72-109 O - Lone Star Gas Franchise Agreement 411,0 AN ORDINANCE GRANTING TO LONE STAR GAS COMPANY, A CORPORATION,
ITS SUCCESSORS AND ASSIGNS, A FRANCHISE TO FURNISH AND SUP-
PLY GAS TO THE GENERAL PUBLIC IN THE CITY OF PROSPER, COLLIN
COUNTY, TEXAS, FOR THE TRANSPORTING, DELIVERY, SALE AND DIS-
TRIBUTION OF GAS IN, OUT OF, AND THROUGH SAID MUNICIPALITY
FOR ALL PURPOSES; PROVIDING FOR THE PAYMENT OF A FEE OR CHARGE
FOR THE USE OF THE STREETS, ALLEYS AND PUBLIC WAYS; PROVID-
ING THAT IT SHALL BE IN LIEU OF OTHER FEES AND CHARGES, EX-
CEPTING AD VALOREM TAXES; AND REPEALING ALL PREVIOUS GAS FRAN-
CHISE ORDINANCES.
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PROSPER, TEXAS;
SECTION 1. That the City of Prosper, Texas, hereinafter called
"City," hereby grants to Lone Star Gas Company, hereinafter called "Com-
pany," its successors and assigns, consent to use and occupy the present
and future streets, alleys, highways, public places, public thoroughfares
and grounds of City for the purpose of laying, maintaining, construct
ing, operating and replacing therein and thereon pipelines and all other
appurtenant equipment needed and necessary to deliver gas in, out of,
4111, and through said City and to sell gas to persons, firms and corporations,
including all the general public, within the City's corporate limits,
said consent being granted for a term of twenty-five (25) years from and
after the date of the final passage and approval of this ordinance.
SECTION 2. Company shall lay, maintain, construct, operate and
replace its pipes, mains, laterals and other equipment so as to inter-
fere as little as possible with traffic and shall promptly clean up and
restore to an approximate original condition, at its cost, all thorough-
fares and other surfaces which it may disturb. The location of all mains,
pipes, laterals and other appurtenant equipment shall be fixed under the
supervision of the City Commission or an authorized committee or agent
appointed by said Commission.
SECTION 3. When Company shall make or cause to be made excava-
tions or shall place obstructions in any street, alley or other public
place, the public shall be protected by barriers and lights placed, erected
and maintained by Company; and in the event of injury to any person or
damage to any property by reason of the construction, operation or main-
tenance of the gas distributing plant or system of Company, Company shall
indemnify and keep harmless City from any and all liability in connec-
4110 tion therewith. Company shall repair, clean up and restore to an approxi-
mate original condition all streets and alleys disturbed during the con-
struction and repair of its gas distributing system.
SECTION 4. In addition to the rates charged for gas supplied,
Company may make and enforce reasonable charges, rules and regulations
for service rendered in the conduct of its business, including a charge
for services rendered in the inauguration of natural gas service, and
may require, before furnishing service, the execution of a contract therefor.
Company shall have the right to contract with each customer with reference
to the installation of, and payment for, any and all of the gas piping
from the connection thereof with the Company's main in the streets or
alleys to and throughout the consumer's premises. Company shall own,
operate and maintain all service lines which are defined as the supply
lines from the Company's main to the consumer's curb line when mains are
located in the streets and to the consumer's property line when mains
are located in the alleys. The consumer shall own, operate and maintain
all yard lines and house piping. Yard lines are defined as the under-
ground supply lines extending from the point of connection with Company's
service line to the point of connection with consumer's house piping.
SECTION 5. ompany s all not be required to extend mains on any
street more than f ty (50) for any one consumer of gas.
SECTION 6. Company shall be entitled to require from each and
411, every consumer of gas, before gas service is commenced, a deposit of twice
the amount of an estimated average monthly bill, which said deposit may
be retained by Company until service is discontinued and all bills there-
for have been paid. Company shall then return said deposit to the con-
sumer, together with six percent (6%) interest thereon from the date of
said deposit up to the date of discontinuance of service. Company shall
be entitled to apply said deposit, with accrued interest, to any indebted-
ness owed Company by the consumer making the deposit.
SECTION 7. The rights, privileges and franchises granted by this
ordinance are not to be considered exclusive, and City hereby expressly
reserves the right to grant, at any time, like privileges, rights and
franchises as it may see fit to any other person or corporation for the
purpose of furnishing gas for light, heat and power to and for City and
the inhabitants thereof.
