85-36 WHITE - CITV CLERK
� PINK>' - FINANCE GITY OF SAINT PAUL Council
CANARY =DEPARTMENT
BL.UE -MAYOR File NO. � 3
City Attny/PBB ,
0 rdindnce Ordinance N 0. l �'��o
- ,
Presented By
�Referred To �����`i Committee: Date 1 ���5
Out of Committee By Date
A legislative ordinance to grant a franchise
to Northern States Power Company for the use
of streets and other public property within
the City of Saint Paul for the supply of gas
for a term beginning April l , 1985 and ending
March 31, 1996 ; and to fix all the terms and
conditions of such franchise including the
compensation to be paid to the City under said
franchise.
THE COUIVCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
Northern States Power Company, a corporation organized under
the laws of the State of Minnesota, hereinafter designated as
"Company" , being a public service corporation supplying gas for
all purpose� within the City of Saint Paul, under Ordinance No .
17185 which shall expire on March 31, 1985 , is , together with its
successors and assigns , hereby granted a franchise to use the
streets and other public property located in such City for such
purpose for a term extending from April 1 , 1985 , to March 31,
1996 .
Section 2
The franchise granted herein shall extend to the Company' s use
of all streets and public property now being used by the Company
in connection with such service and of such other streets and public
COUIVCILMEN Requested by Department of:
Yeas Nays
Fletcher
Drew In Favor
Masanz
Nicosia B
scne�bei Against Y
TedesCo
W ilson
Adopted by Council: Date Form Appr ved by Cit At rney
Certified Passed by Council Secretary By /Z '�i'd�
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
By By
` . r. � � � � � � � ��,f= �s:��,
i �ai�
-2-
property as may from time to time be designated by the City. Such
franchise to use the streets and other public property located in
such City shall include such use for the purpose of erecting, in-
stalling, and operating gas mains , and all other necessary appur-
tenances used in conducting, distributing, and supplying gas for
public and private use and for the purpose of conducting said gas
to and through the City.
Section 3
In locating its gas facilities , the Company shall in no way
unreasonably interfere with the safety and convenience of ordinary
travel along and over said streets and public property, nor inter-
fere with other uses to �ahich such places may be put by the City
of Saint Paul, and in the event it shall become necessary during
the term of this franchise to remove or relocate the physical
property of the Company located within or upon any of the streets
or public property in the City of Saint Paul , because of such
interference or use by the City, or as a result of any public
improvement undertaken by the City, the Company shall , when so
advised by the Council , remove and relocate said facilities without
cost to the City of Saint Paul , and shall place streets or public
property in the same condition as they were prior to said removal
or relocation. However, after the Company has so relocated its
facilities , the Compan_y shall not within ten years thereafter be
required at its own expense to make any further relocation of the
same facilities if at the time of the first relocation the City
had actual notice or knowledge of the subsequent public imnrove-
r.lent x�ro j ect ; except that the Company may be required to further
relocate any such facilities at its own expense where required
because of the extension of public utilities to previously unserved
areas or because of the work of separation of the storm and sanitary
sewers . Any relocation or removal of the Compan.y' s facilities made
necessary because of the extension through or into the City of a
federally-aided state trunk highway, included within the National
System of Interstate Hi;hways , shall be �overned by the provisions
of Minnesota Statutes 1971, Section 161 .46 , as supulemented or
amended.
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Section 4
The Company, in the installation, maintenance, and operation of
its facilities , shall be subject to such reasonable regulations as
may be provided by the Council , and no gas mains and gas service
appliances shall hereinafter be installed or laid by the Company,
except upon application to the Department of Public Works or other
persons designated by the City Council and written permission
therefor granted by said department or person. The Company and the
City shall make reasonable good faith efforts to advise each other
of plans and pro�rams , both long and short range, for the construc-
tion of improvements and facilities in public streets and other
public property wl�ich might affect the other party or require its
coordination.
