HomeMy WebLinkAbout2236-03 - ADMIN Ordinance - City Council - 2003/04/07•
ORDINANCE NO. 2236-03
FRANCHISE ORDINANCE FOR CENTERPOINT ENERGY MINNEGASCO
CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA
AN ORDINANCE GRANTING TO CENTERPOINT ENERGY MINNEGASCO, A
NATURAL GAS UTILITY, A DIVISION OF CENTERPOINT ENERGY RESOURCES
CORPORATION, A DELAWARE CORPORATION, ITS SUCCESSORS AND ASSIGNS,
A NONEXCLUSIVE FRANCHISE 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 PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY
FOR SUCH PURPOSES; AND PRESCRIBING CERTAIN TERMS AND CONDITIONS
THEREOF.
THE CITY OF ST. LOUIS PARK DOES ORDAIN :
SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms
shall have the following meanings:
1 1 City. The City of St Louis Park, County of Hennepin, State of Minnesota.
III1 2. City Utility System Facilities used for providing public utility service owned or operated
by the City or agency thereof.
1 3 Commission. The Minnesota Public Utilities Commission, or any successor agency or
agencies, including an agency of the federal government that preempts all or part of the
authority to regulate gas retail rates now vested in the Commission.
1 4 Company. CenterPoint Energy Minnegasco, a Division of CenterPoint Energy Resources
Corporation, its successors and assigns, including successors to assignees of those portions
of the Company that constitute any part or parts of the Gas Facilities subject to this
franchise
1 5. Effective Date. The date on which the ordinance becomes effective under Section 2.2.
1 6 Gas Natural gas, manufactured gas, mixture of natural gas and manufactured gas or other
forms of gas energy
1 7 Gas Facilities. Gas transmission and distnbution pipes, mains, lines, ducts, fixtures, and
all necessary facilities, equipment and appurtenances owned, operated or otherwise used by
the Company for the purpose of providing gas energy for public use.
® 1 8 Non -Betterment Costs. Costs incurred by the Company from relocation, removal or
rearrangement of Gas Facilities that do not result in an improvement to the Facilities.
Ordinance No. 2236-03 -2-
1 9 Notice. A wrung served by a party or parties on another party or parties. Notice to
Company must be mailed to
CenterPoint Energy Minnegasco
V P , Regulatory & Supply Service
800 LaSalle Avenue
Minneapolis, MN 55402
Notice to City must be mailed to:
City Manager
City of St Louis Park
5005 Minnetonka Boulevard
St Louis Park, MN 55416
1 10.Public Way Any street, alley or other public nght-of-way within the City.
1 11 Public Ground. Land owned or otherwise controlled by the City for parks, open space or
other public purposes.
SECTION 2. FRANCHISE.
2 1 Grant of Franchise The City grants the Company, for a penod of ten (10) years from the
Effective Date, the nght to import, manufacture, transport, distnbute and sell Gas for public
and pnvate use within and through the limits of the City. This nght includes the provision
of Gas that is (i) manufactured by the Company or its affiliates and delivered by the
Company, (rr) purchased and delivered by the Company or (inn) purchased from another
source by the retail customer and delivered by the Company. For these purposes, the
Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and
across the Public Way and Public Ground subject to the provisions of this ordinance. The
Company may do all things reasonably necessary or customary to accomplish these
purposes, subject to other applicable ordinances, permit requirements and to further
provisions of this ordinance.
2 2 Effective Date. This franchise is effective July 1, 2003 and after acceptance by the
Company, but in no event less than fifteen (15) days after its passage and publication by the
City. Wntten acceptance or rejection of the franchise by the Company must be filed with the
City Clerk within ninety (90) days after written submission of a draft of this ordinance to the
Company
2 3 Non exclusive Franchise. This ordinance does not grant an exclusive franchise.
2 4 Legal Fees. Each party is responsible for its own legal fees incurred related to granting of
this franchise.