SECTION 8. Company shall furnish reasonably adequate service
to the public at reasonable rates and charges therefor; and Company shall
maintain its property, equipment and appliances in good order and con-
dition.
SECTION 9. Company, its successors and assigns, agrees to pay
and City agrees to accept, on or before the 1st day of March, 1973, and
on or before the same day of each succeeding year during the life of this
franchise, up to and including the year 1997, a sum of money which shall
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be equivalent to two percent (2%) of the gross receipts received by Com-
pany from the sale of gas to its domestic and commercial consumers within
the corporate limits of said City (expressly excluding, however, receipts
41, derived from sales to industrial and governmental users and consumers
in said City), for the preceding calendar year, which annual payment shall
be for the rights and privileges herein granted to Company including ex-
pressly, without limitation, the right to use the streets, alleys and
public ways of said City. And it is also expressly agreed that the afore-
said annual payment shall be in lieu of any and all other and additional
occupation taxes, easement and franchise taxes, or charges (whether levied
as an ad valorem, special or other character of tax or charge) , in lieu
of municipal license and inspection fees, street taxes and street or alley
rentals or charges, and all other and additional municipal taxes, charges,
levies, fees and rentals of whatsoever kind and character which City may
impose or hereafter be authorized to levy and collect, excepting only
the usual general or special ad valorem taxes, which City is authorized
to levy and impose upon real and personal property. Should City not have
the legal power to agree that the payment of the foregoing sums of money
shall be in lieu of taxes, licenses, fees, street or alley rentals or
charges, easement or franchise taxes or charges aforesaid, then City agrees
that it will apply so much of said sums of money paid as may be neces-
410 to satisfy Company's obligations, if any, to pay any such taxes,
licenses, charges, fees, rentals, easement or franchise taxes or charges.
In order to determine the gross receipts received by Company from
the sale of gas (expressly excluding the sale of gas to industrial and
governmental consumers) within the corporate limits of City, Company agrees
that on the same date that payments are made as provided in the preceding
paragraph of this Section 9, it will file with the City Clerk a sworn
report showing the gross receipts received from the sale of gas to its
domestic and commercial consumers within said corporate limits for the
calendar year preceding the date of payment. City may, if it sees fit,
have the books and records of Company examined by a representative of
said City to ascertain the correctness of the sworn reports agreed to
be filed herein.
Receipts from sales to governmental users or consumers shall include
all those receipts derived from the sale of gas to federal, state, county
or city governments or branches and subdivisions thereof, school districts
or other similar districts, it being the intention to include within the
term "governmental users and consumers" all tax-supported institutions
owned or operated directly or indirectly by said governments and branches
110 or subdivisions thereof, such as schools, colleges, hospitals, eleemosyn-
ary institutions, army or training camps, airports, courthouse, city hall
and other institutions of like or similar kind and character.
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111) "Industrial users or consumers," as herein used, are those generally
and commonly classified as such by Company.
• The payment herein provided shall be for the period January 1 to
December 31 of the respective year that the payment is made.
SECTION 10. When this franchise ordinance shall have become effec-
tive, all previous ordinances of said City granting franchises for gas
distribution purposes which were held by Company shall be automatically
cancelled and annulled, and shall be of no further force and effect.
SECTION 11. Company shall file its written acceptance of this fran-
chise ordinance within sixty (60) days after its final passage and ap-
proval by said City.
PASSED AND APPROVED on this the iL3— day of A/0 U MI36:2 ,
A.D. 19 7'-.
ATTEST:
III
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City ecret,Ary Mayo l
Cit of Prospe , Texas
STATE OF TEXAS 1
COUNTY OF COLLIN I
I, C C ' /-I Aq S , Secretary of the City of Prosper,
Collin County, Texas, o hereby certify that the above and foregoing is
a true and correct copy of an ordinance passed by the City Commission 4
of the City of Prosper, Texas, at a /a/m.4,1 session, held on the /3 -
day of A/p 1Ji ft/i&i, , 19 9'y, as it appears of record in the Minutes
of said City Commission in Book / , page // 9
WITNESS MY HAND AND SEAL OF SAID City, this the /4/'1day of Ave f
III .A�CR , A.D. 19 `/1
---019 etz/'3Th
ity S,Kcretary
City of Prosper, Texas
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•
•
EXTRACT FROM MINUTES OF
CITY COMMISSION OF PROSPER, TEXAS
The City Commission of the City of Prosper, Collin County, Texas,
convened in iekaidtkk session on the J3/ day of AG c4F,u,13a,a , 19
at 7 A. .M. , with the following persons present:
Mayor:
y
Commissioners; 4,/,grtjZ-
J/eL- h i1v e;9,
(E C i L NGpe/•S
jYt>GLi) �ckcRS
/t/.ds•TJ.Q
Absent; /1 f o,vE
A quorum being present, came on to be read and considered Ordinance No.
