CHAPTER 18-200. - FRANCHISE TO ENBRIDGE GAS

Part 18-220. - Agreement.#

18-221. - Grant of Franchise.#

The City grants to Enbridge Gas a nonexclusive franchise (hereafter referred to as "Franchise") to construct, maintain, and operate in the present and future roads, streets, alleys, highways, and other public rights-of-way within City limits, including any property annexed or otherwise acquired by the City after the effective date of this Franchise, (hereafter referred to as collectively, "Streets") a distribution system for furnishing natural gas to the City and its inhabitants for heating and other purposes. Enbridge Gas shall have the right to erect, construct, equip, operate and maintain along, over, and under the Streets a system of mains, pipes, laterals, and related equipment (hereafter referred to as "Facilities") as are reasonably necessary for supplying natural gas service in accordance with this Franchise.

18-222. - Consideration.#

In consideration of this Franchise, Enbridge Gas shall pay to City the sum of $50.00 upon acceptance of this Franchise and shall provide gas service in accordance with the terms of this Franchise.

18-223. - Term.#

This Franchise is granted for a fifteen (15) year term from the Effective Date. Upon the date of expiration of this Franchise Agreement, the City and Enbridge Gas shall negotiate in good faith the terms of renewal. The terms and conditions of this Franchise Agreement will remain in effect until the new Franchise Agreement between the City and Enbridge Gas become effective.

18-224. - Acceptance.#

Within sixty (60) days after the passage of this ordinance, Enbridge Gas shall file with the City an unconditional written acceptance of the Franchise declaring its acceptance of the Franchise and its intention to be bound by the terms and conditions of the Franchise.

18-225. - Effective Date.#

This ordinance shall become effective upon the date of acceptance by Enbridge Gas as established above, which is May 19, 2017, and is hereafter referred to as the "Effective Date".

18-226. - Construction and Maintenance of Facilities.#

(1)

All Facilities shall be constructed and installed so as to interfere as little as possible with traffic over and public use of the Streets and to cause minimum interference with the rights and reasonable convenience of property owners who adjoin any of the Streets. All Facilities shall be constructed in accordance with established gas distribution construction practices and in a manner which protects the Facilities from all traffic loads. Without unreasonable additional cost to Enbridge Gas, all Facilities that are installed during the term of the Franchise shall be sited to be visually unobtrusive and to preserve the natural beauty and neighborhood aesthetics within the City limits.

(2)

Enbridge Gas shall repair or replace, at its own expense, any and all rights-of-way, pavements, sidewalks, street improvements, excavations, other facilities, landscaping, or other improvements, public or private (hereafter referred to collectively as "Public or Private Improvements"), that it damages in the Franchise operations.

18-227. - Compliance with Ordinances — Conflict.#

(1)

Enbridge Gas shall comply with all City ordinances, regulations, and requirements and shall pay all applicable excavation fees and charges that are or may be prescribed by the City with respect to the construction, maintenance and operation of all Facilities. However, these obligations shall apply only as long as such ordinances, regulations, requirements, or fees are not preempted by or otherwise in conflict with any applicable statutory or constitutional law, rule, or regulation, or the tariffs approved by regulatory bodies having jurisdiction over Enbridge Gas, including this Franchise and any lawful revisions made and accepted by Enbridge Gas during the term of the Franchise.

(2)

The City shall have the right to inspect the construction and maintenance of the Facilities and Enbridge Gas's repair to Public or Private Improvements to ensure the proper compliance with applicable City ordinances, regulations, requirements and compliance with this Franchise. In the event Enbridge Gas should fail to comply with the terms of any City ordinance, regulation, requirement, or this Franchise the City shall give Enbridge Gas written notice of such non-compliance and the time for correction provided by ordinance or this Franchise or a reasonable time for correction if there is no time frame provided by the applicable ordinance, regulation, or requirement. Excluding any correction, modification, or change to the Facilities, and after written notice and failure of Enbridge Gas to make correction, the City may, at its sole risk, make such correction itself and charge the cost to Enbridge Gas including any minimum cost provided by ordinance. The City shall not make, nor request or allow any party other than Enbridge Gas to make changes, corrections, or modifications of any kind to Enbridge Gas's Facilities. Nothing in this Franchise limits Enbridge Gas's right to oppose any ordinance, whether existing, proposed, or adopted, from and after the effective date of this Franchise.

18-228. - Information Exchange.#

Upon request by either the City or Enbridge Gas, as reasonably necessary, Enbridge Gas and the City shall meet for the purpose of exchanging information and documents regarding construction and other similar work within the City limits or its declared annexation areas, with a view towards coordinating their respective activities in those areas where such coordination may prove mutually beneficial. Any information received by the City from Enbridge Gas that contains or relates to Enbridge Gas's confidential or proprietary information, including but not limited to information regarding future capital improvements that may involve land acquisition shall be treated with confidentiality upon Enbridge Gas's written request identifying what specific information is confidential or proprietary and to the extent that the City may lawfully do so.

