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HomeMy WebLinkAboutOrd. #75, Second Series - Gas Franchise Ord. - NSPRf"MIUM, W omf3wolas-01Z Wro" Ike V 00 1 DBUI) THE CITY COUNCIL OF THE CITY OF CENTERVILLE, ANOKA COUNT] MINNESOTA, ORDAINS: For purposes of this Ordinance, the following capitalized terms listed in alphabetical order ihall have the following meanings: I I I 1.2 City Utility System. Facilities used for providing non -energy related public utili service owned or operated by City or agency thereof, including sewer and water service, but excludir facilities for providing heaung, lighting or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agen( or 71%;acies,-. includinN Xmop of the fiadetal mment, whicb Vxeern�-ts .F& or Gwart of the y0ye toregulate Gas retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. Northern States Power Company, a Minnesota corporation, its successo and assigns. 1.5 Gas. "Gras" as used herein shag be held to include natural gas, manufactured gas, other form of gaseous energy. 1.6 Gas Facilities. Pipes, mains, regulators, and other facilities owned or operated I Company for the purpose of providing gas service for public use. 1.7 Notice. A written notice served by one party on the other party referencing one more provisions of this Ordinance. Notice to Company shall be mailed to the General Counsel, 41 Nicollet Mall, 5th Floor, Minneapolis, MN 55401. Notice to the City shall be mailed to the C11 -Administrator, City Hall, 1880 Main Street, Centerville, MN 55038. Either party may change 1 respective address for the purpose of this Otdinmce by written notice to the other party. 1.8 Public Ground. Land owned or otherwise controlled by the City for utility easements, park, open space or sin-&ar purpose, which is held for use in common by the public. 1.9 Public Way. Any street, alley, walkway or other publicright-of-waywithin the City. SECTION 2. ADOMION OF FRANC1.1,11SE. . . ...... . .................. . . . ................... 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from date passed and approved by the City, the :right to transmit and furnish Gas energy for light� h power and other purposes for public and private use within and through the Emits of the City as boundaries now exist or as they may be extended in the future. For these putposes, Connipany construateltair . d jnewrrwiin-,-�; and Public Ways of City, subject to the provisions of this Ordinance. Company may do all reasonab things necessary or customary to accomplish these purposes, subject, however, to such reasonab replations as franchise agreement. 2.2 E66ctive R. Written AcqWtanc: . This ftanchise agreement shall be in force and effect from and after passage of this Ordinance, its acceptance by Company, and its publication as required by law. The City by Council resolution may revoke this franchise agreement if Company does not file a written acceptancewith the Citywithin 90 days after publication. 2.3 Service and Rates. The service to be provided and the rates to be charged by Company for Gas service in City are subject to the jurisdiction of the Commission. 2.4 Publication E2q2cns . The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company. ty asserts thahdh t the oter party is in•efault in te .iapute Resolution. If either par performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the 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 the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the -,rarties are unable ty selected mediator, either party may commence an action in District Court to interpret and enforce this fiunchise or for such other relief as mw_p be �,yermitted Im, law or for breach of contract or eithm", party may take any other action perrnitt�ed b; law. 3.1 Location of Facilities. Gas Facilities shall be located, constructed and maintained so not to interfere with the safety and convenience of ordinary travel along and over Public Ways and JtJ as not to disrupt nortnal operation of any City Utility System previously installed therein. Gas Fa '' " shall be located on Public Grounds as determined by the City. Company's cons ctio. reconstruction, operation, repair, maintenance and location of Gas Facilities shall be subject to'd P if required by separate ordinance and to other reasonable regulations of the City to the extent n 0J inconsistent with the terms of this franchise agreement. Company may abandon underground LIM "61 W6 1i _ 1 reolig, Cgutv?,Tv will reg& -fret.91 nine--'-tteir eri -1U col CX 2wu U(L-M q— Pr'#'JeLL� APkL V1-LJ T-91 ALIC CAEC-Ul S11-C-K AA1C--rA PIPC N )-U "O�Lr 01 C fa part of the City's improvement project. 