ST9302-CS 980804 COPPELL, TEXAS 75019
P.O. Box 478
Coppell, Texas 75019
972-462-0022
August 4, 1998
David L. Cromer
Right-of-Way Agent
TU Services
P.O. Box 139083
Dallas, TX 75313-9083
RE: Sandy Lake Road ST93-02
Dear Mr. Cromer:
This letter is written as a follow up to our phone conversation on July 31, 1998 in which I
discussed your July 2 letter concerning the relocation of the 16" gas transmission line that
crosses Sandy Lake Road near Moore Road. During our conversation, I stated that it is my
opinion that the franchise agreement does not exempt this line from being relocated at the sole
cost of Lone Star Gas. Specifically, Section lA of the franchise agreement states that it Covers
the gas utilities system including, but not limited to, gas transmission and distribution and any
associated equipment. Also, Section 4, entitled Relocation, states that the Grantee is responsible
to remove/relocate its mains, laterals, and other facilities to accommodate construction of streets,
etc. when required by the City. The same paragraph goes on to state that if the relocation is for
any reason other than the construction of City facilities, then at that time the Grantee shall be
entitled to reimbursement from the City or others for the cost of removal and relocation.
With this letter, I am providing a copy of the most recent franchise agreement between the City
of Coppell and Lone Star Gas dated February 13, 1996. The City of Coppell is in the process of
opening bids for the construction of Sandy Lake Road with an anticipated start of construction
date of October, 1998. If you should have any questions or need additional clarification, please
contact me at your earliest convenience.
Sincerely,
Kenneth M. C.~ffin, P.E.
Director of Engineering and Public Works
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, GRANTING TO LONE
STAR GAS COMPANY, A DIVISION OF ENSERCH CORPORATION, A TEXAS
CORPORATION, A FRANCHISE FOR THE PURPOSE OF CONSTRUCTING,
MAINTAINING, AND USING A GAS UTILITY SYSTEM IN THE CITY OF
COPPELL, TEXAS PROVIDING CONDITIONS GOVERNING THE
CONSTRUCTION, EXPANSION, Ub'E, RELOCATION, AND OPERATION OF THE
GAS UTIIATY SYSTEM; PROVIDING FOR INDEMNIFICATION; PROVIDING
FOR COMPENSATION; PROVIDING FOR ACCOUNTING AND OTHER
REPORTS; PROVIDING FOR THE CONDITIONS OF A,~IG~
PROVIDING FOR TERMINATION; PROVIDING FOR ACCEPTANCE OF THE
FRANCHISE; PROVIDING A REPEAI2NG CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Lone Star Gas Company, a division of Enserch Corporation, currently
has a frallchi-e,o in the City of Coppell, Texas, which authorizes said company to supply
customers in the City of Coppell with natural gas; and
WHEREAS, the current Franchise Agreement with Lone Star Cras Company eapit~
on September 10, 1995; and
WHEREAS, the Lone Star Gas Company and the City of Coppell, T~-*s nmmally
agreed to extend the Franchise Agreement pending negotiation of a new Franchise
Agreement; and
WHEBF, A~, negotiations between Lone Star Gas Company and the City of Coppell,
Texas have been completed and the parties desire that a new Franchise Agreement to be
effective upon the expiration of the current Ordinance.
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE ~
OF COPPELL, TEXA~:
SECTION 1. PURPOSE.
(a) That there is hereby granted to Lone Star Gas Co~t~any, a division of
Enserch Corporation (hereinafter called "Grantee"), for a term of twenty (20)
ycars commencing on September 11, 1995, the non-exclusive privilege, to
have, acquire, construct, reconstruct, extend, maintain, use, and operate in,
along, across, on, over, throush, above,, and under public streets, alleys,
(b)
highways, public places, public thorou/ldares, and rights-of-way (hereinafter
caned 'City property') in the City of Coppell, Texas (hereinafter called "City'),
a gas utility system, including, but not limited to a ~ trnrt~rni.~on and
distn'bution system and any associa~! equipment or other fadlifies necessary
to distn'bute, Wam'po~ or deliver gas in, out of, and throuEh the Cily.