2 5 Publication Expense The expense of publication of this ordinance must be paid by the
Company
Ordinance No 2236-03 -3-
2 6 Default. Dispute Resolution If the City or Company asserts that the other party is in
default in the performance of any obligation hereunder, the complaining party must notify
the other party in writing of the default and the desired remedy. Representatives of the
parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute.
If the dispute is not resolved within thirty (30) days after service of the notice, the parties
may jointly select a mediator to facilitate further discussion. The parties will equally share
the fees and expenses of the mediator. If a mediator is not used or if the parties are unable to
resolve the dispute within thirty (30) days after first meeting with the mediator, either party
may commence an action in District Court to interpret and enforce this franchise or for such
other relief as may be permitted by law or equity.
2 7 Continuation of Franchise. If this franchise expires and the City and the Company are
unable to agree on the terms of a new franchise, the existing franchise will remain in effect
until a new franchise is agreed upon, or until ninety (90) days after the City or the Company
serves written Notice to the other party of their intention to allow the franchise agreement to
expire
SECTION 3. CONDITIONS OF USE.
3 1 Location of Facilities. Gas Facilities must be located, constructed, installed and maintained
so as not to interfere with the City Utility System or the safety and convenience of ordinary
travel along and over Public Ways. Gas Facilities may be located on Public Grounds as
determined by the City The Company's construction, reconstruction, operation, repair,
maintenance and location of Gas Facilities is subject to other ordinances and regulations of
the City
3 2 Field Location. Upon request by the City, the Company must provide field locations for
any of its Gas Facilities within the period of time required by Minnesota State Statute 216D
At the request of the City, the Company shall provide existing data on its existing facilities
within the public right-of-way in the form maintained by the Company at the time the
request was made, if available.
3.3 Permit Required. The Company may not open or disturb the surface of any Public Way or
Public Ground without first having obtained a permit from the City, for which the City may
impose a reasonable fee Company will comply with all permit conditions established by the
City. The permit conditions imposed on the Company may not be more burdensome than
those imposed on other utilities for similar facilities or work. The Company may, however
open and disturb the surface of any Public Way or Public Ground without a permit if (i) an
emergency exists requiring the immediate repair of Gas Facilities and (ii) the Company
gives notice to the City before, if possible, commencement of the emergency repair. Within
two (2) business days after commencing the repair, the Company must apply for any
required permits and pay the required fees. Except in the case of emergency work, work
undertaken without a permit by the Company or its agents shall be subject at the discretion
of the City to a penalty in the amount of twice the established permit fees in addition to any
other remedy or penalty specified or allowed in City Code or State Rules
- •i 41 ,,1 . t'
Ordinance No. 2236-03 -4-
3.4 Restoration. After completing work requiring the opening of a Public Way or Public
Ground, the Company must restore the same, including paving and its foundation, to the
condition specified in the permit which must not be inconsistent with Minnesota Rules
7819.1100, and maintain the restored areas in good condition for two (2) years thereafter.
The work must be completed as promptly as weather permits. If the Company does not
promptly perform and complete the work, remove all dirt, rubbish, equipment and matenal,
and restore the Public Way or Public Ground, the City may, after demand to the Company to
cure and the passage of a reasonable penod of time not less than five calendar days
following the demand, make the restoration at the expense of the Company. The Company
must pay to the City the cost of such work done for or performed by the City, including
administrative expense and overhead, plus ten percent of cost and administrative expense.
This remedy is in addition to any other remedies available to the City for noncompliance
with this section. In all other aspects, Company shall comply with the terms of Minnesota
Rules 7819 1100 for restoration of Public Ways and Grounds, and Minnesota Rules
7819.3000 and 7819.0100 regarding posting of a construction bond, or any successor rules
or City Code requirements.
3 5 Company Protection of Gas Facilities in Public Ways. The Company must take
reasonable measures to prevent the Gas Facilities from causing damage to persons or
property. The Company must take reasonable measures to protect the Gas Facilities from
damage that could be inflicted on the Facilities by persons, property or the elements. The
Company and the City will comply with all applicable laws and codes when performing
work near the Gas Facilities.