Section 5
(A) During the term of the franchise hereby granted, and in
lieu of any permit or other fees relating to the installation,
repair , maintenance and operation of its facilities , the Company
shall pay into the treasury of the City of Saint Paul a franchise
fee equal to the percentages hereinafter set forth of the Company' s
gross earnings as hereinafter defined, such fee to be paid in monthly
installments on or before the last day of the following month. In
no event shall the franchise fee percentage rate for any class of
customers be in a greater amount than the franchise fee percentage
rate for the same or similar class of customers imposed by the City
in any new franchise granted to another energy supplier, or in an
amendment to an existing franchise held by another energy supplier ,
after December 31, 1984.
(B) The franchise fee imposed hereby shall not exceed any amount
which the Company may recover, prior to payment to the City, by
imposing a surcharge equivalent to such fee in its rates for gas
service to customers within the City. The term "gross earnings"
means all sums , excluding said surcharge , received by the Company
from the sale of gas distributed and used within the corporate
limits of the City and also excluding amounts derived from sales
to residential customers as and to the extent required by Chapter
189 of the 1979 Minnesota Session Laws . The franchise fee shall be
in the amount of the percentages set forth below on that portion of
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-4-
gross revenues derived from sales to the desi�nated classification
of the Comoany' s customers based on the Company' s billing months
for the applicable period of time:
(1) Large Volume Commercial and Industrial Customers :
1985 (April through December . . . . . . . 8 . 5%
1986 . . . . . . . . . . . . . . . . . . . 8 . 0%
1987 . . . . . . . . . . . . . . . . . . . 7 . 5%
7.988 . . . . . . . . . . . . . . . . . . . 7 . 0%
1989 . . . . . . . . . . . . . . . . . . . 6 . 5%
1990 . . . . . . . . . . . . . . . . . . . 6 . 0%
1991 . . . . . . . . . . . . . . . . . . . 5 . 5%
1992 and thereafter . . . . . . . . . . . 5 . 0%
(2) All Other Customers
1985 through 1987 . . . . . . . . . . . . . 8 . 7%
1988 and 1989 . . . . . . . . . . . . . . 8 . 6%
1990 and 1991 . . . . . . . . . . . . . . . 8 .4%
1992 and 1993 . . . . . . . . . . . . . . . 8 . 2%
1994 and thereafter. . . . . . . . . . . . 8 . 0%
A large volume comme�xcial and industrial customer means a customer
so classified by the Company and whose maximum daily requirements
are 200 Mcf or more. The foregoing time and manner of collecting
said surcharge is subject to the approval of the Minnesota Public
Utilities Commission which the Company agrees to use its best efforts
to obtain.
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-5-
(C) The Company shall file monthly with the Director of the
Department of Finance and Management Services a report showing
gas consumption and revenues by classes of service for the pre-
ceding month, and shall file a quarterly report containing such
further information as may be agreed to by the City and the Company,
based upon the Company' s gas operations within the City of Saint
Paul. The City may at its option, not more than once a year, re-
quire that the collection and disbursement of franchise fees be
verified by a certified audit at the expense of the City. The
Company shall use its best efforts to monitor sales and consumption
of gas to estimate the effect of decreases in franchise fee percen-
tage rates on such sales and consumption; and the Company and said
Director shall meet annually, beginning in June of 1986 , to discuss
the results of such studies and other matters of mutual concern
regarding the franchise.
Section 6
The gas service of Company and the rates to be charged by
Company for gas service in the City shall be subject to the
jurisdiction of the Public Utilties Commission of this State.
Company shall provide reasonably efficient and adequate service
to members of the publ.ic within the City who apply for such service
in accordance with the rules and regulations of Company.
Section 7
The Company shall file with the City C1erk, and any other
person designated by the Council , copies of all rate schedules
and rules and regulati.ons pertaining to the sale of gas in the
City of Saint Paul which shall be kept by City officials for
public inspection.
Section 8
Except where required for a public improvement project , the
vacation of an,y street or public proPerty, after the installation
of gas facilities , shall not operate to deprive Company of its rights
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-6-
to operate and maintain such gas facilities , until the reasonable
cost of relocating the same and the loss and expense resulting
from such relocation are first paid to Company.
Section 9
Before this ordinance shall be finally adopted by the Council ,
a public hearing shall be held upon ten (10) days ' published notice
in the official newspaper and after said hearing the Council may pass
this ordinance, revise or amend the same. The Company shall bear
the costs of publication of the franchise ordinance and shall make
a sufficient deposit with the City Clerk to guarantee publication
before the ordinance is passed.
