A. Grant: City hereby grants to Avista the right, power, privilege and authority to enter upon all roads, rights-of-way, streets, alleys, highways, public places or structures, lying within the Franchise Area to locate, construct, operate and maintain its Facilities for the purpose of controlling, transmitting and distributing Gas, as may be necessary to provide Gas service.
B. Effective Date: This Ordinance will be effective as of the date of approval, passage and publication as required by law.
C. Term:
The rights, privileges and Franchise granted to Avista will extend for a term of 25 years from the Effective Date, and shall continue year-to-year thereafter, until it is otherwise renewed for another twenty-five (25)-year term, or terminated by either Party, with not less than 180 days prior written notice to the other Party.
The rights, privileges and Franchise granted to Avista will extend for a term of 25 years from the Effective Date, and shall automatically renew for an additional 10 years unless terminated by either Party with not less than one hundred and eighty (180) days prior written notice to the other Party.
D. Non-Exclusive Franchise: This Franchise is not an exclusive Franchise. This Franchise shall not prohibit the City from granting other franchises within the Franchise Area that do not interfere with Avista’s rights under this Franchise. City may not, however, award a Gas Franchise to another party under more favorable or less onerous terms than those of this Franchise without this Franchise being amended to reflect such more favorable or less onerous terms.
E. Notice of City’s Intent to Compete with Avista: In consideration of Avista’s undertaking pursuant to this Franchise, the City agrees that in the event the City intends to engage in the business of providing Gas service during the life of this Franchise or any extension of this Franchise, in competition with Avista, the City will provide Avista with six (6) months’ notice of such action.
F. Assignment of Franchise: Avista shall have the right to assign its rights, benefits and privileges under this Franchise. Any assignee shall, within thirty (30) days of the date of any assignment, file written notice of the assignment with the City together with its written acceptance of all terms and conditions of this Franchise. As permitted by federal and state law and Commission regulation, Avista shall have the right, without notice to or consent of the City, to mortgage or hypothecate its rights, benefits and privileges in and under this Franchise as security for indebtedness.
G. Franchise Taxes, Fees and Costs: Avista shall pay all permitting, license fees, costs and/or franchise fees which it might be required to pay in connection with the issuance, maintenance, existence, continuation, or use of this Franchise, to the extent permitted by state law or City ordinance now in effect or enacted during the term of this Franchise. The City reserves the right to designate the time and manner of payment of such fees or costs owed by Avista in connection with this Franchise. To the extent that any Franchise fees or other costs are imposed on Avista, City shall impose equivalent charges, fees or costs upon any other franchisee in a comparable business or otherwise competing with Avista. Avista shall pay the franchise fee of 1% of gross revenues on a quarterly basis. (Ord. 604, 11-10-2021)