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<br />LEGALS I
<br />
<br />City of.Mounds View
<br />
<br />ORDINANCE NO. 625
<br />CITY OF MOUNDS VIEW,
<br />RAMSEY COUNTY
<br />AN ORDINANCE GRANTING RELIANT
<br />ENERGY MINNEGASCO, A NATURAL
<br />GAS UTILITY, A DIVISION OF RELIANT
<br />RESOURCES CORPORATION, A
<br />DELAWARE CORPORATION, ITS SUC-
<br />CESSORS AND ASSIGNS, A NONEX-
<br />CLUSIVE FRANCHISE TO CONSTRUCT,
<br />OPERATE, REPAIR AND MAINTAIN
<br />FACILITIES AND EQUIPMENT FOR THE
<br />TRANSPORTATION, DISTRIBUTION,
<br />MANUFACTURE AND SALE OF GAS
<br />ENERGY FOR PUBLIC AND PRIVATE
<br />USE AND TO USE THE PUBLIC WAYS
<br />AND PUBLIC GROUND OF THE CITY OF
<br />MOUNDS VIEW, MINNESOTA FOR
<br />SUCH PURPOSES; AND PRESCRIBING
<br />CERTAIN TERMS AND CONDITIONS
<br />THEREOF. . ,
<br />THE CITY COUNCil OF MOUNDS
<br />VIEW ORDAINS:
<br />SECTION 1. DEFINITIONS. For pur-
<br />poses of this Ordinance, the following
<br />terms shall mean:
<br />1.1. Citv Citv Council City Clerk.
<br />These. terms mean respectively, the City
<br />of Mounds View, the Council of the City of
<br />Mounds View, and the Clerk of the City of
<br />Mounds View.
<br />1.2. City Utility System. Facilities
<br />used for providing publiC utility service
<br />owned or operated by the City or agency
<br />thereof, including sewer, storm sewer and
<br />water service, street lighting and traffic
<br />signal systems but excluding Facilities for
<br />providing heating or other forms of ener-
<br />gy.
<br />1.3. Commission. The Minnesota
<br />Public Utilities Commission, or any suc-
<br />cessor, agency or agencies, including an
<br />agency of the federal government that
<br />preempts all or part of the authority to reg-
<br />ulate gas retail rates now vested in the
<br />Commission:
<br />1.4. Comoany.. Reliant Energy
<br />Minnegasco, a division of Reliant Energy
<br />Resources Corporation, its successors
<br />and assigns, including successors and
<br />assigns of-those portions of the Company
<br />that constitute any part or parts or the Gas
<br />Facilities subject to this franchise.
<br />. 1.5. Effective Date. The date on
<br />which the ordinance becomes effective
<br />under Section 2.2.
<br />1.6. !:aM. Natural gas, manufac-
<br />tur.ed~:~of--natural gasaRdmaR-
<br />ufactured gas or other forms of gas ener-
<br />gy.
<br />1.i. Gas Facilities 'or Facilities.
<br />Gas transmission and distribution pipes,
<br />mains, lines, ducts, fixtures, and neces-
<br />saryfacilities, equipment and appurte-
<br />nances owned, operated or otherwise
<br />use.d by the Company for the purpose of
<br />providing gas energy for public use.
<br />1.8. Non-Betterment Costs. Costs.
<br />Incurred by the Company from relocation,
<br />removal or rearrangement of Gas
<br />Facilities that do not result in an improve-
<br />ment to the Facilities.
<br />1.9. ~. A writing served by the
<br />party or parties on another party or par-
<br />ties. Notice to Company must be mailed
<br />or personally delivered to:
<br />
<br />Reliant Energy Minnegasco
<br />V.P. Marketing & Customer Services
<br />800 laSalle Avenue
<br />Minneapolis, MN 55402
<br />
<br />Notice to the City must be mailed to:
<br />
<br />City of Mounds View
<br />- City Clerk
<br />2401 Highway 10
<br />Mounds View, MN 55112-1499
<br />
<br />1.10. Public Way. A street, alley, or
<br />other public right-of-way within the City.
<br />1.11. Public Ground. Land owned or
<br />otherwise controlled by the City for park,
<br />open space or similar public'purpose.
