(a) Definitions. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning:
Consumer means any individual person, corporation, company, partnership, firm, unincorporated association, trust state agency, government entity, political subdivision of the state, school district, institution of higher learning, or public corporation that uses or consumes natural gas within the corporate limits of the city.
Permit means the right, license, and privilege granted by the city to a consumer or seller to use the public ways for the purpose of transporting gas owned by any party other than transporter and to be used or consumed by consumer.
Permittee means a consumer or seller granted a permit under this chapter.
Pipeline system means a gas system installed in the public ways and consisting of works, pipes, pipelines, apparatus, machinery, structures, appliances, and appurtenances reasonably necessary for this sale, transportation, or distribution of natural gas.
Public ways means any street, alley, avenue, boulevard, lane, park, parkway, sidewalk, driveway, utility easement, right-of-way, and any other public ways, places, areas, or grounds within the corporate limits of the city is now constituted or as may be added thereafter.
Purchase price means the total purchase price, excluding transportation charges otherwise paid by any franchisee under any other provision of this chapter or any provision of any other franchise of the city, paid by a consumer to a seller for natural gas that is used or consumed within the corporate limits of the city and that is transported to the consumer through a pipeline system.
Seller means any individual person, corporation, company, partnership, firm, unincorporated association, trust, or public corporation (excluding, however, any transporter) that sells natural gas to any consumer, which natural gas is transported to the consumer through a pipeline system.
Transporter means any individual person, corporation, company, partnership, firm, unincorporated association, trust or public corporation that transports and delivers gas owned by any party other than transporter through transporter's pipeline system.
(b) Permit required.
(1) No consumer shall receive, directly or indirectly, gas within the city that was purchased from a seller outside of the corporate limits of the city and that is to be transported through any pipeline system installed in the public ways unless the consumer or the seller shall hold a valid permit from the city. Such permit shall be issued for the purpose of granting the permittee authority to use the public ways.
(2) After the operative date of this chapter, no transporter shall enter into any agreement or arrangement by which natural gas owned by any party other than such transporter shall be transported through any portion of transporter's pipeline system for delivery to any consumer within the corporate limits of the city unless:
a. The consumer or seller shall have obtained a permit from the city for the use of the public ways in transporting and delivering gas pursuant to such agreement or arrangement;
b. If requested by the city, transporter agrees to collect from the permittee any and all fees to be paid pursuant to such permit and to emit such fees so collected to the city on a monthly basis; and
c. The transporter agrees to report to the city, on a monthly basis, all volumes transported through its pipeline system for delivery to any consumer within the corporate limits of the city pursuant to any agreement or arrangement.
(3) Any transportation agreements or arrangements that are in existence as of the effective date of the ordinance from which this chapter is derived which provide for the payment of any franchise-type fee may continue in effect for 60 days to allow the permittee to complete and submit an application for permit in accordance with the provisions of this chapter.
(c) Fees. In consideration of the issuance of a permit by the city, a permittee shall pay to the city a fee for the use of the public ways in an amount equal to 3.2 percent of the purchase price of the gas transported or delivered within the corporate limits of the city.
(d) Permit requirements.
(1) Every application for a permit, as required in this section, shall be in writing and shall include the following information:
a. The date of the application;
b. The name of the applicant;
c. Address of the principal place of business of the applicant;
d. The name and address of the principal place of business of the consumer of the natural gas;
e. The name and address of the principal place of business of the seller of the natural gas;
f. The name and address of the principal place of business of the transporter of the natural gas;
g. The address of the place where the gas is to be delivered within the city;
h. The date that the applicant proposes to begin delivery of said natural gas;
i. The name of the party who is to be responsible for the collection and payment of all fees pursuant to said permit; and
j. The proposed purchase price of the gas to be transported or delivered within the city.
(2) Every application for a permit shall be filed with the city secretary at least 30 days before the proposed date of first delivery of natural gas.
(3) The city manager shall, within 30 days of the filing of the application for a permit as required in this section, first consider the application to determine whether or not the application complies with all respects and provisions of this section; and if it does so comply, issue said permit.
(4) Any permit issued shall contain the following material terms:
a. The permittee shall pay the fee set forth in subsection (c) of this section to either the city or transporter, as the case may be, on a monthly basis, according to the city's direction;
b. The permittee shall grant to the city the right to audit at reasonable times the books and records of the permittee to verify the correct payment of the fee set forth in subsection (c) of this section;
c. The permit shall specify the beginning and ending dates that the permit will be effective, provided that said permit not be granted for a period to exceed five years; and
d. That the permittee shall not assign the permit or assign or transfer the rights herein granted, either in whole or part, without the written consent of the city manager of the city.
(e) Penalties and revocation.
(1) Any consumer or seller adjudged guilty of operating without the permit required by subsection (b) of this section shall be guilty of a misdemeanor.
(2) If the permittee shall fail to substantially comply with the conditions of the permit, the city shall have the right by a resolution duly passed therefor to forfeit said permit and all the rights granted to said permittee; provided, however, the city shall give the permittee 30 days' notice in writing, upon receipt of a registered letter containing the same, specifying the conditions claimed to have been violated, and giving full and fair opportunity to be heard thereon, before declaring such forfeiture, which notice shall fairly and fully set out all of the conditions claimed and complained of, and shall be given by the said city and shall be signed by the city secretary under the seal of the city. After having been properly authorized by the mayor of the city; and further provided, however, the permittee shall have 30 days after receiving such notice in which to rectify and correct such violations and to substantially comply with the terms and conditions of the permit; should the violations so complained of not have been rectified and corrected and the terms and conditions of the permit substantially complied with at the end of said 30 days, then and in that event, the city shall have the power to forfeit said permit on account of the violations specified in said notice.
(Prior Code, § 16-50; Ord. of 9-22-1992)