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HomeMy WebLinkAbout1043_Calling Election (Electric Franchise)CITY OF OWASSO, OKLAHOMA ORDINANCE NO, 1043 AN ORDINANCE GRANTING TO PUBLIC SERVICE COMPANY OF OKLAHOMA, AN OKLAHOMA CORPORATION, ITS SUCCESSORS AND ASSIGNS, A NOW EXCLUSIVE FRANCHISE FOR TWENTY -FIVE (25) YEARS TO USE THE STREETS, ALLEYS, AVENUES, WAYS, AND OTHER PUBLIC PLACES AND GROUNDS IN THE CITY OF OWASSO, TULSA COUNTY AND IN THE CITY OF OWASSO, ROGERS COUNTY OKLAHOMA, FOR BUILDING, EQUIPPING, MAINTAINING, EXTENDING, OWNING, AND OPERATING A SYSTEM FOR THE MANUFACTURE, TRANSMISSION, DISTRIBUTION, SALE, AND CONTROL OF ELECTRICITY AND COMMUNICATION CIRCUITS FOR ITSELF AND OTHERS IN AND TO THE CITY AND THE PUBLIC GENERALLY; PROVIDING FOR ASSIGNMENT; GRANTING RIGHT TO OPERATE BUSINESS WITH REASONABLE RULES; WHEREBY PUBLIC SERVICE COMPANY OF OKLAHOMA AGREES TO MAINTAIN ELECTRIC SERVICE PURSUANT TO OKLAHOMA CORPORATION COMMISSION REGULATION AND AGREES TO INDEMNIFY THE CITY IN CERTAIN SITUATIONS; WHEREBY PUBLIC SERVICE COMPANY OF OKLAHOMA IS GIVEN A CONTINUING RIGHT TO OPERATE WITHIN THE CITY'S LIMITS AND IS AUTHORIZED TO ALLOW THOSE PROPERLY PERMITTED TO ATTACH FACILITIES TO ITS POLES; WHEREBY PUBLIC SERVICE COMPANY OF OKLAHOMA AGREES TO CHARGE LEGAL RATES FOR SUCH SERVICE; IF POSSIBLE TO SELL AND DELIVER TO THE CITY ALL ELECTRICITY AND SERVICES REQUESTED BY IT; PROVIDING FOR PAYMENT TO THE CITY BY PUBLIC SERVICE COMPANY OF OKLAHOMA OF A MONTHLY FEE ON GROSS RECEIPTS FROM DELIVERY AND, IF APPLICABLE, THE SALE OF ELECTRICITY; CALLING FOR AN ELECTION AND PROVIDING FOR ACCEPTANCE; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: SECTION 1. That there is hereby granted by the City of Owasso, a municipal corporation of the State of Oklahoma, located in Tulsa and Rogers County (hereinafter referred to as "Grantor'), unto Public Service Company of Oklahoma, an Oklahoma corporation, its successors and assigns, (hereinafter referred to as "Grantee "), the right, power, and authority to use the streets, alleys, avenues, ways, and other public places and grounds of Grantor as now constituted and as it may be hereafter extended or created, for the purpose of building, equipping, maintaining, extending, owning, and operating any plants, systems, and appurtenant facilities for the manufacture, transmission, distribution, sale, and control of electricity for lighting, heating, and power purposes, as well as for such other purposes as electric energy may be put, in and to said Grantor and to the public generally, and to transmit electric energy and communicate and distribute information (audio, video and data) for itself or others over distribution and transmission lines throughout the City to the ultimate customer and to connections and systems in other localities, with poles, wires, conduits, substations, meters, appliances, and apparatus necessary and convenient for such plant and system upon, across, over, and under each and any of said streets, alleys, avenues, ways, and other public places and grounds. 1 Tulsa County Clerk - PAT KEiY Doc # 2015009177 Page(s): 5 Recorded 02/04/2015 at 12:03 PM 00 Pa Ktaxo^ Receipt # 517657 Fee $21.00 CITY OF OWASSO, OKLAHOMA ORDINANCE NO, 1043 AN ORDINANCE GRANTING TO PUBLIC SERVICE COMPANY OF OKLAHOMA, AN OKLAHOMA CORPORATION, ITS SUCCESSORS AND ASSIGNS, A NOW EXCLUSIVE FRANCHISE FOR TWENTY -FIVE (25) YEARS TO USE THE STREETS, ALLEYS, AVENUES, WAYS, AND OTHER PUBLIC PLACES AND GROUNDS IN THE CITY OF OWASSO, TULSA COUNTY AND IN THE CITY OF OWASSO, ROGERS COUNTY OKLAHOMA, FOR BUILDING, EQUIPPING, MAINTAINING, EXTENDING, OWNING, AND OPERATING A SYSTEM FOR THE MANUFACTURE, TRANSMISSION, DISTRIBUTION, SALE, AND CONTROL OF ELECTRICITY AND COMMUNICATION CIRCUITS FOR ITSELF AND OTHERS IN AND TO THE CITY AND THE PUBLIC GENERALLY; PROVIDING FOR ASSIGNMENT; GRANTING RIGHT TO OPERATE BUSINESS WITH REASONABLE RULES; WHEREBY PUBLIC SERVICE COMPANY OF OKLAHOMA AGREES TO MAINTAIN ELECTRIC SERVICE PURSUANT TO OKLAHOMA CORPORATION COMMISSION REGULATION AND AGREES TO INDEMNIFY THE CITY IN CERTAIN SITUATIONS; WHEREBY PUBLIC SERVICE COMPANY OF OKLAHOMA IS GIVEN A CONTINUING RIGHT TO OPERATE WITHIN THE CITY'S LIMITS AND IS AUTHORIZED TO ALLOW THOSE PROPERLY PERMITTED TO ATTACH FACILITIES TO ITS POLES; WHEREBY PUBLIC SERVICE COMPANY OF OKLAHOMA AGREES TO CHARGE LEGAL RATES FOR SUCH SERVICE; IF POSSIBLE TO SELL AND DELIVER TO THE CITY ALL ELECTRICITY AND SERVICES REQUESTED BY IT; PROVIDING FOR PAYMENT TO THE CITY BY PUBLIC SERVICE COMPANY OF OKLAHOMA OF A MONTHLY FEE ON GROSS RECEIPTS FROM DELIVERY AND, IF APPLICABLE, THE SALE OF ELECTRICITY; CALLING FOR AN ELECTION AND PROVIDING FOR