HomeMy WebLinkAbout1961-028 Council OrdinancesORDINANCE NO. 28
GAS FRANCHISE ORDINANCE
THE VILLAGE OF LINO LAKES
AN ORDINANCE GRANTING UNTO THE UTILITIES COMMISSION OF THE VILLAGE OF
CIRCLE PINES, ITS SUCCESSORS AND ASSIGNS, A NON-EXCLUSIVE FRANCHISE
AND RIGHT FOR A PERIOD OF 25 YEARS TO ERECT, CONSTRUCT, RECONSTRUCT,
MAINTAIN AND OPERATE A GAS DISTRIBUTION SYSTEM FOR THE DISTRIBUTION
OF GAS IN THE VILLAGE OF LINO LAKES, CONSISTING OF ALL SUCH EQUIPMENT
MACHINERY, PIPES, FIXTURES, TANKS AND OTHER APPERTENANCES AS MAY BE
NECESSARY OR USEFUL FOR SUCH DISTRIBUTION SYSTEM, AND TO USE AND OCCUPY
THE STREETS, AVENUES, ALLEYS, BRIDGES, AND OTHER PUBLIC PLACES OF SAID
VILLAGE, AND ITS INHABITANTS THEREOF, AND OTHERS, AND TO SELL, TRANSMIT
AND L .STRIBUTE SUCH GAS TO SUCH VILLAGE, AND ITS INHABITANTS THEREOF,
AND OTHERE, WITHIN OR WITHOUT THE CORPORATE LIMITS OF SAID VILLAGE FOR
LIGHT, HEAT, POWER, FUEL FOR COOKING AND FOR ALL OTHER PURPOSES, AND
PRESCRIBING THE TERMS AND CONDITIONS OF THE GRANT AND THE PENALTY FOR
THE VIOLATION OF THE SAME.
The Village Council of the Village of Lino Lakes does ordain as follows:
SECTION.1. That the Village of Lino Lakes, hereby grants unto
the Utilities Commission of the Village of Circle Pines, a municipal
Corporation, its successors and assigns, a non-exclusive right and
franchise for a period of twenty five (25) years from and after the date
of the passage, approval and final publication of this Ordinance, to
erect, construct, reconstruct, maintain and operate within said Village,
a gas distribution system, together with all appurtenances, pipes,
machinery, tanks and appliances necessary or useful thereto for the
distribution of gas for the purpose of selling, distributing and
supplying gas to said Village an;iinhabitants thereof, and others,
together with the right and franchise to use and occupy the streets,
avenues, alleys, bridges. ,and other public places of said Village as
now and hereafter laid out, or extended, with its gas mains, pipes,
pipe -lines, distributing lines, conduits and other appliances and
appurtenences necessary or useful for the purpose of maintaining and
operating such gas distribution system within said Village, and the
right and franchise of selling, distributing, and supplying said
Village,and its inhabitants thereof, and others, within and without the
corporate limits of said Village with such gas for light, heat, fuel,
power, cooking and other purposes, subject to the terms and conditions
of the Ordinance, as herein set forth.
SECTION 2. Grantee shall construct, maintain and operate or
otherwise provide a modern and adequate gas distributing system for the
furnishing•of, and/or distribution of gas in said Village. The Grantee
shall file with the Village of Lino Lakes a map or plat showing the full
extent of the lines to be constructed within the Village of Lino Lakes.
The location of the lines shown on the said map or plat and additions
and extensions thereto shall be subject to the express consent of the
Council of the Village of Lino Lakes. Before any extension requested
by the Village Council is granted, such extension. must be shown to be
economically feasible. The aforementioned economic feasibility is to
be shown in a report presented to the Village Council and the grantee
by a qualified gas engineer.
SECTION 3. In order to effect the rights granted hereunder, the
grantee is authorized to make all necessary excavations in the street,
avenues, alleys, and other lanes and public places of said Villager but
the same shall be done with the least possible interference with or in-
convenience to the public, individuals, or public property; and the
Grantee shall, in all cases, restore all streets, alleys and public
places, and all pavements and excavations to their original condition;
and Grantee shall maintain, repair, and keep in good condition for a
period of six (6) months, all portions of said streets, avenues, and
alleys disturbed by it or its agents, provided the six (6) months period
shall be computed from the time of the closing of the excavation; but
in case of frost before the six (6) mouths period has expired, the period
shall continue for six (6) months after the frost leaves the ground.
