Ordinance No. 2,359139
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ORDINANCE NO. 2359
AN ORDINANCE GRANTING ENTEX, INC., ITS SUCCESSORS AND
ASSIGNS, THE RIGHT, PRIVILEGE AND FRANCHISE FOR A
PERIOD OF FORTY (40) YEARS TO CONSTRUCT, LAY, MAINTAIN,
OPERATE, EXTEND, REMOVE, REPLACE AND REPAIR A SYSTEM OF
PIPE LINES, GAS MAINS, LATERALS AND ATTACHMENTS AND ALL
DESIRABLE INSTRUMENTALITIES IN, UNDER, OVER, ACROSS AND
ALONG ANY AND ALL STREETS, AVENUES, PARKWAYS, SQUARES,
ALLEYS AND ALL OTHER PUBLIC PLACES IN THE CITY OF
BAYTOWN, HARRIS COUNTY, TEXAS, FOR THE PURPOSE OF
TRANSPORTING, DISTRIBUTING, SUPPLYING AND SELLING GAS
(NATURAL AND /OR ARTIFICIAL AND /OR MIXED) FOR HEATING,
LIGHTING, POWER, AND FOR ALL OTHER PURPOSES FOR WHICH
GAS MAY BE USED, TO THE MUNICIPALITY OF SAID CITY OF
BAYTOWN, TEXAS, AND ITS INHABITANTS AND OTHERS; PRO-
VIDING CONDITIONS CONTROLLING THE USE OF PUBLIC THOR-
OUGHFARES AND EXTENSIONS THEREIN; ESTABLISHING STANDARDS
OF SERVICE; PROVIDING FOR PAYMENT OF THREE PERCENT (30)
OF THE GROSS RECEIPTS FROM THE SALE OF GAS FOR RESIDEN-
TIAL, SMALL COMMERCIAL, AND LARGE COMMERCIAL PURPOSES
WITHIN THE CITY; PROVIDING FOR ACCEPTANCE; PROVIDING A
SEVERABILITY CLAUSE; MAKING MISCELLANEOUS PROVISIONS;
AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
BAYTOWN, TEXAS:
Section 1: That, the City of Baytown, Harris County,
Texas, herein called "Grantor ", does hereby grant unto
Entex, Inc., its successors and assigns, herein called
"Grantee ", the right, privilege, and franchise to construct,
lay, maintain, operate, use, extend, remove, replace and
repair in, under, over, across, and along any and all of the
future and present streets, avenues, parkways, squares,
alleys, thoroughfares, roads, highways, sidewalks, viaducts,
bridges, streams, public grounds, public properties, and
other public places in the City of Baytown, and in all
tracts, territories, and areas hereafter annexed to or
acquired by and placed within the corporate boundaries of
said municipality, a system of pipes, pipe lines, gas mains,
laterals, conduits, feeders, regulators, meters, fixtures,
connections, and attachments and other desirable instrumen-
talities and appurtenances necessary or proper, for the
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dew purpose of n-csnsporLling, di,-.,tributinp�, F, ?I) i n
7> upplying and sell
gas (natural and/or ar-tificial and/or mixed) for h �,,a t 111 g ,
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lighting, power and for any other purpose for which gas may
now or hereafter be used in and 'to said municip,,,-Llity and
its inhabitants or any other person or persons within or
without the corporate boundaries of said municipality.
Section 2: All pipe, fittinr.,rs, fJxtures and equipment
installed by Grantee shall be of sound mt-tterial, and good
quality and maintained so as not 'to interfere unreasonably
with traffic over the public thoroughfares of said municipality
and the same shall be laid in accordance with the lincs,
grades, and conditions established by G:t,antor. The Grantee
shall at all. times keep on file in the office of the Director
of Public Works, its most current map or set of maps of its
system within the City. As extensions of pipe lines are
made, from time -to time, the Grantee shall file with the
Director of Public Works maps or plans showing the extension.