ACCEPTANCE; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: SECTION 1. That there is hereby granted by the City of Owasso, a municipal corporation of the State of Oklahoma, located in Tulsa and Rogers County (hereinafter referred to as "Grantor'), unto Public Service Company of Oklahoma, an Oklahoma corporation, its successors and assigns, (hereinafter referred to as "Grantee "), the right, power, and authority to use the streets, alleys, avenues, ways, and other public places and grounds of Grantor as now constituted and as it may be hereafter extended or created, for the purpose of building, equipping, maintaining, extending, owning, and operating any plants, systems, and appurtenant facilities for the manufacture, transmission, distribution, sale, and control of electricity for lighting, heating, and power purposes, as well as for such other purposes as electric energy may be put, in and to said Grantor and to the public generally, and to transmit electric energy and communicate and distribute information (audio, video and data) for itself or others over distribution and transmission lines throughout the City to the ultimate customer and to connections and systems in other localities, with poles, wires, conduits, substations, meters, appliances, and apparatus necessary and convenient for such plant and system upon, across, over, and under each and any of said streets, alleys, avenues, ways, and other public places and grounds. 1 SECTION 2. All rights and privileges granted by this Ordinance shall extend and be in force between Grantor and Grantee for a term of twenty -five (25) years from and after the acceptance of this Ordinance, as hereinafter provided. SECTION 3. All provisions of this Ordinance which are obligatory upon or which inure to the benefit of the Grantee shall also be obligatory upon and shall inure to the benefit of its successors and assigns, and the word "Grantee ", as used in this Ordinance, shall include and be taken to mean not only Public Service Company of Oklahoma, but also its successors and assigns for which assignment consent is hereby given whether the assignment is for the whole or only a partial assignment. Subject to the provisions of this subsection Grantee may assign all or a portion of its rights and /or obligations under the provisions of this Ordinance and franchise. SECTION 4. Grantee shall have the right to make and enforce reasonable rules and regulations for the sale, delivery, control, and metering of its electric energy and the conduct of its business, and may reserve in such rules and regulations the right to disconnect service to customers where Grantee's meters, wires, switches, appliances, or apparatus are found to have been tampered with, or who have failed to pay for electricity or services, and to enter upon the premises of its customers at all reasonable times, or at any hour if for the sole purpose of restoring service, for the purpose of inspecting, repairing, or reading meters or for removing wires, meters, switches, and appliances and perform other activities necessary to provide and maintain electric service. Provided that such rules and regulations shall not be in conflict with law or the rules and regulations from time to time made by the Corporation Commission of the State of Oklahoma or by other regularly constituted regulatory authority having jurisdiction over Grantee. Grantor hereby grants to Grantee permission to cut, trim, treat and dispose of trees and other vegetation upon and overhanging the streets, alleys, avenues, ways, sidewalks, and other public places of the City in the vicinity of Grantee's electric facilities where such trees and other vegetation, in Grantee's reasonable opinion, constitute a hazard to Grantee's personnel or facilities, or the provision of continuous electric service. SECTION 5. Grantee covenants and agrees in consideration hereof that it will maintain electric distribution service in and to Grantor, unless excused by statute, under the rules and orders imposed upon it by the Corporation Commission of the State of Oklahoma or by other regularly constituted regulatory authority having jurisdiction over Grantee. But in accepting this franchise and contract, Grantee does not guarantee continuous service at all times and shall be relieved temporarily from its obligation to furnish such services continuously in case of any disability caused by act of God or by the elements, or terrorism, or strikes, or lock -outs, or by any temporary breakdown or failure of machinery, transmission, or distribution lines, appliances or apparatus, or by other causes beyond the reasonable control of Grantee; provided Grantee agrees in such cases to exercise due diligence