Section 10
The Company shall indemnify and save the City whole and harmless
from any and all claims for injury or damage to persons or property
occasioned by or arising out of the construction, maintenance , oper-
ation or repair of said transmission and distribution system or by
the conduct of the Company' s business in the City. The foregoing
does not indemnify the City for its own negligence except for claims
arising out of or alleging the City' s negligence where such negli-
gence arises out of or is primarily related to the construction,
operation, maintenance or repair of said system, including but not
limited to , the issuance of permits , and inspection of plans or work.
This section is not, as to third parties , a waiver of any defense
or immunity otherwise available to the Company; 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 11
Every section, provision, or part of this ordinance is declared
separate from every other section, provision or part ; and if any
section, provision or part shall be held invalid, it shall not
affect any other section, �rovision or part . If any franchise fee
D�a iz-t�-��l
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or franchise fee percentage rate for a particular class of customers ,
or as applied to an individual customer, is ruled, adjudged or
declared invalid or unlawful or its collection from customers or
distribution to the City enjoined or not approved by a final order
of a court of competent jurisdiction or by the Minnesota Public
Utilities Commission; (a) the franchise fee percentage rate for
that class and all classes of customers shall be increased as soon
as the applicable surcharge can be adjusted so that all such rates
are uniform and equal at the highest percentage of all such rates ,
not to exceed the highest franchise fee percentage rate in effect
at that time for any class , and (b) this franchise ordinance shall
be amended as soon as nossible to the extent necessary to comply
with such order of the court or Public Utilities Commission, and
at the same time, to return as closely as possible to the intent
and pur�oses of this franchise ordinance in regard to the respective
rights and obligations of the City and Company.
Section 12
Company shall , within thirty days after the passage, approval ,
and publication of this ordinance, file with the City Clerk of
said City its written acceptance thereof in form to be approved
by the City Attorney, and therein shall agree to abide by, keep ,
and perform all the terms , limitations , conditions and provisions
of this ordinance.
Section 13
Upon any breach or failure to comply with any of the terms or conditions
of this franchise ordinance, either party may bring an action at
law or in equity to seek compliance by the other with the said
terms and conditions , money damages , or any other appropriate relief
which may include but is not limited to termination and forfeiture
of the franchise �ranted herein.
�3 ►z-w-tc�l
WHITE — CITV CLERK 1
� a?1N7t"�"� — FINANCE COLI1C11 /�
CANARV — DEPARTMENT GITY OF SAINT PAUL X
BLUE —MAVOR File NO. r,� ��
Ordin�nce Ordinance N 0. �7���
Presented By
Referred To Committee: Date
Out of Committee By Date
-8-
Section 14
This ordinance shall take effect and be in force after the
public hearing prescribed in Section 9 and thirty days after its
passage, approval and publication, and upon its acceptance as
provided in Section 12 hereof.
COUNC[LMEN Requested by Department of:
Yeas Nays
-�sr SDA1Al�l✓
� ore��' In Favor
Masanz �
N�costa Against BY
Scheibel
Tedesc!'�-
Wilso� —
Adopted by Council: Date FEB � 2 19�5 Form Approved by City Attorney
Certified P b cil S e By 2 �?�(i-�
������
�Y �
Appr by Mayor: Date
� FEB 13 1985 Approved by Mayor for Submission to Council
gy By
pUDUSH� F�B 1 � 1985
. � � ��-�.� �
CITY OF SAINT PAUL �7�/�
- OFFIC� OF THE CITY COIINCIL
�.,...o�
+f�u�uuae
������` D a t e : January 30, 1985
r
COMM (TTEE RE PORT
TO t Saint Pau I City Counci !
F� 0 M � C o m m i t t e e O h ENERGY, UTILITIES � ENVIROVMEi�IT
C H A I R Council Member Kiki Sonnen
'�. F: No�. 85=36 � A legislative ordinance to grant a franchise to Northern
States Power Campany for the use of streets and other public property within
the City of Saint Paul for the supply of gas for a term beginning April 1, 1985 .
and ending March 31, 1996; and to fix all the terms and conditions of such
franchise including the compensation to be paid to the city under said franchise.
