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AN ORDINANCE AUTHORIZING J.H. HAWTHORNE, TRUSTEE, HIS SUCCESSORS OR ASSIGNS, WIHTIN THE CORPORATE LIMITS OF THE CITY OF JONESBORO, ARKANSAS, AS THE SAME NOW ARE OR MAY HEREAFTER BE EXTENDED, TO CONSTRUCT, ERECT, MAINTAIN AND OPERATE A GAS PLANT, A SYSTEM OF PIPES, VALVES, OTHER APPURTENANCES AND EQUIPMENT FOR THE DISTRIBUTION OF GAS AND TO SELL GAS TO THE PUBLIC FOR HEAT, FUEL AND ALL OTHER USEFUL PURPOSES, GRANTING AN EXCLUSIVE FRANCHISE IN CONNECTION THEREWITH, AND AUTHORIZING THIE EXCLUSIVE USE OF THE STREETS, ALLEYS AND OTHER PUBLIC GROUNDS OF SAID CITY AND IN THE ADDITIONS THERETO FOR SAID PURPOSES
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS:
Section 1. The rights and privileges hereinafter set forth to be exercised at and within the corporate limits of the City of Jonesboro, Arkansas, for a period of fifty years from and after the acceptance of the franchise hereby granted as herein provided, are hereby conferred exclusively upon J.H. Hawthorne, Trustee, his successors or assigns hereinafter called the “Grantee”, as follows:
(a) To construct, erect, maintain and operate a gas plant.
(b) To enter into and upon the streets, avenues, alleys and public places and to install, maintain and operate therein a system of pipes, values and all other appurtenances necessary for distribution and furnishing gas to the city and its inhabitants.
(c) To furnish gas to the city and its inhabitants for heat, fuel and any other useful purpose.
Section 2. The grantee shall construct, maintain and operate a modern gas plant or other source of supply and lay the necessary mains for the distribution thereof, said gas plant, other source of supply and mains shall have adequate capacity to furnish the full requirements of the city and its inhabitants for gas, and from time to time shall make such additions as may be required to furnish such service within the city.
The grantee shall commence the construction of said plant within six months from and after the date of the filing of the written acceptance of this franchise with the City Clerk, and use diligence in the prosecution of the installation and completion of said plant, but the Council may by resolution or resolutions extend the time or times within which said construction may be commenced.
Section 3. The system of pipes, valves, appliances and fixtures installed by the grantee shall be installed, maintained and operated in such a manner as not to endanger persons or property and so as not to unnecessarily interfere with any improvements the city may deem proper to make and so as not to unnecessarily hinder or obstruct the free use of streets, avenues, alleys or public places or private property and so as not to interfere with the sewer, drainage or water system of said city. All mains shall be laid not less than eighteen inches below the general surface of the ground, except by consent of the city engineer, and so laid as not to interfere with public improvements installed prior thereto.
Section 4. That the grantee shall from time to time make extensions to its system when ordered by the council of the city in writing, provided that each of such extensions shall not exceed one hundred feet in length for each applicant for service and provided further that the grantee shall not be required to make extensions to its system unless and until each of the persons desiring service shall deposit with the grantee the sum of thirty dollars, which sum shall be credited upon the purchase price of the gas first consumed in the premises so connected, by the depositor or his assignee during the first two years after said connection, said credit to be at the rates charged other consumers by said grantee.
Section 5. Whenever the grantee in the construction or maintenance of its system or the installation of extensions shall cut into or take up any pavements or shall make any excavations in any street, avenue, alley or public place within the city, the same shall be done in such a manner as not to hinder or interfere with the use of such street, avenue, alley or public place by the public and shall use such safeguards as may be necessary to prevent injury to persons or property, and upon the completion of such work all pavement shall be replaced in as good condition as before the same was taken up, all excavations shall be refilled and all obstructions shall be removed at the expense of the grantee and to the satisfaction of the property officer or officers of the city, and in the event the provisions of this section are not complied with after the grantee has been given reasonable notice, the city may do such work as may be required to properly repair or replace such street, avenue, alley or public place, and the cost thereof shall be repaid to the city by the grantee.
The grantee shall furnish to the city at or prior to the date that it commences to open the streets for the laying of mains or services, a bond, executed by some surety company authorized to do business in the State of Arkansas, in the penal sum of ten thousand dollars, guaranteeing to the city the performance by the grantee of the provisions of this ordinance, relating to the opening of streets, alleys or public places for the laying of mains or services, and the filling of all ditches and trenches therefore, the relaying of paving and the restoration of the surface of streets, provided that whenever the laying of the general system of mains is completed the amount of said bond shall be reduced to two thousand dollars, said two thousand dollar bond to continue for the purpose of covering extensions, repairs and maintenance.
Section 6. The grantee shall at all times maintain a sufficient pressure in his mains to insure an adequate supply of gas to the consumer thereof, which shall be uniform and of good quality.