in the repair of such machinery, transmission, or distribution lines, appliances and apparatus, and to resume operation of same without unnecessary delay. Grantee covenants and agrees that it will indemnify and hold the City of Owasso free and clear of any claims for damages or otherwise to the extent caused by the negligence of Grantee in the construction or operation carried on hereunder. But it is 2 understood and agreed that in the event of claims being presented or prosecuted against said City the Grantee shall have the right to defend against the same and to settle and discharge same in such manner as it may see fit. To this end the Grantor agrees to notify Grantee of such claims and to furnish to it such information and assistance, as may be necessary, in the defense thereof. SECTION 6. In performing the terms and provisions of this Ordinance, franchise, and contract, Grantee is hereby given the continuing right, privilege, and option to manufacture electric energy within the corporate limits of Grantor, and to transmit electric energy over transmission lines from other plants and to distribute some from some central location at proper voltage; together with the right to transmit electric energy from and through said City to other localities for itself or others. Grantee is hereby authorized to allow others, having a permitted right granted by Grantor, or as may otherwise be authorized or required by applicable law, to attach telecommunications and cable facilities to its poles and structures on such conditions as it deems just and reasonable and in compliance with applicable law. SECTION 7. During the life of this franchise and for and in consideration of the acceptance hereof by Grantee, it is agreed that Grantee owned utilities requiring relocation in streets, alleys, avenues, ways, and other public places and grounds of Grantor as now constituted and as it may be hereafter extended or created, for the purpose of Grantor's capital improvements projects, shall commence within ninety (90) calendar days of final approval of utility relocation plans by both Grantor & Grantee, provided that Grantee is able to obtain any and all permits, approvals, clearances or applications involving the relocation deemed necessary by any agencies or governmental bodies, including without limiting the generality of the foregoing, all permits and approvals required by the Oklahoma Corporation Commission (OCC) and the Southwest Power Pool (SPP) for clearance to interrupt service on affected electric lines. Grantor shall provide all reasonable assistance requested by Grantee to secure such permits, approvals, clearances and applications. Notwithstanding anything to the contrary contained in this Section 7, Grantee shall have no obligation to proceed with any work until all permits, approvals, clearances and applications are obtained, and if such permits, approvals, clearances and applications cannot reasonably be obtained, or are subsequently withdrawn, the Grantee shall be under no obligation to perform (or continue) the relocation. SECTION 8. During the life of this franchise and for and in consideration of the acceptance hereof by Grantee, it is agreed that Grantee may charge and collect from Grantor and its inhabitants a rate or rates, for its and /or the service of others which shall at all times be compensatory and reasonable, and if regulated, subject to such rules and orders as are in effect or that hereafter may be lawfully made by the Corporation Commission of the State of Oklahoma, or by other regularly constituted regulatory authority having jurisdiction over Grantee. SECTION 9. During the life of this franchise, Grantee will, if possible and permitted under applicable low, sell to Grantor all electric energy requested by it for municipal purposes, including, but not limited to, water and wastewater treatment, water and storm water pumping, and the lighting of its streets. 3 SECTION 10. From and after the approval and acceptance of this Ordinance, Grantee shall pay, and, in consideration of the granting of this franchise, agrees to pay to Grantor, as a franchise fee, and as compensation for the rights and privileges enjoyed hereunder, a sum equal to two percent (2 %) of its gross receipts from the delivery and, if applicable, the sale of electrical energy within the City, payable monthly with each such payment to be made not later than the first business day of the second month following the month in which such receipts were received for the billing cycle for that month. For example, payment for April receipts, for a subject year covering a billing cycle from March 29th through April 27th would be paid not later than June 