HomeMy WebLinkAbout2089-97 - ADMIN Ordinance - City Council - 1997/04/07ORDINANCE NO.
2 08 997
AN ORDINANCE AMENDING THE ST. LOUIS PARK MUNICIPAL CODE
RELATED TO THE GRANTING TO MINNEGASCO, A MINNESOTA
CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO
CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND
EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION,
MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND
PRIVATE USE AND TO USE THE PUBLIC GROUND OF THE CITY OF ST.
LOUIS PARK FOR SUCH PURPOSES, AND PRESCRIBING CERTAIN
TERMS AND CONDITIONS THEREOF; REPEALING ORDINANCE 1604
(CODE PART 5, SECTION 9-501 through 9-518 inclusive); ADDING NEW
SECTION 9-501 THROUGH 9-518 INCLUSIVE.
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
Section 1. The St. Louis Park Municipal Code is hereby amended by the repeal of
Sections 9-501 through 9-518 inclusive.
Section 2. The St. Louis Park Municipal Code is hereby amended by the addition of
Sections 9-501 through 9-518 inclusive to read as follows:
Section 9-501. DEFINITIONS. The following terms shall mean:
(1) Company. Muuiegasco, a natural gas utility, a division of NorAm Energy Corp., a
Delaware corporation, its successors and assigns.
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(2) Gas. Natural gas, manufactured gas, mixture of natural gas and manufactured gas or
other forms of gas energy.
(3) Municipality. Municipal Council, Municipal Clerk. These terms mean respectively,
the City of St. Louis Park, the Council of the City of St. Louis Park and the Clerk of the City of
St. Louis Park.
(4) Public Ground. All streets, alleys, public ways, utility easements and public grounds
of the Municipality as to which it has the right to grant the use to the Company.
Section 9-502. GRANT OF FRANCHISE. There is hereby granted to the Company, from the
effective date hereof through June 30, 2003, the right to import , manufacture, transport,
distribute and sell gas for public and private use in the Municipality, and for these purposes to
construct, operate, repair and maintain in, on, over, under and across the Public Ground of the
Municipality, all facilities and equipment used in connection therewith, and to do all things which
are necessary or customary in the accomplishment of these objectives, subject to zoning
ordinances, other applicable ordinances, permit procedures, customary practices, and the
provisions of this franchise.
SECTION 9-503. Effective Date: Written Acceptance. This franchise shall be in force and effect
from and after its passage and publication as required by law, and its acceptance by the Company
in writing filed with the Municipal Clerk within 60 days after publication.
SECTION 9-504. Nonexclusive Franchise. This is not an exclusive franchise.
SECTION 9-505. 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:
Metered Service -based Fee Schedule
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Customer Classification Amount per month
Residential $ 1.25
Commercial - A $ 1.25
Commercial/Industrial - B $ 4.00
Commercial/Industrial - C $10.00
Small Dual Fuel A&B $10.00
Large Dual Fuel $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 9-507 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 9-505 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 9-505 (1) does not relieve the Company from paying fees to City
unrelated to the installation, ownership or operation of Gas Facilities. The Company shall be
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required to pay only such other fees, charges, costs or taxes which are generally required to be
paid by other business or persons in the City.
(2) Terms Defined. For the purpose of this Section 9-505, 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 gas tariffs on file with
the Minnesota Public Utilities Commission.
.2 "Metered Service -based Fee Schedule" refers to the schedule in Section 9-505
(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 gas 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
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 9-505. 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 the Company
if the 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 gas 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 imposed 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
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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 gas 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 9-505 (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
increase by the same percentage as the Company's gas service rate increase. During the period
where the City has imposed a franchise fee by separate ordinance under Section 9-505 (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 9-506. Publication Expense. The expense of publication of this ordinance shall be
paid by the Company.
SECTION 9-507 Default. If the Company is in default in the performance of any material part of
this franchise for more than 90 days after receiving written notice from the Municipality of such
default, the Municipal Council may, by ordinance, terminate all rights granted hereunder to the
Company. The notice of default shall be in writing and shall specify the provisions of this
franchise under which the default is claimed and state the bases therefor. Such notice shall be
served on the Company by personally delivering it to an officer thereof at its principal place of
business in Minnesota.
If the Company is in default as to any part of this franchise, the Municipality may, after
reasonable notice to the Company and the failure of the Company to cure the default within a
reasonable time, take such action as may be reasonably necessary to abate the condition caused by
the default, and the Company agrees to reimburse the Municipality for all its reasonable costs and
for its costs of collection, including attorney fees.
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Nothing in this section shall bar the Company from challenging the Municipality's claim
that a default has occurred. In the event of disagreement over the existence of a default, the
burden of proving the default shall be on the Municipality.