<br />SECTION 2. FRANCHISE.'
<br />2.1. Grant of Franchise. The City
<br />hereby grants to the Company, until July
<br />1, 2019, the limited right to import, manu-
<br />facture, transport, distribute and sell gas
<br />for public and private use in the City. This
<br />right includes the provision of Gas that Is
<br />(I) manufactured by the Company or its
<br />affiliates and delivered by the Company,
<br />(il) purchased and delivered by. the
<br />Company or (iii) purchased from another
<br />source by the retail customer and deliv-
<br />ered by the Company. For these purpos-
<br />es, the Company may construct, operate.
<br />repair and' maintain Gas Facilities in, on,
<br />over, under and across the Public Way
<br />and Public Ground of the City, via. the
<br />most direct route, as determined by the
<br />City and the C.ompany, to serve the cus-
<br />tomer account(s) located at the real prop-
<br />erty described in Exhibit A attached here-
<br />to, subject to further provisions .o.f this
<br />ordinance, zoning ordinances, or other
<br />applicable ordinances, including permit
<br />procedures, as they may be enacted or
<br />amended from time to time.
<br />2.2. Effective.' Date: Written
<br />Acqeptance,. This franchise shall be in
<br />
<br />I
<br />
<br />force and effect froroand aftel'its passage
<br />and publication as required by law, and its
<br />acceptance by the Company In writing
<br />filed with the City Clerk within 60 days
<br />after publication.
<br />2.3~ Nonexclusive Franchise. This
<br />is not an exclusive franchise.
<br />2.4. Preoaration' Publication
<br />~. The expense of preparation,
<br />and publication of this ordinance shall be
<br />paid by the Company.
<br />2.5. ~. If the Company is in
<br />default in the performance of any material
<br />part of this franchise for more than 60
<br />days, unless weather conditions or reme-
<br />dial efforts warran~ a longer time, after
<br />receiving Notice from the City of such
<br />default, the City Council may, by ordi-
<br />nance, term.inate all rights granted here-
<br />under to the Company. The Notice of
<br />default .shall be in writing and .shall specify
<br />the provisions of this franchise under
<br />- which the default is 'claimed and state the
<br />basis therefor. Such Notice shall be
<br />served on the Company by personally
<br />delivering the Notice to an officer thereof
<br />at its principal place of business in ,
<br />Minnesota. . .
<br />2.6. Notice and Cure., If the
<br />Company is in. default as to any part of
<br />this franchise, the City may, after Notice
<br />to the Company and the failure of the
<br />Company to cure I.he default within a rea-
<br />sonable time, take such action as may be
<br />necessary to abate the. condition caused
<br />by the default. The Company agrees to
<br />reimburse the City for all Its reasonable
<br />costs incurred in connection with the
<br />default.
<br />2.7. Contest of Default. If the City
<br />or Company asserts that the other party is
<br />in default in the performance of any oblig-
<br />ation hereunder, the complaining party
<br />.must notify the other party in writing of the
<br />default and the desired remedy;
<br />Representatives of the parties must
<br />prol\1ptly meet and attempt in good faith to
<br />negotiate a resolution of the dispute. If
<br />the dispute is not resolved within thirty
<br />(30) days after service of the. notice, the
<br />parties may jointly select a mediator to
<br />facilitate further discussion. The. parties
<br />will share the fees and expenses of the
<br />mediator equally, If a mediator is not
<br />used or if the parties are unable to resolve
<br />the dispute within thirty (30) days after
<br />first meeting with the mediator, either par-
<br />ty may commence an action in District
<br />Court to interpret and enforce this fran-
<br />-cruse .orfor'such1l1herc-relief as may be
<br />permitted by law.
<br />2.8. Continuation of Franchise. If
<br />this City and the Company are unable to
<br />agree on the terms of a new franchise by
<br />the time this franchise expires, this fran-
<br />chise will remain in effect until a new fran-
<br />chise is agreed upon, or until 90 days
<br />after the City or the Company serves writ- .
