[Ord. No. 2000-01, § 1, 6-19-2000]
This article shall be known and cited as the Chesterfield Township
Electric Service Ordinance.
[Ord. No. 2000-01, § 2, 6-19-2000]
This article is adopted pursuant to and in accordance with the
authority of the township granted by to Article VII, Section 25 of
the 1963 Michigan Constitution; Article VII, Section 29, of the 1963
Michigan Constitution; and Act No. 69 of the Public Acts of 1969,
as amended.
[Ord. No. 2000-01, § 4, 6-19-2000]
(a)
Prohibited conduct. It shall be unlawful for any person to construct,
install, operate, or maintain electrical facilities, including, but
not limited to, electric lines, towers, masts, poles, cross-arms,
guys, braces, feeders, transmission and distribution wires, transformers
and other electrical appliances, in, along, over or under the highways,
streets, alleys and other public places in the township, without making
application for and receiving a franchise from the board of trustees
in accordance with the terms and provisions of this article. It shall
be unlawful for any person to transmit, supply, deliver and distribute
electricity and electrical services as part of a direct access program
approved or authorized by the Michigan Public Service Commission or
successor agency having similar jurisdiction, or by a federal agency,
or to transact related local business in the township without making
application for and receiving a franchise from the board of trustees
in accordance with the terms of this article.
(b)
Non-exclusive franchise. The township may grant one or more franchises
for the transmission and distribution of electric service, and/or
for the construction of electrical facilities within the township
in accordance with this article. The township specifically reserves
the right to grant, at any time, such additional franchises as it
deems appropriate. Additional franchises shall not be deemed to modify,
revoke, terminate or damage any rights previously granted to any other
grantee.
(c)
Non-transferable. Any franchise granted by the township may not be
sold, transferred, assumed, assigned or sublet in any manner either
directly or indirectly without the prior written consent of the township.
A substantial change in ownership, either through stock purchase,
merger or consolidation shall require a reapplication by the grantee,
and a new franchise agreement.
(d)
Term. The term of the franchise shall be specified the franchise
agreement, but in no case shall be greater than 30 years.
(e)
Revocable at will. Any franchise granted pursuant to this article
is subject to revocation at the will of the township upon 30 days'
written notice to the grantee.
(f)
Other federal, state and local requirements. Nothing in this article
shall be construed as waiver of any codes, ordinances, or regulations
of the township or the township's right to require grantee or persons
utilizing the electric service to secure appropriate permits or authorizations
for such use. Standard fees or charges generally applicable to all
persons for such permits or authorizations shall also apply to grantee.
Such standard fee or charge shall not be off-set against the franchise
fee grantee is required to pay to the township. Prior to offering
or providing electric services, grantee shall obtain any and all regulatory
approvals, permits, authorizations or licenses necessary to provide
electric service from the appropriate federal, state and local authorities,
and shall submit to the township, evidence of all such approvals,
authorizations, permits or licenses, including, but not limited to,
the Michigan Public Service Commission certification empowering it
to sell electricity within the township.
[Ord. No. 2000-01, § 5, 6-19-2000]
(a)
Application required. Any person wishing to install, construct, maintain,
or operate electric facilities, or transmit, supply or distribute
electric services within the township shall file a completed application
on the form provided and approved by the township. All applications
for an electric service franchise received by the township from the
applicant will become the sole property of the township. The township
reserves the right to reject any and all applications and waive informalities
and/or technicalities where the best interest of the township may
be served.
(b)
Application fee. The applicant shall pay a non-refundable application
fee in the amount of $2,000, when requesting a franchise for non-facilities-based
service, and $4,000 when requesting a franchise for a facilities-based
service, or an amount otherwise established by a duly adopted resolution
of the township board of trustees. This fee shall be utilized to offset
the cost of processing the application by the township, including
review by the township engineer, township legal counsel, and all relevant
township departments.
(c)
Denial. Approval may be denied for failure to demonstrate, legal,
technical, business, or financial qualifications; failure to agree
upon the terms and conditions to be imposed for the use the rights-of-way
and/or if denial serves the public health, safety and welfare, as
determined by the township board of trustees.
(d)
Qualifications. In determining whether a franchise shall be granted,
the township board of trustees may take into consideration, among
other things, the technical qualifications of the applicant, the financial
responsibilities of the applicant, the ability of the applicant to
perform efficiently the service for which the franchise is requested,
including the prior experience, if any, of the applicant in furnishing
electric services.