Grantee shall not provide cable ~elevision serdces or operate .a cable
~elevim'on system as de6ned in ~he Cable Com,mmicafions Policy Act of 1984
(47 U.S.C.A. t $21 et seq., as Amended) as recognized by the Federal
Communications Cow,,,i-,.,ion (the FCC) without fn~t oblaini~ a separaw
franchise from the City. 'llgs franc~,!~ is ~ solely ~o the C. amme.
Gmu~ is not authorized to license or lease ~o any permn or entity the right
to occupy and use any of City property for any private Imsiness or other
purpose. Transportation service provided by Grantee to or for others shall
not be considered a l/ceming or leasing of any right to occupy and use any
City property.
SECrlON Z. CONSTRUCTION AND MAINTENAN~
Work done in connection with the construction, mAinte;~Ance, ezpans/on,
reconstruction, operation and use of the g~s utility system and facility shall be subject to the
following conditions:
fo)
General
All construction, reconstruction, expansion, repairs, excavation, or other work
performed by Grantee, and all facilities of the Grantee, which are installed
within City property, shall be in accordance with all generally applicable City
Codes and Ordin~nce,~ indudil~ City standard conslruction detaih applicable
~o the construction of public improvements, the subdivi.~'on regulations and
tree preservation ordinances aud the Comprehensive Zoning Or,in*ncc, as
may be hereafter adopted or amended. Grantee shall be responsfob for an
repairs ~nd m.lntenance resulting from any defem, im.-aixmen~ or other
sub~_ n~*~d conditions of City property, including any disturbed, dam~ed or
destroyed lan&_~-~pi-~ material, caused by the construction, ~*inMnan4~
expansion, reco~~n, operation or use o~ City property by ~
In accordan~ with gene. rally appUc~zble permitting City ordinanc~ Orantoo
~ submit to an official of the City, as des~natexl from elme to time
proposed constru~on plans of all faci]Jti~ including sketches of piping
layout~ to be installed, re~onstm~Xed, repaire~ or expanded i~ on, above,
ac~o~ or under City property and any related street c]o~ure plans prior to the
issuance of any appUcable permit and the commencement of such construction
or other work. City may requtr¢ the submittal of a traffic control plan and
may aho require ail lanes to be open and avai]able to the traffic during peak
houm The City;s designated representative shaU review said plans and may
require reasonable modifications in order to protect existing or anticipated
public improvements or other existing utilities. Grantee shall not be required
to obtain a permit prior to responding to emergency situations, but shall notify
the City within forty-eight (48) hours following the initiation of work on City
property in response to any emergency situation. Grantee and Grantee's
contractors shall not be required to pay any permit fees or provide any
performance bonds in connection with Grantee's work on City property.
The Grantee shall conduct ~dl uaffic control in accordance with the ~
version of the Te~,,s M,m,*! on Uniform Tr*mc Control Devices, ss
The City and Crranteo shall use an reasonable caution to avoid dimubing tl~
flu:ill, es of the other party. The surface of any City prope~y disturbed by the
Grantee in the cons~uction, relocation, or maintenance of any of its facilities
shall be restored to as $ood a condition as before commencement of the work
to the reasonable saiisfa~on of the City within a reamnable ~ after
completion of the work. If there is an unreasonable delay by Grant~ in
restorln~ or maintainin~ City property after excavation, construction or repairs
have been made, the City shall have the right, after five (b') days' written
notice to Gl'aatee, to restore or repair the same and to require the Grantee
to pay the reasonable costs of such work.
(e) Compliance with Safety Laws
Upon request of thc City, Grantee shall remove and abate any portion of the
utility system or any of its facilities that is dangerous to life or property in
accordance with any applicable law. Grantee shall operate and mnlntnln its
utility system and its related facilities in material compliance with applicable
federal, state and local laws governing natural gas facilities.