151. Said fee shall be in lieu of all concessions, excise, franchise, licenses, occupation, privilege, and permit fees, or taxes, except assessments for special improvements and ad valorem taxes. Grantor shall notify Grantee in writing of newly annexed and de- annexed areas. The notice shall include the ordinance number authorizing the action, an appropriate map identifying the areas and documentation of the notice to the State of Oklahoma regarding the annexation or de- annexation. Grantee shall have no responsibility for commencing franchise payments hereunder to Grantor in newly annexed areas until it shall have received Grantor's notification. Upon Grantor's notification and starting the ninety -first (915') day after receipt of such notice, Grantee will commence payments to Grantor for the gross receipts from delivery and, if applicable, the sale of electrical energy in each newly annexed area, and will make any appropriate adjustments in payments reflecting overpayments made in any prior month resulting from the inclusion of gross receipts from delivery and, if applicable, the sale of electrical energy in de- annexed areas. Payments for receipts in newly annexed areas and adjustments for overpayments in de- annexed areas shall be made back to the effective date of the ordinance authorizing the action. Grantor agrees that the percentage paid to Grantor by Grantee, including any revision thereof, shall in no event exceed the percentage rate used to calculate any fee or fax paid to Grantor by any other person or entity if such fee or tax is based in any way on the amount of revenues from delivery or sale of electrical energy or both by such other person or entity to ultimate customers within the City. SECTION 11. This Ordinance shall be in full force and effect from and after its acceptance as hereinafter provided, upon its passage and approval by a vote of the qualified electors residing within the City, who shall vote thereon at a special election called under or pursuant to the provisions hereof; and if this Ordinance fails to be so approved at said election, it shall be wholly void and of no effect. The Mayor of the City is hereby authorized and instructed to call by a duly authorized resolution such election in the manner and form provided by the laws of the State of Oklahoma for the calling of special elections, giving such resolution, notice and ballot title therefore as provided by law, for the purpose of submission to the qualified electors residing within the City the proposition of approval or refusal of this Ordinance, and the non - exclusive franchise contract hereby granted; and the proper officers of the City are hereby directed to do all things that may be necessary for the holding of the election and for the submission of said question, and shall, in all things, comply with the election laws of the State of Oklahoma. rd It is understood and agreed that in the event said franchise is approved at such election, the Grantee shall within thirty (30) days after the result of such election is declared, as provided by law, file vrith the Clerk of the City an acceptance in writing duly executed according to law, accepting this Ordinance and franchise. SECTION 12. Upon the filing by Grantee of the acceptance of this Ordinance as hereinabove provided, all rights, privileges, and obligations of any other ordinances and franchises, or portions thereof, under which Grantee may now be exercising its privileges to use the streets, alleys, avenues, ways, and other public places and grounds within the incorporated limits of Grantor, and all other ordinances and parts of ordinances in conflict herewith, shall be and thereafter remain cancelled, annulled, and repealed. SECTION 13. If any provision or clause of this Ordinance is held invalid for any reason, such invalidity shall not affect other provisions or clauses of this Ordinance which can be given effect without the invalid provision or clause, and to this end the provisions and clauses of this Ordinance are declared to be severable. SECTION 14. Whereas an immediate necessity exists in order that the inhabitants of Grantor may be provided an adequate supply of electricity for heating, lighting, and power purposes and for the purpose of providing light, heat, and power for the streets, alleys, public grounds, parks, and other public places and institutions of Grantor, and for the preservation of public health, peace, and safety, an emergency is hereby declared to exist by reason whereof this Ordinance shall be in full force and effect from and after its passage and approval at the special election, its publication and Grantee's filing of its acceptance thereof. ( OF