HomeMy WebLinkAboutOrd. #77, Second Series - Electric Franchise Ord. - Connexus Energy11111 11,
THE CITY COUNCIL OF THE CITY OF CENTERVILLE, ANOKA COUNTY,
MINNESOTA, ORDAINS:
SIX"116)
For purposes of this Ordinance, the following capitalized terms listed in alphabetical ofdj
shall have the following meanings:
1.2 Uty Uft Sys Facilities used for providing non -energy related public utili,9
service owned or operated by City or agency thereof, including sewer and water service, but exclu
facilities for providing heating, lighting or other forms of energy.
1.3 Cgmp Connexus Energy, a Minnesota cooperative corporation, its successors
assigns.
1.4 Electric Facilities. Electric transmission and distribution towers, poles, lines,
anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for
purpose of providing electric energy for public use. I
1.5 Notice. A written notice served by one party on the other party referencingone
more provisions of this Ordinance. Notice to Company shall be mailed to the Chief Execui
Officer, Connexus; Energy, 14601 Ramsey Boulevard N.W., Ramsey, Minnesota 55303-60
Notice to the City shall be mailed to the City Administrator, 1880 Main Street, CenterviMlle,
55038. Either party may change its respective address for the purpose of this Ordinance by
notice to the other party.
1.6 Public Ground. Land owned or under the control of the City for park, open space or
similar purpose, which is held for use in common by the public.
2.1 Grant of Franchise. City hereby grants Company, for a period of 2U years from thi,
date passed and approved by the City, the fight to transmit and fim-lish electric energy for light, heat
power and other purposes for public and private use within and through the limits of the City as its
boundaries now exist or as they may be extended in the future. For these purposes, Company may
construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public
Grounds andPublic Ways of City, subject to the provisions of tliis Ordinance. Company may do all
reasonable things necessary or customary to accomplish these purposes, subject, however, to such
reasonable regulations as may be imposed by the City pursuant to ordinance and to the further
I.mrovisions of this francbise agreement.
2.2 Effective Date, Written Ag=tanc . Tliis franchise agreement shall be in force
effect from and after passage of this Ordinance, its acceptance by Company, and its pub1hication
-required by law. The City, by Council resolution, may revoke tl-�s franchise agreement if Comp
does not file a written acceptance with the Citywithin 90 days after publication. I
2.3 Service and Rates. 'Me service to be provided and the rates to be charged by CompaiM,
for electric service in City are established by Company's Board of Directors. The area within tflhe Ci I
in which Company may provide electric service is subject to the provisions of Minnesota Statut]
Section 216B.40.
2.4 'Publication E=ensp. The expense of publication of this Ordinance will. be paid
City and reimbursed to City by Company. I
2.5 Dispte Resolution. If either party asserm that the other party is in default /'.. the
perfottnance of any obligation hereunder, the cornpbdf�ing party shall notify the other party of the
default and the desired remedy. The notification shall be written. Representatives of die parties must
promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not
resolved within 30 days of t notice, the parties may jointly select a mediator to factate
further discussion. The pardes will equally share the fees and expenses of this mediator. If a mediator
is not use or if the 12a 'es are unable to resolve the d in ting with
1 -ft &1snutewithin 30 daU after first ee
party may take any other action permitted by law.
3.1 Location of Facilities. Electric Facilities shall be located, constructed and 11�tm
so as not to interfere with the safety and convenience of ordinary travel along and over Public WO
and so as not to disrupt normal operation of any City Utility System. Facilities shall be located
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Public Grounds as determined by the City. Compan:y's construction, reconstruction, operation, rep L.
maintenance and location of Electric Facilities shall be subject to permits if required by separa
ordinance and to other reasonable regulations of the City to the extent not inconsistent with the teri
of this franchise agreement. Company may abandon underground Electric Facilities in place, provid
at the s r ues CQanv will remove such un Electric Facilities which interfere withi
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as part of the City improvement project, and restore the Public Way in accordance with Minnesom
Rule 7819.1100. 1
32 Field Lacati(ans. Company shall provide field locations for its underground Electric
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Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D.
3.3 Street Q12=i=. Company shall not open or disturb any Public Ground of Public
Way for any purpose without first having obtained a permit from the City, if required by a separate
ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on Company
shall not be more burdensome than those imposed on other utilities for similar facilities or work.