No paving cuts shall be made by -the Grantee without first
obtaining the permission of the City 11anager or his delegate.
Section 3: The surface of any public road, highway,
streets, lanes, alleys, or other public place disturbed by
Grantee in laying, constructing, maintaining, operating,
usin.-, extending, removing, replacing, or repairing its
piping system shall be restored immediately after the com-
pletion of the work to as good a condition as before the
commencement of the work and maintained to the satisfaction
of the Director of Public Works for one (1) year from the
date of completion of said work, after which -time respon-
sibility for the maintenance shall become the duty of the
pi IC-rnft-n+e-e No public road, highway, street, lane, alley, or
other public place shall be encumbered by construction,
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purpose of transporting, distributing, supplying and selling
gas (natural and /or artificial and /or mixed) for heating,
lighting, power and for any other purpose for which gas may
now or hereafter be used, in and to said municipality and
its inhabitants or any other person or persons within or
without the corporate boundaries of said municipality.
Section 2: All pipe, fittings, fixtures and equipment
installed by Grantee shall be of sound material and good
quality and maintained so as not to interfere unreasonably
with traffic over the public thoroughfares of said municipality
and the same shall be laid in accordance with the lines,
grades, and conditions established by Grantor. The Grantee
shall at all times keep on file in the office of the Director
of Public Works its most current map or set of maps of its
system within the City. As extensions of pipe lines are
made, from time to time, the Grantee shall file with the
Director of Public Works maps or plans showing the extension.
No paving cuts shall be made by the Grantee without first
obtaining the permission of the City Manager or his delegate.
Section 3: The surface of any public road, highway,
streets, lanes, alleys, or other public place disturbed by
Grantee in laying, constructing, maintaining, operating,
using, extending, removing, replacing, or repairing its
piping system shall be restored immediately after the com-
pletion of the work to as good a condition as before the
commencement of the work and maintained to the satisfaction
of the Director of Public Works for one (1) year from the
date of completion of said work, after which time respon-
sibility for the maintenance shall become the duty of the
Grantee. No public road, highway, street, lane, alley, or
other public place shall be encumbered by construction,
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maintenance or removal work by Grantee for a longer period
than shall be necessary to execute such work. If there is
in the opinion of the City Council an unreasonable delay by
the Grantee in restoring and maintaining streets, highways,
parks and alleys after excavation, repairs and extensions
have been made, the Grantor shall have the right without
further notice to restore or repair same and require the
Grantee to pay the reasonable cost of so restoring or repairing
them.
Section 4: Grantee at its own expense shall run or
extend not more than one hundred (100) feet of main, not to
exceed a maximum diameter of two (2) inches, in order to
bring gas service to the property line of each additional
base load customer.
Section 5: The service furnished hereunder to said
municipality and its inhabitants shall be first -class in all
respects considering all circumstances and shall be subject
to such reasonable rules and regulations as Grantee may make
from time to time. Grantee may require reasonable security
for the payment of its bills.
Section 6: It shall be the Grantee's obligation as
provided in Section 5 to furnish good quality natural gas
service to the public at reasonable rates and to maintain
its property in good repair and working order, except when
prevented from so doing by forces and conditions not reason-
ably within the control of Grantee. Should Grantee fail or
refuse to maintain its properties in good order and furnish
efficient service at all times throughout the life of this
grant, except only when prevented from so doing by forces
and conditions not reasonably within the control of Grantee,
or should the Grantee fail or refuse to furnish efficient
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service at reasonable rates, lawfully determined by the
Grantor, throughout the life of this grant, excepting only
during such periods as the Grantee shall in good faith and
diligently contest the reasonableness of the rates in question,
then it shall forfeit and pay to the Grantor the sum of Five
Hundred ($500.00) Dollars for each day it shall so fail or
refuse after reasonable notice thereof and hearing thereon
by the Grantor.