18-229. - Relocation.#

(1)

Upon written notice to Enbridge Gas, the City may require the relocation and removal or reinstallation (hereafter referred to collectively as, "Relocation") of any Facilities located in, on, along, over, across, through, or under any of the Streets. After receipt of such written notice, Enbridge Gas shall diligently begin such Relocation of its Facilities as may be reasonably necessary to meet the City's requirements. The Relocation of Facilities by Enbridge Gas shall be at no cost to the City if (i) such request is for the protection of the public health, safety and welfare pursuant to lawful authority delegated to the City; (ii) the Facilities have been installed pursuant to this or any other Enbridge Gas franchise and not pursuant to a property or other similar right, including, but not limited to, a right-of-way, grant, permit, or license from a state, federal, municipal or private entity; and (iii) the City provides a new location for the Facilities. Otherwise, a Relocation required by the City pursuant to such written notice shall be at the City's expense. Following Relocation of any Facilities, Enbridge Gas may maintain and operate such Facilities in a new location within City limits without additional payment. If a City project is funded by federal or state monies that include an amount allocated to defray the expenses of Relocation of Facilities, then the City shall compensate Enbridge Gas up to the extent of such amount for any Relocation costs allowed by the project to the extent that the City actually receives or is otherwise authorized to direct or approve payment of such federal or state funds; however, the City shall ensure that receipt of compensation from federal or state sources shall not restrict or otherwise obligate Enbridge Gas's ownership of the Facilities in any way.

(2)

Notwithstanding the preceding paragraph, Enbridge Gas shall not be responsible for any costs associated with an authorized City project that are not attributable to Enbridge Gas's Facilities in the Streets. Further, all such costs shall be allocated among all utilities or other persons whose facilities or property are subject to Relocation due to an authorized City project.

18-230. - Terms of Service.#

Enbridge Gas shall furnish natural gas service without preference or discrimination among customers of the same service class at reasonable rates, in accordance with all applicable tariffs approved by and on file with regulatory bodies having jurisdiction over Enbridge Gas, including revisions to such tariffs made during the term of the Franchise, and in conformity with all applicable constitutional and statutory requirements. Enbridge Gas may make and enforce reasonable rules and regulations in the conduct of its business, may require its customers to execute a gas service agreement as a condition to receiving service, and shall have the right to contract with its customers regarding the installation and operation of its Facilities. To secure safe and reliable service to the customers, and in the public interest, Enbridge Gas shall have the right to prescribe the sizes and kinds of pipes and related Facilities to be used and shall have the right to refuse service to any customer who refuses to comply with Enbridge Gas's rules and regulations.

18-231. - Indemnification.#

Enbridge Gas shall indemnify, defend, and hold the City, its officers and employees, harmless from and against any and all claims, demands, liens, liabilities, damages, actions, and proceedings arising from the exercise by Enbridge Gas of its rights under this Franchise, including its operations within City limits, and Enbridge Gas shall pay the reasonable cost of defense plus the City's reasonable attorney fees. Notwithstanding any provision to the contrary, Enbridge Gas shall not be obligated to indemnify, defend or hold the City harmless to the extent that any underlying claim, demand, lien, liability, damage, action, and proceeding arises out of or in connection with any act or omission of the City or any of its agents, officers or employees.

18-232. - Assignment.#

Enbridge Gas may assign or transfer its rights and obligations under the Franchise to any parent, affiliate, or subsidiary of Enbridge Gas, to any entity having fifty percent (50%) or more direct or indirect common ownership with Enbridge Gas, or to any successor-in-interest or transferee of Enbridge Gas having all necessary approvals, including those from the Utah Public Service Commission or its successor, to provide utility service within the City limits. Enbridge Gas shall provide the City with written notification of its assignment or transfer of its rights and obligations under this Franchise. Otherwise, Enbridge Gas shall not transfer, assign, or delegate any of its rights or obligations under the Franchise to another entity without the City's prior written approval, which approval shall not be unreasonably withheld, conditioned, or delayed. Inclusion of the Franchise as an asset of Enbridge Gas subject to the liens and mortgages of Enbridge Gas shall not constitute a transfer or assignment requiring the City's prior written consent.

18-233. - Insurance.#

Enbridge Gas shall responsibly self-insure or maintain insurance to cover its obligations and liabilities as set forth in Section 10, in lieu of any insurance as may be required in any City ordinances.

18-234. - Bonding.#

If City ordinance requires Enbridge Gas to post a surety bond, that section of the ordinance is expressly waived.

18-235. - Effect of Invalidity.#

If any portion of this Franchise is for any reason held illegal, invalid, or unconstitutional, such invalidity shall not affect the validity of any remaining portions of this Franchise.

18-236. - Amendment.#

This ordinance shall not be altered or amended without the prior written consent of Enbridge Gas.

(Ord. No. 17-03)