2019-13ORDINANCE NO.2019-13
AN ORDINANCE TO PROVIDE FOR THE GRANT BY THE CITY OF FAIRFAX,
VIRGINIA, TO A PERSON OR PERSONS, OR TO A CORPORATION, ITS
SUCCESSORS AND ASSIGNS, HEREAFTER TO BE ASCERTAINED IN THE
MODE PRESCRIBED BY LAW, OF THE RIGHT, FOR THE TERM AND UPON
THE CONDITIONS HEREIN STATED, TO OCCUPY AND USE THE PUBLIC
RIGHTS -OF -WAY, STREETS, HIGHWAYS, PARKS AND OTHER PUBLIC
PLACES OF THE CITY FOR THE CONSTRUCTION, MAINTENANCE AND
OPERATION WHEREIN OF A SYSTEM OF PIPES, MAINS, VALVES,
MANHOLES, CONNECTIONS, METERS AND OTHER EQUIPMENT AND
APPLIANCES NECESSARY OR CONVENIENT FOR THE TRANSMISSION,
DISTRIBUTION AND SALE OF NATURAL GAS WITHIN THE CORPORATE
LIMITS OF THE CITY AS THE SAME NOW EXIST OR MAY HEREAFTER BE
EXTENDED OR ALTERED.
IT IS HEREBY ORDAINED, by the City Council of the City of Fairfax, Virginia:
Article L That there shall be granted in the mode prescribed by law for grants of franchises
and upon the conditions hereinafter specified, the rights and privileges in, over, along, on, and
under the rights -of -way, public streets, highways, parks and other public places of the City
embodied in the following draft of an ordinance entitled:
AN ORDINANCE TO GRANT TO [INSERT NAME OF GRANTEE], A PUBLIC
SERVICE CORPORATION DOING BUSINESS IN THE COMMONWEALTH OF
VIRGINIA AS [INSERT NAME OF GRANTEE], ITS SUCCESSORS AND ASSIGNS,
THE RIGHT, FOR THE TERM AND UPON THE CONDITIONS HEREIN STATED,
TO OCCUPY AND USE THE PUBLIC RIGHTS -OF -WAY, STREETS, HIGHWAYS,
PARKS AND OTHER PUBLIC PLACES OF THE CITY FOR THE
CONSTRUCTION, MAINTENANCE AND OPERATION WHEREIN OF A SYSTEM
OF PIPES, MAINS, VALVES, MANHOLES, CONNECTIONS, METERS AND
OTHER EQUIPMENT AND APPLIANCES NECESSARY OR CONVENIENT FOR
THE TRANSMISSION, DISTRIBUTION AND SALE OF NATURAL GAS WITHIN
THE CORPORATE LIMITS OF THE CITY AS THE SAME NOW EXIST OR MAY
HEREAFTER BE EXTENDED OR ALTERED.
BE IT ORDAINED by the City Council of the City of Fairfax, Virginia, that a non-
exclusive right and franchise is hereby granted by the City of Fairfax, Virginia, a
Virginia municipal corporation (the "C�"), unto [INSERT NAME OF GRANTEE],
hereinafter referred to as the "grantee', its successors and assigns, for the term and
subject to the conditions and limitations hereinafter stated, to use the streets of the
City, and to construct, operate, install, maintain and use, and if now constructed to
maintain and use, a system of pipes, mains, valves, manholes, connections, meters,
and other equipment and appliances (hereinafter referred to individually and
collectively as "Facilities"), in, over, along, on and under the streets of the City, for
the purpose of distributing, transmitting and selling gas at any point within the
corporate limits of the City as the same now exist or may hereafter be extended or
altered.
The franchise granted hereby shall be subject to the following terms and
conditions:
"SECTION 1. Such right to distribute and sell gas, and thereby provide
service (such term having the definition contained within Title 56 of the Code of
Virginia) at regular tariff rates to the government, residents and businesses of the
City, shall extend only to such areas of the City as are now or may hereafter be
allotted to the grantee for service by authority of a certificate of public convenience
and necessity issued by the State Corporation Commission of the Commonwealth of
Virginia ("ACC"), and otherwise in accordance with applicable law and regulations.