(e)
Investigation. The township may make such investigations as it deems
necessary to determine the ability of the applicant to perform in
accordance with the franchise requested, and the applicant shall furnish
to the township all such information and data for this purpose as
the township may request. The township reserves the right to object
[to] any application if the evidence submitted by, or upon investigation
of such, applicant fails to satisfy the township that the applicant
is properly qualified to carry out the obligations of the franchise
and to complete the work contemplated by the franchise.
(f)
Effective date. A franchise shall be effective on the date set by
resolution adopted by the township board of trustees, which resolution
shall approve the written franchise agreement containing terms and
conditions pursuant to which the franchise is granted. The agreement
shall be executed by the supervisor and clerk and filed with the township
clerk. Prior to the effective date of any franchise, all fees must
be paid by the grantee, any bond required must be filed, insurance
certificates must be filed and/or other conditions precedent to the
franchise must be satisfied.
[Ord. No. 2000-01, § 6, 6-19-2000]
The franchise agreement required by this article shall, without
limitation, provide for the payment of compensation to the township
for use of rights-of-way, easements, streets, alley, highways, other
public places, and shall provide for the services and facilities to
the township, as public interest may require, subject to the limitation
of any applicable constitution, federal or state law.
[Ord. No. 2000-01, § 7, 6-19-2000]
(a)
Standards. All facilities and equipment of any electric service system
operating within the township shall be constructed and maintained
at a state-of-the-art level in accordance with the applicable requirements
and specifications of the National Electric Code and National Building
Code; shall participate in MISS DIG and shall comply with all applicable
rules and regulations of the Michigan Public Service Commission (MPSC),
Federal Energy Regulatory Commission (FERC), and all other pertinent
ordinances, codes and regulations of the township, and the State of
Michigan. No construction shall occur which involves cutting or patching
or tunneling beneath any paved surface, whether concrete, asphalt
or other pavement, unless plans have been approved by the township
and any other applicable governmental entity having jurisdiction over
such paved surfaces.
(b)
Location and public ways. To the maximum extent possible, grantee
shall place its electric system, on, within, and along existing utility
facilities in the public rights-of-way. Where existing utility wiring
is located underground, either at the time of initial construction,
or subsequent thereto, grantee's electrical system shall also be located
underground unless otherwise expressly authorized by the township.
If grantee has facilities on Detroit Edison poles, or on any other
public utility company's above-ground utility poles and the owner
of such poles relocates the facilities to an underground conduit,
grantee shall relocate its facilities underground in the same location.
(c)
Relocation or removal of system or equipment. No electric service
system or electric service equipment may be relocated or removed unless
plans showing the proposed relocation or removal are submitted and
filed with the township and approved by the township board. The township
shall not unreasonably refuse to approve any such relocation or removal.
Any and all rights-of-way shall be restored to the same condition
existing prior to such relocation or removal, within 30 days of same.
[Ord. No. 2000-01, § 8, 6-19-2000]
Grantee shall file with the township clerk and township engineer
a current map and subsidiary plats showing the exact location of transmission
and distribution facilities and equipment of the system in the rights-of-way,
clearly identifying what lines are owned by grantee and which are
owned by any other public electric utility servicing customers of
grantee.
[Ord. No. 2000-01, § 9, 6-19-2000]
As part of the consideration for the grant of a franchise, the
grantee, shall, at its sole cost and expense, fully indemnify, defend
and hold harmless the township, its board members, officers, boards,
commissions and employees, against any and all claims, demands, suits,
judgments, executions, liability, debt, damages or penalty (including,
but not limited to, expenses for actual legal fees and expenses, expert
witness and consultants, disbursements and liabilities assumed by
the township in connection therewith) resulting from and rising out
of, or alleged to arise or result from any act or omission of the
grantee, its officers, employees, contractors, successors and assigns,
in the construction, installation, operation, maintenance, repair
or removal of the electric system used or owned by grantee or due
to grantee's failure to comply with any federal, state or local statute,
ordinance, or regulation.
The township, and its agents, employees and contractors shall
not be liable to grantee or grantee's customers for any interference
with or disruption in the operation of grantee's electrical system,
or the distribution of service over or through any electric system,
or for any damages arising out of the grantee's use of the public
rights-of-way.