U, OPPINAL o (SEAL)L4�, ATTEST: ��a,�'� . ' ra• a Sherry Bist(op, City AP VED AS TO j9RM AND LEGALITY: k6m Jf Lombardi, City Attorney Approved, this 16th day of December 2014. Jed ?I�berly, Mayor PUBLISHER'S AFFIDAVIT ORD NO. 1043 PUBLICATION DATE(S) 03/12/15 CASE NUMBER: ORD NO. 1043 AD NO: 00194293 LEGAL NOTICE STATE OF OKLAHOMA COUNTY OF Tulsa I SS I, of lawful age, being duly sworn, am a legal representative of Owasso Reporter of Owasso, Oklahoma, a weekly newspaper of general circulation in Tulsa, Oklahoma, a newspaper quali- fied to publish legal notices, advertisements and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1982 as amended, and thereafter, and complies with all other requirements of the laws of Oklahoma with reference to legal publications. That said notice, a true copy of which is attached hereto was published in the regular edition of said newspaper during the period and time of publication and not in a supplement, on the ABOVE LISTED DATE(S) V V Representative Signs e Subscribed to and sworn to me this 13th day of March, 2015. Notary Public ' Nancy Carol Moore My commission number: 06011684 My commission expires: December 8, 2018 Customer #: 00000779 Customer: CITY OF OWASSO Publisher's Fee: 414.40 `�����I'lt�® G a 0 I P °Odd Std o OF. tA705W8 o F c� 4i OF oft. 7 a 194293 Published in the Owasso Reporter, Owasso, Tulsa County, Oklahoma, March 12, 2015. CITY OF OWASSO, OKLAHOMA ORDINANCE Ni BE IT ORDAINED BY THE CITY CCUNCIL OF THE CITY OF OWASSO, OKLAHOMA! SECTION 1. Thai there is hereby granted by the City of Owasso, a municipal carcoration of the State of Oklahoma, located in Tulsa al"after referred to as 'din of Oklahoma, an Oklahoma is, (hereinafter referred to a: ways, and other public places and grounds of limiter as now con - sihuted and as It may be hereafter extended or created, for the pur. pose r building. equipping, maintaining, extending, owning, and operating any plants, systems, and appurtenant facilities for the manufacture, transmission, distribution, sale, and control of electrle, icy for lighting, heating, and power purposes, as well as for such other purchase as electric energy mw be put, in and to said tams In rner localities, with poles, wires, con ii subsections, meters, appliances, and apparatus necessary and convenient for such plant and system upon, across, war, and under each and any at said streets, alleys, avenues, ways, and other public places and SECTION 2 All ri his and privileges granted by this Ordinance shall extend and be in force between Grantor and Grantee for a term of twenty -five (25) years from and after the acceptance of this Ordinance, as hereinafter Provided. SECTION 3. Al provisions of this Ordinance which are obligati ry upon or which Inure to the benefit of the Grantee shall also be obligatory upon and shall inure to the benefit of Its successors and assigns, and the word °Grantee', as used In this Ordinance, shall include and be taken to mean not only Public Service Company of Oklahoma, but also Its successors and assigns for which sell ment consent Is hereby ggiven whether the assignment is for the whole or onlyy a partial assignment. Subject to the provisions of this subsection Gareas may assign all or a portion of Its rights and/or obligations under the provisions of this Ordinance and franchise. SECTION 4. Grantee shall have the right to make and enforce reasonable rules and regulations for the sale, delivery control, and metering of its electric energy and the conduct of its business,and may reserve in such rules and regulations the right to disconnect service to customers where Ganted's meters, wires, switches, appliances, or apparatus are found to have been tampered with, or who have failed to pay for electricity of services, and to enter upon the promises at its customers at all reasonable times, or at any hour if for the sole purpose of restoring service, for the purpose of Inspecting, repairing or reading meters or for removing wires, meters, switches, and appllances and perform other activi ies nee weary to prwade and maintain electric service. Provided that such rules and regulations shall not be in conflict with law or the rules and regulations from time to time made by the Corporation Commission of the State at Oklahoma or by other regularly consti- tuted regulatory authority having prediction war Grantee. Granter hereby grants to Grantee permission to cut, trim, treat antl dispose of trees and other vegetation upon and overhanging the streets, alleys, avenues, ways, sidewalks, and other public places of the City in the vicinity of Grantee's electric facilities when such bass and other vegetation, In Grantee's reasonable opinion, weathers