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HomeMy WebLinkAbout604_Approving Electric Permit for Verdigris Valley Electric 02/09/99 09:25:29 DOC # 99014950 FEE 14.00 PGS 4 8/P 617110853 -0856 CITY OF OWASSO, OKLAHOMA AN ORDINANCE GRANTING AN ELECTRIC PERMIT TO VERDIGIS VALLEY ELECTRIC COOPERATIVE, TO ALLOW PROVISIONS OF ELECTRICITY TO CUSTOMERS WITHIN THE GREENS AT OWASSO AND THE OWASSO GOLF AND ATHLETIC CLUB, A SUBDIVISION WITHIN THE CITY OF OWASSO, COUNTY OF TULSA, STATE OF OKALHOMA, ACCORDING TO THE RECORDD PLAT THEREOF, PROVIDING FOR TERM OF PERMIT, PROVIDING TERMS APPLICABLE TO SUCCESSORS AND ASSIGNS, PROVIDING FOR REGULATIONS OF PERMITTEE, PROVIDING FOR INTERRUPTIONS IN SERVICE, REPAIRS, STATE REGULATIONS PROVIDING RIGHT TO GENERATE AND TRANSMIT ELECTRICITY, PROVIDING FOR RATES, PROVIDING FOR ELECTRICITY TO CITY, PROVIDING FOR A PERMIT FEE, PROVIDING FOR ACCEPTANCE BY PERMITTEE, PROVIDING FOR REVOCATION AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO -WIT: Section 1 AN ORDINANCE GRANTING AN ELECTRIC PERMIT TO VERDIGRIS VALLEY ELECTRIC COOPERATIVE, TO Term of Permit ALLOW PROVISION OF ELECTRICITY TO CUSTOMERS Section 3 WITHIN THE GREENS AT OWASSO AND THE OWASSO GOLF AND ATHLETIC CLUB, A SUBDIVISION WITHIN THE CITY OF OWASSO, COUNTY OF TULSA, STATE OF Section 5 OKLAHOMA, ACCORDING TO THE RECORDED PLAT THEREOF, PROVIDING FOR TERM OF PERMIT, PROVIDING TERMS APPLICABLE TO SUCCESSORS AND ASSIGNS, PROVIDING FOR REGULATIONS OF PERMITTEE, PROVIDING FOR INTERRUPTIONS IN Electricity provided to City. SERVICE, REPAIRS, STATE REGULATIONS, PROVIDING Section 9 RIGHT TO GENERATE AND TRANSMIT ELECTRICITY, PROVIDING FOR RATES, PROVIDING FOR ELECTRICITY Acceptance by Permittee TO CITY, PROVIDING FOR A PERMIT FEE, PROVIDING Section I 1 FOR ACCEPTANCE BY PERMITTEE, PROVIDING FOR REVOCATION, AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO -WIT: Section 1 Grant of Permit Section 2 Term of Permit Section 3 Terms applicable to successors and assigns Section 4 Regulations of Permittee Section 5 interruptions in service, repairs, state regulations Section 6 Right to generate and transmit electricity Section 7 Rates Section 8 Electricity provided to City. Section 9 Permit Fee Section 10 Acceptance by Permittee Section I 1 Revocation of Permit Section 12 Declaring an emergency SECTION 1. GRANT OF PERMIT There is hereby granted by the City of Owasso, a municipal corporation of the State of Oklahoma, (hereinafter referred to as the "Permittor "), unto the Verdigris Valley Electric Cooperative, an Oklahoma Rural Electric Cooperative, its successors and assigns, (hereinafter referred to as the "Permittee ") the nonexclusive right, power and authority to use the streets, alleys, avenues, ways and other public places of Permittor, located within the Greens at Owasso and the Owasso Golf and Athletic Club, a subdivision within the City of Owasso, Tulsa County, Oklahoma, according to the recorded plat thereof, as well as the right of way on the western side of 129th East Avenue from East 76th Street North northerly to the entrance of the Greens as well as a road bore thereat into the Greens as depicted on Exhibit "A" hereto, for the purpose of building, equipping, maintaining, extending, owning and operating a plant and /or system for the manufacture and /or distribution and sale of electricity for lighting, heating, and power purposes as electric energy may be put, in and to the Permittor and the public generally. SECTION 2. TERM OF PERMIT All rights and privileges granted by this ordinance shall extend and be in force between the Permittor and the Permittee from and after the acceptance of this ordinance, unless revoked, as hereinafter provided, but in no event shall such exceed twenty -five (25) years. SECTION 3 TERMS APPLICABLE TO SUCCESSORS AND ASSIGNS All provisions of this ordinance which are obligatory upon or which inure to the benefit of the Verdigris Valley Electric Cooperative, shall also be obligatory upon and shall inure to the benefit of the successors and assigns of the Verdigris Valley Electric Cooperative; and the word co " Permittee" as used in this ordinance shall include and be taken to mean not only the Verdigris Valley Electric Cooperative, but also its successors and assigns, for which assignment consent is hereby given. SECTION 4 REGULATIONS OF PERMITTEE Permittee shall have the right to make and enforce reasonable rules and regulations for the sale, delivery 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 whose meters, wires, switches, or appliance are found to have been tampered with, or who have failed to pay for electricity, and to enter upon the premises of its customers at all reasonable times for the purpose of inspecting, repairing or reading meters or for removing wires, meters, switches or appliances. 