[HISTORY: Adopted by the Township Board of the Township of Grosse Ile 4-1-2000 by Ord. No. 285. Amendments noted where applicable.]
The Township of Grosse Ile, 9601 Groh Road, P.O. Box 300, Grosse Ile, MI 48138 ("Township"), grants to Nordic Electric, L.L.C., 2010 Hogback Road, Suite 4, Ann Arbor, State of Michigan, 48105, a limited liability company ("grantee"), limited nonexclusive permission to market electricity through and over existing and future electrical lines operated and owned by another authorized public utility and to conduct a local electric business as an electric power marketer and third-party supplier of electricity in the Township for a period of two years.
As an electric power marketer and third-party supplier of electricity, grantee will not directly transmit or supply electricity, nor impair or attempt to control or occupy any streets, alleys, or public places, nor engage in any construction in any public street, alley, or other place or right-of-way.
Grantee shall indemnify and hold harmless the Township from any and all judgments, damages, decrees, losses, costs and expenses, including attorney fees, which the Township may incur or which may be legally obtained against the Township for or by reason of the wrongful or negligent construction, maintenance or repair of the structures and equipment, or the use and occupation of any highway, street, alley, or other public place in the Township by the grantee pursuant to the terms of this ordinance or resulting from the exercise by the grantee of any of these privileges.
The Township may establish reasonable standards of service, prevent unjust discrimination in service, and impose any other regulations as may be determined by the Township Board to be conducive to the safety, welfare and accommodation of the public. Grantee shall be and remain subject to all ordinances, rules and regulations of the Township now in effect, or which might be adopted.
Grantee shall reimburse the Township for the Township's costs associated with issuance of this franchise, including reasonable attorney fees.
Grantee must file a written application to the Township requesting permission to market electricity within the Township and said application must acknowledge acceptance of the terms of this ordinance.
Grantee may charge its customer(s) for electricity and electrical services at a rate that is mutually agreeable to grantee and the customer, subject to the parties' agreement that they will abide by all applicable federal and state laws and Michigan Public Service Commission Regulations.
If grantee or any subsidiary company pays a fee, charge, or other payment of any kind on a periodic basis (e.g., monthly, quarterly, annually, etc.) for a franchise to any municipality in Michigan, then the grantee shall pay to the Township a fee computed in the same manner as the fee is computed in the other municipality (e.g., if the fee in the other municipality is computed on a percentage revenue, the same percentage shall be applicable and paid to the Township. If such fee in the other municipality is computed on the lineal measure of service, the same unit price shall be applicable and paid to the Township). A one-time charge prior to and for the installation of such new service shall not be considered a periodic fee unless the charge is unreasonably higher than that paid to other municipalities. If fees are paid by the grantee to more than one municipality, then the computation of the fee for the Township shall be based upon the method producing the largest fee. The Township shall have the right, at its own expense, to audit the books and records or review audits of the books and records of the grantee to determine whether and to what extent a fee is due. Any additional fee found due as a result of the audit or review shall be paid by the grantee. If the additional fee is greater than 2% of the total annual fee which should have been paid for any calendar year, the grantee shall pay the Township's cost for the audit.
The grantee and any contractor hired by the grantee may not commence marketing electricity, as permitted by this ordinance, until it has obtained the insurance required by this section. All insurance coverage shall be with insurance carriers reasonably acceptable to the Township. If any insurance is written with a deductible or self-insured retention, the grantee or its contractor shall be solely responsible for said deductible or self-insured retention. The purchase of insurance and the furnishing of a certificate of insurance shall not be a satisfaction of the grantee's duty to indemnify the Township. The grantee and any contractor shall procure and maintain during the term of the franchise the following coverage:
Workers' compensation insurance in accordance with all applicable statutes of the State of Michigan. Coverage shall include employers' liability coverage.
Commercial general liability insurance on an "occurrence" basis with limits of liability not less than $1,000,000 per occurrence for bodily injury and personal injury, and $1,000,000 per occurrence for property damage. Coverage shall include the following extensions:
Motor vehicle liability coverage, including Michigan no-fault coverage for all vehicles used in the performance of the contract. Limits of liability shall not be less than $1,000,000 per occurrence combined single limit bodily injury and property damage.
Additional insured. Commercial general liability insurance and automobile liability insurance as described above shall include an endorsement stating the following shall be an additional named insured: "The Township, including all elected and appointed officials, boards, agents, commissions, officers, employees and volunteers."
Workers' compensation insurance, commercial general liability insurance, and motor vehicle insurance as described above shall include an endorsement stating the following: "It is hereby understood and agreed that this insurance policy may not be canceled by the insurer nor the intention not to renew be stated by the insurer until 30 days after receipt by the Township, by certified or registered mail, of a written notice of such intention to cancel or not renew."
Said notice shall be sent to:
If so requested by the Township, the grantee and any contractor shall within 60 days of such request supply a copy of this insurance policy of any of the insurance coverage required under this section.
Nothing in this franchise shall be construed to alienate the title of the public in and to any highway, street, alley or public place. Nothing in this franchise shall be construed in any manner as a surrender by the Township of its legislative power with respect to the subject matter of this agreement or with respect to any other matter or in any manner limiting the right of the Township to lawfully regulate the use of any highway, street, alley or public place in the Township.
Grantee may from time to time market electrical service to customers with the Township which are not listed in Appendix A, subject to all applicable ordinances, laws, statutes, rules and regulations, provided that grantee first files with the Township Clerk and amendment to Appendix A and provided grantee is in current compliance with all terms of this ordinance.
Nothing in this ordinance shall be construed as a waiver by grantee of any of its rights under state or federal law. Grantee shall, as to all other conditions and elements of service not addressed or fixed by this ordinance, remain subject to the rules and regulations applicable to electric service by the Michigan Public Service Commission, or its successor. Grantee shall provide the Township with copies of all documents which grantee sends to the Michigan Public Service Commission and copies of all orders, decisions, or correspondence grantee receives from the Michigan Public Service Commission. Grantee shall permit Township inspection and examination of all records it is required to maintain or file under Michigan Public Service Commission rules and regulations.
Upon acceptance and publication this ordinance shall constitute a contract between the Township and the grantee and grantee's acceptance of the terms of the ordinance shall be indicated by its application to the Township requesting permission to market electricity within the Township.
This franchise may not be leased, assigned or transferred.
This franchise shall be revocable, upon 60 days' written notice to the grantee, by the Township. The Township may repeal this ordinance for misuse, nonuse or failure to comply with its provisions and may amend the terms of this ordinance in the future.
Any and all sections, terms, provisions, or clauses of this franchise shall be deemed independent and severable. If any court of competent jurisdiction holds any section, term, provision or clause void or invalid, all remaining sections, terms, provisions, or clauses not held void or invalid shall continue in full force and effect.
Grantee must notify the Township in writing within 90 days of the expiration of the term of the franchise granted by this ordinance if it intends to renew its franchise with the Township.
This ordinance shall take effect the day following the date of publication of this ordinance or a summary of this ordinance.