Section 7. All rates charged by the grantee shall be fair, just and reasonable and the grantee shall, during the term of this franchise, have the right to fix, charge, collect and receive such rates for service as will be sufficient and adequate to furnish a fair and reasonable return of net profit upon the fair value of the property of the grantee used and useful in furnishing gas service to the city and its inhabitants and chargeable to such service.
The grantee by the acceptance of this franchise agrees that such fair, reasonable and adequate rates for the three years next ensuing from and after the date of the acceptance of this franchise, based on monthly consumption, shall not exceed the rates hereinafter set forth, and agrees during said period not to charge in excess of said rates, said rates being as follows, to-wit:
$1.00 for all or any part of the first 100 cu. ft. consumed
$0.20 per 100 cu. ft. for the next 4 900 cu. ft. consumed
$0.17-1/2 per 100 cu. ft. for the next 5,000 cu. ft. consumed
$0.15 per 100 cu. ft. for the next 5,000 cu. ft. consumed
$0.12 per 100 cu. ft. for all consumption in excess of 15,000 cu. ft.
The grantee is authorized to charge a minimum monthly bill of $1.00 for each meter installed, said minimum bill to be applied upon payment for gas used, if any, through said meter by the customer, and is also likewise authorized to charge, in addition to the rate above set forth, the sum of ten cents for each 1,000 cubic feet of gas on any monthly bill not paid within then days after the same is rendered, and the grantee may discontinue service to any one whose bill is not paid within fifteen days after the same is rendered.
In case a state of war or other public calamity should occur during the above named period whereby the cost to the grantee of producing or furnishing gas is increased more than twenty cents per 1,000 cubic feet, the grantee shall have the right, during the period of the continuation of this increase, to add to the foregoing rates the actual cost of such increase.
That upon and after the expiration of the first three years of service, if the City Council or the grantee are not satisfied that the rates for service which are being charged within the city are fair and reasonable within the meaning of this section, then such council or the grantee shall have the right at any time, but not oftener than once every three years, to have the question as to what is a fair and reasonable rate to be charged by the grantee for services determined. That if the council of the city and the grantee are unable to make such determination, then the matter shall be submitted to a board of arbitration composed of three members who are skilled in the manufacture and distribution of manufactured gas. The council of the city shall choose one member of such board of arbitration and the grantee shall chose the second member of such board of arbitration, and the two members chosen shall choose the third member of such board. That such board shall fix and determine the fair and reasonable rates to be charged for service and the findings of such board shall be final, and shall, subject to the further provisions of this ordinance, be the rates to be charged and paid for the three years next ensuing from and after the date of said award. Provided, however, that nothing contained in this section shall abridge or lessen any right which either the city or the grantee may have under the statutes of the State of Arkansas and amendments thereto for the purpose of determining any question in relation to the fair and reasonable rates for service. That for the purpose of determining any question in regard to rates to be charged for service, the grantee shall give to the city or its agents the right at all reasonable times to examine its plant, properties, machinery or books and records and to make such investigation or audit as may be necessary for a full determination of the matter. Provided that if a supply of natural gas becomes available for use at Jonesboro at reasonable costs, the rates for such service with natural gas shall at once become subject to readjustment.
Section 8. The grantee shall have the right to make reasonable rules and regulations in relation to the furnishing of service, provided that said rules and regulations shall be uniformly enforced and shall not be contrary to the provisions of this ordinance or the laws of the State of Arkansas.
Section 9. That the grantee shall hold the city harmless from any and all causes of action, litigation or damage arising out of or caused by the construction, erection, installation, maintenance or operation of his property within said city of the negligence of his officers, agents or employees in the operation or maintenance thereof.
That this ordinance shall be in full force and effect from and after the date of its adoption by the council the city and its acceptance in writing by the grantee filed with the clerk of the city within thirty days after its final passage and adoption.
Section 10. The council may by ordinance terminate the rights granted to the grantee under this ordinance if the grantee shall for more than thirty consecutive days refuse or neglect to furnish service to the city and its inhabitants, provided that no forfeiture shall be declared so long as the grantee is using due diligence to restore and resume service, and provided the grantee shall have at least ten days written notice from the city of its intention to pass said ordinance. Said notice shall be given to the local manager or the local attorney of the grantee as is provided by the Statutes of Arkansas for the service of summons in civil actions. A copy shall also be sent by registered mail to John A. Reed, Cedar Rapids, Iowa, or such other person and address as the grantee may designate in writing filed with the city clerk.
Section 11. That the grantee shall have the right to transfer and assign this franchise to any other person, firm or corporation, provided notice of such transfer or assignment is filed with the clerk of the city and the assignee shall in writing agree to assume all the burdens and liabilities imposed by this franchise and to be bound by the provisions thereof. That upon the filing of such acceptance, the grantee shall be exonerated and discharged from all personal liability under this franchise.
Section 12. The grantee shall file with the city clerk his written acceptance of this franchise within thirty days after its final passage and adoption in the manner and form provided by law and this ordinance shall be in full force and effect from and after the date of such filing.
PASSED AND ADOPTED this 1st day of October, 1927.