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. SECTION 5 INTERRUPTIONS IN SERVICE REPAIRS STATE REGULATIONS A. The Permittee covenants and agrees in consideration hereof that it will maintain electric service in and to Permittor under the rules and regulations imposed upon it by the Corporation Commission of the State of Oklahoma or by the regularly constituted regulatory authority. But in accepting this Permit and contract, the Permittee does not guarantee continuous service at all times and shall be relieved temporarily from its obligations to furnish such services continuously in case of any injury caused by act of God or by the elements, or strikes, or lock- outs, or by any temporary breakdown or failure of machinery, transmission lines, appliances and apparatus, or by other causes beyond the control of the Permittee, but it does agree in such cases to exercise proper diligence in repair of such machinery, transmission lines, appliances and apparatus and to resume operation of same without unnecessary delay. B. The Permittee covenants and agrees that it will indemnify and hold the City of Owasso free and clear of any claims for damages or otherwise caused by the negligence of the Permittee in the construction or operation carried on hereunder. But it is understood and agreed that in the event of claims being presented or prosecuted against the City the Permittee shall have the right to defend against the same and to settle and discharge same in such manner as it may see fit. And to this end the City agrees to notify the Permittee of such claims and to furnish to it such information and assistance as may be necessary in the defense hereof. SECTION 6 RIGHT TO GENERATE AND TRANSMIT ELECTRICITY In performing the terms and provisions of this ordinance and contract the Permittee is hereby given the continuing nonexclusive right, privilege and option to manufacture the electric energy within the corporate limits or Permittor heretofore designated or to transmit the current over high power lines from the other plants and to distribute the same from central location at proper voltage. Permittee is authorized to allow others, having a permitted right granted by the City, to attach facilities to its poles and structure or such conditions as it deems just and reasonable; provided, should the parties be unable to agree, the City Council of the City shall determine such conditions as are just and reasonable, which shall be binding upon all parties. SECTION 7 RATES During the life of this Permit and for and in consideration of the acceptance hereof by the Permittee, it is agreed that the Permittee may charge and collect from the Permittor, its inhabitants and the consumers therein, a rate or rates, which shall at all times to compensatory and reasonable, subject to such rules and regulations as are now in effect, or that may hereafter be lawfully made by the Corporation Commission of the State of Oklahoma, or by other regularly constituted regulatory authority. SECTION 8 ELECTRICITY PROVIDED TO CITY IF During the life of this permit Permittee will sell and deliver to Permittor all electric energy used by it for the lighting of its streets and in pumping water necessary for its municipal water and sewer plants and systems. SECTION 9 PERMIT FEE From and after the approval and acceptance of this ordinance, the Permittee shall pay, and in consideration of the granting of this Permit agrees to pay, to Permittor as a permit fee, and as a compensation for the right and privilege enjoyed hereunder, a sum equal to two percent (2 %) of its gross receipts from the sale of electric energy within the city, payable monthly on or before the 20th day of each month, on such receipts for the preceding calendar month, which fee shall be in lieu of all concessions, charges, excise, franchise, licenses, occupation, privilege or taxes, except assessments for special improvements and ad valorem taxes. SECTION 10 ACCEPTANCE BY PERMITTEE This ordinance shall be in full force and effect from and after its acceptance as hereinafter provided, upon its passage and publication. It is understood and agreed that the Permittee shall within thirty (30) days after passage hereof, file with the Clerk of the City an acceptance in writing duly executed according to law, accepting this ordinance. SECTION 11 REVOCATION OF PERMIT The permit herein provided for may be revoked by the City Council at any time, after thirty (30) days notice to Permittee and an opportunity for hearing thereon, for Permittee's failure to perform in accordance with the