<br />ten Notice to the otl1er party of their inten-
<br />tion to allow the franchise to expire; pro-
<br />vided, however, that if the City is imposing
<br />franchise fees at the time of such expira-
<br />tion, such fees will continue on the same
<br />terms and conditions until tne new fran-
<br />chise is agreed upon.
<br />SECTION 3. CONDitiONS OF USE.
<br />3.t. Use of Public Ways and Public
<br />~. Gas Facilities must be located,
<br />constructed. installed, operated and main-
<br />tained so as not to interfere with a City
<br />Utility System or with the safety and con-
<br />venience of ordinary travel along and over
<br />Public Ways or with the health and safety
<br />of the inhabitants of the City. Gas
<br />Facilities must be located on Public Ways
<br />and Public Grounds as determined by the
<br />City. The Company's construction, recon-
<br />struction, operation, repair, maintenance
<br />and location of Gas Facilities is subject to
<br />other .ordinances and regulations of the
<br />City consistent with authority granted the
<br />. City to manage its Public Ways and Public
<br />Grounds Ulider state and federal law.
<br />3.2., Field Location. Upon request
<br />by the City, the Company mustprovide
<br />field locations for" any of its Gas Facilities
<br />within the period of time required by
<br />Minnesota State Statute 2160.
<br />3.3. Permit Reauired. The
<br />Company may 110t open or disturb the sur-
<br />face of any Public Way or Public Ground
<br />without first having obtained a permit from
<br />the City, for which the City may Impose a
<br />reasonable fee.. The permit conditions
<br />imposed on the Company may not be
<br />more burdensome than those imposed on
<br />other utilities for similar faciHties or work.
<br />The Company may, however, open and
<br />disturb the surface of any Public Way or
<br />Public Ground without a permit if (i) an
<br />emergency exists requiring the Immediate
<br />repair of Gas .Facilities and (II) the
<br />Company gives notice to the City before, if
<br />possible, commencement of the emer-
<br />gency repair. Within two business days
<br />after commenc.ing .the repair,the
<br />Company must apply for any requlred per-
<br />mits and pay the re~repfees,
<br />3.4. Comosny Pro~oi1'on .of Gas
<br />~. The Company must take rea-
<br />sonable measures to prevent the Gas
<br />Facilities from causing damage to persons
<br />or property. The Company must take rea-
<br />sonable measure.s to protect the Gas
<br />
<br />I~-
<br />
<br />Facilities from damage that could be rate ordh1ance imposing the fee shall not
<br />inflicted on the Facilities by peRlons, prop- be effective against the Company unless it
<br />erty or the elements. ~ The Company and lawfully Imposes a fee or tax of the same
<br />the City will comply with all applicable orsubstafltlally similar amount on the sale
<br />laws and codes when performing work of gas energy within the City by any other
<br />near the Gas Facilities. The City does not gasel"lergy supplier, provided that, as to
<br />waive any of Its defenses of Immunity or sUl::h supplier, the City has the authority to
<br />limitations Qnliablllty under Minnesota require a franchise fee or impose a tax.
<br />Statutes, Chapter 466. 4.4. Collection of Fee. The fran-
<br />3.5. Relocation of Facilities in chise fee shall be payable not less than
<br />Public Ways. The Company shall prompt- quarterly during complete billing months of
<br />Iy and at its own expense, with due regard the period for which payment is to be
<br />for seasonal working conditions, per!lla" made. The franchise fee formula may be
<br />nently remove and relocate its Faciliti~l! Iii "changed from time to time; however, the
<br />the Public Ways when it is necessarY t~ . 'change shall meet the same notice,
<br />prevent interference, and not'merety.-~ requirc6ments and the fee may not be
<br />the convenience of the City, in c()Onectlo~: changed more often than annually. Such
<br />with: (1) a present or future local govern,. fee shall not exceed any amount which
<br />ment 'use of the Public Way for, a public the Company may legally charge to its
<br />project, including a City Utility System; (2), customers prior to payment to the City.
<br />the public health or safety; or (3) the safe1 Such fee Is subject to subsequent reduc-
<br />ty and convenience of trave.1 over the tions. to ac.count for uncollectibl~M .