At its meeting of January 30, 1985, the Energy, Utilities and
Environment Comonittee recommended approval of the above ordinance '
and recommended it be forwarded to the full City Cotmcil for
scheduling of a public hearing date on February 12, 1985.
CITY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102
.r.�,.
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• �'-1f7E — C�TV C�IERN
�iNY, - FIMANCE � TT t
�ANARV — DEPARTMENT GITY OF SAINT ���j` • COUI1C11 l
d:.U°� — MAYOR ._...._. ..... � . LI Y �e N0. �•�".J�S�
�i� Attny/PBB
,.._. _ y. y� y� p
O/ Z/`�/`fi`, Ordinance N O. ��°?/O
- - � � JA N 1 1 1985
Fresec�te y
Referred To —� � `� (:ommi�t���gER KIKI���E�y � ;�-��
Out of Committee By Date
A legislative ordinance to grant a franchise
to Northern States Power Company for the use
of streets and other public property within
the City of Saint Paul for the supply of gas
for a term beginning April 1, 1985 and ending
March 31, 1996; and to fix all the terms and
conditions of such franchise including the
compensation to be paid to the City under said
franchise.
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
Northern States Power Company, a corporation organized under
the laws of the State of Minnesota, hereinafter designated as
- - - "Company", being a public service corporation supplying gas for
all purpose� within the City of Saint Paul, under Ordinance No .
17185 which shall expire on March 31, 1985, is, together with its
successors and assigns , hereby granted a franchise to use the
streets and other public property located in such City for such
purpose for a term extending from April l, 1985, to March 31 ,
1996 .
Section 2
The franchise granted herein shall extend to the Company' s use
of all streets and public property now being used by the Company
in connection with such service and of such other streets and public
COUNC[LMEN Requested by Department of:
Yeas Nays
Fletcher
Drew �fl FSVOC
htasanz
Nicosia B
Schefbel A gai nS t Y
Tedesco �
WUson
Form Appr ved by Cit At rney
�dopted by Council: Date .
Certified Passed by Counci! Secretary BY �Z �ZL�d�
By �
�pproved by Mayor: Date Approved by Mayor for Snbmission to Council �
By By
_ ._ . __ : ^ � ,
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• • ' j���/U
-2-
property as may from time to time be desi�nated by the City. Such
franchise to use the streets and other public property located in
such City shall include such use for the purpose of erecting, in-
stalling, and operating �as mains, and all other necessary appur-
tenances used in conducting, distributing, and supplying gas for
public and private use and for the purpose of conducting said gas
to and through the City.
� Section 3
In locating its gas facilities , the Company shall in no way
unreasonably interfere with the safety and convenience of ordinary
travel along and over said streets and public property, nor inter-
fere with other uses to which such places may be put by the City
of Saint Paul, and in the event it shall become necessary during
the term of this franchise to remove or relocate the physical
property of the Company located within or upon any of the streets
or public property in the City of Saint Paul, because of such
interference or use by the City, or as a result of any public
irnprovement undertaken by the City, the Company shall, when so
advised by the Council, remove and relocate said facilities without
cost to the City of Saint Paul, and shall place streets or public
property in the same condition as they were prior to said removal
or relocation. However, after the Company has so relocated its
facilities , the Company shall not within ten years thereafter be
required at i�s own expense to make any further relocation of the
same facilities if at the time of the first relocation the City
had actual notice or knowledge of the subsequent public improve-
r.ment Project; except that the Company may be required to further
relocate any such facilities at its oum expense where required
because of the extension of public utilities to previously unserved
areas or because of the work of separation of the storm and sanitary
sewers . Any relocation or removal of the Company' s facilities made
necessary because of the extension through or into the City of a
federally-aided state trunk highway, included within the National
System of Interstate Hi;hways , shall be governed by the provisions
of Minnesota Statutes 1971, Section 161.46 , as supplemented or
amended.
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Section 4
The Company, in the installation, maintenance, and operation of
its facilities, shall be subject to such reasonable regulations as
may be provided by the Council, and no gas mains and gas service
appliances shall hereinafter be installed or laid by the Campany,
except upon application to the Department of Public Works or other
persons designated by the City Council and written permission
the�efor granted by said department or person. The Company and the
City shall make reasonable good faith efforts to advise each other
of plans and programs , both long and short range, for the constxuc-
tion of improvements and facilities in public streets and other
public property wl�ich might affect the other party or require its
coordination.