3 6 Notice of Improvements. The City must give the Company reasonable notice of plans for
improvements to Public Ways or Public Ground. The notice must contain; (i) the nature
and character of the improvements, (ii) the Public Ways or Public Grounds upon which the
improvements are to be made, (iii) the extent of the improvements, (iv) the time when the
City will start the work, and, (v) if more than one Public Way or Public Ground is involved,
the order in which the work is to proceed The notice must be given to the Company a
sufficient length of time in advance of the actual commencement of the work to permit the
Company to make any necessary additions, alterations, or repairs to its Gas Facilities. If
streets are at final width and grade and the City 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 City may require the Company to install gas service connections prior to such paving or
resurfacing, if it is apparent that gas service will be required dunng the five years following
the paving or resurfacing.
SECTION 4. RELOCATIONS.
4 1 Relocation of Gas Facilities in Public Ways. If the City determines by the proper exercise
of its police power to vacate a Public Way for a City improvement project, or to grade, -
regrade or change the alignment of any Public Way, or construct or reconstruct any City
Utility System in any Public Way, the City may order the Company to relocate its Gas
Facilities at the Company's own expense. The City must give the Company sufficient notice
of plans to vacate for a City improvement project, or to grade, re -grade, or change the
alignment of any Public Way or to construct or reconstruct any City Utility System.
Ordinance No. 2236-03 -5-
• If a relocation is ordered within five (5) years of a pnor relocation of the same Gas Facilities,
which was made at Company expense, the City will reimburse the Company on a time and
material basis for Non -Betterment Costs If any subsequent relocation is required because of
the extension of a City Utility System to a previously unserved area, the City may require the
Company to make the subsequent relocation at the Company's expense. Nothing in this
ordinance requires the Company to relocate, remove, replace or reconnect its Facilities at the
Company's expense_where such relocation, removal, replacement or reconstruction is solely
for the convenience of the City. The provisions of this section 4.1 apply only to Gas Facilities
constructed in reliance on this franchise and the Company does not waive its rights under an
easement or prescnptive nght in the Public Way. Company will comply with the provisions
of State Rules, including 7819.3300, regarding abandonment of its facilities.
4 2 Relocation of Gas Facilities in Public Ground. The City may, by the proper exercise of its
police power, require the Company to relocate the Gas Facilities within or remove the Gas
Facilities from Public Ground, upon a finding by City that the Gas Facilities have become or
will become a substantial impairment of the public use or enjoyment to which the Public
Ground is or will be put The relocation or removal will be at the Company's expense The
provisions of this Section 4 2 apply only to Gas Facilities constructed in reliance on this
franchise and the Company does not waive its rights under an easement or prescnptive right
in the Public Ground Company will comply with the provisions of State Rules, including
7819 3300, regarding abandonment of its facilities.
4 3 Vacation of Public Ways. The City must give the Company at least two -weeks' Notice of
the proposed vacation of a Public Way. Except where required for a City street or other
improvement project or as otherwise provided in Section 4.1, the vacation of a Public Way,
after the installation of Gas Facilities, does not deprive the Company of its rights to operate
and maintain the Gas Facilities until the reasonable cost of relocating the same and the loss
and expense resulting from such relocation are first paid to the Company.
Upon request of the Company, and if the City in its sole discretion determines that the
vacation of Public Way does not require the relocation of existing Gas Facilities, the City
shall reserve a utility easement to the Company, created by and within the document
establishing the vacation.
In no case will the City be liable to Company for failure to specifically preserve a nght-of-
way under Minnesota Statutes, Section 160.29.
4 4 Projects with Federal Funding. Relocation, removal or rearrangement of any Gas Facilities
made necessary because of the extension into or through the City of a federally -aided
highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, if
funds for these purposes are available.
SECTION 5. DEFENSE AND INDEMNIFICATION.
5 1 Terms The Company shall indemnify, keep and hold the City, 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, on or across the Public Ways and the Public Grounds.