SECTION 2. The Facilities shall be located at reasonably suitable and
convenient points. The grantee shall file with the Director of Public Works of the
City, or his designee, plans showing the location of proposed additional facilities, and
obtain any permit required therefore prior to their construction or installation in, over,
along, on and under the streets of the City. Except where the approval of the SCC is
required by law, the location of the proposed Facilities shall be subject to review by
the City Director of Public Works or his designee with the right on the part of the
grantee to appeal from his decision to the City Council. The decision of the City
Council on said appeal shall be final and binding as to the location of such facilities.
Whenever the City shall determine that it is reasonably necessary in connection with
repair, relocation or improvement of streets, sidewalks or appurtenant facilities, the
City may require by written notification to the grantee that any facilities of grantee be
relocated or removed. Within thirty (30) days after receipt of notification, unless the
City Director of Public Works or his designee for good cause extends such time,
grantee shall use its best efforts to remove or relocate same, using like construction,
to such place as shall be mutually agreeable with the City and grantee. Grantee shall
bear all costs of removal and relocation; provided, however, that the City will issue,
without charge to the grantee, whatever City permits are required for relocation of
grantee's facilities. If grantee does not use its best efforts to commence and
complete removal or relocation within thirty (30) days, then the City may, after giving
at least fifteen (15) days written notice to grantee, take such actions at grantee's
expense as are necessary to effect such removal or relocation. Further, except
where the grantee maintains facilities which are located on private property by right of
recorded easement(s) or equivalent, the grantee shall, when necessary and upon the
prior written request of the City Director of Public Works or his designee, abandon in
place and relocate, at its own expense, any Facilities which shall impede or interfere
with any municipal construction or construction of any municipal -owned equipment,
facilities or utilities, provided that the City shall have made reasonable efforts to avoid
conflicts with grantee's Facilities in designing such projects.
SECTION 3. In the location, erection, operation and maintenance of
facilities, as herein authorized, grantee shall avoid all unnecessary damage to the
shade trees in and along the streets of the City and shall not cut or otherwise injure
said trees to any greater extent than is reasonable necessary. Tree trimming and
pruning shall occur only after reasonable advance notification to the City except in
response to an emergency. In addition, the type and extent of trimming and pruning
shall be in accordance with the requirements of the SCC and shall be approved by
the City Director of Public Works or his designee.
SECTION 4. In the event grantee shall at any time injure any pavement,
sidewalk, or any other public property, it shall immediately notify the Director of Public
Works of the City and promptly repair the same at its own cost and expense. In
opening the surface of any street and in making any excavation therein for the
purpose, the grantee shall not unnecessarily obstruct or impede traffic upon the
streets and, except in the case of an emergency situation, shall obtain prior approval
from the Director of Public Works or his designee regarding appropriate traffic
management plan(s). Grantee shall act diligently in completing the necessary work
and immediately thereafter replace the earth removed in a workmanlike manner and
shall replace the pavement and sidewalk (as applicable) and repair the same in such
reasonable time and as the City Director of Public Works or his designee shall
require, and use best efforts to restore the same as close as possible to the same
good, fine and workmanlike condition as the same was before being disturbed and
shall thereafter, from time to time as required by the City Director of Public Works or
his designee, fill and finish the same up to a period of three years if necessary on
account of settling of the earth or pavement caused by such opening, in each case at
the sole expense of grantee. In addition to the foregoing, grantee shall work with the
City Director of Public Works or his designee on specific guidelines for performance
of work, to include restrictions on the use of steel plates, addressing temporary
patches and cuts, notification of inspectors, work hours, and use and control of
subcontractors. Grantee agrees to reasonably abide by such restrictions.