Company may, however, open and disturb any Public Ground or Public Way without permission from
the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event
Company shall notify the City by telephone to the office designated by the City as soon as practicable.
Not later than the second wodaop thereafter Com(--,,aW,, shall obtain anrevuired csretmits and Gcagi
any required fees.
3.4 Restoration. After undertaking any -work requiring the opening of any Public Ground
or Public Way, Company shall restore the same in accordance with Minnesota Rule 7819.1100,
including paving and its foundation, to as good a condition as formerly existed, and shall maintain my
paved surface in good condition for two years thereafter. The work shall be completed as promptly as
weather j)Eermi -amm shall not C, -r lete the wo-r& remove all hok
ts and if Comr, erform and comr-
rubbish, equipment and material, and put the Public Ground or Public Way in the said conclition, the
City shall have, after demand to Company to cure and the passage of a reasonable period of time
following the demand, but not to exceed five days, thetight to make therestoration at the expense of
Company. Company shall pay to the City the cost of such work done for or performed by the City.
This remedy sha'Il be in addition to any other remedy available to the City for noncompliance with this
Section 3.4, but the City hereby waives any requirement for Company to post a construction
�,,erfotmance bond- certificate of insurance. letter of credit or my other form of semlljj!�L, or assurance
ihat may be required, under a separate existing or future ordinance of the City, of a person or entity
obtaining the City's permission to inst2A replace or maintain facilities in a Public Way.
3.5 Avoid Damagg to Electric Facilities. Nothing in this Ordinance relieves any person
from liability arising out of the Mure to exercise reasonable care to avoid damaging Electric Facilities
-sibile perforrning any activity.
3.6 Notice of Improvements. The City must give Company reasonable notice of plans If
ivaprovements toPublic Grounds or Public Ways where the City has reason to believe that Elec
Facilities may affect or be affected by the improvement The notice must contain: (i) the nature
character of the improvements, (H) the Public Grounds and Public Ways upon which
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improvements are to be made, (1) the extent of the improvements, (iv) the time when the City w
start the wor!& and if more than one Public Ground or Public Wax involved the ordest in whi
the work is to proceed. The notice must be given to Company within a sufficient length of ttimne,
advance of the actual commencement of the work to permit Company to make any necess
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additions, alterations or repairs to its Electric Facilities. The city shall give notice of upcoming projel
in accordance with Minnesota Statutes, Chapter 216D.
3.7 Shared Use of Poles. Company shall make space available on its poles or towers
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electric utility, by a telephone utility, or by any cable television company or other form (M
communication company. In addition, the City shall pay for any added cost incurred by Cornp
because of such use by City. I
4.1 R.elo&alion of .1 Umlectric F-acilities in Public WM.., If the City determines to vacate
'Public Way for a City improvement project, or at City's cost to grade, regrade, or change the line of
Public Way, or construct or reconstruct any City Utility System in any Public Way, it may or
Company to relocate its Electric Facilities located therein if relocation is reasonably necessary
accomplish the City's proposed public improvement. Except as provided in Section 4.3, Comp
shallrelocate its Electric Facilities at its own expense when replacing existing facilities with same
similar facilities. If current facilities are above ground and City requires them to be buried, City s
pay for the difference, (if any) of burying facilities versus leaving above ground. The City shall
Company reasonable notice of plans to vacate for a City ninprovernent project, or to grade, regrade,
change the line of any Public Way or to consttuct or reconstruct any City Utility System. If a reloca i
is ordered within five years of a prior relocation of the same Electric Facilities, which was made
basis, provided that if a subsequent relocation is required because of the extension of a City U
System to a previously unserved area, Company may be required to make the subsequent relocation
its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconstru
at its own ense its Electric Facilities where such relo rq-,�,cernent
is solely for the convenience of the City and is not reasonably necessary for the construction
reconstruction of a Public Way or City Utility System or other City improvement.
4.2 Relocation of Electric Facilities in Public Ground. City may require Company,
Cot.noMv's Mense-- to relocate or remove its Electric Facilities from Public Clta=d upo
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City that the Electric Facilities have become or will become a substantial impairment to the existing
proposed public use of the Public Ground.
