HomeMy WebLinkAbout2086-97 - ADMIN Ordinance - City Council - 1997/02/18i
ORDINANCE NO 2 0 8 6 9 Z
AN ORDINANCE AMENDING THE ST LOUIS PARK MUNICIPAL CODE
RELATED TO THE GRANTING TO NORTHERN STATES POWER, A
MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS,
PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN
THE CITY OF ST LOUIS PARK, MINNESOTA AN ELECTRIC
DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING
NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR
THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS
INHABITANTS, AND OTHERS, AND TO USE PUBLIC WAYS AND
PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES, AMENDING
ORDINANCE 93-1907 AS ADOPTED JANUARY 4, 1993, REPEALING
SECTIONS 9-602 THROUGH 9-613, REPLACING WITH NEW SECTIONS 9-
602 THROUGH 9-613
THE CITY OF ST LOUIS PARK DOES ORDAIN:
Section 1 The St. Louis Park Municipal Code is hereby amended by the repeal of
Sections 9-602 through 9-613 inclusive
Section 2. The St Louis Park Municipal Code is hereby amended by the addition of new
Sections 9-602 through 9-613 inclusive to read as follows.
SECTION 9-602 DEFINITIONS
(1) "City" In this Ordinance, "City" means the City of St. Louis Park, County of
Hennepin, State of Minnesota
(2) "City Utility System" means the facilities used for providing sewer, water, or any
other public utility service owned or operated by City or agency thereof.
(3) "Company" means Northern States Power, a Minnesota corporation, its successors
and assigns
(4) "Notice" means a writing served by any party or parties on any other party or parties.
Notice to Company shall be mailed to the General Counsel, Law Department, 414 Nicollet Mall,
Minneapolis, Minnesota 55401 , Notice to City shall be mailed to the City Clerk Either party
may change its respective address for the purpose of this ordinance by wntten notice to the other
Pty
(5) "Public Way" means any street, alley, or other public right-of-way within the City
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(6) "Public Ground" means land owned by the City for park, open space or similar
purpose, which is held for use in common by the public
(7) "Electric Facilities" means electric transmission and distribution towers, poles, lines,
guys, anchors, ducts, fixtures, and necessary appurtenances owned or operated by the Company
for the purpose of providing electric energy for public use.
SECTION 9-603 FRANCHISE
(1) Grant of Franchise City hereby grants Company, for a period of twenty years from 2-
19-93, the right to transmit and furnish electric energy for light, heat, power and other purposes
for public and private use within and through the limits of the City as its boundaries now exist or
as they may be extended in the future For these purposes, Company may construct, operate,
repair and maintain Electric Facilities in, on, over, under and across the Public Ways and Public
Grounds of City subject to the provisions of this ordinance Company may do all reasonable
things necessary or customary to accomplish these purposes, subject, however, to zoning
ordinances, other applicable ordinances, permit procedures, and to the further provisions of this
franchise
(2) Effective Date Written Acceptance This franchise shall be in force and effect from
and after its passage and its acceptance by the Company, and its publication as required by law
and the City Charter An acceptance by the Company must be filed with the City Clerk within 90
days after publication
(3) Service Rates and Area The service to be provided and the rates to be charged by
Company for electric service in City currently are subject to the jurisdiction of the Minnesota
Public Utilities Commission. The area within the City in which the Company may provide electric
service currently is subject to the provisions of Minnesota Statutes, Section 216B 40.
(4) Public Expense The expense of publication of this ordinance shall be paid by the
Company.