<br />Public Ways. If such relocation is done customer 'refunds incurred by the
<br />without an agreement first being made all CQmpany.., The Company agrees to make
<br />to who shall pay the relocation cost, the available for inspection by the City at rea-
<br />Company's relocation of the Facilities sonable times all records necessary to
<br />shall not be considered a waiver of any audit the Company's determination of the
<br />right to be reimbursed for. the relocation. franchise fee payments.
<br />cost. If the Company claims that it should SECTION 5. INDEMNiFICATION.
<br />be reimbursed for a relocation cost. it 5.1.~. The Company shall
<br />shall notify the City within thirty (30) days defend, indemnify and hold harmless the
<br />of receipt of such order. City from all liability or claims of liability
<br />3.6. Relocation of Facilities in for bodily injury or death to persons, or for
<br />Public Ground. The City may require the property damage, in which the claim:
<br />Company to relocate Facilities within Or 5.1.1. Alleges a negligent or other-
<br />remove Facilities from Public. Ground wise wrongful act or omission of the
<br />upon a finding by the City that the Company or its employee, agent or inde-
<br />Facilities have become or will become a pendent contractor in Installing, maintain-
<br />substantial impairment of the public use or. ing, operating or repairing .the Company's
<br />enjoyment of current or planned use of the' Facilities; and alleges that the City is
<br />Public Ground. The relocation or removal liable, without alleging any independent
<br />will be at the Company's expense when negligent or otherwise wrongful, act or
<br />the City properly exercises its police pow- omission on the part of the City; or
<br />er. The Company does not waive Its 5.1.2. Is based on the City's negligent
<br />rights under an existing easement or pre- or otherwise wrongful act or omission in
<br />scriptive right In ihe Public Ground. The. Issuing a permit or in failing to properly or
<br />City will not require the removal of aban- adequately inspect or enforce compliance
<br />doned Gas Facilities In Public .Ground, with a term, condition, or purpose of the
<br />unless those Facilities have become or permit granted to the Company.
<br />will become a substantiallmpalrrrient of 5.2.L1ti9atlon. If a suit is brought
<br />the public use or enjoyment of the Public against the City under circumstances
<br />Ground. . where the agreement in this Section 5 to
<br />3:7. Street Imorovements Pavlna indemnify applies, the Company at its sole
<br />or Resurfacino. The City shall give the cost and expense will defend the City in
<br />Company reasonable written Notice of such suit if Notice thereof is given to the
<br />plans for street improvements where Company within a reasonable period.
<br />paving or resurfacing of a permanent. Notice by the City of a claim or action
<br />nature is involved. The Notice shall con- prori'lptly given to the Company within a
<br />taln the nature and character of the, period wherein the Company Is not preju-
<br />-Improvements,the' sbeets upon whICh the>'~bythe ~ack of notice, constitutes a
<br />Improvements are to be made,. the'extent reasonable period. The City shall not be
<br />of the improvements and the time when entitled to reimbursement for its costs
<br />the City will start the work, and, It more' Incurred prior to notification of the
<br />than one street is involve(l, the order in Company of the claims or actions. The
<br />which this work is to proceed. The Notice Company will thereafter have control of
<br />shall be given to the. Company a sufficient the litigation, but the Company may not
<br />length of time, considering seasonal work- settle such. litigation without the consent of
<br />ing conditions, in advance of. the actual . the City, which consent will not be un rea-
<br />commencement of the work to permit the sonably withheld. This section is not as to
<br />Company to make any additions, alter- third parties a waiver of any defense or
<br />ations or repairs to Its Facilities the Immunity otherwise available to the City;
<br />Company deems necessary. or to the Company. In defending any
<br />SECTION 4. FRANCHISE FEE. action on behalf of the .City, the Company
<br />4.1. EQrm. During the term of the shall have available to it every defense or
<br />franchise hereby granted, 'and In addition immunity thatthe City could assert in its
<br />to permit fees being Impose(lor that the own behalf.
<br />City has a right to impose; the City may 'SECTION 6. LIMITATIONS ON
<br />charge the Company a franchise fee. The APPLICABILITY.