terms of this ordinance. SECTION 12 EMERGENCY Due to the imminent need for provision of electric service to the areas herein referred to an emergency is hereby declared to exist whereby the provisions hereof shall become effective immediately upon passage and publication as provided by state law. APPROVED this 2nd day of February, 1999, with the Emergency Clause voted upon and approved separately. Marci BoyMell, Cit Clerk AS TO FORM: D. Cates, City Attorney 2780 -387 ord.we CITY OF OWASSO, OKLAHOMA By: Denise Bode, Mayor EXHIBIT "A" Affidavit Publication OWASSO REPORTER Published in the Owasso Reporter, Owasso, Tulsa County, Okla- homa, February 11, 1999. STATE OF OKLAHOMA, TULSA COUNY CrrY OF OWASSO, OKLAHOMA ORDINANCE NO. 604 Bill R. Retherford, of lawful age, being duly sworn AN ORDINANCE GRANTING AN ELECTRIC PERMIT TO VERDi- GRIS VALLEY ELECTRIC COOPERATIVE, TO ALLOW PROVISION OF and authorized, says that he is the publisher of the ELECTRICITY TO CUSTOMERS WITHIN THE GREENS AT OWASSO AND THE OWASSO GOLF AND ATHLETIC CLUB, A SUBDIVISION Owasso Reporter, a weekly newspaper published in WITHIN THE CITY OF OWASSO, COUNTY OF TULSA, STATE OF OKLAHOMA, ACCORDING TO THE RECORDED PLAT THEREOF the City of Owasso Tulsa County Oklahoma a news- TO SUCSSORS ASSIGNS, PROVIDING OR REGULA- TIONS OF PERMITTEE, PROVIDING FOR INTERRUPTIONS IN SER- VICE, REPAIRS, STATE REGULATIONS, PROVIDING RIGHT TO GEN- and publications as provided in Section 106 of ERATE AND TRANSMIT ELECTRICITY, PROVIDING FOR RATES, PROVIDING FOR ELECTRICITY TO CITY, PROVIDING FOR A PERMIT Title 25, Oklahoma Statutes I97~ and 1953 as FEE, PROVIDING FOR ACCEPTANCE BY PERMITTEE, PROVIDING FOR REVOCATION, AND DECLARING AN EMERGENCY amended, and thereafter, and complies with all other B E IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWAS- requirements of the laws of Oklahoma with reference SO, OKLAHOMA, THAT, TO-WIT Section 1 Grant of Permit to legal publications. Section 2 Term of Permit Section 3 Terms applicable tO successors and assigns That said notice, a true copy of which is attached Section 4 Regulations of Permittee Section 5 Interruptions in service, repairs, state regulations hereto, 6V as published in the regular edition of said Section 6 Right to generate and transmit electricity Section 7 Rates newspaper during the period and time of publication Section 6 Electricity provided to City. Section 9 Permit Fee and not in a supplement, on the following dates: Section 10 Acceptance by Permittee Section 11 Revocation of Permit Section 12 Declaring an emergency Febru rv 11th SECTION 1. GRANT OF PERMIT There is h y granted by the City of Owasso, a municipal corpora- Pion of the State of Oklahoma, (hereinafter referred to as the "Permittor) a unto the Verdigris Valley Electric Cooperative, an Oklahoma Rural Electric Cooperative, its successors and assigns, (hereinafter referred to as the "Permittee") the nonexclusive right, power and authority to use the streets, alleys, avenues, ways and other public places of Permittor, locat- Subscribed and sworn to before rile this ed within the Greens at Owasso and the Owasso Golf and Athletic Club, a subdivision within the City of Owasso, Tulsa County, Oklahoma, accord- ng to the recorded plat thereof, as well as the right of way on the western side of 129th East Avenue from East 76'h Street North northerly to the entrance of the Greens as well as a road bore thereat into the Greens as depicted on Exhibit ' A" hereto, for the purpose of building, equipping, maintaining, extending, owning and operating a plant and/or system for the manufacture and/or distribution and sale of electricity for lighting, heating, and power purposes as electric energy may be put, in and to the Permittor and the public generally. My Commission expires: SECTION 2. TERM OF PERMIT All rights and privileges granted by this ordinance shall extend and be in force between the Permittor and the Permittee from and after the PUBLISHER'S FFF, $ 317.90 acceptance of this ordinance, unless revoked, as hereinafter provided, but in no event shall such exceed twenty-five (25) years. SECTION 3 TERMS APPLICABLE TO SUCCESSORS AND ASSIGNS All provisions of this ordinance which are obligatory upon or which From and after the approval and acceptance of this ordinance, the Per- inure to the benefit of the Verdigris Valley Electric Cooperative, shall also be obligatory upon and shall inure to the benefit of th pay, and in consideration of the granting of this Permit agrees to pay, to Permittor as a permit fee and as a compensation for th successors and and privilege enjoyed hereunder, a sum equal to two percent (2%) of its as used in this ordinance shall include