(5) Default If either party asserts that the other party is in default in the 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. If the dispute is not resolved within 30 days of
the written notice, either party may commence an action in Distnct Court to interpret and enforce
this franchise or for such other relief as may be permitted by law or equity for breach of contract,
or either party may take any other action permitted by law
SECTION 9-604 LOCATION, OTHER REGULATIONS
(1) Location of Facilities Electric Facilities shall be located and constructed so as not to
interfere with the safety and convenience of ordinary travel along and over Public Ways and they
shall be located on Public Grounds as determined by the City The Company's construction,
reconstruction, operation, repair, maintenance and location of Electnc Facilities shall be subject to
other reasonable regulations of the City
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(2) Field Locations The Company shall provide field locations for any of its
underground Electric Facilities within a reasonable period of time on request by the City The
period of time will be considered reasonable if it compares favorably with the average time
required by the cities in the same county to locate municipal underground facilities for the
Company
(3) Street Openings The Company shall not open or disturb the paved surface of any
Public Way or Public Ground for any purpose without first having obtained permission from the
City for which the City may impose a reasonable fee Permit conditions imposed on the Company
shall not be more burdensome than those imposed on other utilities for similar facilities or work
The Company may, however, open and disturb the paved surface of any Public Way or Public
Ground without permission from the City where an emergency exists requinng the immediate
repair of Electric Facilities In such event the Company shall notify the City by telephone to the
office designated by the City before opening or disturbing a paved surface of a Public Way or
Public Ground Not later than the second working day thereafter, the Company shall obtain any
required permits and pay any required fees
(4) Restoration After undertaking any work requiring the opening of any Public Way or
Public Ground, the Company shall restore the same, including paving and its foundation, to as
good condition as formerly existed, and shall maintain the same in good condition for two years
thereafter The work shall be completed as promptly as weather permits, and if the Company
shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and
material, and put the Public Way or Public Ground in the said condition, the City shall have, after
demand to the 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 the
Company The Company shall pay to the City the cost of such work done for or performed by
the City, including its administrative expense and overhead, plus ten percent additional as
liquidated damages This remedy shall be in addition to any other remedy available to the City
(5) Shared Use of Poles The Company shall make space available on its poles or towers
for City fire, water utility, police or other City facilities whenever such use will not interfere with
the use of such poles or towers by the Company, by another electric utility, by a telephone utility,
or by any cable television company or other form of communication company In addition, the
City shall pay for added cost incurred by the Company because of such use by City
SECTION 9-605 RELOCATIONS
(1) Relocation of Electric Facilities in Public Ways Except as provided in Section 9-605
(3), if the City determines to vacate for a City improvement project, or 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 the Company to relocate its Electnc Facilities located therein The
Company shall relocate its Electric Facilities at its own expense The City shall give the Company
reasonable notice of plans to vacate for a City improvement project, or to grade, regrade, or
change the line of any Public Way or to construct or reconstruct any City Utility System If a
relocation is ordered within five years of a prior relocation of the same Electncal Facilities, which
was made at Company expense, the City shall reimburse Company for non -betterment expenses
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on a time and material basis, provided that if a subsequent relocation is required 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 reconnect at its own expense its 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
(2) Relocation of Electric Facilities in Public Ground Except as may be provided in
Section 9-605 (3), City may require the Company to relocate or remove its Electric Facilities from
Public Ground upon a finding by City that the Electric Facilities have become or will become a
substantial impairment of the public use which the Public Ground is or will be put The relocation
or removal shall be at the Company's expense The provisions of 9-605 (2) apply only to Electric
Facilities constructed in reliance on a franchise and the Company does not waive its rights under
an easement or prescriptive right
(3) Projects with State or Federal Funding Relocation, removal, or rearrangement of any
company facilities made necessary because of the extension into or through City 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 the right herein granted to Company is a
valuable right City shall not order Company to remove, or relocate its facilities when a Public
Way is vacated, improved or realigned because of a renewal or a redevelopment plan 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 and the loss and expense resulting
therefrom are first paid to Company, but the City need not pay those portions of such for which
reimbursement to it is not available
(4) Liability Nothing in the Ordinance relieves any person from liability arising out of the
failure to exercise reasonable care to avoid damaging Electric Facilities while performing any
activity
SECTION 9-606 TREE TRIMMING
The Company may trim all trees and shrubs in the Public Ways and Public Grounds of City
interfering with the proper construction, operation, repair and maintenance of any Electric
Facilities installed hereunder, provided that the Company shall save the City harmless from any
liability arising therefrom, and subject to permit or other reasonable regulation by the City
SECTION 9-607 INDEMNIFICATION
(1) The Company shall indemnify, keep and hold the City free and harmless from any and
all liability on account of injury to persons or damage to property occasioned by the construction,
maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities
located in the City The City shall not be indemnified for losses or claims occasioned through its
own negligence except for losses or claims arising out of or alleging the City's negligence as to
the issuance of permits for, or inspection of, the Company's plans or work. The City shall not be
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indemnified if the injury or damage results from the performance in a proper manner of acts
reasonably deemed hazardous by Company, and such performance is nevertheless ordered or
directed by City after notice of Company's determination.