'i a I Or -Mel 11CR VWFFA all 3.3 Street Qpmingg. Company shall. not open or disturb any Public Ground or Pub Way for any purpose without first having obtained a permit from the City, if required by a separma ordinance, for which the CAty may impose a reasonable fee. Permit conditions imposed on Comp ,epara )mp shall not be more burdensome than those imposed on other utilities for similar facilities or wor )r C "m owrever, (Ycen and disturb Public Ground or Pi the City where an emergency exists requiring the immediate repair of Gas Facilities. In such vei Not later thati the second working day thereafter, Company shall obtain anyrequired permits and pqv any required fees. I 3.4 Restoration. After underL,&ing any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, to as good a condition as formerly existed in accordance with Minnesota Rules, 7819.1100, and shall maintain any paved surface in good condition for two years thereafter. The work shall be completed as promptly as weather �r .,ermits. and if ComC,=T, shall not►rom P-13accerform. and co_nyo-lete the worN! remove all dirt rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, 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, the right to make the restoration 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 shall 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 performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City's permission to install, replace or maintain facilities in a Public War. 3.5 Avoid Damagg to Gas Facilities. Nothing in fl-ds Ordinance relieves any person frolm liability arising out of the fOure to exercise reasonable care to avoid dani*ng Gas Facilities whi performing any activity. 3.6 Notice of !Wrovements. The City must give Companyreasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Gas Facilities may affect or be affected by the improvement. The notice must contain: (1) the nature and character of the improvements, (n) the Public Grounds and Public Ways upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or Public Way is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of vmkdll,-Kld�-� Vir"-w-t or repairs to its Gas Facilities. In all other respects, the city Will give reasonable notice of upcoming projects in accordance with Minnesota Statute 216D. 0 4.1 Relocation of Gas Facilities in Public -Ways. If the City determines to vacate a Public Way for a City improvement project, or at City's cost to grade, regrade, or change the line of any Public Way, or construct or reconstruct any City Utility System in any 'Public Way, it may order Company to relocate its Gas Facilities located therein if relocation is reasQn",, necessn�p to accom-�lish the Ci*ls proposed public improvernent. Except as provided in Section 4.3, Company shall relocate its Gas Facilities at its own expense. The City shall give Company reasonable notice of plans to vacate for a .reconstruct any City Utility System. If a relocation is ordered within five years of a prior relocation of the same Gas Facilities, which was made at Company expense, the City shall reimburse Company for because of the extension of a City Utility System to a previously unserved area, Company may be -required to make the subsequent relocation at its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconstruct at its own expense its Gas Facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvement. 4.2 Relocation. �Df Gas Facilities in Public Gtound- City may require Company at Company's expense to relocate or remove its Gas Facilities from Public Ground upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or 1�,roposed public use of the Public Ground. 4.3 Projects with Federal Fundiag. City shall not order Company to remove or relocate its Gas 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 any agency thereof, unless the reasonable non -betterment costs of such relocation ate first paid 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 fianding the City shall specifically request. Relocation, removal or rearrangement of any Company Gas Facilities made necessary because of a federally - aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as supplemented or amended. It is understood that therights herein granted to Company are valuable 4.4 ?"�Ifo 'Nwver. 1he provisions of this franchise apply only to facilities constructed An by Company for installations within a Company right-of-way acquired by easement or presctiptil right before the applicable Public Ground or Public Way was established, or Compan:y'stights uund state or county pen -nit. Company is also granted the permission and authority to t�in aft shrubs and trees, includirm save City harmless from any liability in the premises. 