and be taken to mean not only the Verdigris Valley Electric Cooperative but also its suc rom the sale of electric energy within the city, payable monthly on or before the 20 day of each month cessors and pts for the preceding calendar month, which fee shall be in lieu of all concessions SECTION 4 REGULATIONS OF PERMITTEE charges, excise, franchise, licenses, occupation, privilege or taxes, Permittee shall have the right to make and enforce reasonable rules except assessments for special Improvements and ad valorem taxes. and regulations for the sale, delivery and metering of its electric energy SECTION 10 ACCEPTANCE BY PERMITTEE and the conduct of its business, and may reserve in such rules and regu- This ordinance shall be in full force and effect from and after its accep- ations the right to disconnect service to customers whose meters, wires, switches, or appliance are found to have been tam tance as hereinafter provided, upon its passage and publication. It is , or who have failed to pay for electricity, and to enter upon the premises of its cus- understood and agreed that the Permittee shall within thirty (30) days after passage hereof, file with the Clerk of the City an acceptance in writ- tomers at all reasonable times for the purpose of inspecting, repairing or reading meters or for removing wires meters es or app ances. Provided that such rules and regulations shall not be in conflict with law SECTION 11 REVOCATION OF PERMIT or the rules and regulations from time to time made by the Corporation The permit herein provided for may be revoked by the City Council at Commission of the State of Oklahoma or by other regularly constituted any time, after thirty (30) days notice to Permittee and an opportunity for regulatory authority. hearing thereon, for Permittee's failure to perform in accordance with the SECTION 5 INTERRUPTIONS IN SERVICE. REPAIRS. STATE terms of this ordinance. REGULATIONS SECTION 12 EMERGENCY A. The Permittee covenants and agrees in consideration hereof that it Due to the Imminent need for provision of electric service to the areas will maintain electric service in and to Permittor under the rules and regu- herein referred to an emergency Is hereby declared to exist whereby the lations imposed upon it by the Corporation Commission of the State of provisions hereof shall become effective immediately upon passage and Oklahoma or by the regularly constituted regulatory authority. But in publication as provided by state law, accepting this Permit and contract, the Permittee does not guarantee APPROVED this 2nd day of February, 1999, with the Emergency continuous service at all times and shall be relieved temporarily from its obligations to furnish such services continuously in case of an injur use voted upon and approved separately. caused by act of God or by the elements, or strikes, or lock-outs, or by any temporary breakdown or failure of machinery, transmission lines CITY OF OWASSO, OKLAHOMA appliances and apparatus, or by other causes beyond the control of the /s/Oenise Bod Permittee; but it does agree in such cases to exercise proper diligence In Denise Bode, Mayor repair of such machinery, transmission lines, appliances and apparatus and to resume operation of same without unnecessary delay. ATTEST: B. The Permittee covenants and agrees that it will indemnity and hold /s/ Marcia BOUtwell the City of Owasso free and clear of any claims for damages or otherwise Marcia Boutwell, City Clerk caused by the negligence of the Permittee in the construction or opera- tion carried on hereunder. But it is understood and agreed that in the D. Cates event of claims being presented or prosecuted against the City the Per- Ronald D. Cates, City Attorney mittee shall have the right to defend against the same and to settle and discharge same in such manner as it may see fit. And to this end the City agrees to notify the Permittee of such claims and to furnish to it such information and assistance as may be necessary in the defense hereof SECTION 6 RIGHT TO GENERATE AND TRANSMIT ELECTRICITY In performing the terms and provisions of this ordinance and contract the Permittee is hereby given the continuing nonexclusive right, privilege and option to manufacture the electric energy within the corporate limits or Permittor heretofore designated or to transmit the current over high power lines from the other plants and to distribute the same from central location at proper voltage. Permittee is authorized to allow others, having a permitted right granted by the City, to attach facilities to its poles and structure or such conditions as it deems just and reasonable; provided, should the parties be unable to agree, the