SECTION 5. Grantee shall provide the Director of Public Works and other a
limited number of key identified City personnel access to an on-line secured portal
showing maps with the location of all facilities within the corporate limits of the City.
The security levels and protocols for access shall be designed to reflect that the
maps will contain critical energy infrastructure information (CEII) as defined by
applicable federal and/or state regulations. Key personnel given access to the
information, security levels and protocols shall be reviewed annually beginning six (6)
months after the effective date of this Ordinance and continuing throughout the term
thereof.
SECTION 6. The grantee shall indemnify, keep and hold the City free and
harmless from liability on account of injury or damage to person or property growing
out of any act of omission by grantee during the term of this franchise. In the event
that suit shall be brought against the City, either independently or jointly with grantee
on account thereof, grantee, upon written notice to it by the City, will defend the City
in any such suit at the cost of grantee. In the event of a final judgment being
obtained against the City, either independently or jointly with grantee, the grantee will
pay such judgment, with all costs, and hold the City harmless therefrom. Nothing
herein contained shall be construed to render grantee liable for the negligence of the
City, its agents or employees or of any other person or corporation. In furtherance
whereof, grantee shall execute, or continue in place if already existing, an indemnity
bond or equivalent in the amount of One Hundred Thousand Dollars ($100,000.00),
with good and sufficient surety, in favor of the City of Fairfax, to secure the
obligations imposed by this section, and to secure the obligations imposed by this
section, and to secure grantee's proper location, erection, operation and
maintenance of its facilities, and further to secure grantee's compliance with the
terms, provisions and conditions of this Ordinance in all respects.
In addition to the above indemnification and bond, the franchise and grant of
the rights and privileges herein conferred shall be conditioned upon the grantee
obtaining and maintaining in effect throughout the term of this franchise such
policy(ies) of liability insurance, which name the City as an additional insured, with
such limits and in such form as the City may reasonably require. Satisfactory
evidence of such policy(ies) being in full effect shall be filed with the City from time to
time, but at least annually, and grantee shall notify the City promptly upon the
termination of any such policy(ies).
SECTION 7. The grantee and its agents shall take all prudent action to
avoid damage or injury to pipes, cables, fixtures and installations of other utility
services, particularly those installations whose disruption can cause hazards or
danger to persons or property. In the event such damage or injury occurs, the
grantee shall notify the City Manager or his designee and shall cooperate and
contribute its capabilities to the extent necessary to remove any hazards and repair
any damage.
SECTION 8. The rights and privileges herein set forth are granted and
conferred upon grantee upon the express condition that grantee will render at all
times during the term of this franchise adequate gas service at reasonable rates, and
that it will maintain its facilities located within the City in good order throughout the
term of this franchise. Grantee by accepting the franchise granted by this Ordinance
expressly agrees that the State Corporation Commission shall have jurisdiction, to
the full extent and in the manner now or hereafter provided by law, to require grantee
to render adequate gas service at reasonable rates, to maintain its facilities in good
order throughout the term of this franchise, and otherwise to enforce the provisions of
this section to the full extent provided by law. In addition, no gas other than natural
gas or a compatible substitute shall be used at any time in grantee's facilities within
the City unless, and until, authorized by the City by separate ordinance after
examination of the same in its sole and absolute discretion.
SECTION 9. Any person who shall intentionally destroy or damage any of
the facilities of grantee, constructed and maintained in accordance with provisions of
this Ordinance within the corporate limits of the City, shall be diligently prosecuted
pursuant to applicable law. Also, any person who shall tamper with any metering
device incident to grantee's facilities or otherwise intentionally prevent such metering
device from properly registering, or otherwise illegally divert gas so that it does not
pass through the metering device shall be diligently prosecuted pursuant to
applicable law.
SECTION 10. All the rights and privileges hereby granted to the grantee may
be exercised by any successor or successors, assignee or assignees of the grantee,
but said successor or successors, assignee or assignees shall be subject to all the
provisions, obligations, stipulations and penalties here prescribed.
