.
The Grantee shall not be liable for failure to furnish service
as herein provided, or for any breach of the Grantee's obligations
hereunder, if such failure or breach is caused by acts of God, labor
troubles, riot, or any other causes or contingencies not reasonably
within the control of the Grantee.
The rights granted in this franchise shall continue in full
force and effect for a period of 10 years from the effective date
of this ordinance. The franchise rights, power and authority granted
herein shall automatically be renewed for a ten-year term thereafter
unless, within six months prior to the expiration of the first ten-year
term, one party provides the other written notice of its intent not
to renew the franchise for the upcoming ten-year term. The maximum
length of this franchise shall be 30 years from its effective date.
The effective date of this franchise shall be the date of the acceptance
of the franchise by the Grantee, which acceptance shall be filed by
the Grantee, in writing, with the City Clerk within 60 days after
the enactment of this ordinance. This ordinance shall supersede the
natural gas franchise granted to Michigan Gas Company on April 18,
1995.