Section 5
(A) During the term of the franchise hereby granted, and in
- lieu of any permit or other fees relating to the installation,
repair , maintenance and operation of its facilities , the Company
shall pay into the treasury of the City of Saint Paul a franchise
fee equal to the percentages hereinafter set forth of the Company' s
gross earnings as hereinafter defined, such fee to be paid in monthZy
installments on or before the last day of the following month. In
no event shall the franchise fee percentage rate for any class of
customers be in a greater amount than the franchise fee percentage
rate for the same or similar class of customers imposed by the City
in any new franchise ;ranted to another energy supplier, or in an
amendment to an existing franchise held by another energy supplier,
after December 31, 1984.
(B) The franchise fee imposed hereby shall not exceed any amount
which the Company may recover, prior to payment to the City, by
imposing a surcharge equivalent to such fee in its rates for gas
service to customers within the City. The term "gross earnings"
means all sums , excluding said surcharge , received by the Company
from the sa,le of gas distributed and used within the corporate
limits of the City and also excluding amounts derived from sales
to residential customers as and to the extent required by Chapter
189 of the 1979 Minnesota Session Laws . The franchise fee shall be
in the amount of the percentages set forth below on that portion of
�d� �2-2L-��{
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-4-
gross revenues derived from sales to the designated classification
of the Company' s customers based on the Company' s billing months
for the applicable neriod of time:
(1) Large Volume Commercial and Industrial Customers :
1985 (April through December . . . . . . . 8 . 5%
1986 . . . . . . . . . . . . . . . . . . . 8 . 0%
1987 . . . . . . . . . . . . . . . . . . 7 .5%
1988 . . . . . . . . . . . . . . . . . . . 7 .Q%
1989 . . . . . . . . . . . . . . . . . . . 6 .5%
1990 . . . . . . . . . . . . . . . . . . 6 .0%
1991 . . . . . . . . . . . . . . . . . . . 5.5%
19.92 and thereafter . . . . . . . . . . 5. 0%
(2) All Other Customers
i985 through 1987 . . . . . . . . . . . 8 .7%
1988 and 1989 . . . . . . . . . . . . . 8 . 6°Jo
1990 and 1991 . . . . . . . . . . . . . . . 8 .4%
1992 and 1993 . . . . . . . . . . . . . . . 8 .2%
1994 and thereafter. . . . . . . . , , . . 8 . 0%
A large volume commercial and industrial customer means a customer
so classified by the Company and whose maximum daily requirements
are 200 Mcf or more. The foregoing time and manner of collecting
said surcharge is subject to the approval of the tlinnesota Public
Utilities Commission which the Company agrees to use its best efforts
to obtain.
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_5_
(C) The Company shall file monthly with the Director of the
Department of Finance and Management Services a report sho�ring
gas consumption and revenues by classes of service for the pre-
ceding month, and shall file a quarterly report containing such
further information as may be agreed to by the City and the Company,
based upon the Company' s gas operations within the City of Saint
Paul. The City may at its option, not more than once a year, re-
quire that the collection and disbursement of franchise fees be
verified by a certified audit at the exper�se of the City. The
Company shall use its best efforts to monitor sales and consumption
of gas to estimate the effect of decreases in franchise fee percen-
tage rates on such sales and consumption; and the Company and said
Director shall meet annually, beginning in June of 1986 , to discuss
the results of such studies and ather matters of mutual concern
regarding the franchise.
Section 6
-- The gas service of Company and the rates to be charged by
Company for gas service in the City shall be subject to the
jurisdiction of the Public Utilties Comrnission of this State .
CompaYiy shall provide reasonably efficient and adequate service
to members of the public within the City who apply for such service
in accordance with the rules and regulations of Company.
Section 7
The Company shall file with the City Clerk, and any other
person designated by the Council , copies of all rate schedules
and rules and regulati.ons pertaining to the sale of gas in the
City of Saint Paul which shall be kept by City officials for
public inspection.
