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HomeMy WebLinkAbout0521 ORDINANCE NO. s2i CITY OF LAKEVIL,LE DAKOTA COUNTY, MINNESOTA AN ORDINANCE GA;~!?NTING TO DA80TA ELECTRIC ASSOCIATION, A MINNESOTA CORPORATION, .ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR, AND MAINTAIN IN THE CITY OF LAKEVILLE, 11RINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES, AND APPURTENANCES, FOR THE F'UIZNISHING OF ELECTRIC ENERGY TO THE CITY, .ITS INHABITANTS, AND 01'HERS, AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES THE CITY COUNCIL OF THE CITY OF LAKEVILLE, DAKOTA COUNTY, MINNESOTA, DOES ORDAIN: SECTION 1. DEFINITIONS. 1.1 "City" . In this ordinance, "City" means the City of Lakeville, County of Dakota, State of Minnesota. 1.2 "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.- 1.3 "Company" means Dakota Electric Association, a Minnesota corporafion, its successors and assigns. 1.4 "Electric Facilities." means electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by the Company for the purpose of providing electric energy for public .use. 1.5 "Notice" means. a writing served by any party or parties on any other party or parties. Notice to Company shall be mailed. " to Dakota Electric Association, Farmington, Minnesota 55024. Notice to City shall be mailed to the City Clerk. 1.6 "Public Way" means any street, alley, or other public right-of-way within the City.: 11103 ~o~ r~ z~sa 1.7 "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. 1.8 "Total Cost" means the cost to the= Company for removing an overhead Electric Facility and replacing its function by installing an underground Electric Facility, including but not limited to, engineering, materials, and labor, including overheads, less. the depreciated value on the Company's books of the overhead Electric Facilities removed and replaced by said underground Electric Facilities. SECTION 2. GENERAL PROVISIONS. 2.1 Grant of Franchise.. City hereby grants Company, for a period of twenty (20) years, 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 the 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. 2.2 Effective Date Written Acceptance. :This franchise agreement shall be in force and .effect from and after its passage and its acceptance by the Company, and its publication as required by law. An acceptance by the Company must be filed with. the City Cierk within ninety (90) days after publication. 2.3 Service Rates and Area. :The service to be provided and the rates to be charged 'by Company for electric service in the City .currently. are subject to the jurisdiction of the Minnesota Public Utilities Commission. The area within the City in which Company may provide .electric service currently is subject to the provisions. of Minnesota Statutes, Section 216B.40. However, during .the term of this franchise, Minnesota Statutes, Chapter 216B, may be amended or repealed in a manner: (1) to allow City by franchise agreement or otherwise to directly establish service. area boundaries between electric suppliers providing electric service within the municipal limits of the City, or (2) to permit City by franchise agreement or :otherwise to establish service area boundaries which must be followed by the Minnesota Public Utilities Commission in an application to it to revise service area boundaries previously established by the Commission, unless the Commission finds the requested .revision would create an unreasonable duplication of facilities or such :revision is for another reason not in the best interest of the public. If this occurs, City .may by resolution. direct Company to negotiate an amendment to this franchise agreement establishing such service area boundaries. If no amendment to this franchise occurs within ninety (90) days after the date a written copy of such resolution is served upon Company, City may, upon thirty (30) days prior 11103 2 ~o t n 2tsa .written notice to Company, terminate this franchise by ordinance. Notwithstanding the foregoing, City shall not take any action which deprives Company of the right to provide service to .any customer of the Company existing at the time of City's action to terminate for the entire term of this franchise set forth in Section 2.1 unless Company, for its investment in facilities reasonably necessary to serve such customer, is duly compensated in accordance with the provisions of an applicable statute, or regulation thereunder, of the State of Minnesota. 2.4 Publication Expense. The expense of publication of this .ordinance shall be paid by the Company. 2.5 Defaul . 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 thirty (30) days of the written notice, 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 for breach of contract, or either party may take any other action permitted by law. SECTION 3. LOCATION, OTHER REGULATIONS. 3.1 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 Gity. The Company's construction, reconstruction, operation, repair, maintenance, and location of Electric Facilities .shall be subject to other reasonable regulations of the .City. 3.2 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. 3.3 Street Wings. 