SECTION 9-508. Use of Public Ground. All utility facilities and equipment of the Company
shall be located, constructed, installed and maintained so as not to endanger or unnecessarily
interfere with the usual and customary traffic, travel, and use of public ground, and shall be
subject to permit conditions of the Municipality. The permit conditions may provide for the right
of inspection by the Municipality, and the Company agrees to make its facilities and equipment
available for inspection at all reasonable times and places.
SECTION 9-509 Permit required. The Company shall not open or disturb the surface of any
Public Ground for any purpose without first having obtained a permit from the Municipality, for
which the Municipality may impose a reasonable fee to be paid by the Company. The permit
conditions imposed on the Company shall not be more burdensome than those imposed on other
utilities for similar facilities or work. The mains, services and other property placed pursuant to
such permit shall be located as shall be designated by the Municipality.
The Company may, however, open and disturb the surface of any public ground without a
permit where an emergency exists requiring the immediate repair of its facilities. The Company in
such event shall request a permit not later than the second working day thereafter.
SECTION 9-510. Restoration. Upon completion of any work requiring the opening of any
Public Ground, the Company shall restore the same, including paving and its foundations, to as
good condition as formerly, and shall exercise reasonable care to maintain the same for two years
thereafter in good condition. Said 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 Ground in good condition, the Municipality shall have
the right to put it in good condition at the expense of the Company; and the Company shall, upon
demand, pay to the Municipality the cost of such work done for or performed by the Municipality,
including its administrative expense and overhead, together with ten percent additional as
liquidated damages. This remedy shall be in addition to any other remedy available to the
Municipality.
SECTION 9-511. Relocation of Utility Facilities. The Company shall promptly, with due regard
for seasonal working conditions, permanently relocate its facilities or equipment whenever the
Municipality orders such relocation If the relocation is a result of the proper exercise of the
police power in grading, regrading, changing the location or shape of or otherwise improving any
Public Ground or constructing or reconstructing any sewer or water system therein, the relocation
shall be at the expense of the Company. If the relocation is not a result of the proper exercise of
the police power, the relocation shall be at the expense of the Municipality. If such relocation is
done without an agreement first being made as to who shall pay the relocation cost; such
relocation of the facilities by the Company shall not be construed as a waiver of its right to be
reimbursed for the relocation cost. If the Company claims that it should be reimbursed for such
relocation costs, it shall notify the Municipality within thirty days after receipt of such order. The
Municipality shall give the Company reasonable notice of plans requiring such relocation.
Nothing contained in this subsection shall require the Company to remove and replace its
mains or to cut and reconnect its service pipe running from the main to a customer's premises at
its own expense where the removal and replacement or cutting and reconnecting is made for the
purpose of a more expeditious operation for the construction or reconstruction of underground
facilities; nor shall anything contained herein relieve any person from liability arising out of the
failure to exercise reasonable care to avoid damaging the Company's facilities while performing
any work in any Public Ground.
SECTION 9-512. Relocation When Public Ground Vacated. The vacation of any Public Ground
shall not operate to deprive the Company of the right to operate and maintain its facilities therein.
Unless ordered under Section 3.4, the Company need not relocate until the reasonable cost of
relocating and the loss and expense resulting from such relocation are first paid to the Company.
When the vacation is for the benefit of the Municipality in the furtherance of a public purpose, the
Company shall relocate at its own expense.
SECTION 9-513. Street Improvements. Paving or Resurfacing The Municipality shall give the
Company reasonable written notice of plans for street improvements where paving or resurfacing
of a permanent nature is involved. The notice shall contain the nature and character of the
improvements, the streets upon which the improvements are to be made, the extent of the '
improvements and the time when the Municipality will start the work, and, if more than one
street is involved, the order in which this work is to proceed. The notice shall be given to the
Company a sufficient length of time, considering seasonable working conditions, in advance of the
actual commencement of the work to permit the Company to make any additions, alterations or
repairs to its facilities the Company deems necessary.
In cases where streets are at final width and grade, and the Municipality has installed
underground sewer and water mains and service connections to the property line abutting the
streets prior to a permanent paving or resurfacing of such streets, and the Company's main is
located under such street, the Company may be required to install gas service connections prior to
such paving or resurfacing, whenever it is apparent that gas service will be required during the
five years following the paving or resurfacing.
SECTION 9-514. INDEMNIFICATION. The Company shall indemnify, keep and hold the
Municipality, its elected officials, officers, employees, and agents free and harmless from any and
all claims and actions on account of injury or death of persons or damage to property occasioned
by the construction, maintenance, repair, removal, or operation of the Company's property
located in, on, over, under, or across the public ground of the Municipality, unless such injury or
damage is the result of the negligence of the Municipality, its elected officials, employees, officers,
or agents. The Municipality shall not be entitled to reimbursement for its costs incurred prior to
notification to the Company of claims or actions and a reasonable opportunity for the Company to
accept and undertake the defense.