Section 8
Except where required for a public improvement project , the
vacation of any street or public property, after the installation
of gas facilities , shall not operate to deprive Company of its rights
�a� �z-zi-��
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-6-
to operate and maintain such gas facilities , until the reasonable
cost of relocating the same and the loss and expense resulting
from such relocation are first paid to Company.
Section 9
Before this ordinance shall be finally adopted by the Council ,
a public hearing shall be held upon ten (10) days ` published notice
in the official newspaper and after said hearing the Council may pass
this ordinance, revise or amend the same. The Company shall bear
the costs of publication of the franchise ordinance and shall make
a sufficient deposit with the City Clerk to guarantee publication
before the ordinance is passed.
Section 10
The_ Company shall indemnify and save the City whole and harmless
from any and all claims for injury or damage to persons or propert.y
occasioned by or arising out of the construction, maintenance , oper-
ation or repair of said transmission and distribution system or by
the conduct of the Company' s business in the City. The foregoing
does not indemnify the City for its own negligence except for claims
arising out of or alleging the City' s neg2.igence where such negli-
gence arises out of or is primarily related to the construction,
. operation, maintenance or repair of said system, including but not
limited to , the issuance of permits , and inspection of plans or work.
This section is not, as to third parties , a waiver of any defense
ar immunity otherwise availabie to the Company; 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 11
Every section, provision, or part of this ordinance is declared
separate from every other section, provision or part ; and if any
se�tion,. provision or part shall be held invalid, it shall not
affect any other section, �rovision or part . If any franchise fee
Pda rz-u-��t
� � � = � C��- ,�-�,- 3�
.
/7d�rd
_�_
. or franchise fee percentage rate for a particular class of customers ,
or as applied to an individual customer, is ruled, adjudged or
declared invalid or unlawful or its collection from customers or
distribution to the City enjoined or not approved by a final order
of a court of competent jurisdiction or by the Minnesota Public
Utilities Commission; (a) the franchise fee percentage rat� for
that class and all classes of customers shall be increased as soon
as the applicable surcharge can be adjusted so that all su�h rates
are uniform and equal at the highest percentage of all such rates ,
not to exceed the highest franchise fee percentage rate in effect
at that time for any class, and (b) this franchise ordinance shall
be amended as soon as nossible to the extent necessary to comply
with such order of the court or Public Utilities Commission, and
at the same time, to return as closely as possible to the intent
and purposes of this franchise ordinance in regard to the respective
rights and obligations of the City and Company.
Section 12
Company shall, within thirty days after the passage, approval,
and publication of this ordinance, file with the City C1erk of
said City its written acceptance thereof in form to be approved
by the City Attorney, and therein sha11 agree to abide by, keep,
and perforri all the terms , limitations , conditions and provisions
of this ordinance.
Section 13
Upon any breach or failure to comply with any of the terms or concli.tion
of this franchise ordinance, either party may bring an action at
law or in equity to seek compliance by the other with the said
terms and conditions , money damages , or any other appropriate relief
which may include but is not limited to termination and forfeiture
of the franchise �ranted herein.
�r3 �z-u-�
+ h}YITE � -�C�TV CLERK -
a N� _ F�NAN�E GITY OF SAINT PAITL Council /y /�
_ANpRV -DEPARTMENT Fll@ �O. �/� �.r/ Y'
3LUE -MAVOR
O/ �Y�/L�LnCe Ordinance N�. �7a��
Presented By
Referred To Committee: Date
Out of Committee By Date
-8-
Section 14
This ordinance sha11 take effect and be in force after the
public hearing prescribed in Section 9 and thirty days after its
passage, approval and publication, and upon its acceptance as
provided in Section 12 hereof. �
COUNCILMEN Requested by Department of:
Yeas Nays
Fletcher
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Nicosia B
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Form Approved by City Attorney
Adopted by Council: Date . ,
Certified Passed by Council Secretary By Z �?�i��
BY
Approved by Mayor: Uate Approved by Mayor for Submission to Council
By By
. �` � � �' �"���-��
Northern States Power Company
414 Nicollet Mall
Minneapolis,Minnesota 55401
Telephone(612)330-5500
March 1, 1985 RECEIVED
To the Honorable Mayor and �R 1 � i�� r� �
_„ �
Members of the City Council CITY ATTC��i�EY `�;� "�'�
Saint Paul, Minnesota F=�' � �
�-.J�:
t�ar
�`:�� � �
-r;ID �
Re: Acceptance of Gas Franchise �� =�=
�
� �
Gentlemen: � �
The undersigned, Northern States Power Company,
does hereby accept and agree to abide by, keep and perform
all of the terms, limitations, conditions and provisions
of Council File No. 85-36 , being Ordinance No. 17210,
adopted by the Council on February 12 , 1985, and approved
by the P�.ayor on February 13 , 1985.