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 requiring 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. » tos 3 ~o,~, z~4 Not later than the second working day thereafter, the Company shall obtain any required. permits and pay any required :fees. 3.4 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 (2) 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 (5) 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 (10%) additional as liquidated damages. This remedy shall be in addition to any other remedy available to he Clty. 3.5 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 any added cost incurred by the Company because of such use by the City. 3.6 Building; and Relocations. The Company, at the request of any person holding a building moving permit and with not less than five (5)-days advance .notice,: shall temporarily remove, raise or lower its wires, conduits, and cables. The expense of such temporary removal, raising or lowering of wires, conduits, and cables shall... be paid by person(s) requesting the same, and the Company shall have the authority to require such payment in advance.... SECTION 4. RELOCATIONS. 4.1 Relocation of Electric. Facilities in Public Ways. Except as provided in Section 4.4, if the City determines to vacate fora City improvement project, onto 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 Electric Facilities located therein. The Company shall relocate its Electric Facilities at its own expense provided the Electric Facilities are not. subject to undergrounding in accordance with Section 4.3. 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 two. (2) years of a prior relocation of the same Electric Facilities, which was made 11103 rolnz~a 4 at Company expense, the City shall reimburse Company for non betterment expenses 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 unnerved .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 of 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. 4.2 :Relocation of Electric Facilities in Public Ground. Except as maybe provided' in Section 4.4, the City may require the Company to relocate or remove its Electric Facilities from Public Ground upon a finding by the City that the Electric Facilities have become or will become a substantial impairment of the .public use to which the Public Ground is or will be put. The relocation. or removal shall be at the Company's expense. The provisions of Section 4 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, or State or County permit. 4.3 Change. to Underground. If required by the City, the Company shall change from aerial to underground, at City expense based on the Company's Total Cost, in any area where: (1) the City requests underground lines and all other lines hereafter are changed from aerial to underground, or (2) any aerial line is changed to underground by the open trench with telephone and/or cable television, and the Company can share trench at a cost not to exceed the Company's pro rata share of the cost of the trenching. Prior to commencement of construction by the Company of any particular project, the City shall deliver a written commitment to pay the Total Cost for the project as estimated by the Company. 4.4 Prgiects with State or Federal Funding. Relocation, removal, or rearrangement of any Company 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 151..46, as supplemented or amended. It is .understood that the right herein granted to Company is a valuable right. The City shall not order the Company to remove or relocate its facilities when a Public Way is vacated, improved,. orrealigned 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. 4.5 Liability. Nothing in this ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. t»o3 x01/12/94 S .SECTION 5. TREE Tl~',IlVIl~IING. The Company may trim all trees and shrubs in Public Ways and Public Grounds of the 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 6. INDEI~~IlVIFICATION. _6.1 Hold Harmless Clause.. 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 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 the .Company's determination. 6.2 w Sui s. 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 7. .VACATION OF PUBLIC WAYS. The City shall give the Company at least two (2) 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 Electric .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 the City be liable to the Company for failure to specifically preserve aright-of-way under Minnesota Statutes, Section 1.60.29... 11103 A//T2/84 6 SECTION 8. CHANGE IN FORM OF GOVEPNMENT. 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. FRANCHISE FEE. 9.1 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 of not more than five percent (5 of the Company's gross revenues as hereinafter defined. 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 sixty (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 sixty (60) days after written notice enclosing such adopted ordinance has been served upon the Company by certified mail. Section 2.5 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 for the adoption of a new separate ordinance. A separate ordinance which does not impose a uniform franchise fee on all revenues within the definition of gross revenues shall not be effective against the Company. 