Section 7: In consideration of the rights and privileges
herein granted, Grantee agrees to pay to the Grantor annually
during the continuance of this franchise a sum of money
equal to three percent (3 0,o) of the gross receipts for the
preceding year received by the Grantee after the effective
date of this franchise from the sale of gas to residential,
small commercial, and large commercial customers within the
corporate limits of the Grantor. Payments hereunder shall
be calculated on the basis of gross receipts from the sale
of gas delivered to residential, small commercial, and large
commercial customers within the corporate limits of Grantor
during the year next preceding that on account of which the
payment is made and shall be payable on or before the first
day of March of the year for which payment is made, beginning
with the first day of March next following the effective
date of this franchise and each and every year thereafter.
Upon receipt of the above amount of money, the City Clerk
shall deliver to the Grantee a receipt for such amount.
Upon request of the Grantor, Grantee shall present to
it any and all records, accounts and books for inspection
relative to the gross receipts of Grantee within the cor-
porate limits of the Grantor.
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The consideration hereinabove set forth shall be paid
and received in lieu of any license, charge, fee, street or
alley rental or other character of charge for use and occu-
pancy for the streets, alleys and public places within
Grantor, and in lieu of any pipe tax or inspection fee or
tax, but shall not in anywise increase or diminish Grantee's
obligation to pay the Grantor ad valorem taxes or anywise
interfere with collection thereof.
Any special taxes, and /or special rentals or other
charges accruing after the effective date of this franchise,
under the terms of any pre- existing ordinance, or imposed
upon Grantee by subsequent action of the Grantor shall, when
paid to the Grantor, be applied as a credit to the amount
owed to the Grantor under the terms of this franchise agree-
ment.
Section 8: It is specifically agreed and understood
that Grantor may, at its option, have inserted by amendment
hereto any greater percent of the gross receipts which
Grantee agrees to pay to any other municipality within the
Division of Grantee in which the Grantor is included and
Grantee by its acceptance hereof agrees to such subsequent
amendment.
Section 9: Grantee, its successors and assigns, shall
protect and hold Grantor harmless against all claims for
damages to any person or property by reason of the construc-
tion and maintenance of its natural gas distribution system,
or in any way growing out of the granting of this franchise,
either directly or indirectly, or by reason of any act,
negligence, or nonfeasance of the contractors, agents, or
employees of Grantee, its successors or assigns, and shall
refund to Grantor all sums which it may be adjudged to pay
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on any such claim, or which may arise or grow out of the
exercise of the rights and privileges hereby granted, or by
the abuse thereof, and Grantee, its successors and assigns,
shall indemnify and hold the Grantor harmless from and on
account of all damages, costs, expenses, actions and causes
of action that may accrue to or be brought by any person,
persons, company or companies at any time hereafter by
reason of the exercise of the rights and privileges hereby
granted, or of the abuse thereof.
Section 10: Nothing herein contained shall ever be
held or considered as conferring upon Grantee and its successors
and assigns any exclusive rights or privileges of any nature
whatsoever.
Section 11: In granting this franchise, it is under-
stood that the lawful power vested by law in the Grantor to
regulate certain public utilities within the City, and to
regulate the local rates of said public utilities within the
City within the limits of the constitution and laws, and to
require all persons or corporations to discharge the duties
and undertakings, for the performance of which this franchise
was made, is reserved; and this grant is made subject to all
lawful rights, powers and authorities, either of regulation
or otherwise, reserved to the Grantor by its Charter or by
the general laws of this State.
Section 12: All ordinances and parts of ordinances in
conflict herewith are hereby repealed; provided, however,
that such repeal shall be only to the extent of such incon-
sistency and in all other respects this ordinance shall be
cumulative of other ordinances regulating and governing the
subject matter covered by this ordinance.
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Section 13: This franchise shall take effect and
continue and remain in effect for a period of forty (40)
years from and after the date of this ordinance, provided
Grantee files a written acceptance of this franchise with
Grantor within one - hundred twenty (120) days after final
passage of this ordinance.
