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0585 I/O ORDINANCE NO. 5 8 5 AN ORDINANCE GRANTING TO THE FIRST ELECTRIC COOPERATIVE CORPOR- ATION, ITS SUCCESSORS AND ASSIGNS, THE EXCLUSIVE RIGHT, PRIVILEGE AND AUTHORITY TO SELL, FURNISH AND DISTRIBUTE ELECTRIC POWER AND ENERGY AND ERECT, MAINTAIN, EXTEND AND OPERATE A SYSTEM FOR THE DISTRIBUTION, TRANSMISSION, FURNISHING OR SALE OF ELECTRIC POWER AND ENERGY TO THE CITY OF JACKSONVILLE, ARKANSAS, AND THE INHABI- TANTS AND ALL OTHER CONSUMERS THEREOF, AND TO USE THE STREETS, ALLEYS, BRIDGES AND OTHER PUBLIC GROUNDS OF THE CITY IN CONNECTION THEREWITH: FIXING THE TERMS THEREOF~ AND FOR OTHER PURPOSES. WHEREAS, the City must have an adequate and dependable supply of electric power and energy to perfo.Lui its governmental functions and to promote the peace, health and safety of its inhabitants; and WHEREAS, electricity has become a household necessity, and an adequate and dependable supply of electric power and energy is essen- tial for carrying on the business and industrial activity of this community; and WHEREAS, it is in the public interest that there be no dupli- cation of electric facilities on the streets; and WHEREAS, the First Electric Cooperative Corporation, by the acceptance of the rights and privileges granted hereunder, is willing to, and does, obligate itself, its successors and assigns, to meet the reasonable requirements of this City and its inhabitants for electric power and energy NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jacksonville, Arkansas, as. follows: Section 1. The City of Jacksonville, Arkansas, (Hereinafter called Grantor) hereby grants to the First Electric Cooperative Corporation, its successors and assigns (hereinafter called Grantee), the exclusive right, privilege and authority within the present and all future expansion of the corporate limits of the City of Jack- sonville, Arkansas, except any portion which may be located within the legally allocated territory of another utility (1) to sell, furnish, transmit and distribute electric power and energy to Grantor and to all inhabitants and consumers within said limits, and (2) to construct, maintain, operate and extend a system for such purposes and to enter on, under and upon and use any and all of the streets,. alleys, avenues, bridges and other public grounds and ways belonging to or under the control of Grantor, for the purpose of erecting, maintaining, repairing, replacing and operating poles, wires, anchors, stubs, transfo.Lluers, substations, cables , conduits and other related facilities, appliances and apparatus which are necessary for, or useful in, the furnishing sale, transmission or distribution of said electric service (hereinafter called facilities). Section 2. Grantee shall, and does by acceptance hereof, agree to provide to the City. .and its inhabitants adequate and reasonable electric 's'ervice as a public utility and the facilities necessary to provice such service. Grantor, in recognition of the large and ()()jf-"l.;l _,I .. ~~. , '.".. . \",,11 1// continuing investment necessary for Grantee to perform its obliga- tions hereunder, and the need and duty to promptly construct its facilities, as defined above, requrred to serve consumers, in areas and zones of the City, consents to the construction of such facil- ities as defined in Section 1 in all such areas and zones, and Grantor agrees to protect by ordinance, regulation and otherwise, to the fullest extent pe..llui tted by law, and except as otherwise limited herein, the grants of rights and privileges to Grantee set forth in Section 1 from interference with, or duplication by, other persons, firms or corporations seeding to engage in the sale or distribution of electric energy. Section 3. All facilities of Grantee which may be located on public ways, places and public property, as authorized herein, shall be located so as to not unreasonably obstruct public use and travel. All of Grantee's facilities shall be constructed, operated amd maintained in accordance with standards at least equivalent to the standards prescribed by the National Electrical Safety Code. Grantee, its successors and assigns, shall replace and repair, at its own expense, all excavation, holes or other damage caused or done by it to public streets, ways, places and public property in the construction, operation and maintenance of its facilities. Section 4. The Grantee, its successors and assigns, is hereby given the right to trim, cut or remove trees, shrubbery or growth on or in public ways, places and public property which interfere or offer hazards to the operation of Grantee's facilities used or useful for the rendition of electric service, and further, Grantee is hereby given the right, authority and pel.ulission to trim, cut and remove portions of trees, shrubbery or growth growing on private property but overhanging or encroaching on public ways, places and public property which interfere or offer hazards to the construction, operation and maintenance of Grantee's facilities. Section 