EXHIBIT 10(n)(n)
GAS FRANCHISE AGREEMENT
This AGREEMENT made and entered into this 2nd day of July, 1996, by and
between the TOWN OF VINTON, VIRGINIA, a Virginia municipal corporation
("Grantor"), and ROANOKE GAS COMPANY ("Grantee").
WHEREAS, Grantor has reviewed the proposal for a Gas Franchise of
Grantee; and
WHEREAS, Grantor, at a duly authorized and regular meeting of its City
Council, did vote to grant a renewal of the Gas Franchise to Grantee pursuant
to provisions of the State Code and Town Charter.
Now, THEREFORE, in consideration of said grant of renewal of the Gas
Franchise, the parties agree as follows:
1. GRANT. Grantor hereby grants to Grantee and Grantee hereby
-----
accepts a Franchise to construct, reconstruct, operate, maintain, repair and
extend a Gas Distribution System within Grantor's Territorial Limits in
accordance with the terms and conditions set forth below. The Franchise is
granted pursuant to Grantor's Franchise Ordinance (Ordinance No. 651),
---
adopted July 2, 1996, ("Ordinance"), which is incorporated by reference
------
herein, including any applicable definitions.
2. TERM. The term of the Franchise shall be twenty (20) years,
----
commencing on the date set out in Section 7 of this Franchise.
3. FRANCHISE FEE.
-------------
(a) Grantee shall pay to Grantor a Franchise Fee which shall be
determined as follows: It is understood that Grantee has or will enter into
Franchise agreements with the City of Roanoke ("Roanoke") and the City of
Salem ("Salem") (Grantor, Roanoke and Salem being hereinafter sometimes
collectively referred to as the "localities") with fee provisions identical
to this one, and that the total annual Franchise Fee to be paid to the three
localities in aggregate is $56,000 for calendar year 1996 ("base year total
annual Franchise Fee"). Grantor's Franchise Fee shall be a percentage share
of the base year total annual Franchise Fee, which shall be determined on a
pro rata basis according to its percentage share of the total dollar value of
Grantee's gas sales occurring within the localities during the calendar year.
For each calendar year of the Franchise, each locality's percentage share
shall be determined by the following formula:
Total dollar value of Grantee's gas sales
within the Territorial Limits of the
Locality's percentage share = locality
--------------------------------------------
total dollar value of Grantee's gas sales in
the three localities
For calendar year 1996, the Franchise Fee shall be paid to Grantor on or
before March 31, 1997.
(b) For each succeeding calendar year during the term of this
Franchise, the total annual Franchise Fee paid by Grantee to the localities
shall be the base year total annual Franchise Fee increased by three (3)
percent compounded annually over the term of the Franchise. For each
calendar year during the term of this Franchise, Grantor's percentage share
shall be determined pursuant to this Section, and paid to Grantor on or
before March 31 of the succeeding calendar year.
4. BUSINESS OFFICE.
---------------
Grantee shall during the term of this Franchise maintain at least one
business office within the Territorial Limits of Grantor. Such office shall
be open at least forty (40) hours per week for the conduct of business
between Grantee and its customers.
5. NON-DISCRIMINATION. Grantee shall not discriminate on the basis
------------------
of race, religion, color, sex or national origin in its employment practices,
contracting or provision of service.
6. NOTICE. All notices required under this Franchise Agreement or
------
the Franchise Ordinance shall be in writing and shall be deemed given, unless
otherwise required, when mailed by first class mail, postage prepaid, to the
addresses set forth below:
Grantor: Grantee:
------- -------
Town of Vinton Roanoke Gas Company
P. O. ▇▇▇ ▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇.
▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ P. O. ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
ATTENTION: City Manager ATTENTION: President
The parties may by notice given under this Section designate such other
addresses as they may deem appropriate for the receipt of notices under this
Franchise Agreement. If, by reason of suspension of or irregularity in
regular mail service, it is impracticable to mail notice of any event when
notice is required to be given, then any manner of giving notice which is
satisfactory to the intended recipient will be deemed to be sufficient
7. EFFECTIVE DATE. The effective date of the Franchise shall be
--------------
January 1, 1996.
Witness the following signatures:
TOWN OF VINTON, VIRGINIA
By: s/▇▇▇▇▇▇▇ ▇. ▇▇▇▇
------------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇, Mayor
ATTEST:
s/▇▇▇▇▇▇▇ ▇. ▇▇▇▇
-------------------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇, Town Clerk
ACCEPTED this 30th day of July, 1996.
---- ----
ROANOKE GAS COMPANY
By: s/▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
---------------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.,
President
ATTEST:
s/▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇
------------------------------
Secretary