a hazard to Grantee's personnel or facilities. or the prowl atom of continuous electric service. upon Grantee owned utilities requiring relocation In without to interrupt service on affected i Is all reasonable assistance ri ch permits. morwals. dearances this obtained. add it such permits, approvai elearanme, one applica- tions cannot covered y be obtained, or are subsequend with- drawn, the Grantee shall be under no obligation to perform jar con- tinue) the relocation. SECTION S. During the life r this franchise and for and In cen- sideratlon r the acceptance hereof W Grantee, A is agreed that Grantee may charge and collect from Grantor and Its Inhabitants a rate or rates, for Its and/or the service of others which shall at all times be compensatory and reasonable, and If regulated, subject to such roles and orders as are In effect or that hereafter may be law- fully made by the Corporation Commission of the State of Oklahoma, or by other regularly constituted regulatory authority having jurisdiction war Grantee. SECTIONS. During the life r thisfranchise,Granteewlll,lfpos- sible and permitted under applicable law, sell to Greener all electric energy requested by it for municipal purposes, Including, but net li al to, water and wastewater treatment, water and storm water pumping, and the lighting of its streets. SECTION 10 From and after the approval and acceptance of this Ordinance, Grantee shall pay, and, In consideration of the arrning of this franchise, agrees to pay to Grantor, as a franchise 11'' andd v, mmneriminn fnrthe riohts and advile °esenieved here, the City, payable monthly with each such later Man the first business day of the se month in which such receipts were rec ii that month. For example, payment for A year covering a billing cycle from Morel would be paitl not later than June 1st. So concessions, excise, franchise, licenses, permit fees, or taxes, except assessment and ad valorem taxes. Grantor shall notify Grantee In wining annexed areas. The notice shall lnciut authorizing the action, an approprlate meI do.mentaticn of the brace to the State e annexation or de- annexation. Gadese s' for commencing franchise payments here annexed areas until It shall have recei, Upon Grantor's medication and starting after receipt of such nail.. Graidee wil Grantor far no gross receipts from di sale of eledrl.l energy in each newly an any appropriate adjustments in payment made in any prior month resulting froi receipts from delivery and, if applicable,' gy in de- annexed areas. Payments for I areas and adjustments for overpayments be made bark to the effective data of the and de. number gross Grantor agrees Mat the percentage paid to Grantor by Grantee, indutling any revision thereof, shall in no event exceed the percent- age rate used tocalculate any fee or tax pad to Grantor by arty other person or entity If such fee or tax is based in any way on Me amount of revenues (from delivery or sale of electrical energy or both by such other person or entity to ultimate customers within the city. SECTION 11 This Ordinance shall be in full force and effect from and after Its acceptance as hereinafter provided, upon Its pas- sage and eppraal by a vote r the qualified electors residl ng with - inthe City, who shall fare thereon et a special election celletl untler or pursuant to the prwislons hereof ; and if this Ordinance fails to be so approved at. old election, it shall be wholly voio and r no effect. The Mayor r the C'hy is hereby authorized and instructed to call by a duly authorized resolution such eledlan in the manner and forth provided by Me laws 0 the State a Oklahere for Me Wiling of ape dal eladions, giving such resolution, notice and ballot Iltle therefore as provided by law for the purpose r submission io the qurrfietl electors residing within the City the propradian of approval or refusal of this Ordinance. and the nonexclusive franchise contact It Is understood and agreed that in Me event said franchise Is approved at such election, the Grantee shall within thirty (30) days after the result of such election is declared, as provided by law, file with the Clerk r the City an acceptance in writing duly executed according to law, accepting this Ordinance and franchise. e SECTION 12. Upon the filing by Grantee of the acceptance of this Ordinance as hereinabove provided. all rights, privileges, and obligations at any other ordinances and franchises, or portions thereof, under which Grantee may now be exercising Its privileges to use the streets, alleys, avenues, ways, and other public places anise covenants and agrees in conaderation and grounds within the incorporated limits of Ganlal,, and all other domain