NORTHERN ST�ES POWER COMPANY
� r',,
B � ' ,.�-� C� �_ ��-�--
Jos ph A. Cascalenda
Vice President � _
� v �
And
Shirley �ich
Assist t Secret� y
APPROVED AS TO FORM:
3-It-�S
Ci Attorney
�s - � �
���=• o, CITY OF SAINT PAUL
A' 7
. * OFFICE OF THE CITY ATfORNEY
+ '�'�111° �� EDWARD P. STARR, CITY ATTORNEY
o• "�
�4'r��.� 647 City Hall, Saint Paul,Minnesota 55102
612-298-5121
GEORGE LATIMER
MAYOR �,+�E�
e��� 1 �� `t�y �t �i�.k ���
1'1 iS tj �1J �!'� «�;`j U�
March 19, 1985
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To : Albert B . Olson
City Clerk
From: Philip B. Byrne�
Assistant City Attorney
Re : Ordinance No . 17210, C .F. 85-36
I have form-approved and return to you for filing NSP' s
written acceptance of the above ordinance .
Enc .
. - t ���--��.�
���` ���u� RECEIVED CITY OF SAINT PAUL
_�:�'*' °•:�-,
=• •'� OFFICE OF THE CITY CLERK
_„ ,
��
:e `_ , � 19�a
:r ���� ,: MAR " a
;� �� ^�� ALBERT B. OLSON, CITY CLERK
'�,• -
''��,,� m�,..c�,.��'` 386 City Hall,Saint Paul,Minnesota 55102
GEORGE LATIMER
CITY ATTOr�N�Y 612-298-4231
MAYOR
March 12, 1985
Mr. Ed Starr
City Attorney
Room 647, City Hall
Attention: Mr. Phil Byrne
Dear Sir:
Attached is the acceptance of Northern States Power Company to the gas
franchise as approved by Ordinance No. 17210, C.F. 85-36. Will you please
take the necessary steps to have the document approved as to form by the
City Attorney as required by the franchise ordinance.
V y ruly rs,
A rt B. Olson
City Clerk
ABO:th
Attachment
ST. PAUL LEGAL LEDGER, SATURDAY, FEBRUARY 16, 1985
�� � Gas Franchise
� - . Page 1 �
(��5 �
`r'�T7 �►
City of St. Paul `' '
. -
o •
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. � �Oi'iii" a ,
.
Council Proceedin s ° �... �
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OFFICIAL PROCEEDINGS OF THE COUNCIL
I
� ,
ORDINANCES �
Council File No.85-36—Ordinance No. 17210—By Kiki Sonnen=
A legislative ordinance to grant a franchise to Northern States Power Com-
pany for the use of streets and other public property within the City of Saint Paul
for the supply of gas for a term beginning April 1,1985 and ending March 31, 1996;
and to fix all the terms and conditions of such franchise including the compensa-
tion to be paid to the City under said franchise. �
The Council of the City of Saint Paul Does Ordain:
� SECTION 1
�Northern States Power Company, a corporation organized under the laws of
the State of Minnesota,hereinafter designated as"Company",being a public ser-
vice corporation supplying gas for all purposes within the City of Saint Paul,
under Ordinance No.17185 which shall expire on March 31,1985,is,together with
its successors and assigns,hereby granted a franchise to use the streets and other
public property located in such City for such purpose for a term extending from
April 1, 1985, to March 31, 1996.
SECTION 2
The franchise granted herein shall extend to the Company's use oi all streets
and public property now being used by the Company in conneaction with such ser-
vice and of such other streets and public property as may from time to time be
designated by the City.Such franchise to use the streLts and other public proper-
ty located in such City shall include such use for the purpose of erecting, install-.
i�g,and operating gas mains,and all other necessary appurtenan�es used in con-
ducting, distributing, and supplying gas for public and private use and for the
purpose of conducting said gas to and through the City.