(2) In the event a suit is brought against the City under circumstances where this
agreement to indemnify applies, the Company at its sole cost and expense shall defend the City in
such suit if written notice thereof is promptly given to the Company within a period wherein the
Company is not prejudiced by lack of such notice if the Company is required to indemnify and
defend, it will thereafter have control of such litigation, but the Company may not settle such
litigation without the consent of the City, which consent shall not be unreasonably withheld This
section is not, as to third parties, a waiver of any defense or immunity otherwise available to the
City, and the Company, in defending any action on behalf of the City shall be entitled to assert in
any action every defense or immunity that the City could assert in its own behalf
SECTION 9-608 VACATION OF PUBLIC WAYS
The City shall give the Company at least two weeks' prior written notice of a proposed
vacation of a Public Way Except where required for a City street or other improvement project,
the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to
deprive Company of its rights to operate and maintain such Electrical 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 the Company for failure to
specifically preserve a right-of-way, under Minnesota Statutes, Section 160-29
SECTION 9-609 CHANGE IN FORM OF GOVERNMENT
Any change in the form of government of the City shall not affect the validity of this
Ordinance Any governmental unit succeeding the City shall, without the consent of the
Company, succeed to all of the rights and obligations of the City provided in this Ordinance
SECTION 9-610 FRANCHISE FEE
(1) Separate Ordinance. During the term of the franchise hereby granted, and in lieu of
any permit or other fees being imposed on the Company, the City may impose on the Company a
franchise fee determined by collecting not more than the amounts indicated below from each
customer in the designated Company Customer Classification for metered service at each and
every customer location
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Metered Service -based Fee Schedule
Customer Classification Amount per month
Residential $ 1 25
Small C & I and Municipal with no demand charge $ 4.00
Small C & I and Municipal with demand charge $10.00
Large C & I $65 00
The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council,
which ordinance shall not be adopted until at least 60 days after written notice enclosing such
proposed ordinance has been served upon the Company by certified mail The fee shall not
become effective until at least 60 days after written notice enclosing such adopted ordinance has
been served upon the Company by certified mail Section 9-603 (5) shall constitute the sole
remedy for solving disputes between the 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. No pre-existing ordinance imposing a
fee shall be effective against the Company unless it is specifically amended after the effective date
of this ordinance following the procedures of this Section 9-610 for the adoption of a new
separate ordinance A separate ordinance which imposes a lesser franchise fee on the residential
class of customers than the amount set forth in the above Metered Service -based Fee Schedule
shall not be effective against the Company unless the fee imposed on each other customer class in
the above Metered Service -based Fee Schedule is reduced proportionately by the same percentage
as the reduction represented by the lesser fee on the residential class The payment of a franchise
fee as provided by this Section 9-610 (1) does not relieve the Company from paying fees to City
unrelated to the installation, ownership or operation of Electric Facilities, such as building permit
fees
(2) Terms Defined. For the purpose of this Section 9-610, the following definitions
apply
1 "Customer Classification" shall refer to the classes listed on the Metered
Service -based Fee Schedule and as defined or determined in the Company's electric tariffs on file
with the Minnesota Public Utilities Commission
2 "Metered Service -based Fee Schedule" refers to the schedule in Section 9-610
(1) setting forth an amount per month for various customer classes
3 "Final Order" refers to an order of the Minnesota Public Utilities Commission
changing the Company's electric service rates for one or more of the Company's Customer
Classifications if the order is not an interim order and the time for appeal on such order has
expired or all proceedings relating to an appeal have been exhausted
(3) Collection of the Fee
.1 The franchise fee, based upon the Metered Service -based Fee Schedule, shall be
payable quarterly and shall be based upon the amount collected by the Company during complete
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billing months during the period for which payment is to be made by imposing a surcharge equal
to the designated franchise fee for the applicable Customer Classification in all customer billings
for metered 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
2 The franchise fee may be changed by ordinance from time to time, however,
each change shall meet the same notice requirements and not occur more often than annually and
no change shall require a collection from any customer for metered service in excess of the
amounts specifically permitted by this Section 9-610 The time and manner of collecting the
franchise fee is subject to the approval of the Minnesota Public Utilities Commission, which the
Company agrees to use best efforts to obtain No franchise fee shall be payable by Company if
Company is legally unable to first collect an amount equal to the franchise fee from its customers
in each applicable class of customers by imposing a surcharge in Company's applicable rate for
electric service_ The Company may pay the City the fee based upon the surcharge billed subject
to subsequent:reductions to account for uncollectibles, refunds and correction of erroneous
billings
3 The Company agrees to make its records available for inspection by the City at
reasonable times provided that the City and its designated representative agree in writing not to
disclose any information which would indicate the amount paid by any identifiable customer or
customers or any other information regarding identified customers.
