[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.
A.
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.
B.
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.
C.
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.
E.
Grantee shall reimburse the Township for the Township's costs
associated with issuance of this franchise, including reasonable attorney
fees.
F.
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.
A.
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:
(1)
Workers' compensation insurance in accordance with all applicable
statutes of the State of Michigan. Coverage shall include employers'
liability coverage.
(2)
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:
(3)
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.
(4)
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."
(5)
Cancellation notice.
(a)
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."
(b)
Said notice shall be sent to:
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Township of Grosse Ile
9601 Groh Road
P.O. Box 300
Grosse Ile, MI 48138
ATTN: Township Manager
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B.
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,[1] 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.
[1]
Editor's Note: Appendix A is included at the end of this
chapter.
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.
