(A) Permission to rent and use. There is hereby granted by the city to NMUI, subject to the terms, conditions and limitations contained in this franchise ordinance nonexclusive permission to rent, use and occupy and the franchise right, privilege and authority to construct, purchase, acquire, locate, maintain, operate and extend into, within, and through the city, facilities for the purpose of distributing water and wastewater service, with the right and privilege for the period and upon the terms and conditions hereinafter specified, to sell, furnish and distribute any or all of said products to the city and its inhabitants, by means of its facilities, on, under, along and across all rights-of-way in the city, now or hereafter included in the boundaries of the city and within NMUI's Public Regulation Commission approved service area as such boundaries now exist or may hereafter be extended. Provided, however, that NMUI's construction plans for line extensions within the limits of the city, prepared by either a developer or NMUI, shall be submitted to the City Development Review Committee for review of any impact the line extension may have on city facilities. Additionally, NMUI shall provide notice of any line extension to the city pursuant to § 13-4-4-20 ROA 1994.
(B) Indemnification. NMUI shall indemnify, defend and hold the city harmless from and against claims, demands, liens and all liability or damage of whatsoever kind on account of or arising from the operations and maintenance conducted by NMUI and exercised pursuant to the grant of this franchise, the exercise by NMUI of the related rights, or from the operations of NMUI within the city, and shall pay the costs of defense plus reasonable attorneys' fees. NMUI shall be responsible for damages to any property in the city rights-of-way as a result of NMUI activities. The city shall give prompt written notice to NMUI of any claim, demand or lien with respect to which the city seeks indemnification hereunder and unless in the city's judgment a conflict of interest may exist between the city and NMUI with respect to such claim, demand or lien, permit NMUI to assume the defense of such claim, demand, or lien with counsel satisfactory to the city.
(C) Remedies. In the event NMUI or the city fails to fulfill any of their respective obligations under this franchise, the city or NMUI, whichever the case may be, will have a breach of contract claim and remedy against the other in addition to any other remedy provided by law, provided that no remedy which would have the effect of amending the specific provisions of this franchise shall become effective without such action which would be necessary to formally amend the franchise.
(Ord. 1-1994; Am. Ord. 32-2007)