The Lino Lakes Village Council or its agents shall determine whether the
excavated portion has been returned to its original condition. In
laying mains and pipes, the Grantee shall conform to all reasonable
regulations prescribed by the Village to prevent injury to the pavement,
street, avenues, alleys and public places, and Grantee shall not interfere
with, injure or change any pavement, waterpipes, drains or sewers of
said Village either public or private without written consent of the
owner. The Grantee agrees that in the event the Village of Lino Lakes,
or a contractor engaged by the Village of Lino Lakees in making necessary
improvements within the Village shall require the excavation of the
streets or changes in the streets in which the gas pipes of the Grantee
are located, that the Grantee will at its own expense remove or make
the necessary change in location for the gas pipes so as to not interfere
with the construction plans of the Village or to unnecessarily increase
the cost of such construction. The Village agrees, however, that before
it commences some construction that may necessitate the removal of
gas pipes, that it will consult with the Grantee so that by some
cooperative effort the expense of changing the location of gas lines
will be minimized.
SECTION 4. The Grantee, prior to laying or relaying of any mains
under this franchise, shall present to the Council a complete plat show-
ing the location, size and estimated cost of all proposed mains, The
Grantee, before laying or relaying any mains, shall obtain approval
from the Village or its agents, in the exercise of reasonable discretion
by them. Failure of the Village to insist upon this provision shall not
be deemed a waiver thereof.
SECTION 5. The Grantee shall file with the.Clerk of the Village
of Lino Lakes on or before July lst, each year, an annual summary report
showing gross revenues received by the Grantee from its operations with
Lino Lakes during the preceding year. The Grantee shall similarly file
such other information as the Lino Lakes Village Council may, from time
to time, request with respect to the properties and operations of the
Grantee both within the municipality and without and including audits
by a certified public accountant. Lino Lakes ahall have access at all
reasonable hours to all of the Grantee's plans, contracts, engineering
records, accounts, financial statements, customer and ervice records.
SECTION 6. The Grantee, its leasees, successors, and assigns,
shall not issue any capital stock on account of the franchise hereby
granted for the value thereof, and shall have no rights to rueive, upon
condemnation proceedings brought by the Village to acquire the public
utility using this franchise, any return of this franchise or its value.
In the event that the Village of Lino Lakes determines that it wishes to
enter into the municipal gas operation itself, then upon written notice
it shall have the right to purchase all of the gas installations of the
Grantee within the Village corporate limits, for the actual cost of con-
struction including 'Morata share of financing and administrating such
copt, ?e,;s de cci_2-:.1::-_i. (For the purpose of calculating depreciation
cats .-.td res27.ves, _ a Grantee shall classify its property in conformity_
sy . :i of accounts for gas utilities heretofore adopted
by the 'iat_ion- yss,,.:1.ation of Railway 1�1,.1 Utility Commissioners and
depr9.c=.-.:ior_ i ropriate and app = _:ble s'aall conform to those
e :abi.f t.11ed by i..austry.) In case :; purchase by the Villa;;- of
L _::o Lees, t: raarcee agrees that it will cooperate in doing whatever
is necessary assist the Village of Lino Lakes in obtaining a gas
qo.o a from ti_:- Federal Power Commission.
It sha1. be a co~idit__ln of each contract entered into by t.s Grantee
wi_ n ref venc_+ o c,,l—ations under this franchise that it hall be sub-:ec
tc :he -xercie , of i.t.�: option to purchase by Lino Lakes a._d that Lino
L. 3 may be _L 3tittted for the Grantee as a party to and such contract
aid may succeed ro a?_1 the privileges and obligations thereof.
