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HomeMy WebLinkAbout1961-028 Council Ordinances (2)ORDINANCE 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 OR ASSIGNS, A NON-EXCLUSIVE. FRAN- CHISE AND RIGHT FOR A PERIOD OF 25 YEARS TO ERECT, CONSTRUCT, RECON- STRUCT, MAINTAIN AND OPERATE A GAS DISTRIBUTION SYSTEM FOR THE DIS- TRIBUTION OF GAS IN THE VILLAGE OF LINO LAKES, CONSISTING OF ALL SUCH EQUIPMENT MACHINERY, PIPES, FIXTURES, TANKS AND OTHER APPURTEN- ANCES 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 DISTRIBUTE SUCH GAS TO SUCH VILLAGE, AND ITS INHABITANTS THEREOF, AND OTHERS, WITHIN OR WITH- OUT 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 muni- cipal 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, to- gether with all appurtenances, pipes, machinery, tanks and appli- ances necessary or useful thereto for the distribution of gas for the purpose of selling, distributing and supplying gas to said Village and inhabitants 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 appurtenances 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. The Grantee shall construct, maintain and operate or otherwise provide a modern and adequate gas distributing sys- tem for the furnishing of, and/or distribution of gas in said City. The area within which Grantee is granted a franchise to construct and operate a gas distributing system is shown on the map attached hereto and made a part hereof. No extension of 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 Village; 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) months 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 eugared by the Village of Lino Lakees in Tnaking 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 t:.e 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 1st, 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 right-• to r_m ive, upon condemnation proceedings brought by the Village to acquire the puulic 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 i _orata share of iinan:irg and edministrating such co: t, less deprecict: o'i. (For the purpose of calculating depreciation coots aed rep -gives, Grantee shall classify its property in conformity with the unife-ri:. s';> . cf accounts for c:as utilities heretofore adopted b7 the Nation.'_ Aseeeletion of Railway a7,4 Utility Commissioners and deprec _etior_ T.n.ZSS a;:propriate and app' ele shah conform to those eeeab1-._bed by the industry.) In case of purchase by the Village of L'_io L cs, t;.._ Grantee agrees that it vil cooperate in doing whatever is necessary t_. acsiet the Village of Lino Lakes in obtaining a gas cu'c to from the Federal Power Commission. It shad be a : cnd4 +:ion of each contract entered into by the Grantee w —1 rele`eence ea operations under this franchise that it shall be subject to `he c :e cisc of t}-_e cption to purchase by Lino Lakes and that Lino Lair^_a may be sehseitetec for the Grantee as a party to any such contract and may succeed to ail_ the privileges and oLiigations therecf. ErclI0 T 7 _ No sole, and!or assigr:e nt cf this franchise shall be effective untfi the Village Council of the Village of Lino Lakes shall have ap- •roved same, and until elec veedea or _.esignee shall have filed j _?. the e fice of the illage ::lcrk of said V l cage, an inet urient duly e__ecutr.?, recieing tee. fact of sale and/or assignment thereof, accepting the reems of this f _ eLchise and agreeing to perform all the conditions thereof; prow. ed ho..ever, that such approval shall bot be unreasonably •withheld by said Village Council. S"TION 3. The Grantee, its leasees, successors and assigns shall indemnL y, keen, any, hold the Village `:_ea an: harmless from liability on accoent of injury cr damage to persons or ~ operty growing out of the cons'_ructien, maieeenance or operation of its property, and in the event that suit shall be brought against the Village, either indepen- dently or jointly with the Grantee, its leasees, successors or assigns, on account thereof, the Grantee, its leasees, successors and assigns, upon nceice to it by the Village shall defend the Village in any suit at the c;:st1 of the Grantee, its leasees, successors cr assigns; and in the even of a final judgement being obeairLed against the Village, either iniependently cr jointly yith the Grantee, ics leasees, successors and assigna. Grantee shall pay such judgment with all costs and shall hold the Village harmless 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 cf Lino Lakes designated on the map or plat attached to this Ordinance and made a part thereof. SECTION 10 The Grantee, its successors cr ass:Lgn , shall at all times rrovide :.d fu:.nish adequate, safe and continuous supply of gas to a-vi its inhabitants with its Gas furnished to cc,estur:.rs urc : C.ic franchise shall be of n::arket_able quality and free f_' ::t it. uri 1•'` ems. <_•r t that it shall contain soma element or comp-nd ::'.rh r.^ easi17 d:e::ecs:i.ble odor in an aTcLrit s f Eic e.kt to be not-ceajle wh n th : gas in released but not suffi^__?_at to he harmful to hu.mn and as: a:. life or to interfere with combustion. Ex-;ept =.s here_nafter provided, gas sold, supplied., and delivered under tH_s fra::chi3e shall be maintained at a monthly average gross heating value of the r nsber cf B.T.U. of heat value par cubic foot fixed in the rs.te schariulc.. plus or minus 50 B.T.U. Any change, adjustment or replace- m^-:t of plizu ' es cr parts thereof made necessary by the change in the v'-.ie o:_ i::.e n.s sna='_i be made by the Grantee, at its cwn expense, witr.i-1 t`;;_rty (3(i) da.s after the change becomes eifcctive. Gas pressure, as measured at the outlet of the Granteets service to ary consumer, shall nee?