<br />fee may be (i) a percentage of gross rev- This Ordinance constitutes a franchise
<br />enues received by the Company for, Its agreement betwpen the City and the
<br />operations within the City, or (Ii) a flat fee Company. No provision of this franchise
<br />per customer based on metered service to inures to the benefit of any third person,
<br />retail customers within the City or on including the public at large, so as to con-
<br />some other similar basis, or (iil) a fee stitute any such person as a third-party
<br />based on units of energy delivered to any beneficiary of.the agreement or of anyone
<br />class of retail customers within.the-corpo- or more of the terms hereof, or otherwise
<br />rate limits of the City. The fonriula for a give rise to any c;:ause of action for .any
<br />franchise fee based on units of.. energy person not a party hereto.
<br />delivered may incorporate both commo(lity SECTION 7. ASSIGNMENT.
<br />and demand units. The method of Impos- The Company, upon notice to the City
<br />ing the franchise fee; the percentage of shall have the right and authority to assign
<br />revenue rate, or the flat rate.on the per all rights conferred upon it by this fran-
<br />unit rate may,dlffer for each customer chlseto any person. The assignee of
<br />class or combine the methods described such rights, by accepting such assign-
<br />In (i) - (Iii) above in assessing the fee. ment, shall become subject to the terms
<br />The City shall seek to use a formula that and provisions of this franchise.
<br />provides a stable and predictable amount SECTION 8. CHANGE IN FORM OF
<br />of fees, without placing the Company at a GOVERNMENT.
<br />competitive disadvantage.' If the Any change in the fo.rm of government
<br />Company claims that the City-required fee. of the City shall not affect the validity of
<br />formula is discriminatory or otherwise this franchise. . Any governmental unit
<br />places the Company at a competitive dls- succeeding the City shall, without the con-
<br />advantage, the Company shall provide a sent of the Company, automatically suc~
<br />formula that will produce a substantially ceed to all or the rights and obligations of
<br />similar fee amount to the City and reim: the City provld~d in this franchise.
<br />burse the City's reasonable fees and costs SECTION 9. SEVERABILITY.
<br />in reviewing the formula. The City will . If any portion of this franchise is fo.und
<br />attempt to accommodate the Company but to be Invalid for' any reason whatsoever,
<br />is under no franchise obligation to adPpt the validity of the rest of this franchise
<br />the Company~proposed franchise fee for- shall not be. affected.
<br />mula. . SECTION 10. PREVIOUS FRANCHISE
<br />4.2. Separate Ordinance. The fran- SUPERSEDED.
<br />chlse fee shall be imposed by separate This franchise supersedes and
<br />ordinance duly adopted by the City replaces previous franchises granted to
<br />Council, which ordinance shall not .be the Company or its predecessors, if any.
<br />adopted until at least 60 days afterwrltten SECTION 11. AMENDMENTS.
<br />notice enclosing such proposed ordlnilnce This ordinance may be amended at
<br />has. been served upon the Company by any time by the City. An amendatory ordi-
<br />certified mail. The fee shall notbecome.nance becomes effective upon the filing of
<br />effective until at least 60. days after written the Company's written consent thereto.
<br />notice encloSing such adopted ordinance . SECTION 12. EFFECTIVE DATE OF
<br />has been served upon the Company by ORDINANCE.
<br />'certified mail. ' This. ordinance takes effect pursuant to
<br />4.3. Condition .of Fee. The sepa- the provisions of Section 2.2 contained
<br />
<br />Focus NewS-Thurs,Qct. 21, 1999 -'-19
<br />
<br />herein. '.
<br />Read by the City council of the City of
<br />Mound!! View this 24th day of May, 1999.
<br />Read and passed by the City Council of
<br />the City of Mounds View this 28th day of
<br />June, 1999.
<br />
<br />Dan Coughlin, Mayor
<br />
<br />Charles S. Whiting,
<br />City Clerk/Administrator
<br />APPROVED AS TO FORM:
<br />
<br />Aobert C. Long, City Attorney
<br />
<br />EXHIBIT A
<br />Description of Cu'stomerAccounts
<br />1 Lot 1, Block' 1, North Star
<br />Industrial Park 2nd Addition (Zep
<br />Manufacturing) .
<br />(October 21, 1999) Moun(ls View, New
<br />Brighton, St. Anthony Focus News
<br />
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