An Ordinance, granting to SEMCO Energy Gas Company, a Michigan corporation, its successors and assigns, the right, power and authority to lay, maintain and operate gas mains, pipes and services on, along, across and under the highways, streets, alleys, bridges, waterways, and other public places, and to conduct a local gas business in the Village of Armada, located in Macomb County, Michigan, for a period of thirty years.
THE VILLAGE OF ARMADA ORDAINS:
Section 1. GRANT OF FRANCHISE. The Village of Armada, located in Macomb County, Michigan (the “Village”),hereby grants to SEMCO Energy Gas Company, a division of SEMCO Energy, Inc., a Michigan corporation, its successors and assigns,(the “Grantee”) the right, power and authority to construct, lay, operate, maintain and replace in the public streets, highways, alleys and other public places in the Village of Armada, Michigan, all needful and proper gas pipes, mains, conductors, service pipes and other apparatus and facilities requisite for the manufacture, transmission and distribution of gas for all purposes to the Village of Armada, and the inhabitants thereof, and for conducting gas elsewhere to supply neighboring cities, villages and other territories supplied with gas by said Grantee, for a period of thirty years.
Section 2. CONSIDERATION. In consideration of the rights, power and authority hereby granted, Grantee shall faithfully perform all things required by the terms hereof.
Section 3. CONDITIONS.
A. No highway, street, alley, bridge, waterway, or other public place used by Grantee shall be obstructed longer than necessary during the work of construction or repair, and shall be restored to the same order and condition as when such work commenced. Grantee shall not remove or trim trees or landscaping situated in the public right-of-way or public place without consent of the Village and will replace all trees and landscaping removed upon the Village’s request.
B. Grantee will use its best efforts to not unreasonably interfere with or disrupt any public utility apparatus or facilities operated by the Village or other public utility and,to the extent Grantee interferes with or disrupts any such public utility apparatus or facilities, Grantee shall restore such apparatus or facilities to as good order and condition as when Grantee commenced work.
C. Grantee shall reimburse the Village for the fees, including attorneys’ fees,and costs incurred in granting or renewing this franchise.
Section 4. HOLD HARMLESS. Grantee shall at all times keep and save the Village, its elected and appointed officers and employees, free and harmless from all losses, damages, costs and expenses, including attorneys’ fees, to which they may be subject by reason of the Grantee’s construction, operation, and maintenance of the structures and equipment hereby authorized. If any action is commenced against the Village, its elected and appointed officers and employees, resulting from Grantee’s construction, operation, and maintenance, Grantee shall, upon notice, defend the Village, its elected and appointed officers and employees, and save them free and harmless from all losses, damages, costs, and expenses, including attorneys’ fees, arising out of such construction, operation, and maintenance.
Section 5. FRANCHISE NOT EXCLUSIVE. The franchise, and any right, power and authority herein granted pursuant thereto, is not exclusive. Either manufactured or natural gas may be furnished hereunder.
Section 6. RATES. Grantee shall charge for gas furnished the rates, charges and special taxes as approved from time to time by the Michigan Public Service Commission, or its successors having authority and jurisdiction to fix and regulate gas rates and charges, or as otherwise permitted or required by applicable Jaw or tariff, for the term of this franchise. Such rates shall be subject to Commission review and change at any time upon petition therefore being made by either said Village, acting by its Village Council, or by said Grantee.
Section 7. REVOCATION. The franchise granted by this ordinance is revocable upon sixty (60) days written notice by the party desiring such revocation.
Section 8. MICHIGAN PUBLIC SERVICE COMMISSION JURISDICTION. Grantee shall, as to all other conditions and elements of service not herein fixed, be and remain subject to the reasonable rules and regulations of the Michigan Public Service Commission or its successors, applicable to gas service in said Village and shall provide service in accordance with the terms and conditions set forth in its applicable tariff as approved from time to time by the Michigan Public Service Commission or its successors.
Section 9. SUCCESSORS AND ASSIGNS. The words “SEMCO Energy Gas Company” and “SEMCO Energy, Inc.,” wherever used herein, are intended and shall be held and construed to mean and include SEMCO Energy Gas Company and its parent, subsidiaries, successors, affiliates, and assigns, whether so expressed or not, The word “Grantee,” wherever used herein, is intended and shall be held and construed to mean and include SEMCO Energy Gas Company, SEMCO Energy, Inc., and the successors and assigns of each, whether so expressed or not. Grantee may assign the rights and obligations under this agreement as long as the Grantee provides prior written notice to the Village of any such assignment.
Section 10. FORCE MAJEURE. The Grantee shall not be liable for failure to furnish service as herein provided, or for any breach of the Grantee’s obligations hereunder, if such failure or breach is caused by acts of God, labor troubles, riot, or any other causes or contingencies not reasonably within the control of the Grantee.
Section 11. VACATION OR RELOCATION. The Village may require the Grantee to vacate or relocate any portion of Grantee’s facilities at the Grantee’s expense if such vacation or relocation is necessary to secure the public health and welfare or is otherwise required by Grantor in the exercise of a governmental function.
Section 12. COMPLIANCE WITH LAWS. Grantee shall comply with all laws, statutes, ordinances, rules and regulations regarding the installation, construction, ownership or use of its facilities, whether federal, state, or local.
Section 13. REPEALER. This ordinance, when effective under Section 14, shall repeal and supersede any prior ordinance granting to SEMCO Energy Gas Company, a Michigan corporation, its predecessors and assigns, the right, power and authority to lay, maintain and operate gas mains, pipes and services on, along, across and under the highways, streets, alleys, bridges, waterways, and other public places, and to conduct a local gas business in the Village of Armada.
Section 14. EFFECTIVE DATE. Upon adoption, the Village Clerk shall deliver to Grantee a certified copy of this ordinance. Additionally, the Village shall publish this ordinance within thirty (30) days of its adoption and this ordinance shall take effect upon the day after the date of publication thereof, continuing for a term of thirty (30) years from that date; provided, however, it shall cease and be of no effect after sixty (60) days from its adoption unless within said period the Grantee shall accept the same in writing filed with the Village Clerk. Upon acceptance and publication hereof, the ordinance shall constitute a contract between said Village and said Grantee.
Ayes: Coenen, Clark, Adair, Barzyk, Boelke, Shall, Stirrett. Nays:
This ordinance was adopted as a regular meeting of the Village Council of the Village of Armada, Macomb County, Michigan on the 8th day of December, 2025.
David Coenen, President
Michelle Poulos, Clerk
CERTIFICATION
The undersigned, being the duly qualified and acting Clerk of the Village of Armada, Macomb County, Michigan, hereby certifies that:(I) the foregoing is a true and complete copy of a ordinance duly adopted by the Village Council at a regular meeting held on the 8th day of December, 2025,at which meeting a quorum was present and remained throughout,{2) the original thereof is on file in the records in my office,(3) the meeting was conducted, and public notice thereof was given, pursuant to and in full compliance with the Open Meetings Act (Act No. 267,Public Acts of Michigan, 1976,as amended) and, (4) minutes of such meeting were kept and will be or have been made available as required thereby.
Michelle Poulos, Clerk
Publish: 1/7/26