_ be less that four (4) inches of water column, to be determined zs herein provided. The Grantee shall maintain a graphic recordir.r, pre:=•sure gauge at a p' int in the distribution system to be designated by the Village as typical of average pressure. The Stenr.ard of ser,r_ce shall be equal to tlw.t rendered in the Village of Cire.le Pins or as prescribed elsewhere herein. SECTION 11. Rates charges by the Grantee for service hereunder shall r;_ be higher than those charged in the Village of Circle Pines. The rates to be charged by the Grantee for gas or gas service hereunder, an-'. the stan�.�.rd of service shall be such as ity be fixed from time to time by the Grantee and the Village of Lino Lakes, or such rate making b dy as may hax•einafr..-r be established under the laws of the State of iiiznesota and given jurisdiction there^f, provided that the rates to be cliarged by t'.,-, Grantee hereunder ate to be reasonable, and shall at all times be such as will yield to it a reasonable return from its properly used and useful in the furnishing of gas. The Company agrees that under p.asent c.conor=.c conditions a "reasonable return" of 6% to 61e would be fair: and reasonable. The rates shall be competitive with other sup- pliers in the area. S''CTION 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 that 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 rec.::onable cost of such testing. Every meter, whether complained of by a customer or otherwise, shall be removed from se -vice 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 2Z shall not be returned ,:o se: vi ee until pro?erly adjusted. The Grantee shall submit a periodic stateli _nt, at least a:: "- , to tie V; 2iei e indicating the number of meters removed for all the r ITC' removed for cor.iplaint tests together with all rcL;.ved and the results of tests on meter that are co la j.w.d of. 'ION ..'. 77-'=3t all of the pro.,-_71:7n ; f this Ordinance s:iali the uc•sc._ :o_s or assigns of t.A•? Crar i_::e with the same force a:-..1 e f e c t 42 they co the Grantee itself, SLCTTON 14. If the Grantee shall be in default in the performance of a_1y a the Lmater ni terms and condit:_^ns of this Ordin&r:ce and shall cc::::inee :.__ default r more that thirty (30; days after , eeeiving the Vl_.i_'r_' Council of such lint"=?;. it, the Vil1ne7 Council c•: ainarce d. il. ?assed and adopter,, 1=.7.1nate all ri:: i :s granted uncT•-r thi- ordinance to the Grantee. The sai - notice of default shall be in wri .i. ng and st-,a 11 specify the .provision_, of this ordinance in the perforoe..•.cc of whic'-•. it is claimed that tie t=_-:-:•:tee is in default. Suez c; to shall b;. -served in the manner pr v_ied by the laws of the Sfi ':e cf i-iinr_esota for the service of on .inai notices in civil action The reLs:nableness cf any ord_ na rce so passed declaring a forfeiture of th'rigl- and privilt;cs granted by this franc -'use ordinance shall be eubja^` to a i view L7 a court of competent ., :i_sdiction. `_ION ;5. That if any section or pro. vi lions or parts of this ordinan: r_ shall be fo.:nd to be invalid, the same shall not effect or invalid,ILe the: remainder or any otter portion of this ordinance; the remainder thereof shn7_1 remain in full force *_d effect. Sr::_IWN i3. Tr.e Grantee shall withi•i t`_ rty (30) :1a., c after the pr:.sage -ad pu-lica:;:n of this ordinance. f.i.' with the Village Clerk its acceptance cf tit:, same in writing, sine: .y its proper officers and attested by its corporate seal. G itenever the term "Crnntee" is used herein, it is ar.d sh, :1 be ,:aker_ `o mean and include the f_i 1± !_es Cornnissl^r` of the V;_:.lage of Cir-.1 2 Pines, i innesota, its (.c _3sors and ,;as. When - eve: the tern 'ilage' is used herein it s_i_:11 be tal_en t,, mean the Vi1L: e cf Lin': -ekes, Minnesota. SE=Or. 33. Grantee shall cause a certified public accountant to ascertain in a separate Profit and Loss Stat_:_.ent tha 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 t'�.e Crantce as ; rovided herein. The coot and ezl:ense of the official pcbli.7_ ,_ on of thi.;. ordinance shall be paid by t::a G:-antee when s.nd as s,,,z as furnished r:ith a statement for t _e s-s.ic-.. !DOPTT:' : AY.) '7-PROVED by the Council of the Villas of this 9th day of c.. -r, 12;%61. A' ...c= .. . /c ! t.P._ j i oseiic rn, Clerk c/ Arnold A. Kell `_rig, Mayo-7 NORTH CENTRAL PUBLIC SERVICE CO. DIVISION OF DONOVAN COMPANIES, INC. 1080 MONTREAL AVENUE • ST. PAUL, MINNESOTA 55116 October 20, 1986 Dear NCPS Customer: Recently you may have heard claims that the natural gas service being offered by Circle Pines Municipal Utilities is cheaper than North Central Public Service Co.'s (NCPS). This is simply not the case. Take a look at the facts -- Natural Gas Rates: 1. An actual billing for a Circle Pines residential customer from July '85 thru June '86 using 135.2 Mcf was $782.48. The same amount of gas from NCPS would have been $716.21 or a savings of $66.27. In addition, NCPS rates have been reduced another 21% since the 12 month period ended June '86. The Cost of "Free" Service: 2. Circle Pines reports that "free" service costs every customer 21 cents per Mcf. The Circle Pines resident used for our comparison paid $28.29 during the billing period for "free" service and did not require a service call. Property Taxes: 3. Since 1966 NCPS has paid more than $226,800 in property taxes associated with our distribution facilities in Lino Lakes. Contrary to their promises, Circle Pines has yet to contribute from their retained profits to Lino Lakes. In light of these "gas facts" we ask you to help by telling your city representative that you feel it would be best for Lino Lakes if North Central Public Service were selected to serve natural gas to all the new developments in your area. Your support will be very important in calling attention to this matter. Sincerely, Michael J. Gehlen General Manager of Gas Operations North Central Public Service Co.