(t3 Maintenance or l, iphs
Grantee shall own, operate, and ll~nlntnln all SOI~ce lines, which afe. dofilJod
as the supply lines extending from the Grantee's main to the ctutome~s meter
underground supply lines extending from the point of .connecti~ with
Grantee's custom~ meter to the point of co~ with the namings
house pipin~ If any one residential customer of Sas, at a ly~Inltvmn~. IISOS ~
for unsupplemented space heating and water heating, Grantee shall be
required at its own expense to extend maim on any street up to one hundred
feet (100'). Grantee ~hnll not be required to exte~ trnr~uni-~'ion maim on
any City property or to make a tap on any transmission main within City
~_mle-_qq (3rante~ agrees to silch extel~On by a written n?eelnent betwoe, n
Grantee and a customer. .
SF, CI'ION 3. OCCUPANCY CONDITIONS.
AH facilities co~tructed, relocated, or main~ed by G~antee within the City
$ Arno?y66
property shall be located so as to not ,nreasonably interfere with the use of such property
by the City or other utilities; and shall not ~nnreasonably interfere with the rights of the
owners or occupiers of any adjoining property. Grantee shall not place any of its facih'ties
where the same will unreasonably interfere with any existing gas, electric, or telephone
fixture, water hydrant, or main, drainage facility, or sanitary sewer, or unreasonably interfere
with travel on or public use of the streets, alleys, or other City property.
SEC~ON 4. REIA)CATION.
line and/or sewer lines by City, and Grantee is eli~'ble under federal, state, county pmgrmm
for reimbursement of costs and expenses inan'red by Grantee as a result o! such removal
submits its cost and eapense doo,mentation to City prior to the filing of the applimflon.
City shall provide reasonable notice to Grantee of the deadline for Grantee to submit
doo~m--ntation of the costs and expenses of such relocation to City. If the Crrantee is
required by City to remove or relocate its mains, laterals, or other facilities for ax~y ~
other than construction of City facilities, Grantee shall be entitled to reimbu~m~ent from
City or others of the cost and expense of such removal or relocation.
If City abandons any City property in which Grantee has facih'fies, such abandonment
shall be conch'tioned on Grantee's right to rp~int~in its use of the former City property. If
the party to whom the City property is abandoned requests the Grantee to remove or
relocate its facilities and Grantee a~rees to such removal or relocation, such removal or
relocation shall be done within a reasonable time at thc expense of the party requestin~ the
removal or relocation- If relocation cannot practically be made to another City property,
the expense of any right-of-way acquisition shall be considered a relocation expense to be
reimbursed by the party requestix~ the relocation.
SECI~ON ~. WORK BY ~
(a) The City reserves the right to lay and permit to be laid sewer, gas, water, and
other pipelines or cables and conduits and to do and permit to be done any
underground or overhead work that may be necessazy or proper in, across,
alon~ over, or under a City prope~ occupied by Crrantee. City also reserves
work on Grantee's facilities, City shall repair any such d.,n.~ at Grantee's
(b)
(a)
Grantee.
S~ON ~. REPORTS AND ~RDS. ,
Grantee shall keep complete and accurate books of accounts ~__d records of
its business and operations from which its gross receipts may be deterrnln~l.
Copies of relevant portions of such books of accounts and records shall be
ava/lable at the Grantee's office located in Dallas County, Texas. The City
shall have access to all books of accounts and records of Grantee relating to
thi~ ~z~d/lChi~ ~ reasonably needed to determine the acah-acy of any and all
rcpom related to thc gross receipts. The City agrees m the extent allowed
by law that any confiden_tinl or proprietary matter shall not be disclosed by the
City, except as needed to enforce the City*s rights under this ofd[nnnce. Upon
request, Grantee shall furnish the 'City with copies of Enserch Corporation's
annmtl audit repom of its ~in~n~_*n! statements by an independent oer~
public accoun*__~*~t and 10K and 10Q Reports to the Securities & Exclumge
Commi.~don and shall make available for inspection by the City all reports
filed with the ItAilroad Commi-~ion of Texas or its successor. Upon request,
Grantee shall make such other special studies and furnish such other reports
as the City may reasonably require for the administration of this ordinanc~
(b) The City shnll have the right, at reasonable times, to inspect the plant,
equipment and other property of the Grantee and its affiliates to examine,
audit, and ob*_nln copies of the papers, books, accounts, documents, and other
business records of the Grantee consistent with state law.
SECTION 7. QUALITY OF SERVICE.