4.3 ProJects with Federal . City shall not order Company to remove or relocate
its Electric Facilities when a Public Way is vacated, improved or realigned for a right-of-way project
or any other project which is financially subsidized in whole or in part by the Federal Government
or thereof, unless the reasonable non -betterment costs of suchrelocation are first Loaid to
Company. The City is obligated to pay Company only for those portions of its relocation costs for
which City has received federal funding specifically allocated for relocation costs in the amount
requested by the Company, which allocated funding the City shall specificaUy request. Relocation,
supplemented or amended. It is understood that therights herein granted to Company are valuable
4.4 No Waiver. 1he provisions of this franchise apply only to facilities constructed in
by Company for installations within a Company right-of-way acquired by easement or prescriptive
right before the applicable Public Ground or Public Way was established, or Compan:y's rights under
state or county permit
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SECTIONS.
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Company may t6n all trees and shrubs in the Public Grounds and Public Ways of City to the
extent Comyany, fin
and mairitenance of any Electric Facilities installed hereunder, provided that Company shall save the
Citv- harmless from anv habihtv aisinLy therefirowv. -?-td %uhiect to ne-ruit nr
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6.1 IndmEjU of Ujy. Company shall indemnify, keep and hold the City free
the construction, maintenance, repair, inspection, the issuance of permits, or the operation of
Electric Facilities located in the Public Grounds and Public Ways. The City shall not be indemmnifi
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for losses or claims occasioned tbtcvx,#-, its own negligence exc
alleging die City's negligence as to the issuance of permits for, or inspection of, Company's plans
work. The City shall not be indemnified if the injury or damage results from the Performance in
proper manner, of acts reasonably deemed hazardous by Company, and such performance
nevertheless ordered or directed by City after notice of Company's determination. I
6.2 Defense of City. In the event a suit is brought against the City under circumstances
where this agreement to in shall defieAid-tke-F
in such suit if written notice thereof is promptly given to Company within a period wherein Company
is not prejudiced by lack of such notice. If Company is requited to indemnify and defend, it will
thereafter have control of such litigation, but Company may not settle such litigation without the
consent of the City, which consent shall not be unreasonably withheld. 11is section is not, as to third
patties, a waiver of any defense or immunity otherwise available to the City and Company, in
defending any action on behalf of the City, shall be entitled to assert in any action every defense or
immunity that the City could assert in its own behalf
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and maintain such Electric Facilities, un�l the reasonL able cost of reloca e same and the loss and
expense resulting from such relocation are first paid to Company. In no case, however, shall City be
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liable to Com for r6ilure to snecificgRv nreserve a r"qh -o" under Minnesota Statutes. Section
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Public Way does not require relocation of Companys Electric Facilities, the vacation proceeding
shall not be deemed to deprive Company of its tight to continue to use the tight -of -way of the
former Public Way for its Electric Facilities installed prior to such order of vacation.
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SECTION 8. CHAbIGE INFOR" 1! L.KY11V ER.PJMM,,TT.
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Any change in the form. of government of the City shall not affect the validity of this
Ordinance. Any governmental unit succeeding the City shall, without the consent of Company,
succeed to all of therights and obligations of the• City provided in this Ordinance.
SECTION 9. FEE.
9.1 Fee Schedule. During the term of the franchise hereby granted, and in lieu of ara
permit or other fees being imposed on Company, the City may impose on Company a franchise f
by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance f&rormn
customer in the designated Company Customer Class. The parties have agreed that the firanchi
fee collected by the Company and paid to the City in accordance with this Section 9 shall
calculated on a flat fee basis.
9.2 Separate Ordinance. The ftanchise fee shall be imposed by a separate ordinance duly
adopted by the City Council, and that separate ordinance shall dictate the date upon which
collection of that franchise fee shall commence. Section 2.5 shall constitute the sole remedy for
solving disputes between Company and the City in regard to the interpretation of, or enforcement
of, the separate ordinance. A separate ordinance which imposes a lesser franchise fee on the
residential class of customers than the maximum amount set forth in Section 9.1 above shall not be
effective against Company unless the fee imposed on each other customer classification is reduced
[.1ropottionately in the same or greater amount per class as the reduction represented by the lesser
fee on the residential class.
09111111"�P �1- 414M
"Customer Class" shall refer to the classes listed on the Fee Schedule w
defined or determined in Company's electric tariffs on file with the Commission.