9.2 Terms Defined. The term "gross revenues" means all sums received by .the Company .from the sale of electricity. to its retail customers within the corporate limits of the City, excluding any surcharge or similar addition to the Company's charges to customers for the purpose of reimbursing the'Company for the cost. resulting from the franchise fee, and further excluding the. cost of any state or federal sales tax as well as any tax on energy or any element thereof, such as a btu value or carbon content. 9.3 Collection of the Fee. The franchise fee shall be payable not less .often .than quarterly, and shall be based on the gross revenues of the Company during. complete billing months duringthe period for which payment is to be made.. The payment shall be due. the. last business day of the month following the period for.. which the payment is made. The. percent fee may be changed by ordinance from time to time; however,. each .change .shall meet the same notice requirements and the percentage may not be changed more often than annually. Such fee shall not exceed any amount which the Company may legally charge to its customers :prior to payment to the City by imposing a surcharge equivalent to such fee in its rates. for. electric service. The .Company may :pay the City the 1.1103 x01/12/94 4 fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles or .customer refunds. The time and. manner of collecting the franchise fee is subject to the approval of the Public Utilities Commission, which the Company .agrees to use best efforts to obtain. The Company agrees to make its gross revenues records available for inspection by the City at reasonable times. 9.4 Condition of the Fee. The separate ordinance imposing the fee shall not be effective against the Company unless it lawfully imposes and the City quarterly or more often collects a fee or tax of the same or greater percentage 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 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. The provisions of this .Section 9.4 shall not apply, however, if the franchise fee is dedicated to paying the cost of undergrounding Electric Facilities belonging to the Company provided that: (1) the City shall maintain such an undergrounding .franchise fee in a separate account and shall not use it for any other purpose other than reimbursing the .Company for the cost of undergrounding its Electric Facilities; and (2) provided that collection of the. franchise fee will terminate when the balance in the account exceeds the amount the Company estimates is necessary to reimburse it for .the cost of undergrounding projects, which the City has given notice of under Section 4.3 or which the Company and City have otherwise agreed the Company should perform on a reimbursement basis. The Company will not terminate the collection of such a franchise fee without providing the City with at least thirty (30) days prior written notice. After completion of all scheduled projects. at .the time of termination of the franchise fee, the City may use any. remaining balance in the account for its general purposes. SECTION 10. SEVERABILII'Y. 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 11. AMENDMENT. This ordinance may be amended at .any time by the City passing a subsequent ordinance declaring the provisons,of the amendment, which amendatory ordinance shall become effective upon the filing of the Company's written consent thereto with the-City Clerk within ninety (90) days after the .effective date of the amendatory ordinance. 11t03 ~otn a.~sa $ SECTION 12. PREVIOUS FRANCffiSES SUIPERSEI~ED. -This franchise .supersedes any previous electric franchise granted to the Company or its predecessor. PASSED AND APPROVED February 22, 1994 ~ BY: '~•C-r~~LP , -~Ct Duane R. Zaun, Mayor of the City of Lakeville, State of Minnesota A,~'I'EST: .Charlene Friedges, C' Clerk APPROVED BY DAKOTA ELECTRIC ASSOCIATION THIS 27th DAY OF January , 19 94 , BY: a ~ts SEC ETARY 11103 r01 /72/94 9 -h Sec - PUBLIC NOTICnpany ORDINANCE NO. 521 .e for a CITY OF LAKEVILLE grade, DAKOTA COUNTY, MINNESPublic ct any AN ORDINANCE GR.ANTINtion is DAKOTA ELECTRIC s prior ASSOCIATION, A MINNES!ilities, CORPORATION, ITS SUCCElpense, AND ASSIGNS, PERMISSIgny for CONSTRUCT, OPERATE, REne and AND MAINTAIN IN THE Cl7subse- LAKEVILLE, MINNESOTAause of ELECTRIC DISTRIBUTIytem to SYSTEM AND TRANSMISSny may LINES, INCLUDING NECESnt relo- POLES, LINES, FIXTURES,in this APPURTENANCES, FOR 'ilocate, FURNISHING OF ELECT1sts own ENERGY TO THE CITY, Ireloca- INHABITANTS, AND OTHERnstruc- TO USE THE PUBLIC WAYS of the PUBLIC GROUNDS OF THF,ary for FOR SUCH PURPOSE$3n of a THE CITY COUNCIL OF Tiftem or OF LAKEVILLE, DAKOTA CClititein MINNESOTA, DOES ORDAIN: SECTION 1 DEFINITIONS. be pro - 1.1 "City". In this ordinancerequire means the City of Lakeville, Cclove its Dakota, State of Minnesota. _ Ground Ln - :t`:•.. rl� e �dt@��Littrt.diet City in which Company may providoold the tric service currently is subject Land all provisions of Minnesota Statutes sons or tion 2168.40. However, during they the of this franchise, Minnesota Stattlr, in - Chapter 216B, may be amended d.or the pealed in a manner: (1) to allow Ci;Ies franchise agreement or otherwise tnot "e rectly establish service area bound? cepa between electric suppliers providing except tric service within the municipal li alleg- of the City, or (2) to permit City by fe issu- chise agreement or otherwise to esof, the lish service area boundaries which IiY shall be followed by the Minnesota Public1;1. dam - ties Commission in an application ton in a revise service area boundaries previolee established by the Commission, ugqPerfor- the Commission finds the requestedrected vision would create an unreasonable pany s plication of facilities or such revisio: for another reason not in the best int en is est of the public. If this occurs, City n dem- by resolution direct Company to neg�ndemt ate an amendment to this franchise agi le cost ment establishing such service a.ety is boundaries. If no amendment tothisfrkeof is chise occurs within ninety (90) days at.prej - the date a written copy of such resolut{ Com- is se ed0 upon days prior may, upnd de_ Coman ) prior written notice P y, terminate this franchise trol of ordinance. Notwithstanding the fore `ay nnt ing, City shall not take any action whi'nsebe deprives Company of the right to provi not be ,Ion is rate ordinance imposing the fee Lniall not la it lawfully imposes and the City guar- a ereby acknowledged as being the size be effective against the Compan unl el kind of type used in the composition &FFIDAVIT OF PUBLICATION not, as to third parties, a waiver of any defense or immunity otherwise available to the City; and the Company, in defend- ing 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 7, VACATION OF PUBLIC WAYS. The City shall give the Company at least two (2) weeks prior written notice of a proposed vacation of a Public Way. Except where -required for a City street or other improvement project, the vacationlge of the facts which are stated below: chard M. Sherman , being duly sworn, oath says that he/she is the publisher authorized agent and employee of the blisher of the newspaper known as keville Life & Times, and has full know - of any Public Way, after the installation of Electric Facilities, shall not operate to (A) The newspaper has complied with deprive Company of its rights to operate and maintain such Electric Facilities, of the requirements constituting quali- until the reasonable cost of relocating the same and the loss and expense resultingations as a qualified newspaper, as pro - from such relocation are first paid to Company. In no case, however, shall theled by Minnesota Statute 331A.02, City be liable to the Company for failure tospecifically preserve aright-of-wayun-1A.07, and other applicable laws, as der Minnesota Statutes, Section 160.29. SECTION 8 CHANGE IN FORM OFaended. GOVERNMENT. (B)Theprinted City of La1r_evile Any change in the form of govern- mentoftheCityshallnotaffectthevalid- Dakota Electric electric ity of this ordinance. Any governmental unit succeeding the City shall, without he .Eonsentyof the ComanyeucnId stodistribution system rates for electric service. The Company may pay the City the fee based upon the ith is attached was cut from the col - surcharge billed subject to subsequent reductions to account for uncollectibles or customer refunds. The time and man- nns of said newspaper, and was printed ner of collecting the franchise fee is sub- id published once on Monday, the ject to the approval of the Public Utilities Commission, which the Company agrees , 28 day of Feb. , 1994; and to use best efforts to obtain. The Com- pany agrees to make its gross revenues inted below is a copy of the lower case records available for inspection by the City at reasonable times. Dhabet from A to Z, both inclusive, which 9.4 Condition of the Fee. The sena- c: terly or more often collects a fee or tax of J• the same or greater percentage on the ,rd publication of the notice: receipts from sales of energy within the City by any other energy supplier, pro- ;- vided that, as to such a supplier, the City 1� has the authority to require a franchise 'J fee or to impose a tax. The franchise fee 3( or tax shall be applicable to energy sales for any energy use related to heating, �t cooling, or lighting, as well as to the dc: supply of energy needed to run machin- J ery and appliances on premises located CLE: Publisher within or adjacent to the City, but shall 132 not apply to energy sales for the purpose of providing fuel for vehicles. The provi- sions of this Section 9.4 shall not apply, ••••bscribed and sworn to before me on abcdefgh i jk I m nopgrstuvwxyz however, if the franchise fee is dedicated pang 2 da of Feb. , 199 . to paying the cost of undergrounding Elec- ._____—_— y trip Facilities belonging to the Company 1Jon _ provided that: (1) the City shall maintain RATE INFORMATION (1) Lowest classified rate paid by commercial users for comparable space: $11.00 per column inch. (2) Maximum rate allowed by law for the above matter: $11.00 per column inch. (3) Rate actually charged for the above matter: $6.20 per column inch. Notary Public BARBARA J. GROSBERG NOTARY PUBLIC - MINNESOTA SCOTT COUNTY K.v ccmmtss;on expires 1-1 °'