Section 14: If any provision, section, subsection,
sentence, clause, or phrase of this ordinance is for any
reason held to be unconstitutional, void, or invalid (or for
any reason unenforceable), the validity of the remaining
portions of this ordinance shall not be affected thereby, it
being the intent of the Grantor in adopting this ordinance
that no portion hereof or provision or regulation contained
herein shall become inoperative or fail by reason of any
unconstitutionality or invalidity of any other portion,
provision or regulation, and to this end, all provisions of
this ordinance are declared to be severable.
Section 15: Grantor may, at any time, declare a con-
ditional forfeiture of this grant for a continuing violation
by the Grantee of any of the substantial terms hereof. In
such event, the Grantor shall give written notice, spec-
ifying all grounds on which forfeiture is claimed, by
registered mail, addressed and delivered to the Grantee, to
the attention of its President, in Houston, Texas. The
Grantee shall have sixty days after receipt of such notice
within which to discontinue said alleged violation, or to
file suit in a court of competent jurisdiction for an adju-
dication or declaration of the rights of the parties with
respect to forfeiture of the franchise. No forfeiture shall
become effective until and unless (1) the Grantee shall have
continued such violation or violations for more than sixty
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days after receipt of such written notice from the Grantor
without filing such a suit; or (2) the Grantee shall have
continued such violation or violations for more than sixty
days (or such longer period as the Court in its discretion
shall allow) after the entry or affirmance in a court of
last resort of a final judgment finding and establishing the
existence of such violation or violations, and that such
violations are sufficiently substantial to warrant for-
feiture, and decreeing forfeiture as a consequence thereof.
The Grantee shall not in any event be deemed to be in default
of performance of any provisions of this grant, nor shall
any forfeiture be invoked for violation or violations for
failure to perform any provision hereunder when due to
shortages of material, supplies and equipment beyond the
control of the Grantee, or to fires, strikes, riots, floods,
war or other casualties, or to governmental regulations,
limitations or restrictions as to the use or availability of
materials, supplies or equipment or as to the use of the
service, or to unforeseen or unusual demands for service, or
for any other cause not reasonably or practicably within the
control of the Grantee.
Section 16: No consolidation, sale, purchase, combi-
nation or agreement affecting the sale or distribution of
gas within the City limits of the City of Baytown can be had
or entered into by the Grantee with any other gas utility
company within the City limits of the City of Baytown,
unless the same be expressly authorized and approved by the
City Council of the City of Baytown.
Section 17: The rights, privileges, and franchise
herein granted to the Grantee shall extend to and include
its successors and assigns, and the terms, conditions,
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provisions, requirements and agreements in this ordinance
contained, and each of them, shall be binding upon the
successors and the assigns of the Grantee.
Section 18 : The Grantee shall , within one-hundred
twenty (120) days from the date of the final reading of this
ordinance , file with the City Clerk a written acceptance of •
this franchise in the following form:
"To the Honorable Mayor and City Council of the City of
Baytown :
"The Grantee for itself, its successors and assigns,
hereby accepts the attached ordinance and agrees to be bound
f by all of its terms and provisions.
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ENTEX, NC.
. V3 IA
"Dated the 2 L. day of , 1977. "
INTRODUCED, READ, and PASSED on FIRST READING this 10th
day of November , 1977.
TOM GENTRY, M yor
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED:
NEEL RI HAR SON, City Attorney -
INTRODUCED, READ, and PASSED on SECOND READING this 22nd
day of November , 1977 .
TOM GENTRY , Mayor
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ATTEST:
EIL�E1EN P. HALL, City Clerk
APPROVED:
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NEEL R HARDSON, City Attorney
INTRODUCED, READ, and PASSED on THIRD and FINAL READING
this 20th day of December , 1977•
TOM GENTRY, Mayor
ATTEST:
KAREN PETRU, Deputy City Clerk
APPROVED:
v ' 000,
NEEL RIC ARDSON, City Attorney
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