If a claim or action shall be brought against the Municipality under circumstances where
indemnification applies, the Company, at its sole cost and expense, shall defend the Municipality if
written notice of the claim or action is promptly given to the Company within a period wherein
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the Company is not prejudiced by lack of such notice. The Company shall have complete control
of such claim or action, but it may not settle without the consent of the Municipality, which shall
not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or
immunity otherwise available to the Municipality, and the Company in defending any action on
behalf of the Municipality shall be entitled to assert every defense or immunity that the
Municipality could assert in its own behalf.
SECTION 9-515. ASSIGNMENT. The Company, upon notice to the Municipality, shall have
the right and authority to assign all rights conferred upon it by this franchise to any person. The
assignee of such rights, by accepting such assignment, shall become subject to the terms and
provisions of this franchise.
SECTION 9-516. CHANGE IN FORM OF GOVERNMENT. Any change in the form of
government of the Municipality shall not affect the validity of this franchise. Any governmental
unit succeeding the Municipality shall, without the consent of the Company, automatically
succeed to all of the rights and obligations of the Municipality provided in this franchise.
SECTION 9-517. SEVERABILITY. If any portion of this franchise is found to be invalid for
any reason whatsoever, the validity of the rest of this franchise shall not be affected.
SECTION 9-518 NOTICES. Any notice required by this franchise shall be sufficient if, in the
case of notice to the Company, it is delivered to Minnegasco, attention Vice President, Marketing
and Customer Service, 800 LaSalle Avenue, Floor 11, Minneapolis, Mnnnesota 55402, and, in the
case of the Municipality, it is delivered to:
City Manager, City Hall
5005 Minnetonka Boulevard
St. Louis Park, Minnesota 55416
Section 3. Previous Franchise Superseded. This ordinance supersedes all previous
franchises granted to the Company or its predecessors.
Section 4. Repeal of Previous Ordinance. This ordinance repeals Ordinance 1604
(Municipal Code Part 5, Gas Company Franchise, and former Sections 9-501 through 9-518
inclusive).
Section 5. Effective Date. This ordinance shall take effect 15 days after its publication.
Adopted by the City Council April 7, 1997
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Mayor
Attest: Ap oved as to Form: A____, ____k_____ 1
e, 40. 6,110_....--..e..„..
ty Clerk Ci Attorney
Revi d for administration:
C ty Manager
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STATE OF MINNESOTA)
SS.
COUNTY OF HENNEPIN)
Denis L. Mindak
the publisher or authorized agent
Sun -Sailor
which are stated below.
�MSUN
�rQn�y 6
AFFIDAVIT OF PUBLICATION
being duly sworn on an oath says that he/she is
and employee of the publisher of the newspaper known as
, and has full knowledge of the facts
(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. 2089-97
which is attached was cut from the columns of said newspaper, and was printed and published
once each week, for 0 n e successive weeks; it was first published
on Wednesday the 16 day of A a r i 1 , 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
slze and kind of type used in the composition and publication of the notice:
abcdefglujklmnopgratuvwxyz
BY:
Acknowledged before me on this
16 day of April
City of St. Louis Park
(Official Publication)
Summary
ORDINANCE NO. 2089.97
ORDINANCE AMENDING
THE ST LOUIS PARK MUNICIPAL CODE
RELATED TO THE GAS ENERGY FRANCHISE
AGREEMENT WITH MINNEGASCO
Summary This ordinance revises the franchise fee struc-
ture from a percentage of gross revenue base to that of a
flat, monthly per meter charge by customer classification
(Section 9-505) 'In addition, various minor administrative
updates and clerical correction are being made
Effective Date This ordinance shall be in effect 15 days
following its publication
Adopted by the City Council April 7, 1997
• /s/Gail Dorfman
Mayor
(This full text of this ordinance is available for inspection
with the City Clerk )
Published in the Sun -Sailor April 16,1997
(April 16, 1997)A3/Cty SLP Ord 2089-97 1
TITLE:
Publisher
1997.
Notaq Public
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/s a ,0. AC1Ag1rPUBLIC -M;NNEESOTA
4Y M :,-,1„., 0HLNNEPIN:.n�_rviY
'c;- -- L' Comms s,on !Exp .% Jan 31, 2000
RATE INFORMATION 41)owest classified rate paid by commercial users
ior comparable space
Maximum rate allowed by law for the above matter
(3) Rate actually charged for the above matter
$ 2 55 per line
$ 620 per line
$ 1 20 per line