4 6.1 1ndQmnit free a, 3: of C4. Company shafi indemnity, keep and hold the City firee the construction, maintenance, repair, inspection, the issuance of permits, or die operation of tthe G t 'I he ss Facilities located in the Public Grounds and Public Ways. The City shall. not be indemnified for 10 or claims occasioned through its own negligence except for losses or claims arising out of or 0 the City's negligence as to the issuance of permits for, or inspection of, Compan�s plans or work. a ?Y i #Iur of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered directed by City after notice of Compan�s determination. Bill )W--,VV:C"1CAXr1 L-0--Lmc��Y—APPLC6r-115C SAMIL CUM& JLL ic such suit if written notice thereof is promptly given to Company within a period wherein Comp is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it c) thereafter have control of such litigation, but Company may not settle such litigation without consent of the City, which consent shall not be un easonably withheld. This section is not, as to 'I mv_ F-arties, a waiver of any defense or immunity otherwise available to the City and Company, V defending any action on behalf of the City shall be entitled to assert in any action every defense immunity that the CAty could assert in its own behalf. i 1he City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Gas Facilities, shall not operate to deprive Company of its tights to operate and maintain such Gas Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to Company for failure to specificaIly preserve a tight -of -way under Minnesota Statutes, Section 160.29. Any change in the form of government of the City shall. not affect the validity of thiz *rdinance. Any governmental unit succeeding the City shall, without the consent of Company, gucceed to all of the tights and obligations of the City provided in this Ordinance. SECTION 9. J..'RAN'CI-I1SE FEE. 9.1 Fee Schedule. During the term of the franchise hereby granted, and in lieu of I , permit or other fees being imposed on the Company, the City may impose on the Company franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinan from each customer in the designated Company Customer Class. The parties have agreed that Tli exceed the following amounts: WJ chlg ff MROTMO MO L Commercial Firm Demand Small. Interruptible Firm Transportation Interruptible Transportation Fee Pet Premise Pet Month -.— ---------------------- — $4.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 9.2 SWarate Ordinance. The francluse fee shall be imposed by a separate ordinance duly A 03 tit at least 90 Ps after written L -iotice enclosing such proposed ordinance has been served upon Company by certified mail or (!,ersonal service . The fee shall not become effective until the begirming of a Company billing month by certified mak 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. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers thin the nuximum amount set forth in Section 9.1 above shall not be effective o unless the fee �Inposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Collection of the Fee. The franchise fee shall be payable quarterly and shall be base;i on the amount collected by Company during complete billing months during the period for which f! PV ".. jxl�,Itldzsg.2-n, "-i licable customer classification in all customer billings for gas service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. 1he franchise � alil-MM -- W-.W-C= each SM7 shall meet the same notice requirements and not occur more often than annually and no change s�all require a collection from any customer for gas service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall. be my2ble bv Corn-oanv if Cwganv is legall:v unable to first collect an amount equal Company's applicable rates for gas service. Company may pay the City the fee based upon the surcharge billed subject to subsequentreductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City a; reason -able times provided that the City and its designated representative Wee in writing not to disdose any information which would indicate the amount paid by any identifiable custorner or customers or any other information regarding identified customers. 9.4 Terms Defined. "Customer Class" shall refer to classes listed in the Fee Schedule and as defined or determined in Company's gas rate book on file with tk� C 31 9.4.2 "Fee Schedule" refers to the Schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Classes added by the Company to its gas tariffs after the effective date of this franchise agreement. Thenn shall be a unit of gas provng 100,000 Btu of heat content adjusted billing purposes under the rate schedules of Company on file with Commission. I 9.5 EQuivalent Fee R din gquirerigent. The separate or ance imposing the fee shall not effective against Company unless it lawfiAy imposes and the City, monthly or more often collects a any other energy supplier, provided that, as to such a supplier, the City has the authority torequite ftunchise fee or to impose a tax. The "same or greater equivalent amoune' shall be measured, practicable, by comparing amounts collected as a franchise fee froin each similar customer, or comparing, as to similar customers the percentage of the annual bill represented by the amo collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for I 0 r ar energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall n apply to energy sales for the purpose of providing fuel for vehicles. If the Company spe ral consents in writing to a franchise or separate ordti inance collecng or fang to coe 0 l[ect a fe another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived] the extent of such written consent. 