(4) Conditions on the Fee The separate ordinance imposing the fee shall not be effective
against the Company unless it is lawfully imposes and the City quarterly or more often collects a
fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the
City by any other energy supplier, provided that, as to such a supplier, the City has the authority
to require a franchise fee or to impose a tax The "same or greater equivalent amount" shall be
measured, if practicable, by comparing amounts collected as a franchise fee from each similar
customer, or by comparing, as to similar customers, the percentage of the annual bill represented
by the amount collected for the franchise fee purposes. The franchise fee or tax shall be
applicable to_energy sales for any energy use related to heating, cooling, or lighting, as well as to
the supply of energy needed to run machinery and appliances on premises located within or
adjacent to the City, but shall not apply to energy sales for the purpose of providing fuel for
vehicles
(5) Permitted Adjustments If following the effective date of this franchise the Minnesota
Public Utilities Commission by Final Order approves a change in the Company's electnc rates
resulting in a general rate increase for one or more Customer Classifications, the Company shall
calculate and send to the City a letter setting forth the amount, as a percentage, of authorized
increase for each classification of customer within 60 days after the Company receives the Final
Order The amount of the franchise fee that may be imposed by the City, may be increased from
the Metered Service -based Fee Schedule in Section 9-610 (1) to an amount not to exceed the
percentage for the applicable Customer Classification stated in the Company's letter times each
monthly amount set forth in the Metered Service -based Fee Schedule and adding the resultant
amount to the applicable amount set forth in the Metered Service -based Fee Schedule In this
manner the franchise fee collected or permitted to be collected from each class of customer can
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increase by the same percentage as the Company's electric rate increase. During the period where
the City has imposed a franchise fee by separate ordinance under Section 9-610 (1) there is no
waiver of the right to impose the amendment if the City does not seek an increase in any franchise
fee immediately after any such letter from the Company and, if the City so chooses, the City can
combine the percentages derived from more than one rate case, to the extent not previously
applied by the City, in setting the amount of the franchise fee, so that the City is not prejudiced by
delaying any action to impose or increase the franchise fee
SECTION 9-611 SEVERABILITY.
If any portion of this franchise is found to be invalid for any reason whatsoever, the
validity of the remainder shall not be affected
SECTION 9-612 AMENDMENT
This ordinance may be amended at any time by the City passing a subsequent ordinance
declaring the provisions of the amendment, which amendatory ordinance shall become effective
upon the filing of the Company's written consent thereto with the City Clerk within 90 days after
the effective date of the amendatory ordinance.
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SECTION 9-613. PREVIOUS FRANCHISES SUPERSEDED
This franchise supersedes any previous electric franchise granted to the company or its
predecessor
Section 3. Effective Date. This ordinance shall take effect 15 days after its publication
and in accordance with Section 9-603 (2) above.
Attest
_-_ e C27‘ZA__,--I-e-
ity Clerk
Reviewed for administration:
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Adopted by the City Council February 18, 1997
Mayor
Approved as to Form:
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AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
SS
COUNTY OF HENNEPIN)
Denis L. Mindak
, being duly sworn on an oath says that he/she is
the publisher or authonzed agent and employee of the publisher of the newspaper known as
, and has full knowledge of the facts
Sun -Sailor
which are stated below
(A) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minnesota Statue 331A 02, 331A 07, and other applicable
laws, as amended
(B) The printed
Ordinance No. 2086-97
which is attached was cut from the columns of said newspaper, and was printed and published
once each week, for one successive weeks, it was first published
on Wednesday the 26 day of February , 19 97, and was thereafter
ted and published on every to and including
, the day of , 19 , and printed below is a copy of
the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the
size and kind of type used in the composition and publication of the notice
a bcd a fg hu kl m n o pq rs t o vwxy z
Acknowledged before me on this
26 day of Febituary
Lir 11 o L
Noary Public
BY
City of St. Louis Park
(Official Pubhcatron)
Summary
ORDINANCE NO. 2086-97
ORDINANCE AMENDING THE
ST LOUIS PARK'MUNICIPAL CODE
RELATED TO THE ELECTRIC FRANCHISE
AGREEMENT WITH
NORTHERN STATES POWER
Summary This ordinanr"%. revises the franchise fee
structure from a percentage of -gross revenue base to that
of a flat, monthly per meter,charge by customer classifica-
tion (Section 9-610)iIpryadllibon, varioustimor adminis-
trative updates and clenca7 corrections are being made
Effective Date, This ordinance shall be in effect 15
days following its publication
Adopted by the City Council February 18, 1997
/s/ Gail Dorfman, Mayor
(The full text of this ordinance is available for inspec-
tion with the City Clerk )
(Feb 26, 1997)A3\Ord 2086-97
TITLE Publisher
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RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
Maximum rate allowed by law for the above matter
(3) Rate actually charged for the above matter
2 55 per line
6 20 per line
1 20 per line