J ( !C granting to Lone Star Gas Company, a Texas corporation, a fran-
chise�r to furnish and supply natural gas to the general public in the City
of Prosper for the transporting, delivery, sale and distribution of gas
in, out of, and through said municipality for all purposes. On motion
made by (`k Ci NoiE'P,'S and seconded by J'q)y /141,047-0/K , which
carried unanimously, the City Commission voted to pass said franchise
ordinance and to record same at length in these minutes.
STATE OF TEXAS I
COUNTY OF COLLIN x
CITY OF PROSPER X
I, C C� ' ,/,oyS , City Secretary of the City of Prosper,
Texas, do hereby certify that the above and foregoing is a true and cor-
rect copy of the proceedings of the City Commis ion of the City of Prosper,
Texas, at a PEGlitort session, held on the /34 day of Net(4,, ,AiR ,
1972-, in connection with the passage and adoption of Ordinance No. /D '
granting a franchise to Lone Star Gas Company and that the same
is of record in Book / , page // ' of the Minutes of the City Com-
mission.
imiWITNESS MY HAND AND SEAL OF SAID CITY this /y day of /1/OlJ4.40.4.•'1 ,
/
City S&Orefary
City of Prosper, Texas
STATE OF TEXAS §
`► COUNTY OF DALLAS §
WHEREAS, there was finally passed and approved on November 13,
1972, an ordinance granting to Lone Star Gas Company, a corporation, its
successors and assigns, a franchise to furnish and supply gas to the gen-
eral public in the City of Prosper, Collin County, Texas, for the trans-
porting, delivery, sale and distribution of gas in, out of, and through
said municipality for a71 purposes, which is recorded in Book 1, page 118,
of the Minutes of the City Commission of said City; and
WHEREAS, Section 11 of said ordinance provides as follows:
"SECTION 11. Company shall file its written
acceptance of this franchise ordinance within sixty
(60) days after its final passage and approval by
said City."
AND, WHEREAS, it is the desire of Lone Star Gas Company, the
holder of the rights, privileges and grants under the aforesaid franchise
ordinance, to comply with the above-quoted provisions of Section 11
thereof.
NOW, THEREFORE, premises considered, Lone Star Gas Company,
acting by and through its duly authorized officers, and within the time
prescribed by Section 11 quoted above, does hereby agree to and accept
the franchise granted to it by the above-described ordinance, in accor-
dance with its terms, provisions, conditions and requirements, and sub-
ject to the stipulations and agreements therein contained.
WITNESS THE EXECUTION HEREOF, on this the 24th day of
November , 1972.
ATTEST: LONE STAR GAS COMPANY
ess'r. orpor to SecretasyrJ Vice President
. , , *
•
+111e STATE OF TEXAS §
§
COUNTY OF COLLIN §
I, o (f 1 -//flj c , Secretary of the City of
Prosper, Texas, herebY certify that the above and foregoing is a true
and correct copy of a formal acceptance of a franchise ordinance finally
passed and approved by said City on November 13, 1972, and of record in
Book 1, page 118, of the Minutes of the City; and I do further certify
that said acceptance has been duly presented to the City Commission and
filed in connection with and as a part of said franchise ordinance.
OF WHICH, witness my official signature and the seal of said
City on this the /l-f/day of !)4('6it2 8t , 1972.
iil/t , 1_,
City Se retary
City of P sper, Texas
III
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l A
Pas
Prosper, Texas
November , 1972
TO: LONE STAR GAS COMPANY
Re: Official Seal
City of Prosper, Texas
Instruments of incorporation reveal that Prosper was incor-
porated as the "City of Prosper." It has been ca]led to our attention
that our official seal, which has been used for many years in our legal
transactions, reads "Town of Prosper."
ANY We recognize that the seal may be incorrect, but verify that
it is being used by our City Government as the official seal of Prosper.
w
Mayor PA-
City f Prosper/ Texas
ATTEST:
Secrry—