9.6 City Use. and Rgpgrd" of Franchise Fee Revenue. The City shall deposit said franchise fee revenue into a City fand titled "Street Use Revitalization Fund (SURF)" of which all franchise fee proceeds shall be used for the specific use of preserving and repairing city streets indudin& but not limited to, methods such as crack seal, fog seal, mill and overlay, hot in place recycle, cold in place recycle, and full depth reclamation. Unless otherwise included in the Citys annual audit, each year the City shall prepare and publish a report detailing the additional preservation and repait projects able to be completed with said fianchise revenue. 10.1 SoLe �bih Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held I nvalid, it shall not affect -any other section, provision, or part. Where a provision of any other City ordinance or state law conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. Unless specifically exempted by the language of this agreement, Minnesota Statutes Chapter 216D, and Minnesota Administrative Rules Chapter 7819 shall still govern the relationship between the parties. 10.2 Limitation on A bwaweatkywieneunrethte Ctity and Company aps htghe only p(arties angddno pprobvisiontio is ffranchAohe benfiofanhd peondnheuoaohiisc eonshst i?MV 29 JJ alttl uiitnne or otherwise give rise to any cause of action in any person not a party hereto. im SECTION 11. AMED,,1111)MEPSr1"' PRQCEDIJRJII;�u. .................................................................................................................................................................................................................................. Either party to this franchise agreement may at any time propose that the agreement amended to address a subject of concern and the other party will consider whether it agrees that amendment is mutually appropriate. If an amendment is agreed upon, this Ordinance may amended at any time by the City passing a subsequent ordinance declaring the provisions of amendment, which amendatory ordinance shall become effective upon the filing of Compa written consent thereto with the City Clerk within 90 days after the date of final passage by the of the amendatory ordinance. I PASSED AND ADOPTED BY THE CITY COUNCIL THIS 27TH DAY OF JANUARY, 2016. Tom Wilharber Mayor of the City of Centerville, Minnesota City Qffk, Genu.,xville, Minnesota (Published in the Quad Press tic ............ dzy, of . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 201.6 ACCEPTANCE OF ORDINANCE NO.75, SECOND SERIES CITY OF CENTERVILLE, ANOKA COUNTY, MINNESOTA ACCEPTANCE OF GAS FRANCHISE: WHEREAS, the City Council of the City of Centerville, Anoka County, Minnesota, on the 27th day of January, 2016, passed and adopted Ordinance No. 75, Second Series, entitled: AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO ERECT A GAS DISTRIBUTION SYSTEM FOR THE PURPOSES OF CONSTRUCTING, OPERATING, REPAIRING AND MAINTAINING IN THE CITY OF CENTERVILLE, MINNESOTA, THE NECESSARY GAS PIPES, MAINS AND APPURTENANCES FOR THE TRANSMISSION OR DISTRIBUTION OF GAS TO THE CITY AND ITS INHABITANTS AND OTHERS AND TRANSMITTING GAS INTO AND THROUGH THE CITY AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES. which Ordinanc was duly published accoiding to law on the,2"a� day of , 2016, in the rzSS Aewspaper circulated in and serving as the lega4Tewspaper for the City of Centerville, Anoka County, and State of Minnesota, and which Ordinance is not effective unless accepted in writing by Northern States Power Company, a Minnesota corporation. NOW THEREFORE, Northern States Power Company, a Minnesota corporation, for itself and its successors and assigns, does hereby accept all the terms and conditions of said Ordinance. IN WITNESS WHEREOF, Northern States Power Company, a Minnesota corporation has caused this document to be executed in its corporate name by its duly authorized persons and its corporate seal to be hereto affixed this 2nd day of February, 2016. [1 Attest: o,SEAL2 C Tara Heine Assistant Corporate Secretary Northern By: Director, Community Relations