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HomeMy WebLinkAbout1962-029 Council OrdinancesORDINANCE NO. 29 THE VILLAGE OF LINO LAKES, MINNESOTA AN ORDINANCE AMENDING ORDINANCE NO. 28 WHICH GRANTS TO THE UTILITIES COMMISSION OF THE VILLAGE OF CIRCLE PINES A NON-EXCLUSIVE FRANCHISE TO ERECT, CONSTRUCT, AND OPERATE A GAS DISTRIBUTION SYSTEM IN THE VILLAGE OF LINO LAKES. The Village Council of the Village of Lino Lakes does ordain: vTION . That Section 6 of Ordinance Ho. 28 is hereby amerkded. so thet the rs rzta sell hereafter read as follows: The Grantee, its lessees, successors, and assigns shall notTis ee an,r capital stock on account of the franchise hereby granted for the v t :ie. thereof, and shall have no right co receive, upon condemnation ~ � ceedin s brought by the Village to acquire the P i-- �, g g public utility using this franchise, any return of this franchise or its value. In the pent 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 after a period of ten (10) years from the date hereof, to purchase all of the gas installations of the Grantee within the Village.corporate limits, for the actual cost of constructiea including pro rate sh.'re of financing and admini- strating such costs, Jess depreciation, hue eot less than the cost o: retiring all outstanding bonds or other cbl_3ations issued by the Village of Circle Pines attributable to €:aid gas installations. (For the purpose of calculating depreciation costa and reserves, the Grantee shall classify its re:perty in conformity with the uniform system of accounts for gas utilities heretofe re adopted by the Ntttional Associati.or of Rail:aay and Utility Commissioners and depreciation rates appropriate and applicable shall conform to those established by the industry.) In case of purchase by the Village of Lino Lakes, the Grantee agrees that it will cooperate in::dcing whatever is necessary to assist the Village of Lino Lakes in obtaining a gas quota from the Federal Power Commission. It shall be a condition of each contract entered into by the Crantee with reference to operations.under this franchise that it shall be subject to the exercise of the option to purchase by Lino Lakes and that Lino Lakes may be substitited for the Grantee as a party to any such contract and may succeed to all the privileges and obligations thereof. SECTION 2. That Section 10 of Ordinance No. 28 is hereby amended so that the same shall hereafter be and read as follows: SECTION 10. The Grantee, its succes:acrs or assigns, shall at ail times provide and furnish adequate, safe e-rd continuous supply of gas to the Village and its inhabitants within its ability. Gas furnished to consumers under this franchise shall be of marketable quality and free from impurities except that it shall contain some dement or compound with an easily detectable odor in an amount sufficiently noticeable when the gas is released but not sufficient to be harmful to human and animal life or to interfere 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 par cubic foot fixed in the rate schedule, plus cr3 minus 50 B.T.U. Any change, adjustment or re- piace' .nt of appliances or parts thereof made necessary by the r_-ang e in the vauue of the `is shall be made by the Grantee, at its own expense within thirty (30) ::ays after the change becceles cf. eetive. Cai prc. sure, as meesured at the outlet of the Grantee's service to any ec: sirtL-, sba3."'_ nel;r r be less than four (4) inches of water column, to be det., ine:_ as hey^in provided. The Grantee shall maintain a pressure gauge -..": a pc_nt in the distribution system to be designated by the Village t.-1.cal of average pressure. The standard of service shall be equal to that rendered in the Village of Circle Pines or as prescribed elsewhere herein. SECTION 3, That Section 11 of Ordinance No. 28 is hereby amended so that the same shell hereafter be and read as follows: SECTION 11. Rates charged by the Grantee for service hereunder shall not be higher -ban those charged in tiia Village of Circle Pines, for comparable classes of gas service. The rates to be charged by the Grantee for gas or gas service hereunder, and the standard of service shall be such as may be fixed from time to time by the Gaiar_tee and the Village of Lino Lakes, or such rate making body as may hereinafter be established under the laws of the Sate of Minnesota and given juris- diction thereof, provided that the rates to be charged by the Grantee hereunder are to be reasonable, and shall at all times by such as will yield to it a reasonable return from its property used and useful in the furnishing of gas. The Grantee and the Village agree that under present economic conditions a "reasonable return" of 67. to 6%% after all expense' including depreciation and depatrment service would be fair and reason- ablem provided that so long as there are outstanding bonds or other obligations of the Village of Circle Pines, issued in whole or in part for gas purposes, all conditions and covenants regarding rates and any indentures authorizing the issuance of such securities shall at all times be followed, and nothing in this Gas Franchise Ordinance shall in any way alter such rate covenants, The rates shall be competitive with other suppliers in the area. Notwithstanding anything to the contrary contained in the franchise, the rate provided heretofore stated shall not apply as to interruptible gas service. SECTION 4. That Section 18 of Ordinance No. 28 is hereby amended so that the same shall herafter be and as follows: SECTION 18. Grantee shall cause a cer_::ified public accountant to ascertain in a separate statement the annual net income, on a cash basis, derived from the sale of natural gas within the Village of Lino Lakes under this Gas Franchise Ordinance. Said net income, after de- ducting depreciation and debt service on any and all bonds or other . a obligations issued by Grantee to finance the expansion of Grantee's natural gas system into Lino Lakes, shall be paid to the Village of Lino Lakes except that no such payment shall be accrued or made until Grantee shall have satisfied all losses heretofore incurred, including the payment of ail wholesale gas bills, and until all principal, interest, reserve and ether fuhd requirements shall be current on any bonds or other obligations issued by the Village of Circle Pines in whole or in part for gas purposes. PASSED, ADOPTED AND APPROVED by the Village Council of the Village of Lino Lakes, Minnesota, this 25th day of Larch , 1962. Attest: /s/ Henry Rosengren, Clerk /s/ Arnold A. Kelling, Mayor