Ordinance No 2236-03 -6-
The City will not be indemnified for losses or claims alleged to be the result of negligence of
the City, its elected officials, employees, officers, or agents, except for those arising out of
the issuance of permits for, or inspection of the Company's plans or work. The City shall not
be entitled to reimbursement for its costs incurred pnor to notification to the Company of
claims or actions and a reasonable opportunity for the Company to accept and undertake the
defense.
5 2 Litigation. If such a suit is brought against the City under circumstances where the
agreement in this Section 5 to indemnify applies, the Company at its sole cost and expense
will defend the City in such suit if Notice thereof is promptly given to the Company within a
reasonable period. 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 will 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 is entitled to assert in any action
every defense or immunity that the City could assert in its own behalf.
SECTION 6. SUCCESSORS IN INTEREST.
6 1 This ordinance and the rights and obligations conferred hereby, is binding on and inures to
the benefit of the City and its successors and on the Company and its successors and
permitted assigns
SECTION 7. FRANCHISE FEE.
7 1 Separate Ordinance. The City reserves all nghts under Minnesota Statutes, Section
216B 36 or other law to require a franchise fee at any time dunng the term of this franchise.
In addition to the franchise fee, the Company shall be required to pay only such other fees,
charges, costs or taxes which are generally required to be paid by other businesses or
persons in the City The franchise fee must be imposed by a separate ordinance adopted by
the City Council, which ordinance may not be adopted until at least sixty (60) days after
Notice enclosing such proposed ordinance has been served upon the Company by certified
mail. A fee imposed under this section does not become effective until sixty (60) days after
Notice enclosing the adopted ordinance has been served upon the Company by certified
mai l
SECTION 8. LIMITATION ON APPLICABILITY.
8 1 Limitation on Applicability. This Ordinance constitutes a franchise agreement between the
City and the Company. No provision of this franchise inures to the benefit of any third
person, including the public at large, so as to constitute any such person as a third -party
beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise
to any cause of action for any person not a party hereto.
SECTION 9. PREVIOUS FRANCHISES SUPERSEDED.
9 1 Previous Franchises superseded. This franchise supersedes and replaces previous
franchises granted to the Company or its predecessors, including but not limited to Ordinance
Number 2089-97.
Ordinance No 2236-03 -7-
• SECTION 10. AMENDMENTS.
10.1 Amendments. This ordinance may be amended at any time by the City. An amendatory
ordinance becomes effective upon the filing of the Company's wntten consent thereto
SECTION 11. SEVERABILITY.
11 1 Severability. If any portion of this franchise is found unenforceable for any reason, the
validity of the remaining provisions will not be affected
Reviewed for Administration
Ad- • . -d by the C Council Apnl 7, 2003
May
Attest
oved as to form and xecution:
721c �v}
City Clerk/ U City Attorney
•
•
CONI ACT NO.
CenterPoint Energy Minnegasco 57-0 3
Acceptance of Ordinance
CITY nW ST. LOUIS PARK'
RECITALS:
1 At a regular meeting of the City Council of the City of St Louis Park held on April 7,
2003, a franchise ordinance entitled Ordinance Number 2236-03 was duly passed by the City
Council
2 The franchise ordinance was duly approved by Jeffrey Jacobs, Mayor of the City of St
Louis Park, on April 7, 2003, and was duly published in the Sun -Sailor, the official newspaper of
the City of St Louis Park on Apnl 17, 2003
3 Section 2 2 of the franchise ordinance provides for written acceptance by CenterPoint
Energy Minnegasco, a division of CenterPoint Energy Resources Corp , a Delaware corporation,
formerly known as Reliant Energy Minnegasco, a division of Reliant Energy Resources Corp to be
filed with the City Clerk within 90 days after publication
4 It is the purpose of this instrument to effect a due and sufficient acceptance of the
franchise ordinance
ACCEPTANCE:
CenterPoint Energy Minnegasco, a division of CenterPoint Energy Resources Corp , for
itself, its successors and assigns, accepts the franchise ordinance referred to in Recital 1 upon the
terms and conditions contained therein
Executed this 14`h day of May 2003
CenterPoint Energy Minnegasco
A Diyisign of CenterPoint ergy Resources Corp
By
Phil Hammond
Vice President
Supply Management, Regulatory Services & Government Relations
STATE OF MINNESOTA )
)ss
COUNTY OF HENNEPIN )
The foree,,;asr, nernvs amytedged before me this 14th day of May 2003.
