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HomeMy WebLinkAbout83-009it ORDINANCE NO. R3_9 CITY OF PRIOR LA KE S COTT COUNTY, MINNESOTA. SRA /4 -63' An ordinance granting Minnegasco, Inc., a M innesota corporation, its successors and, assigns, a nonexclusive franchise to con struct, 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 _ Prior I, ake , Minnesota for such purposes and . "prescribing certain terms and conditions thereof. THE CITY COUNCIL OF PRIOR LAKE ORDAINS: SECTION 1. DEFINITIONS. The following terms shall mean: 1.1. Company Minnegasco, Inc., a Minnesota corporation, 1 i ts s and assigns. 12. Gas Natural gas,, manufactured gas, mixture of natural gas and manufactured gas or other forms of gas energy. 1.3., Municipality Municipal Council, Municipal Clerk These terms mean respectively, - the City of Prior take - , the Council of` the City of prior Lake and the Clerk of the Ci ty of Prior-Lake 1.4. Public Ground All streets, alleys,, public w a ys, utility easements and public grounds of the Municipality as to which it has the right to grant the use to the Company. -{ 3r t � / SECTION 2v. FRANCHISE GENERALLY. J 2.1.'I Grant of Franchise. There is hereby granted to the Company, from the effective date hereof through June 30, 2003, 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 th ese Objectives, subject to zon ing ordinances, other appli- cable Ordinances, permit procedures, customary practices, and th provisions of this franchise. 2.2. Effective Date writt 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. 2.3. Nonexclusive Franchise. This is not. an exclusive franchise. 2.4. Franchise Fee. The Company may be required ' , to pay to the Municipality, in the manner and at a rate prescri,hed by a separate ordinance, a fee determined by collections from sales of Gas, but not to exceed 5% of the Company's gross revenues from the sale of Gas within the Municipality Such ordinance may be adopted, amended, repealed or readopted at any time during the term of this franchise. The fee, if required, shall be effective 90 days after written notice of the ordinance to the Company. No such fee shall be effective as to sales made before January 1, 1984. The fee shall be separately stated on gas bills rendered to ,customers within the Municipality. 2.5. Publication Expense. The expense of publication of this ordinance shall be paid by the Company. 2.6. Default If the Company is in default in the perfor mance 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 per sonally 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 fran- chise, 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 neces- sary to abate the condition caused by the default, and the Com pany agrees to reimburse the Municipality for all its reasonable costs and for its costs of collection, including` attorney fees. Nothing- in this section shall bar the Company from chal- lenging 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. t t f� SECTION 3. CONDITIONS OF USE.` 3.1. 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 Munici- pality. 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. 3.2. Permit Requited ' . The Company shall not open or disturb the surface of any Public Ground for any purpose without first hawing 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 pro- perty placed pursuant to such permit shall be located as shall be designated by the Municipality. The Company may, however, open acid disturb the surface of any Public Ground without a permit whe' %e an emergency exists re- quiring the immediate repair of its facilities. The Company in such event shall request 'a permit not later than the second working day thereafter. i 3.3. Restora Upon completion of any work requiring the 1 opening of any Pubic Ground, the Company shall restore the same, including paving and its foundations, to as good condition as formerly, and shall' *xercise reasonable care to maintain the same for two, years theOb4ft4i in good condition. Said Work shall be complete]. =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 eondit16h ` at the expense of the Company; and the Company, ' sh ' a ll,, .,'upoii 'demand, pay to the Municipality the cost of such 'work done for or performed by the Municipality, including i,t # Administrative " expense and bve`rhead, together with. ten 0 0r.cent additional,as liquidated damages. This remedy shall be in' addition to Any other remedy;,�svaii lab iii to the Municipality. 3.4 Relocation of Utilit, Facilities The Company shall promptly .'w i th' due, regard for seasonal" working conditions, permanently, relocate -its, facilities or equipment whenever the Municipa =lity , orders such relocation. If the relocation is a result of the pro per exercise of the p'zdice power in grading, regrading,,, changing.'.,the location or shape of or otherwise 3 'I , ja improving any .Public 'Ground or constructing or reconstructing any ' newer or water system therein, the relocation shall be at the expense of th. 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 rude for the purpose of a more expeditious operation for the construction or reconstruction of underground facilities; nor shall anything contained herein relieve any persFn 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. 3.5. 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. 3.6. 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 suffi- cient length.of time, considering seasonable working conditions, in advance of the actual commencement of the work; to permit the Company r to make any additions, alterations or °tepairs- to its facilities the-Company deems necessary. 4 t, t� In cases where streets are at final width and grade, and the ' Municipality has installed underground newer 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 4. 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, oc 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 negli9ence :0f ' Municipality, the 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 pality under circumstances where indemnification appli *s, the Company, at its sole ° cost and expense,, shall defend the Munici- ; if wr,'itten notice of the claim or action is promptlygiven t the Company within a period° wherein the Company is not pirej'udiced by lack; of, such notice. The Company `shall have ccainple control of such claim or action, but it may not settle _ 1,without the consent .cif ,the Municipality, which shall not be unreasonably withheld: This section is not, as to third parties,, 4 a- waiver of any defense or otherwise available to the F Municipality, and the Company `in defending any action on behalf' of the Municipality shall` be entitled to assert every defense `or immunity that the Municio&litiy. could assert n Its own behalf. r SECTION 5. ASSIGNMENT. fih`e Company, upon notice to the Munici - } pality, shall have the rigiat and authority to °assign all right's conferred upon it by this Eranchise to any person. The assignee of such rights; /., by accepting such assignment - , shall become su 'sect to the terms and. previsions of this franchise. SECTION '6,,_ CHA[ GE 1W FORM OF GOVERNMENT. Any change in the form �'governient' . O of the Mun c1pality shall not affect the validity of this franchise.. Any governmental unit succeeding the Munich � lity shall, withod,t consent .of the Company, automatically succeed to all of the rJ a nd obligatlons of the Municipality prgvid6d in this franchise. , SECTION 7. 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 8. NOTICES. Any notice required by this franchise shall be sufficieni if, in the case of notice to the Company, it is delivered to Minnegasco, Inc., attention vice President, Minnesota Operations, 201 South Seventh ,Street, Minneapolis, Minnesota 55402, and, in the case of the Municipality;' it is delivered to: SECTION 9. PREVIOUS FRANCHISES SUPERCEDED. _Thos franchise, supercedes 411'provious franchises granted to the Company or its p redecessors. b, , Passed and approved on September 26, 1983 � a or tot the C ty o. Prior Lake � �...� ATTEST: "Minnesota ;. City HatigrI* o the C -ty o Prior Laka Mn�e ota ry 4 ' n { t . r'r'r.+.'m +;awskenw•knual� - tCpYTW IWia{t „r.,a.wa . -: