HomeMy WebLinkAboutS-636 Ordinance No. 1.636
AS ORDINANCE
AUTHORIZING NORTHERN ILLINOIS GAS COMPANY, ITS SUCCESSORS AND ASSIGNS TO CON-
ITRtJCT, OPERATE AND MAINTAIN A GAS DISTRIBUTING SYSTEM IN AND THROUGH THE CITY
Ot ELGIN, KANE AND COOK COUNTIES, ILLINOIS.
3E IT ORDAINED BY THE COUNCIL OF THE CITY OF ELGIN, ILLINOIS:
t
SECTION 1. That the right, permission and authority be and the sante
ars hereby granted to NORTHERN ILLINOIS GAS COMPANY, an Illinois corporation,
its successors and assigns (hereinafter referred to as the "Grantee"), to con-
strect, operate and maintain in and through the CITY OF ELGIN (hereinafter ray-
.
.ferred to as the "Municipality"), in the Counties of Kane and Cook and State of
Illinois, for a term of Fifty (S0) years, a system for the production, distri-
button and sale of gas for fuel, heating, processing and other purposes within
• end outside the corporate limits of the Municipality, and to construct, lay,
• maintain and operate such gas pipes, mains, conductors and other devices, ap-
' paratus and equipment as may be necessary or convenient for such system La, on.,
der, along and across each and all of the streets, alleys, avenues and other
public places in the Municipality, subject to the conditions and regulations
hereinafter set forth.
SECTION 2. All pipes, mains, conductors and other appliances, in-
eluding connections with service pipes, hereafter laid in streets, alleys,
avenues, or other public places, shall be laid under the supervision of the
Director of Public Works and the City Engineer of the Municipality, or such
other duly authorised agent of the Municipality as the Council may from time
to time designate. All pipes, ss:aisaa, conductors and other appliances shall
be so located as not to injure unnecessarily any drains, sewers, catch basins,
rater pipes, pavements or other like public improvements, but should any drain,
sewer, catch basin, water pipe, pavement or other like public improvement he
injured by such location, the Grantee shall forthwith repair the damage caused
by such injury to the satisfaction of the Director of Public Works and the
City Engineer, or such other duly authorised agent, and in default thereof
the Municipality may repair such damage and charge the cost thereof to, and
collect the same from, the Grantee. The Grantee-shall be subject to all rea-
sonable regulations which may now or hereafter be prescribed by general ordinance
s of the Municipality with respect to the use of the public streets, alleys,
- avenues and other public places of the Municipality.
SECTION 3. The Grantee shall indemnify, become responsible for and
• forever save harmless the Municipality from any and all judgments, damages,
decrees, costs and expenses, including attorneys' fees, which the Municipality
nay legally suffer or incur, or which may be legally obtained against the
Municipality, for or by reason of the use and occupation of any street, alley,
avenue or other public place in the Municipality by the Grantee pursuant to
the terms of this ordinance or legally resulting from the exercise by the
Grantee of any of the privileges herein granted, and as additional security
therefor the Grantee shall, during the life of this ordinance, keep on file
f with the Clerk of the Municipality a good and sufficient bond in the penal
sum of Five Thousand Dollars ($5,000), conditioned to protect and indemnify
the Municipality as in this section provided, and said bond shall be subject
to the approval of the Council of the Municipality, and the Municipality shall
have the right from time to time, whenever in the opinion of the said Council
255 September 24, 1959 Volume XXIV
the same may be necessary, to require the Grantee to renew or provide additional
or other'security on said bond.
SECTION 4. After the passage of this ordinance, and within thirty (30) days
after passage, this ordinance, if accepted, shall be accepted by the Grantee by
its filing with the Clerk of the Municipality an unconditional written acceptance
hereof, to be duly executed according to law, and a failure of the Grantee to
so accept this ordinance within said period of time shall be deemed a rejection
hereof by the Grantee, and the rights and privileges herein granted shall after
the expiration of said period of thirty (30). days, if not so accepted, absolutely
cease and determine, unless said period of time shall be extended by the
Municipality by ordinance duly passed for that purpose anr -before the expiration
of said period of thirty (30) days.
SECTION 5. All provisions of this ordinance which are obligatory upon or
which inure to the benefit of, said Northern Illinois. Gas Company shall also be
obligatory upon and shall inure to the benefit of any and all successors and
assigns of said corporation, and the word "Grantee" wherever appearing in this
ordinance shall include and be taken to mean not only said Northern Illinois
Gas Company but also each and all of such successors and assigns.
•
SECTION 6. This ordinance, if accepted by the Grantee as hereinabove provided,
shall be in full force and effect on and after October 24, 1959, and from and
after the effective date shall supersede, cancel, repeal and be in lieu of any
and all other existing or prior grants of right, permission and authority by
said municipality to said Grantee or any predecessor companies or assignors of
the Grantee to construct, operate and maintain any system for the production,
distribution and sale of gas for fuel, heating, processing and other purposes
within and outside the corporate limits of this Municipality, and this ordinanr•
shall likewise cancel all of the obligations under said existing or prior grants.
Introduced: September 10, 1959
Passed: - September 24, 1959
Vote: Yeas 5 Nays 0
Recorded: September 24, 1959
Published: September 24, 1959 LeRoy A. Mote, Mayor
Attest: Myrtle E. Spiegler, City Clerk
, .
C . rfinf
January 7, 1993
MEMORANDUM
TO: Bob Maim, Assistant City Manager
FROM: Loni Mecum, City Clerk
SUBJECT: Franchise Agreement with Northern Illinois Gas
I spoke to John Williams at Northern Illinois Gas and he
informed me that the original franchise agreement is actually
the ordinance which was passed by the City Council in
September 1959 .
Accordingly, a copy of Ordinance No. S-636 is attached.
Ordinance Passed Granting New Franchise to Northern Illinois Gas
Company
The Ordinance granting a fifty year franchise to the Northern Illinois Gas Company,
which was introduced and placed on file for public inspection at the September 10th
meeting, was presented for passage. Mayor Mote read a telegram received a few
hours before the Council meeting from the Illinois Fuel Merchants Association
opposing the conversion to gas heat in city buildings, and raising certain questions
about the proposed franchise. There was no individual signature to the telegram.
The Mayor pointed out that the ordinance had been carefully reviewed by the Corpor-
ation Counsel for compliance with legal requirements before it was offered for
introduction at the last meeting, and asked the Corporation Counsel to comment on
the telegram. On the question of the 50,000 therms of gas to be supplied annually
without charge, the Corporation Counsel advised that this is the consideration for
the franchise and, therefore, is not a rebate. With respect to approval of such
arrangement by the Illinois Public Utilities Commission, the Corporation Counsel
advised there is no such thing, and both he and Mr. C. S. Collins, District Super-
intendent of the Northern Illinois Gas Company, stated that if the Il1inc•'_s Commerce
Commission was intended, it has no rulings or regulations in conflict with the pro-
posed ordinance and agreements.
At the request of the Mayor, the Corporation Counsel then presented two agreements
to be entered into by the Northern Illinois Gas Company in consideration of the
Franchise. These, also, had been discussed at the last meeting. The fiat provides
that during the 50 years of the franchise the Northern Illinois Gas Comra-_y w=11
supply the City with 50,000 therms of gas annr-ally without charge, for use, for
space heating in buildings occupied by the City solely for governmental p=rpcses.
The therms of gas provided annually will be proportionately increased as the pop-
ulation increases. The Company also agrees that if it makes a more favorable
franchise with any other city of comparable size to Elgin, the more favorable
terms and conditions will immediately become applicable to us. The second agreement
provides for an extension through the year 1960 of the present special arrangement
on therms unused for space heating purposes, allowing a credit of up to 6500 unused
space heating therms against gas used by the Water Department for operaticnal pur-
poses.
Councilman Gavelek made a motion, seconded by Councilman Johnson, to accept the
two agreements offered. Yeas: Councilmen Gavelek, Johnson, Johnston, Shales, and
Mayor Mote. Nays: None.
Councilman Johnston made a motion, seconded by Councilman Gavelek, to pass the
ordinance grating the franchise to the Northern Illinois Gas Company. Yeas:
Councilmen Gavelek, Johnson, Johnston, Shales and Mayor Mote. Nays: None.