[Ord. No. 2000-01, § 10, 6-19-2000]
(a)
Required. Grantee shall at all times during the term of the franchise
carry and require contractors and subcontractors to carry public liability,
property damage, worker's compensation and vehicle insurance in the
form and amounts set forth below. All insurance shall provide for
30 days' notice to the township in the event of a material alteration
or cancellation of coverage prior to the effective date of such alteration
or cancellation. Failure to provide or maintain insurance for any
period in excess of 60 days shall render any franchise granted hereunder
null and void. All insurance coverage shall be by insurance carriers
acceptable to the township. The township may annually review the insurance
coverage to be carried by grantee. If the township determines that
additional or other insurance is necessary to protect the best interests
of the township, the township shall notify grantee and grantee shall
obtain the additional types and limits of insurance, at its sole cost
and expense. All insurance shall be effected under valid and enforceable
policies, insured by insurers licensed to do business by the State
of Michigan. Grantee and any contractor or subcontractor hired by
grantee shall procure and maintain during the life of the franchise
the following coverage:
(1)
Worker's compensation insurance in accordance with all applicable
statutes in the State of Michigan. Coverage shall include employer's
liability coverage.
(2)
Automobile liability coverage, including Michigan no-fault coverage
for all vehicles used in the performance of the permit. Limits of
liability shall not be less than $1,000,000 per occurrence combined
single limits bodily injury and property damage.
(3)
Commercial general liability insurance on an "occurrence" basis
with limits of liability not less than $2,000,000 per occurrence for
bodily injury and personal injury, and $1,000,000 per occurrence for
property damage. Coverage shall include the following extensions:
contractual liability; products and completed operations; independent
contractors coverage; broad form general liability extensions or equivalent;
coverage for property damage from perils of explosion; collapse or
damage to underground utilities (XCU coverage).
(b)
Additional insured. The township shall be named as an additional
insured on all policies. Grantee shall provide township with a certificate
of insurance evidencing such coverage upon the effective date of the
franchise agreement and maintain on file with the township a current
certificate throughout the life of the franchise.
(c)
Proof of insurance. Upon written request of the township, grantee
or any contractor or subcontractor hired by grantee, shall within
10 days of such request, supply a copy of the insurance policy of
any of the insurance required under this section.
[Ord. No. 2000-01, § 11, 6-19-2000]
(a)
Required. If facilities are to be constructed, installed and/or maintained
by grantee, it shall, at its sole expense, obtain and maintain during
the life of the franchise, a corporate surety bond with a United States
surety company authorized to do business in the State of Michigan
and found acceptable by the township attorney, in the amount of $100,000
both to guarantee the timely construction and full activation of the
system and to secure grantee's performance of its obligations and
faithful adherence to all requirements of this article and the conditions
of the franchise agreement, including property restoration upon removal
of the system or any component thereof. Grantee shall provide this
corporate surety bond to the township at least 30 days prior to commencement
of construction.
(b)
Rights reserved. The rights reserved to the township with respect
to the bond are in addition to other rights of the township, whether
reserved by this article, conditions, items of the franchise agreement
or authorized by law; and no action, proceeding or exercise of a right
with respect to such bond shall affect any other right the township
may have.
(c)
Required endorsement. The bond(s) shall contain the following endorsement:
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"It is hereby understood and agreed that this bond may not be
cancelled by the surety nor any intention not to renew be exercised
by the surety until 60 days after receipt by the township, by registered
mail, of written notice of such intent to cancel or not to renew."
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Receipt of the 60-day notice shall constitute a material breach
of the franchise agreement, granting the township the right to call
in the bond.
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[Ord. No. 2000-01, § 12, 6-19-2000]
(a)
Michigan Public Service Commission. Grantee shall provide the township
with copies of all documents which grantee sends the Michigan Public
Service Commission, or its successor agency having similar jurisdiction,
and copies of all orders, decisions, or correspondence which grantee
receives from the Michigan Public Service Commission, or its successor
agency having similar jurisdiction.
(b)
Federal regulatory agencies. Grantee shall provide the township with
copies of all documents which grantee sends to any federal agency
with regulatory authority over the transmission, distribution or other
provision of electric services.