S' _ION . No _.ale, and/or assignment cf this franchise shall be
erect' until the page Council of tha Village of Linc Lakes shall
have aY, :-oved game, s :.d until the vendee Jr =:.ssignee shali have filed
i.:. the .; ,'fice ;f th: page Clerk of said Village, an ins. -: rument duly
ex`cutc:f. roc:_ ing fact of sale and/or ass::nment ther._of, accepting
the ze::t: of Ls t:, achise and agreeing to peform all the conditions
thereat; prov_;.ad however, -that such approval shall bot be unreasonably
withhe_-'. by said Village Council,
S:l;:'•ZION 8 The Grantee, its leasees, successors and assigns sha '.
indemniy, kee?, and hold the Village free ant harmless frn liability
on account of injury cr damage to persons or „-:operty gro„r_:.ng out of
the con3:ructi.a, maintenance or operation of :�.ts property, and in the
eyent that suit: shall be brought against the Village, either indepen-
dently cr jointly with the Grantee, its leasees, successors or assigns,
on account thereof, the Grantee, its leasees, successors and assigns,
upon nc:jce to it by the Village shall defend the Village in any suit
at the c;st cf .he Grantee, its leasees, successors or assigns; and in.
t . eve •. of 6 anal judgment being obtair.ed against the \.._llage, eit` e r
indeper.,�ntly jointly with the Grantee, its leasees, sc:cessors a...
a.;.igns, Grant_ shall pay such judgment with all costs ar. shall hoi_.:
t:,e Village hart.iess therefrom.
The Grantee, its leasees, successors and assigns shall file with the
Village, certificates of insurance as follows:
Public Liability: $100,000 each person, $500,000 each accident.
Property Damage: $50,000 each accident, $250,000 aggregate.
SECTION 9. The Grantee shall construct a gas distribution system
commencing within one year from date of approval which will serve the
areas in the Village of Lino Lakes designated on the map or plat attached
to this Ordinance and made a part thereof.
SECTION 10 The Grantee, its successors or assigns, shall at all
times provide and furnish adequate, safe and continuous supply of gas to
thf: Vi3lage a: its inhabitants with its abili":y. Gas furnished to
consurr rs under thi franchise shall be of ma-,.etable quality and free
fr,,m exca of that it shall contain come element or comr wand
with a,). Basil r ete. table odor in an amc: nt s:.,2fici lat to be noticeable
wh_n t:h _ gas = re'_e ased but not suffic to be harmful to hue .n and
animal life or to in,:erfere with combustion.
Except as hereinafter provided, gas sold, supplied, and delivered under
this franchise shall be maintained at a monthly average gross heating
value of the number of B.T.U. of heat value per cubic foot fixed in the
rate schedule, plus or minus 50 B.T.U. Any change, adjustment or replac..
meat of ppliaucces or parts thereof made necessary by the change in the
value of the g-s shall be made by the Grantee, at its own expense, wit:r J ?
thirty (30) da;.s after the change becomes effective.
Gas pressure, as measured at the outlet of the Grantee's service to any
consumer, shall never be less than four (4) itches of water column, to
be dete_nined as herein provided. The Grange shall maintain a graphic
re.cordi-t.g pressure gauge at a point in the distribution system to be
designaed by the Village as typical of average pressure.
The Sta-idard c,f service shall be equal to that rendered in the Village
of Circle Pine:, or as prescribed elsewhere herein.
SECTION 11. Rates charges by the Grantee for service hereunder
shall r_-z be higher than those charged in the Village of Circle Pines.
The ratas to be charged by the Grantee for gaa or gas service hereunder,
ane .the standard of service shall be such as ,Iay be fixed from time to
time by the Grantee and the Village of Lino La:es, or such rate making
body as may hereinafter be established under the laws of the State of
Minnesota and given jurisdiction thereof, provided that the rates to be
c:iarged by thy Grantee hereunder ate to be reasonable, and shall at all
times be such as will yield to it a reasonable return from its property
used and useful in the furnishing of gas. The Company agrees that under
present economic conditions a "reasonable return" of 6% tc 611% would
be fair and rasonable. The rates shall be competitive with other sup-
pliers in the area.
SECTION 12. All gas service shall be supplied to any consumer.