elect ir, distribution service in and to ordinances and parts of ordinances In conflict herewith, shall be :used by statute, under the rules and orders and thereafter remain cancelled, annulled, and repeated. , me n ... , t,,.,. rm,mmclnn ef the State 0 of Grantee. But In such services continuously in case at any disability caused by act of God or by the elements, or terrorism, or stokes, or lock -outs, or by any temporary breakdown or failure of machinery, transmission, or distribution lines, appliances or apparatus, or by other codes. beyond the reasonable control r Grantee; provided Grantee agrees in such cases to exercise due diligence In the repair of such machinery, transmission, or clarification lines, appliances and appa- ratus, and to resume operation of same without unnecessary delay. Grantee covenants and agrees that It will indemnify and hold the City at Owasso free and door of any claims for damages or other- wise to the extent caused W the negligence of Grantee In the can- affection or operation carried on hereunder. Set it is understood and agreed that in the went of claims being presented or prosecut- ed against said City the Grantee shall have the right to defend against the same and to settle and discharge same in such manner as It may see fit. To this end the Grantor agrees to noiy Grantee of such claims and to furnish to it such information antl assistance, as may be necessary, in the defense thereof. SECTION 6 In performing the terms and provisions of this Ordinance , franchise, and contract, Grantee is hereby given the continuing right, privilege, and option to manufacture electric ener- gy within the corporate limits of Grantor, and to transmit electric energy war transmisslon lines from other plants and to distribute same from some central location at proper voltage; together with the n m to transmit electric energy from and through said City to other localities for itself or others. Grantee Is hereby authorized to allow others, having a permitted right granted by Grantor, or as may otherwise be authorized or required by applicable law, to attach telecommunications and cable facilities to Its poles and structures on such conditions as It comes just and reasonable and in cuff an. with applicable law. SECTION T. During the life of this tanchise and for and in con- sideration at the acceptance hereof by Grantee, It is agreed Mat SECTION 13 If any provision or clause r this Ordinance Is held invalid for any reason, such invaaidi y shall not affect other perhi sions or clauses of this Ordinance which can be given effect with- out the invalid provision or clause, and to this end the provisions antl causes of this Ordinance are declared to be severable. SECTION 14. Whereas an Immediate necesshy exists in order that the inhabitants of Grantor may be provided an adequate sup- ply of electricity for heating, lighting, and power purposes and for the purpose of providing light, heal, and power for the streets, alleys, public grounds, parks, and other public places and institu- tions of Grantor, antl for the preservation of public health, peace, and si an emergency is hereby declared to exist bet reason whereof this Ordtnar,ce she ^. Ebel he in full form. and effe ^ -m and after its passage and approval at the special election, its publication and Grantee's filing of its acceptance thereof. /s/ Jeri Moberly, Mayor /s/ Sherry Bishop, City Clerk /s/ Julle Lombardi, City Attorney Approved by the registered voters of the City at Owasso on the 3rd day of March 2015. The Honorable Mayor and City Council TO: City of Owasso John W. Feary FROM: Government Affairs Franchise AgreementOrdinance No. 1043 and SUBJECT: Resolution No. 2014-18 Calling a Special Election for a Franchise Agreement December 12, 2014 DATE: BACKGROUND: An existing 25-year franchise agreement with Public Service Company of Oklahoma (AEP/PSO) and the City of Owasso is set to expire in 2015.Franchise agreements establish a range of terms and conditions which allow utility companies to provide services to a specific area while defining the responsibilitiesofthe provider to the citizens of a community and the access and permissions the community concedes to the provider. Other provisions in the franchise agreement pertain to the duration of the agreement as well as the fees paid to the community. Fees are based on a percentage of gross monthly receipts to the provider from customersit serves. Under the existing agreement with AEP/PSO,Owasso receives a 2% franchise fee.In FY2014-15, the aforementioned 2% is projected to generate $386,400. Other considerations in the agreement state that the provider will complywith state and federal regulatory agencies;will