SECTION 11. The rights and privileges hereby granted shall continue for the
period of twenty (20) years from and after the final passage of this Ordinance, unless
the same be sooner voluntarily surrendered by grantee, with the consent of the City
Council, or unless the same be sooner forfeited as provided by law.
Upon the expiration of the term of this franchise or upon its earlier termination
by surrender, forfeiture or otherwise, all facilities of grantee in the City shall remain
the property of the grantee and may be removed from the streets, alleys and public
places of the City at the expense of the grantee within a reasonable time after
expiration or termination. The grantee shall be liable for any damage to City property
resulting from said removal.
SECTION 12. This Ordinance and the rights and privileges hereby granted
and conferred shall not become effective unless and until grantee shall comply with
all bonding and insurance requirements contained herein.
SECTION 13. The rights and privileges granted herein to use the public
property are expressly subject to the conditions, limitations and provisions contained
in the general ordinances of the City now in force, or that maybe hereafter passed by
the City, relative to the use of the streets, alleys and public places of City, so far as
they may be applicable to the rights and privileges herein granted, provided such
ordinances that may be passed will not place unreasonable or impractical burden
upon the grantee.
SECTION 14. In addition to satisfying the foregoing terms, the grantee hereby
voluntarily bids the annual sum of [INSERT AMOUNT OF BID] in consideration of the
right to use the City's public rights -of -way, which amount shall be payable in quarterly
installments to the City (the amount due shall be prorated for any partial year under
this franchise). Such amount shall increase on an annual basis by [INSERT
PERCENTAGE AMOUNT OF ANNUAL INCREASE] commencing on July 1 in each
succeeding year of this franchise and the quarterly payment due first on such date.
In addition, any person or corporation bidding for this franchise must deposit with the
bid cash or certified funds in the amount of One Thousand Dollars ($1,000.00), as
security to ensure that if an ordinance is enacted, then the grantee shall accept this
franchise in the manner herein provided within thirty (30) days following the date of
enactment. If the grantee fails to accept in the manner required within such time,
then the grantee shall forfeit the amount required to be deposited with the bid. Any
payments tendered by other bidders will be returned after the award of this franchise
to the grantee.
SECTION 15. The sections, paragraphs, sentences, clauses and phrases
contained in this Ordinance are severable, and if any phrase, clause, sentence,
paragraph or section of this Ordinance shall be declared unconstitutional or otherwise
invalid by a valid judgment or decrees of a court of competent jurisdiction, such
unconstitutionality or invalidity shall not affect any of the remaining phrases, clauses,
sentences, paragraphs or sections of this Ordinance.
SECTION 16. This Ordinance shall be effective immediately upon its
enactment by the City Council, in accordance with applicable law."
Article Il. That upon the enactment of this Ordinance, it shall be the duty of the City Clerk to
cause to be advertised once a week for two successive weeks, in a newspaper of general
circulation in the City and,'or otherwise provided by law, a descriptive notice of the proposed
ordinance, and in addition, the Clerk shall, by such advertisement, invite bids for the
privileges and rights proposed to be granted by this Ordinance, which bids shall be in writing
and shall be delivered to the Mayor or other presiding officer in open meeting at the day and
hour of the next regular meeting of the City Council to be held next after such advertisement
is completed, which bids shall then be presented to the City Council by the Mayor or other
presiding officer to be dealt with and acted upon in the manner prescribed by law for grants of
franchises. Such advertisement shall expressly reserve the right to reject any and all bids, and
the successful bidder shall be required to pay all costs of advertising the franchise in addition
to the sum bid by it.
This Ordinance shall become effective as provided by law.
INTRODUCED: October 15, 2019
PUBLIC HEARING: October 29, 2019
ADOPTED: October 29, 2019
ATTEST:
City Clerk
VOTE:
Councilmember DeMarco
Aye
Councilmember Lim
Aye
Councilmember Miller
Aye
Councilmember Passey
Aye
Councilmember Stehle
Aye
Councilmember Yi
Absent
Mayor
I
Date