Meters shall be tested for accuracy by the Grantee upon the request of
any customer who believes his meter to be inaccurate. If, upon test,
it appears that such meter overruns to the extent of 3% or more, the
Grantee shall any the costs of such tests and shall make a refund for
overcharges collected since the last known date of accuracy but for not
longer than six (6) months, on the basis of the extent of the inaccuracy
found to exist at the time of the tests. If, when any meter is tested
upon the demand of a customer, it is found to be accurate or slow or less
than 3% fast, the customer shall pay the ree.onable cost of such testing.
Every meter, whether complained of by a customer or otherwise, shall
be removed from service at least once each seven (7) years and thoroughly
tested for its accuracy. Any meter found inaccurate upon any test be-
yond a tolerance of 2% shall not be returned to service until properly
ad-usted. Thn Gtan,:ee shall submit a per;odic statement, at least
aL aual ., , to :1,n Vilik,.ge indicating the numbe of meters removed for all
to is +ci the lie._ removed for complaint tuts together with all
m :� er nplai s re,..rived and the results of tests on meter that are
cc ._p1aJ- d of.
. "- at all of the prof is r: z ths.s Ordinsnce saall
al.l +ti _u the suc•.=: c::s or assigns of th.-. Gral,.tee with the same force
any a `',-.,-:t as they do the Grantee itself
SECTION 14. If the Grantee shall be in default in the performance
of any c the material terms and conditl.-,:is of this Ordinance and shall
cc.3:inu- ?_n default nor more that thirty 130) jays after rc=eiving
nut:: ce f: -ai the VilLo%e Council of such ciefe: '.;_, the Council
mar oy ordinance duly passed and adopterl,.. ce-rinate all ri•Sts granted
uncr this ordinance to the Grantee. Tha se-. Aotice of default shall
be in writing and shall specify the.provisio_.- of this ordinance in the
perform: .ce of whichit is claimed that tie G_ atee is in default.
Suca n'ce shall be -erved in the manner prr.:_jed by the laws of the
St ':a c_- :Minnesota fo.:• the service of origin'.: notices in civil actions.
Thy reG.:aahleness of any ordinance so passeddeclaring a forfeiture of
therigh and . rivilcsas granted by this fraii.'- ise ordinance shall be
s1 :je.ct :o a r-.view "1.7 a court of competent ju:isdiction.
S:C:TION 15. That if any section or provisions or parts of this
ordine-q,_c, shall be found to be invalid, the same shall mot effect or
invalide the remainder or any other portion of this ordinance; the
remainder therwf shall remain in full force and effect.
SECTION '..i. rl,s Grantee shall within t...rty (30) days after the
passage and publicaC_,m of this ordinanc_, f3.:'. with the Village Clerk
it. acoe,tance of same in writing, signee its proper officers
anc attested by its corporate seal.
SEC:ION 17. Whenever the term "Grantee' is used herein, it is and
shall be taker_ -'-a mean and include the Utilities Commissic-' of the
Village of Cii-.a Pines, Minnesota, its _:. ssors and ae gns. When..•
ever the term"village" is used herein it s:.all be taken cc -mean the
Village cf Lino Lakes, Minnesota.
SEG'TON 18. Grantee shall cause a certified public accountant to
ascertain in a separate Profit and Loss Statement the annual results of
the operations under this franchise. Profits of the operations under
this franchise shall be first applied to the losses incurred by the
Grantee to date hereof; thereafter, the said profits shall be applied
to the costs incurred by Grantee attributable to the Lino Lakes
operation for trunk lines to serve the Village; thereafter the said pro-
fits shall be applied to amortising the cost of the Lino Lakes facilities;
thereafter the said profits, if any shall be paid to the Village.
SECTION 19. This ordinance shall be in force and effect thirty
(30) days after its passage and publication and after the acceptance
by the Grantee as provided herein. The cost and expense of the official
publication of this ordinance shall be paid by the Grantee when and as
s::on as furnished with a statement for the same.
Pt wE1 :ADOPT' 1? F,PPROVED by the Village Council of the Village of
.res, this 9th day of October, 1961.
/s/ He"s::.:y' Rosengren, Clerk
/s/ Arnold A. Kell.ng, Ma} o