be allowedto generate, transmit,and sellelectricity;and will be allowed tocharge and collecta rate or rates in compliance with the Oklahoma Corporation Commission or other regularly constituted regulatory authority. Furthermore,the agreementprovides for the delivery of electricity for the lighting of public streets and the pumping of water necessary for municipal water and sewer systems.The expiring agreement was approved by the citizens of Owasso in February 1990 and the agreement previous to that was approved in February 1966. PROPOSED CHANGES: During the process of negotiating a new franchise agreement with AEP/PSO, city staff is presenting some minor changes in the terms to be considered by the City Council and Owasso citizens. One of the negotiating points in this agreement is the term, or number of years, the franchise would be in effect.Historically the term of these agreements hasbeen 25 years. Originally staff presented to the Council a proposal of 15 years. Staff has also inserted language regarding the timing of utility relocates concerning capital improvement projects.It should be noted that these agreements are non-exclusive and do not prohibit other electricity providers or the City of Owasso itself from operating as an electricity provider. Another pertinent consideration is,regardless of the term of the agreement approved by the voters, the City Council, at any time during the duration of the agreement, may call an election of the qualified voters to terminate the previously approved franchise agreement. It is staff’s opinion based on research, sentiment expressed by members of the council, city staff and members of PSO’s team, that Owasso should have a mechanism(s) in place for the reconsideration and/or termination of such franchise agreements in order to ensure accountability to Owasso citizens. It is the position of staff that those mechanisms are in place through statutory provisions and that these existing statutory provisions provide not only the accountability citizens demand, but eliminate potential risk and liabilities to Owasso if and when an instance arises wherein the termination or amendment of an existing franchise agreement may be considered.It is therefore staff’s recommendationthat the new franchise agreement contain language specific to the same 2% franchise fee that has been collected, andthat the agreement term consist of 25 years with full confidence that any effort to alter or terminate the agreement is allowable by statutory provision. The next significant proposed change addresses utility relocation and new installations as Owasso continues to grow both geographically and in population. Thesegrowth patterns will dictate new roadway infrastructure as wellasimprovements to existing infrastructure.The terms of the new franchise agreement outline timing and installation parameters affiliated with such projects. In the case of new utility service areas and utility relocations required for capital improvement projects,the Grantee, upon final approval of a utility install/relocate plan by the City of Owasso or its Engineer(s) of record, shall have ninety (90) days to mobilize to the site and commence construction, unless otherwise agreed to by the City of Owasso. ELECTION: The March 3, 2015 municipal election date for Owasso City Council Wards #1 and #2 is an opportunity to ask the voters for approval of a new franchise agreementwith AEP/PSO.Per the Oklahoma Constitution, Article 18 section 5(a) –Grant extension or renewal –Approval by voters –Term: No municipal corporation shall ever grant, extend, or renew a franchise, without the approval of a majority of the qualified electors residing within its corporate limits, who shall vote thereon at a general or special election; and the legislative body of any such corporation may submit any such matter for approval or disapproval to such electors at any general municipal election, or call a special election for such purpose at any time upon thirty days' notice; and no franchise shall be granted, extended, or renewed for a longer term than twenty-five years. AEP/PSO has agreed to pay fifty (50) percent ofelection related expenses the City of Owasso will bear for the cost of the March 3, 2015 election. RECOMMENDATION: Staff recommends approval ofOrdinanceNo.1043,establishing the new franchise agreement with Public Service Co. of Oklahoma. calling an election on March 3, Staff further recommends approval ofResolutionNo. 2014-18, 2015 for the purpose of submitting to the voters a non-exclusive electrical franchise to Public Service Company of Oklahoma; and other provisions related thereto. ATTACHMENTS: OrdinanceNo. 1043 ResolutionNo. 2014-18