MARY JO SCHUH
NOf—" 'ti3L C MINNESOTA
My C-4-1 E,p,res Jan 31 2005
4444451444
The above acceptance was duly filed with the City of St Louis Park in the office of tClerk
on 2yj �-g , 2003
C Clerk
City of St Louis Park
STATE OF MINNESOTA)
ss
newspapers
AFFIDAVIT OF PUBLICATION
COUNTY OF HENNEPIN)
Richard Hendrickson, being duly sworn on an oath states or affirms, that he is the Chief
Financial Officer of the newspaper known as Sun -Sailor , and has full
knowledge of the facts stated below:
(A) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minn. Stat. §331A.02, §331A.07, and other applicable
laws, as amended.
(B) The printed public notice that is attached was published in the newspaper once each week,
for one
April
successive weeks; it was first published on Thursday, the 17 day of
, 2003, and was thereafter printed and published on every Thursday to and
including Thursday, the day of , 2003; 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 publi notice:
abcdefghgklmnopgrstuvwxyz
BY:
Subscribed and sworn to or affirme before me
on this / day of ' M , 2003.
n n n
CFO
MERIDEL M. HEDBLO
NOTARY PUBIIGMINNESOTA
MY COMMISSION EXPIRES 1414005
RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
(2) Maximum rate allowed by law
(3) Rate actually charged
$ 2.85 per line
$ 6.20 per line
$ 1.40 per line
City of St. Louis Park
(Official Publication)
SUMMARY
CITY OF ST LOUIS PARI{
HENNEPIN COUNTY, MINNESOTA
SUMMARY OF ORDINANCE NO. 2236.03
FRANCHISE ORDINANCE
CENTERPOINT ENERGY MINNEGASCO
SUMMARY OF AN ORDINANCE GRANTING TO
CENTERPOINT ENERGY MINNEGASCO, A NAT-
URAL. GAS UTILITY, A DIVISION OF
CENTERPOINT ENERGY RESOURCES CORPO-
RATION, A DELAWARE CORPORATION, ITS SUC-
CESSORS AND ASSIGNS, A NONEXCLUSIVE
FRANCHISE 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
PUBLIC WAYS AND PUBLIC GROUNDS OF THE
CITY FOR SUCH PURPOSES; AND PRESCRIBING
CERTAIN TERMS AND CONDITIONS THEREOF.
NOTICE IS HEREBY GIVEN that, on April 7, 2003, Or-
dinance No 2236-03 was adopted by the City Council of
the City of St Lows Park, Minnesota
NOTICE IS FURTHER GIVEN that, because of -the
lengthy nature of Ordinance No 2236-03, the City Coun-
cil has directed that a title and summary be prepared for
publication
NOTICE IS FURTHER GIVEN that the franchise ordi-
nance adopted by the City Council renews an existing fran-
chise with the utility company for a penod of ten years, and
provides rules and procedures by which the company pro-
vides gas utihty services to the residents of the City by use
of public ways and grounds The ordinance provides for
permits or approvals for certain work by the company,
restoration and maintenance of areas disrupted as part of
providing utihty service in accordance with state law and
regulations, and a dispute resolution procedure The or-
dinance reserves the nght of the City to adopt a franchise
fee by separate ordinance, but imposes no direct fee on cus-
tomers of the utility
APPROVED for publication by the City Council of the City
of St Lows Park this 7th day of April, 2003
Jeffrey W Jacobs/a/
Mayor
A copy of the full text of this ordinance is available for in-
spection with the City Clerk by any person during the
City's regular office hours
(April 17, 2003)A3/Ord 2236-03