City Council of the City shall determine such conditions as are just and reasonable, which shall be binding upon all parties. SECTION 7 RATES During the life of this Permit and for and in consideration of the accep- tance hereof by the Permittee, it is agreed that the Permittee may charge and collect from the Permittor, its inhabitants and the consumers therein, a rate or rates, which shall at all times to compensatory and reasonable, subject to such rules and regulations as are now in effect, or that may hereafter be lawfully made by the Corporation Commission of the State of Oklahoma, or by other regulatory authority. SECTION 6 ELECTRICITY PROVIDED TO CITY During the life of this permit Permittee will sell and deliver to Permittor all electric energy used by it for the lighting of its streets and in pumping water necessary for its municipal water and sewer plants and systems. SECTIONS PERMIT FEE MEMORANDUM TO: HONORABLE MAYOR AND COUNCIL CITY OF OWASSO FROM: TIMOTHY ROONEY ASSISTANT CITY MANAGER SUBJECT: ORDINANCE NO. 604 VERDIGRIS VALLEY ELECTRIC PERMIT DATE: January 28, 1999 BACKGROUND: In order to provide utility service within the City of Owasso, utility providers must first have a franchise or permit to provide that service. Either option generally provides for the establishment of a fee for such privilege and sets forth terms and conditions for the utility provider. Proposed Ordinance No. 604 provides Verdigris Valley Electric Cooperative with an Electric Permit within the City of Owasso. The permit would allow Verdigris Valley Electric Cooperative to serve residents living within The Greens at Owasso and the Owasso Golf and Athletic Club. In addition to providing a permit for the above described service area, Ordinance No. 604 provides for the payment of a permit fee to the City of Owasso as compensation for the right and privilege of service. This fee is equal to a sum of two percent (2 %) of the gross receipts from the sale of electricity within the above described area and is equal to the fee paid by the City of Owasso's other electric utility provider, Public Service Company of Oklahoma. The permit is revocable at any time for cause but in no event will the term exceed twenty -five (25) years. An emergency clause, which is required to be acted on by the Council as a separate item, is attached to Ordinance No. 604. This allows for the collection of the permit fee upon passage and is the next item on the Council agenda. RECOMMENDATION: Staff recommends Council approval of Ordinance No. 604 and the accompanying Emergency Clause. ATTACHMENTS: Ordinance No. 604 P0 780 edar Owasso, OK 74055 Of Owasso (918) 272 FAX (918) 272 '1999 225 March 1 4999 Mr. Clyde Willard Verdigris Valle PO Box 219 y Electric Cooperative, Inc. Collinsville, pg 74021 RE: Request for Quarterly payment Deal' Mr• Willard, As per our telephone c franchise tax collected onversatio Owasso as o non February 18, 1999 until such time that Opposed to monthly pa ° quarterly payment of the IfyOU have any Y one month's yrnents is acceptable to the City of Sher questions, payment exceeds not hesitate to $1,000. contact meat 272-2251 can be of additional Sincerely, as to You, please do Rimothy Rooney Assistant City Manager VERDIGRIS VALLEY ELECTRIC COOPERATIVE, INCA P.O. Box 219, 8901 East 146th Street North Collinsville, Oklahoma 74021 (918) 371 -2584 FAX: (918) 371.9873 Allca Houston February 15, 1999 Manager Mr. Jeff Hancock City of Owasso Board of Trustees: P. O. Box 180 Owasso, Oklahoma 74055 Vernon Lewis Keetonvllle President RE: City Ordinance Number 604 Kenneth Easterling Claremore Dear Mr. Hancock: Vice President Carl Long Please be advised that Verdigris Valley Electric Cooperative, Incorporated Nowata acknowledges and accepts the above referenced city ordinance. Secretary/ireasurer Jack Bogart Effective with all electric bills mailed after February 28, 1999, the Cooperative will Cologsh collect and remit the 2% Franchise Tax on sales of electricity on all non -tax exempt John Hibdon utility accounts located within the city limits of Owasso. Barnsdall Ken Howard VVEC requests a variance from the ordinance that allows for quarterly payments of Collinsville the franchise tax collected as opposed to monthly payments. If acceptable, please so Charles Huener advise in written form to my attention. Bartlesville Buddy McCarty VVEC looks forward to serving electric needs in the City of Owasso. If there are Owasso any questions or further information is needed, please contact me. Earl Park Skl eiook Sincerely, Stephen B. Riley Attorney Clyde Willard Director of Finance cc: Mr. Tim Rooney Serving rural Rogers, Washington, Nowata, Osage and Tulsa counties