5. The rights, privileges and authority hereby granted shall exist and continue from the date of passage of this ordinance, and thereafter, until tel.luinated in accordance wi th provisions of Section 44 of Act 324 of the 1935 Acts of the State of Arkansas, as presently enacted or hereafter amended. Section 6. The rates which are to be charged by Grantee for electric service hereunder shall be those which are now lawfully approved or prescribed, and as said rates may, from time to time, be amended by Grantee in accordance with law or by any regulatory authority having jurisdiction thereof. Section 7. In the construction, operation and maintenance of its facilities, said Grantee shall use reasonable and proper precaution to avoid damage or injury to persons or property and shall hold an~ save haJ.ulless the said Grantor from damage, injury, loss or expense caused by the negligence of the Grantee or its agents, servants or employees, in constructing, operating and -2- r ~r.\ tJ, ;()14 II J.., mailintaining said facilities or in repaving or pepairing any streets, avenues, alleys, bridges or other public grounds. Section 8. The Grantee shall endeavor at all times to keep its facilities in a reasonable state of repair, and to conform to such practices and install such appliances and equipment as may be in keeping with the customary usage and practice in cities of similar size in thms State during the time this franchise shall remain in force. Section 9. Beginning in 1980, and thereafter during the life of this franchise, the Grantee shall pay to Grantor each month, a franchise tax in an amount equal to: four and one-quarter percent (4*%) of the preceding month's electric revenues before the appli- cation of any adjustment clause as paid to th~ Grantee by consumers located within the corporate limits of the City of Jacksonville, Grantor shall have the right to examine and verify, from the records of the Grantee any data relating to the gross revenues of Grantee from consumers on which said franchise tax is due. In the event of a controversy between the Grantor and Grantee as to the amount of revenues received by Grantee in the City of Jacksonville upon which said tax is due, such controversy shall be referred to the Arkansas Public Service Commission, or such successor regulatory agency which may have jurisd,.iction over the Grantee, for final deteJ.luination, and the decision of said Commission shall be binding upon both parties hereto. It is expressly agreed and understood by the Grantor and Grantee that the aforesaid paYUlent shall consti tute and be considered as cOlll!-llete paYUlent and discharge by the Grantee, its successors and assigns, of all licenses, fees, chargee, impositions or taxes of any kind (other than automobile license fees, special millage taxes, general ad valorem taxes and other general taxes applicable to all citizens and tax payers) which are now or might in the future be imposed by the Grantor under authority conferred upon the Grantor by law. In the event such other tax or taxes are iUl!-,osed by Grantor, the obligation of the Grantee to pay Grantor the franchise tax as set forth herein shall i'ulluediately teIIJ1!i1inate.. Section 10. Electric service furnished the Grantor for street lighting and other purposes ahall be paid for by the Grantor in accordance with the applicable rate schedules of the Grantee now on file and/or as they may in the ~uture be filed by the Grantee and approved by the Arkansas Public Service Commission or other regula- tory authorizy having jurisdiction. The Grantee shall have the privilege of c~editing any amount due Grantor with any unpaid bal- ances due said Grantee for electric service rendered to said Grantor. Section 11. Nothing herein shall be construed to prohibit any person, firm or corporation from owning and operating facilities for generating, distribution, or furnishing electric energy for his or its own use or the use of his or its tenants, all of which facilities -3- t.). ~",(\'15 l, "" ,i ~ ~ .,. . ' 1/3 and use are wholly on the same premises owned by such person, fi~w or corporation. Section 12. Upon written acceptance by Grantee, this Ordinance shall constitute a contract bewween Grantor and the Grantee, and its successors and assigns. Section 13. If any provision, clause, word, section or grant of this Ordinance, or the application thereof to any person or circumstance be held invalid, such invalidity shall not affect any other provision, clause, word, section or grant of this Ordi- nance which can be given effect without the invalid provision or application, and to this end said provisions, clauses, words, sections and grants are hereby declared to be severable. Section 14. All ordinances and parts of ordinances in conflict herewith are hereby repealed. APPROVED this 1st day of MAY , 19 80 CITY OF JACKSONVILLE, ARKANSAS 4',~~ ATTEST: ~!l~~ APPROVED AS TO FORM: ~ V~J) 9 oL--.- 11 CITY ATTORNEY (EMERGENCY CLAUSE NOT AFFIXED. ORDINANCE EFFECTIVE JUNE 1, 1980) - CITY CLERK GERREN -4- (. ) :1. "'. "\ '.1. 6 , , \ i~ ,..,