I6. Ordinance 1772 - Franchise Agreement with NW EnergyTel 406.758.7709
Fax 406,758.7771
charbalj.l@kalispell.com
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0 -lf ETING DATE. June 6, 2016 — Regular Council Meeting
regulations of every other utility provider in the City. The previous ordinance that
provided this right to Northwestern and its predecessors has long since expired.
RECOMMENDATION: It is recommended that the Council consider and pass
Ordinance No. 1772 on first reading.
ALTERNATIVER: The Council may offer amendments or reject the proposed
ordinance.
WHEREAS, Northwestern Corporation, doing business as Northwestern Energy and with corporate
offices at 3010 West 69th Street, Sioux Falls, SD 57108, currently owns, maintains and
operates natural gas transmission lines in the City of Kalispell and provides this
commodity to many residents and businesses of the City; and
WHEREAS, MCA 69-4-101 provides all utilities, except natural gas utilities, the right to use the
public right-of-way for utility lines and facilities; and
WHEREAS, due to this legislative omission, Northwestern Energy seeks to obtain a nonexclusive
franchise right from the City of Kalispell to operate its utilities within the municipal
right-of-ways to the same extent as all other utilities within the City; and
WHEREAS, the City Department of Public Works requires all utilities to obtain a right-of-way permit
from the City prior to any construction or maintenance of transmission or delivery
services within the City right-of-ways.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY 0
0
KALISPELL, MONTANA, AS FOLLOWS.
SECTION 2. Franchisee agrees to construct and maintain all natural gas delivery facilities
according to current industry standards and in compliance with all applicable
codes, rules, regulations, statutes, and orders of local, state, and federal agencies
having jurisdiction in such matters and further agrees to apply for and obtain a
right-of-way permit and storm water construction permit from the City of
Kalispell prior to any work in the City's right-of-way.
SECTION 3. Franchisee -shall extend its natural gas delivery facilities to such parts of the City
as the provision of Franchisee's natural gas services shall justify.
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SECTION 7. Franchisee shall hold the City harmless from all costs and damages which shall
or may accrue to said City by reason of the neglect, default, or misconduct of the
Franchisee in connection with the exercise of its rights hereunder.
SECTION 8. Franchisee is hereby given the right and authority to make assignments of this
Franchise, and its rights hereunder, provided all assignees agree to be bound to
the sarne extent as the original Franchisee.
SECTION 9. Except as provided in this paragraph, failure on the part of Franchisee to comply
in any substantial respect with any provision of this Franchise shall be grounds
for forfeiture thereof. No forfeiture shall take effect unless either (1) Franchisee
agrees to the forfeiture, or (2) a court of competent jurisdiction (with a right of
appeal in either party) has ruled that Franchisee failed to comply in a substantial
respect with any provision of this Franchise and Franchisee has not cured the
failure found by the court within six (6) months after the court's final order. The
City Council, in its discretion, may grant additional time to Franchisee to cure the
failure as it deems reasonable.
SECTION 10. This ordinance shall take effect and be in force from and after thirty (30) days
after the final passage and approval. hereof, provided Franchisee shall file with
the City Clerk a written acceptance of this ordinance within said thirty (30) day
period, but if su%,.-.h acceptance is not so filed, this ordinance shall be void.
PASSED -AND APPROVED BY SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS DAY OF JUNE, 2016.
Mark Johnson
Mayor
Aimee ru nckl-ior st, CMC
City Clerk
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