Grantee shall at all times furnish service in a manner consistent with its Quality of
Service Rules, as an=ended from time to time, and as on file with the City.
8 A~o~
SECTION 8, FRANCHISE ADMINISTRATION.
ia)
The City Manager, or his designee, is the principal City officer responsible for
the _~mini,~tration of thi.~ franchise and shall oversee and review the
operations of Grantee under thi.~ franchise.
(b) The City may delegate to the City Manager, or his designee, the exerdse of
any powers conferred upon the City by its Charter or by law relatin8 to the
re~ulatioa of Grantee and exercise of the rights and privileses coaferred, by
fix and re~mla~ the general cba~es and rates of Grantee, to the full elat
that this authority is provided in the-Charter, ,hi.~ franc_h~ and state law,
It shall be the risht and duty of the City Mamser, or his designee, to keep.
conduct of Grantee's business in the City, and of servioe being rendered by
the Grantee.
SECIION 9. SERVICE RATF.~
(a) City Council hereby expressly reserves the fight, power, and authority to ~
regulate and fix the rates and charges for the services of the Grantee to its
customers as provided by state law and City Charter. ,
Grantee may from time to t~me propose changes in its general rates by ~
an application with ~he City Secretary for consideration of the City Council.
9 ~
¥1' 1[ " T
Within a reasonable time consistent with law, the City Council shall afford
Grantee a fair hearing with reference to the application and shall either
approve or disapprove the proposed changes or make such order as may be
reasonable.
(c) In order m asce~sin any and all fac~ the City Council ~ have the flln
power and authority to inspect or cause to be inspeaed, the books of
. Grantee, and to inventory and appraise, or cause to be inventoried and
appraised, the property of Gran~ and to corn?el the attendan~ of ~imesses
and production of books ami records.
Grantee shall have the right, subject to City roles and ~ons and
co~-e, ent with the applicable state and federal law, to require a reasonable
security deposit for the payment of se~ces.
SECTION 10. COMPENSATION.
(a) For the reason that the City property to be used by Grantee in the operation
of its utility system and facilities wit_s~n the City are valuable public properties,
that Cmmt~'s use of said propet~y is a valuable ~ope~ right which ~
would be required ~o invest subsumtial capital in right-of-way cost and
acquisition. Grantee agrees to pay and City agrees to accept, on or before
March 1, 1996. a p~m of money which sh.l! be equivalent to two percent (29b)
of the ~ros~ receipts received by Company from the sale of ~as ~o its
residential and commercial customers within the City (expre~ excluding~
10 ~mrn~
however, receipts derived from sales to industrial and governmental customers
in the City) for ~e precedin/calendar quarter. Thereafter, Grantee agrees
to pay and City agrees to accept a s~m of money which shall be equivalem to
four percent (4~b) of the s~m of (a) ~ro~s receipts received by Grantee from
the sale of ~as through the pipeline system of Grautee within C/ty tO
residential, commercial and industrial customers within City (exDres~
excludin~ Sov¢~ment~l user~), (b) ~ross receipts received by Grantee from
the wampor~ion of ~as fl~rou~ the pipeline sys~m of ~ within t~e
excluding governmental users), ~__d (c) the ~otal cc~ of ~ mmspor~d by
Grantee for commer_~! and industrial customers w/th/n City for ~
the vreceai rasru ,
Granule, indudin~ expressly, without limitation, the right ~o use the City
Franchise fee payments shall be paid quar~rly on or before March 1, 199~,
~uue ~, 199~, ~eptember 1, 19~, and December 1, 199~ for the mo~ recmUly
ended calendm' quarter, and on or before the same days of each succeedi~
year durin~ the life of tiffs franchi~. Grantee shall make such payments by
wire tr~,t~fer, if requested by the City. Should any payment due date required
by this Ch'etlnnni:~ fid[ on a weekend or dechred bank holiday, payment shall
11
be made to the City no hter than the working day prior to any specifically
required due date contained within this Ordlnnnce. The initial payment for
the rights and privileges herein provided shall be for the period January 1,
1996, through March 31, 1996, and each succeeding payment shall be for the
calendar quarter in which the payment is made.