(c)
Review of books and records. The township may review any such books
and records belonging to grantee during normal business hours as reasonably
necessary to monitor compliance with this article, and the permit
issued hereunder any agreement entered into with grantee. Upon written
request of the township, grantee shall supply a copy of the following
reports, within 10 days of request of same: a summary of the previous
year's activities, including services begun or discontinued during
the reported year; a list of grantee's officers, members of its board
of directors and other principals of grantee; a list of stockholders,
partners or other investors, with 5% or more interest in grantee;
information regarding the number of sites where service is available
and/or potentially available, and/or the number of customers.
(d)
Failure to provide reports, books and records. All reports, records
and summaries required under this section shall be printed at the
sole expense of grantee. The refusal, failure or neglect of grantee
to file any reports required under this section shall be deemed a
material breach of the franchise agreement. False or misleading statements
or representations contained in any report shall be deemed a material
breach of the franchise agreement.
[Ord. No. 2000-01, § 13, 6-19-2000]
Grantee shall establish and maintain complaint procedures and
customer service standards. Complaint procedures shall include a method
by which to timely address and resolve complaints of customers within
the township. Customer service standards shall include the establishment
or maintenance of a business office in the township, which is open
normal business hours, and adequately staffed to accept customer payments
and explain bills, or a virtual office consisting of a toll free number
which customers may access and ask questions and register complaints.
Such office must be staffed by trained personnel responding to calls
and capable of timely responding to service requests and complaints.
Failure to establish or maintain complaint procedures or customer
service standards is deemed a material breach of the franchise agreement.
[Ord. No. 2000-01, § 14, 6-19-2000]
Grantee shall provide all its customers within the township
with the following information:
(a)
Price information, including average annualized cents per kilowatt
hour measured at the customer's meter, price variability information
by time of use and volume, and all charges, fees and penalties;
(b)
Terms of service, including length and kind of contract, billing
policies, warranties and notice procedures;
(c)
Customer service information, including a contact address, telephone
number and the procedures for obtaining and maintaining service and
for making complaints; and
(d)
Fuel and emissions characteristics information on the fuel mix and
emissions characteristics associated with the grantee's load serving
resource portfolio.
[Ord. No. 2000-01, § 15, 6-19-2000]
If grantee terminates, forfeits, defaults or otherwise loses
its right to transmit, supply, deliver and distribute electricity
and electrical services through facilities presently owned and maintained
by the Detroit Edison Company, then grantee shall notify the township
supervisor in writing within 10 days and grantee's rights under any
franchise granted in accordance with this article shall be suspended
for 30 days following receipt of said notice. At the end of 30 days,
the franchise shall be terminated unless grantee has regained its
right to transmit, supply, deliver and distribute electricity and
electrical services through facilities presently owned and maintained
by the Detroit Edison Company, or any other entity, and has provided
the township supervisor with written notice that is has regained that
right.
[Ord. No. 2000-01, § 16, 6-19-2000]
The township shall have the right to sever, disrupt, dig-up,
or otherwise destroy facilities used or owned by grantee without any
prior notice, if such action is deemed necessary by the township supervisor,
fire chief, or water and sewer department head, because [of] a public
emergency. Public emergency shall be any condition, in the opinion
of any of the officials named above, possesses an immediate threat
to the lives and/or property of the residents of the township caused
by any natural or man-made disaster, including but not limited to,
storms, floods, fire, accidents, explosions, major watermain breaks,
hazardous material spills, etc. Grantee or the owner of the facilities
shall be responsible for repair, at its sole expense, of the facilities
damaged pursuant to any such action taken by the township.
[Ord. No. 2000-01, § 17, 6-19-2000]
In the event that grantee, or any company which is a subsidiary,
affiliate, or other related company to grantee, pays a fee, charge
or other payment of any kind on a periodic basis (such as monthly,
quarterly, annually) to any municipality within the State of Michigan
as a condition, or in consideration for, the right to transact a local
utility business in that municipality, grantee shall notify the township
in writing of the details of the fee or periodic charge within 60
days of the effective date of the fee or periodic charge, at which
time any franchise granted in accordance with this article shall be
automatically amended to include the requirement that grantee make
such periodic payments unless grantee, within 30 days after such notice,
notifies the township in writing that it will not make the payments,
in which case any franchise granted in accordance with this article
shall be automatically revoked. Any new franchise granted to grantee
by the township shall require payment by grantee of a similar fee
or periodic charge, or a payment substantially equivalent thereto,
as a condition of the new franchise.