9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the vario
customer classes from which a franchise fee would be collected if a separate ordinance w
implemented immediately after the effective date of this franchise agreement. 1he Fee Schedule
the separate ordinance may include new Customer Class added by Company to its electric tari
after the effective date of this franchise agreement, or may be annually amended toreflect chan
in the franchise fees imposed by the City. I
9.3.3 "Gross Revenue' means all sums, excluding any surcharge or similar additi
to the Company's charges to customers for the purpose ofreimbursing the Company for the co_
r _1
resulting from the franchise fee, received by the Company from the sale of electricity to its re
customers within the corporate limits of the City.
oe '. The franchise fee shall be payable quarterly and shall be based
n the amount od b
cllectey Company during complete bng months during the pexiod for which
customer d[assirn in all customer billings for electric service in each class. The payment shall b,;
due the last business day of the month following the period for which the payment is made. Th,-;
franchise fee may be changed by ordinance from time to time; however, each change shall meet th,;
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same notice requirements and •;. occur more often than annually and #'..♦ change shall requite a
collection from any customer for electric service in excess of the amounts sy
-_,ecificalhwerrnitted by this
Section 9. No franchise fee shall he payable by Company if Company is legally unable to first collect
an amount equal to the franchise fee from its customers in each applicable class of customers by
imposing a surcharge in Company's applicable rates for electric service. Company may pay the City die
fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles,
refunds and correction of erroneous billings. Company agrees to make its records available for
in writing not to disclose any information which would indicate the amount paid by any identifiable
customer or customers or any other information regarding identified customers. In addition, the
Company agrees to provide at the time of each payment a statement summarizing how the fi-anchise
fee payment was determined, including information showing any adjustments to the total surcharge
billed in the period for winch the payment is being made to account for any uncollectibles, refimds or
error corrections.
9.5 Equivalent Fee Rgquirement. 'rhe separate ordinance imposing the fee shall not be
effective against Company unless it lawfully imposes and the City monthly or more often collects a fee
or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by
any other energy supplier, provided that, as to such a supplier, the City has the authority to requite a
ftanchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if
fwracticable, by compating amounts collected as a franchise fee from each similar customer, or by
cornpating, as to similar customers the percentage • the •': bill represented by the amount
collected for franchise fee purposes. The fimnchise fee or tax shall be applicable to energy sales for any
energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not
apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically
consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from
,mother energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to
the extent of such written consent.
9.6 Notification Requirement. In addition to the required proceedings and notification of
the public by the City, a joint letter will be sent on behalf of the City and Company clearly
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clearly state • is required under law to bill and collect the fee and distribute funds back
to the City.
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10.1 SoTmbili1g. Every section, provision, or part of this Ordinance is declared sep
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from every other section, provision, or part and if any section, provision, or part shall be h
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invalid, it shall not affect any other section, provision, or part. Where a provision of any other i
ordinance or state law confficts with the provisions of this Ordinance, the provisions of
Ordinance shall prevail. Unless specifically exempted by the language of this agreement, Minnes
Statutes Chapter 216D, and Minnesota Administrative Rules Chapter 7819 shall still govern
relationship between the parties.
10.2 Limitation on A
.V . This Ordinance constitutes a franchise agreement
between the City and Company as the only parties, and no provision of this franchise shall in any
way inure to the benefit of any third person (including the public at large) so as to constitute any
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SECTION 11—AMNMENT P1]W(MID
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Either party to this franchise agreement may at any time propose that the agreement VIR
amended to address a subject of concern and the other party wiU consider whether it agrees that
amendment is mutuafly appropriate. If an amendment is agreed upon, this Ordinance may
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amended at any time by the City passing a subsequent ordinance dechuing the provisions o '
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amendment, which amendatory ordinance shall become effective upon the ng of CornpIn
written consent thereto with the Ci%, Clerk within 90 dai-A after the date of final Ta&Wc bx the i
of the amendatory ordinance.
This franchise supersedes any previous electric franchise granted to Company or its
predecessor.
This Ordinance shall be in fall force and effect from and after its adoption and publication as required
by law.
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1 IN IIIP Him*
. . .. ......
.. . .... . ... .
Tom Wilhatber
Mayor of the City of Centerville, Minnesota
Attest
7-- .................
Clerk, Cienteaville, Minnesota
day, f
(Published in the Quad Press flie'/" -----------
2016)
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