T'ne compensation provided herein shall be in lieu of any and all other and
.additional occupagon taxes, easement, franchise taxes or char~es (whether
levied as a spedal, or other clmraaer of tax or charseL municipal, license,
permit, and iuspection fees, bonds, sueet taxes, and street or alley renuds or
char~es, and all other and additional m,m[cipal taxes, char~ levies, fees, and
rentals of whatsoever kind and character which City may now i .mlmse or
hereafter levy and collea from Grantee or Grantee's a~ems, cxcepth~ o~y
power to agree that the payment of the fore~o~,~ sums of money
lieu of taxes, licenses, fees, street or alley rentals or charges, easement or
franchise taxes or charges aforesaid, then City asrees tim it will si, ply so
much of said sums of money paid as may be necessary ~o sa~fy C, rau~'s
obligations, ff any, to pay any such taxes, licenses, charges, fees, ren~
easement or franchise taxes or charges aforesaid.
Grantee agrees that on the same date thai payments are made, as provided
in this Seaion 10, it will file with the City Secretary a sworn report showing
the gross receipts received by Grantee from the sale of gas to its residential,
cor~mercial, and industrial customers and from the transportation of/as
within Ci~ duzin~ the calendar quarter preceding the date of payment. Such
report shall also include the total cost of gas transported by Grantee for
customers based on the information as disclosed by such customers to
Grantee durin~ the calendar quarter precedin~ the date of payment or on the
index price, ff applicable. City may, if it sees fit, have the books and records
of Grantee emunined by a representative of City to ~scertain the mrrectne~
of the sworn reports agreed to be filed herein.
Each customer of Grantee transporting ~s within the City through the
pipeline system of Grantee wi~hln the City shan disclose to Grantee w~Sln
forty-five (45) days following the end of each c~lendar month th~ to~ mst
calendar month. City and Grautee acknowl~e that normal billi~ ~
in the gas indust~ may cause delays in the disclosure of total cost of ~
information by customers. To the extent that such delays prevent the ~maly
disclosure of total cost of ~as information to Grantee from customm~
related to such total cost of gas hdormaton untt'] the next regularly se. hedtlled
payment. If a customer refuses to disclose to Grantee the total cost of Bas
transpo~ by Grantee for such customer so that the fees provided for herein
_~nnot be acawately calculated and collected from such customer, Cmmtee
shall utillze a price equal to the index (large packages only) price per MMBm
published for each month in Inside FERC's Gas Market Report in the table
titled, 'Delivered Spot-Gas Prices,' for gas delivered at Houston Ship
Channel/Beaumont, Texas, or a mutually a~reeable successor publication and
index. Such index price for any given month shall be multiplied by the actual
vol-me transported by Grantee durin~ such month for a customer, and the
product thereof shall then be multiplied by the applicable percentage to
coUectin~ from customers the tees required t~ thi~ ~ ~ Z
transportation customer refuses to pay the fee related to the total cost of ~s
transpo~ and rem~i~t~ delinquent in payment of such fees for more than
8ECI~ON 1L
This franchise shall not be assigned without the express written consent of the City.
The t~rms end conditions contain~ in this Or, i---ce shell be bindin~ upon Grem~ its
~uoces~)r~ alld assi~as. Nothin~ herein shall be cleem~ a waiver, reJeasc, or z~.linc[af~une~
of t~e Ci~s ri~t to rc~uletc the retcs end services of Gmnt~ or citer perils ~ to
contest or appeal any action or de~'-don of the other 12rty to the Tezas Railroad
Cornmi~ion or successor. ,
~ON 12. GOnG L~W.
This franchise is subjeci ~o all appUcable state laws and the provisions of the City
14 ~arn~
Charter. This fran~ shnll in no way affect or impair the present or future rights,
obligations or remedies of the City or Grantee under the O~s Utility Regulatory Act, ~s
amended, or its successor.
S~ON 13. IND~CJ. TION.
