Pocomoke City, Maryland

"The friendliest town on the Eastern Shore"

Ordinance 455, Franchise Agreement with Sandpiper Energy, Adopted 7/20/2020, Updated 7/22/2020

ORDINANCE NO.455

FRANCHISE AGREEMENT WITH SANDPIPER ENERGY, A WHOLLY-OWNED SUBSIDIARY OF CHESAPEAKE UTILITIES CORPORATION

AN ORDINANCE to grant sandpiper Energy, a wholly-owned subsidiary of Chesapeake Utilities Corporation, its successors and assigns, the right and franchise to build, construct, extend, maintain, and operate, in the City of Pocomoke City, Worcester County, Maryland, facilities for the conversion, storage and/or distribution of, and in said city to distribute through mains and sell to the public, natural, renewable, liquefied petroleum or artificial gas, and for such purpose or purposes to lay pipe, conduits, conductors, and other appurtenances of whatsoever kind or nature through and under the streets, highways, alleys, lanes, designated utility easement areas, and other public ways in said City of Pocomoke City, Maryland and limiting the time within which, and specifying certain conditions under which, said franchise may be exercised.

BE IT ENACTED AND ORDAINED BY THE MAYOR AND COUNCIL OF POCOMOKE CITY MARYLAND
Section l' That it does hereby grant unto Sandpiper Energy, a wholly-owned subsidiary of Chesapeake Utilities Corporation and unto its successors and assigns the right and franchise to build, construct, extend, maintain, and operate in the city of Pocomoke City, Worcester County, Maryland, facilities for the conversion, storage, and/or distribution of, and in said city to distribute through mains and sell and deliver to the public, natural, renewable, liquified petroleum or artificial gas, and for such purpose or purposes to lay pipe, conduits, conductors, and/or other appurtenances of whatsoever kind or nature through and under the streets, highways, alleys, lanes, designated utility easement areas and other public ways in said City of Pocomoke City, Maryland.
section ll' That pursuant to the franchise hereby granted the said Sandpiper Energy, a wholly-owned subsidiary of Chesapeake Utilities Corporation, its successors, and assigns, shall have the right to enter upon and use any one or more or all of the streets, avenues, highways, alleys, lanes, designated utility easement areas and other public ways, excluding sidewalks, within the corporate limits of said city of Pocomoke city, Maryland as they now exist or as they may hereafter be extended, for the purpose of distribution and sale of natural, renewable, liquified petroleum or artificial gas, subject to the terms and conditions herein provided.

Section lll' That this franchise shall be exercised in such manner that at no time shall public travel or any of such streets, avenues, highways, alleys, lanes, designated utility easement areas or other public ways be unnecessarily affected or impeded by the laying, maintenance or repair of said gas pipes, conduits or conductors and that no more than one thousand (1,000) feet of such streets, avenues, highways, alleys, lanes or public way shall be at any one time excavated for the use or uses aforesaid without first obtaining approval from the City Manager, and that the surface of all such streets, avenues, highways, alleys, lanes or other public ways where used for the purpose of said franchise shall be restored within ten (10) working days of completion of such work and left in as good as or better than condition as they were before such use, subject to the terms and conditions of Article lll of Chapter 20L of the Pocomoke City Code, and further subject to the following additional conditions: No street, avenue, highway, alley, lane or other public way may be opened for use under this franchise and left unrestored for more than thirty (30) days from the date of first opening of such street, avenue, highway, alley, lane or other public way. Any such street, avenue, highway, alley, lane or other public way or parts thereof which has been
repaved or over-paved for a period of less than three years. The franchisee shall repair only the work area if the patch is near the edge of the street and does not affect the traveled portion of the traffic lane. Franchisee shall repair the work area from curb to centerline if the work performed disturbs the travel lane, and shall repave the work area from curb to curb if the work performed was in the center of the street; and if the repairs are made after said three (3) year period, Franchisee shall repair the work area in accordance with Pocomoke standard specifications for utility street repairs. All repairs by patching must be compactly tested to City specifications for filling and repairing street openings. lf any repair or restoration shall settle or compress to a depth of one-half inch or more within six (6) months of the completion of the repairs, the area so affected shall be repaired at the expense of Franchisee.

lf the Franchisee fails to complete repairs and restoration required by this Ordinance, Pocomoke City may contract for any such repairs and Franchisee shall be liable to Pocomoke City for the actual costs of such repairs plus a twenty-five percent (25%) administrative fee. lf restoration cannot be accomplished due to winter temperature, cold patch may be used for temporary repairs, with restoration to be completed the following spring within thirty (30) days of the availability of hot mix.

Section lV. That in accepting this franchise, Franchisee agrees and covenants to indemnify and save harmless the said Mayor and Council of Pocomoke City from any and all liability for any and all
damages arising out of the construction, maintenance and/or operation of the aforesaid gas facilities and/or the laying, maintenance, and/or use of said gas mains, pipes, conduits, conductors and any and all appliances and equipment used in connection therewith.

Section V. That, subject to the other provisions of this Ordinance the franchise hereby granted is limited to the period of twenty-five (25)years from October L,2O2O, but it may in the discretion of the Mayor and Council of Pocomoke City be renewed for a like or shorter period, on the same terms and conditions as are herein provided, on application by the said Franchisee, its successors or assigns, then engaged in the distribution through mains of natural, renewable, liquified petroleum or artificial gas in said city at least six (6) months before expiration on or before time for which this franchise or any renewal thereof is granted, such applications to be addressed to Mayor and Council of Pocomoke City.

 

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