51-41 Franchise rights.

Subject to all terms and conditions in this Article III and the individual franchise ordinance, a franchise grants the grantee the right to transact a local business of supplying electricity or gas, as designated in the individual franchise ordinance, to customers in the city using facilities of an identified utility to the extent that it is lawful under applicable legislation, administrative rules, including those of the MPSC, and express or implied contract or agreement with the utility. A franchise does not grant the right to own, construct, operate, maintain or repair facilities in the city.

(Ord. No. 2108, § 3.1, 6-15-00)

51-42 Term, revocation and termination.

The term of a franchise, which shall be stated in the individual franchise ordinance, is subject to revocation at the will of the city and may be surrendered and terminated by the grantee on 30 days’ written notice to the city. Any unsatisfied obligations of grantee to the city shall survive revocation or termination and be enforceable by the city as provided in the franchise, as amended.

(Ord. No. 2108, § 3.2, 6-15-00)

51-43 Non-exclusive.

A franchise is non-exclusive and does not restrict the city from approving additional franchises or establish any priority between grantees to transact local business and the incidental use of right-of-way.

(Ord. No. 2108, § 3.3, 6-15-00)

51-44 Assignment.

A franchise may not be sold, leased, assigned, transferred or used by any person other than the grantee without the written approval of the city by ordinance amendment.

(Ord. No. 2108, § 3.4, 6-15-00)

51-45 Compliance with laws and ordinances.

A franchise requires grantee compliance with all applicable current and future city, state and federal ordinances, laws, rules and regulations and any permit, approval, certificate or license requirements and conditions under such laws and shall not be construed as a waiver by grantee of any of its rights under state or federal law.

(Ord. No. 2108, § 3.5, 6-15-00)

51-46 No right-of-way disruption.

Disruption or obstruction of, and physical entry in or upon a right-of-way by a grantee, its personnel or equipment is prohibited.

(Ord. No. 2108, § 3.6, 6-15-00)

51-47 City rights paramount.

A franchise and the rights granted by it shall at all times be subject to the paramount rights of the city in its right-of-way, and shall be subject to immediate suspension or termination by the city in the interest of the public health, safety and welfare.

(Ord. No. 2108, § 3.7, 6-15-00)

51-48 Vacation.

If a right-of-way is vacated, discontinued, abandoned, terminated or released, a grantee’s incidental right to use the right-of-way shall immediately terminate.

(Ord. No. 2108, § 3.8, 6-15-00)

51-49 Public emergencies.

Without prior notice, the city has the right to remove, damage, destroy or otherwise disrupt and/or order a cessation of use of facilities used by grantee or its customers, when necessary due to a public emergency. Public emergency means any situation which, in the opinion of the city official authorized to declare an emergency, presents an immediate threat to persons or property in the city. The city shall have no liability or responsibility for repairing or restoring facilities damaged by actions taken under this section.

(Ord. No. 2108, § 3.9, 6-15-00)

51-50 Interpretation.

A franchise shall not be construed in any manner as a waiver or limitation of the city’s discretion and authority or rights to regulate and control the use of right-of-way.

(Ord. No. 2108, § 3.10, 6-15-00)

51-51 Assumption of risk.

A grantee assumes all risks of damages or injuries to its officers, employees, agents and contractors from dangerous right-of-way conditions, if any.

(Ord. No. 2108, § 3.11, 6-15-00)

51-52 No city liability.

The city and its officials, employees, agents and contractors shall have no liability for damages or injuries to any person or property, including grantee, that arise from the granting, enforcement or exercise of rights under a franchise.

(Ord. No. 2108, § 3.12, 6-15-00)

51-53 Indemnity.

A grantee shall, at its sole cost and expense, defend, indemnify and hold harmless the city and its officials, employees, agents, contractors, right-of-way and property from all claims and liability for damages or injury to persons or property caused by or resulting from the actions or omissions of grantee and/or its officers, employees, agents and contractors. This obligation extends to all costs and expenses, including attorney fees that may be incurred by the beneficiaries of grantee’s obligation. The city shall notify grantee of any claim or liability that is covered by grantee’s obligation, and shall not be prevented from participating in the defense of any claim by its own attorney, the cost of which shall be grantee’s responsibility.

(Ord. No. 2108, § 3.13, 6-15-00)

51-54 Insurance.

The city reserves the right to require the grantee to have, maintain and provide specified liability insurance coverages.

(Ord. No. 2108, § 3.14, 6-15-00)

51-55 Disclosures.

Grantee shall provide and update written disclosure to the city of its contact person(s), address, telephone numbers, fax numbers, Email addresses, if applicable, and procedures for service requests and complaints, together with a written disclosure of pricing, billing, warranty and contract rates, terms, policies and procedures.

(Ord. No. 2108, § 3.15, 6-15-00)

51-56 Supply requirements.

Grantee shall supply electricity or natural gas in accordance with all applicable laws.

(Ord. No. 2108, § 3.16, 6-15-00)

51-57 Franchise fees.

Every three years commencing after December 31, 2001, the city has the right, after providing prior notice and an opportunity to comment to grantee, to require the payment by grantee on a periodic basis, of a franchise fee, provided that any such fee is applied equally to all grantees under this chapter that are supplying the same commodity (electricity or natural gas) as grantee. Such a franchise fee would be an additional franchise term and condition, to be adopted and presented to the grantee for acknowledgement, agreement and acceptance as an ordinance amendment as provided in section 51-23. In any such fee review, the grantee shall disclose and the city may consider if grantee pays a franchise fee, charge or other periodic payment for a franchise to any other Michigan municipalities and the manner in which such fees are computed. It is a condition of a franchise that the grantee notify the city of any such fees that are paid and the city shall have the right to inspect grantee’s books and records to monitor, enforce and determine grantee’s compliance and the accuracy of amounts paid or to be paid by grantee under this section.

(Ord. No. 2108, § 3.17, 6-15-00)

51-58 City costs.

Grantee shall reimburse the city for any costs it incurs, including reasonable attorney fees, in enforcing franchise terms and conditions.

(Ord. No. 2108, § 3.18, 6-15-00)

51-59 Reservation of city rights.

A franchise shall at all times be subject to the rights of the city, which are hereby reserved, to make all regulations, take all actions and do all things provided for in its Charter.

(Ord. No. 2108, § 3.19, 6-15-00)

51-60—51-90 Reserved.