Grantee shall defend, indemnify And save whole nnd harmless the City, its officers,
agents, and employees against any And all claims, lawsuits, judgments, costs, And expenses
for personal injury (including death), property damage, or other harm for which recovery
dn,~nges a~e sought by nay person or persons that may be occasioned by, or a~. out of
Grantee's breach of any of the terms or provisions of thin Ordinanc~ or by any ~
or strictly liable nct or omi.~on by CTrnnte~ its ot~icers, agents, employees, subcon~
aJ~illates and subsi4inries, in the construction, maintennnce, operation, or repair of the
utility system, or by the conduct of Grantee's business in the City pumtant to th~
Ordinance; except that the indemnity provided for in tht~ sec~on shall not apply to any
lJabRity re.suiting from the sole negligence or fault of the City, its ol~cers, agents, or
employees or separate contractors, and in the event of joint And concurrent negligenee or
fault of both the Grantee And the City, responsibility and indemnity, if any, shall be
apportioned comparatively in accordance with the laws of the State of Texas without,
however, waiving nay governmental irn~nmity available to the City under Texas law, and
without waiving any of the defenses of the parties under Texas law. It is further understood
that it is not the intention of the Grantee And the City to create llab~ty for the benefit of
third parties, but that thi.~ section shall be solely for the benefit of the Grantee and City and
shall not create or grant any rights, contractual or otherwise, to any other person or entity.
SEC'HON 14. ANNEXATION.
This franchise shall extend to and include any and all territory that is within tho Cites
corporate limits. The fa-n.nchi~ shall nlso extend to any territory which is annexed by the
City during the term of t_hi.~ franchise. In the event of disannexation, t~i.~ frane_~im shall be
reduced to the territory that continues to be in the City. City shall promptly furnish the
Grantee with maps or other doo~ments showing the affected area in the event of an
annexation or disannex~on. Within tSirty (30) days of such maps or other docmnents are
furnished, Grantee shall identi~ all customers loca~d within StlCh ~ or displlne~d
fzlmchise ~hn11 include annm~ territoP/within thirty (30) ChyS from the ~ th~ C2ty
furnishes the maps or other documents to thc Grantee.
SEC'FION IS. TERMINATION
found to be in violation of any material, term, condiffon, or provision of this frandfiw and
fails or refuses to effect compliance within forty-five (45) days following written demand for
compliance from the City following such hearing.
SEC'HON 16. RF.,PE~I.INO (X,AUSE.
Upon the effective date of this Ordinance, all other gns franehi.~ ordilgtllC~ of ~
City of CoppeH, Texas, applicable to Grantee shah be and the same are hereby repealed
and all other Ol'~innn4~ not in ~onfi|~t with ~ p~on~ of thll O~'dlnnn~ ~ remnln
in furl force and effect.
16 ~mrm~
SECTION 17. SEVERABILIT~ CLkUSE.
That should any word, phrase, paragraph, section or portion of this ordinance be held
to be void or unconstitution~l~ the same shall not affect the validity of the rem~inln~
portions of said ordinance, which shall remain in fun force and effect.
SF, CrlON 18. EFFECTIVE DATE.
Subject to Crrantee's acceptance, this Ordinance shall take effect thirty (~0) days
from and after its passage as the law and charter in such cases provide.
S~ON 19. ACCEPTANCE. -
pamse by filina with the office Of the City Secretmy a written acceptance signed mi
To the Honorable Mayor and City Council of the City of ~ Te~s:
Ordinance No. granting a franchis~ to Lone Star Gm
Company, a division of ENSER'CH Corpor~o~-
Vice President Lone Star Cms
this thc
dayof , 19 .
Upon filing of the acceptance, this Agreement shall become effective. In the event that such
accept__~nce is not filed within thirty (30) days after the passage .of thim Ortlinm~_,~_-; this
Ordinance shall terminate and become nun and void.
DULY PASSED by the City Council of the City of Coppell, Texas, thine the /.~
,1~.
APPROVP. D:
(l~S/c~ 1/11/06)
18
To the Honorable Mayor and City ~ouncil of the City of Coppell, Texas
Grantee, Lone Star Gas Coml~ny, a division of ENSERCH Corporation, acting
by and through the undersigned ha~sed ollleer, hereby ~cepts Ordinance No.
~'743 ~-anting a franchise to Lone Star Gas Company, a division of ENSERCH
Corporntion.
day of ~, 1996.
~ARY