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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 C 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 me i"W 1 1 1 RIA110111 11140301 VA KOJI 0 0115wil ('1441 IL -1114i 00 aRy.-Tt I A 0 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 ................................................................................. I . . . ........ 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 W 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 c 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 CiJILJ7 fire, 7 I&,QIieI V, o P.TJO ki� I (fW14)416P M =q k-14MIA11 IWOM Wk INOO U10 CWKVA 11 *X14timm1plime) agg" 0=110nigme 0 0, 1 It M 0 4 K 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 smg - A 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 4 SECTIONS. ............................. 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 I 0-0yXIM i 0-7rWaM I I$) 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 fi 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 OX"114) I lei 1XQ 4 UJWX ILIC lut5 A;l Igo to 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 -]L"Onts Lo up liable to Com for r6ilure to snecificgRv nreserve a r"qh -o" under Minnesota Statutes. Section YrAVIL"'. III M-0010) MCI T Ciry R 71TOT 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. 9 ) ; ir SECTION 8. CHAbIGE INFOR" 1! L.KY11V ER.PJMM,,TT. ...................................................................................................... ! ...............................,,,,,,,,,,,,,,,,,,,,!IIS,,, ...... .. ................. ........ . ............................................................................ 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,; R 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 "IffNP-141 VAUffYV?'YA1 clearly state • is required under law to bill and collect the fee and distribute funds back to the City. 41 PC" N to) 10.1 SoTmbili1g. Every section, provision, or part of this Ordinance is declared sep Ira from every other section, provision, or part and if any section, provision, or part shall be h Cle 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 iN SECTION 11—AMNMENT P1]W(MID ................................................................. ........... ......................................... : ...................................................................................... 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 f amended at any time by the City passing a subsequent ordinance dechuing the provisions o ' f 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. 11, 1, ''' 'I �� III j� liii� =91:111 III 1� illin' i up �Aip * �Zfiw a i i I I I i I I III i Li lg� 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) z--------- �o N.