SECTION 3
In locating its gas facilities, the Company shall in no way unreasonably in-
terfere with the safety and convenience of ordinary travel along and over said '
streets and public property, nor interfere with other uses to which such places
may be put by the City of Saint Paul,and in the event it shall become necessary
during the term of this franchise to remove or relocate the physical property of
the Company located within or upon any of the streets or public property in the
City of Saint Paul,because of such interference or use by the City,or as a result of
any public improvement undertaken by the City,the Company shall,when so ad-
vised by the Council,remove and relocate said facilities without cost to the City
of Saint Paul,and shall place streets or public property in the same candition as i;
they were p,rior to said removal or relocation.However,after the Company has so ;
relocated its facilities, the Company shall not within ten years thereafter be re- '
- quired at its own expense to make any further relocation of the same facilities if �
at the time of the first relocation the City had actual notice or knowledge of the �
subsequent public improvement project; except that the Company may be re-
quired to further relocate any such facilities at its own expense where required '
because of the extension of public utilities to previously unserved areas or �
because of the work of�separation of the storm and sanitary sewers.Any reloca- I
tion or removal of the Company's facilities made necessary because of theexten- �
sion through or into the city of a federally-aided state trunk highway, included '
within the National System of Interstate Highways,shall be governed by the pro- �
visions of Minnesota Statutes 1971,Section 161.46,as supplemented or amended.
SECTION 4
The Company,in the installation,maintenance,and operation of its facilities,
shall be subject to such reasonable regulations as may be provided by the Coun-
cil, and no gas mains and gas service appliances shall hereinafter be installed or
laid by the Company,except upan application to the Department of Public Works
or other persons designated by the City Council and written permission therefor
granted by said department or person. The Company and the City shall make
reasonable good faith efforts to advise each other of plans and programs, both
long and short range, for the construction of improvements and facilities in
public streets and other public property which might affect the other party or re-
quire its coordination. �
SECTION 5 I
(A)During the term of the franchise hereby granted,and in lieu of any permit
or other fees relating to the installation,repair,maintenance and operation of its
facilities, the Company shall pay into the treasury of the City o[ Saint Paul a
franchise fee equal to the percentages hereinafter set forth of the Company's
gross earnings as hereinafter defined,such fee to be paid in monthly installments '
on or before the last day of the following month. In no event shatl the franchise
fee percentage rate for any class of customers be in a greater amount than the
franchise fee percentage rate for the same or similar class of customers imposed
ST. PAUL LEGAL LEDGER, SATURDAY, FEBRUARY 16, 1985
� - v Gas Franchise
�- _ Page 2
v�-�-��-��
by the City in any new franchise granted to another energy supplier, or in an
amendment to an existing franchise held by another energy supplier, after
December 31, 1984.
(B)The franchise fee imposed hereby shall not exceed any amount which the
Company may recover, prior to payment to the City, by 'imposing a sumharge
equivalent to such fee in its rates for gas service to customers within the City.The
Lerm"gross earnings"means all sums,excluding said sumharge,received by the !
Company from the sale of gas distributed and used within the corporate limits of ',
the City and also excluding amounts derieved from sales to msidential customers !
as and to the extent required by Chapter 189 of the 1979 Minnesota 5ession Laws.
The franchise fee shall be in the amount of the percentages set forth below on that I
portion of gross revenues derived from sales to the designated classification of
the Company's customers based on the Company's billing mpnths for the ap- !
plicable period of time:
(1) I.arge Volume Commercial and Industrial Customers:
1985 April through December............... .... .. ....... 8.5%
1986 ....... ............... . ...... .......... ... ... .. .... 8.0%
1987 ................................................... 7.5�7�
1988 ........ ................................. ...... ... . 7.0%a
1989 .................................................. .. 6.5%
1990..._..... ............ ...... ....... ............ .... . 6A��
1991 ................................................... 5.5%
1992 andthereafter.... ...... ...... ................. ..... 5.0%
. (2) All Other Customers
1985 through 1987.........:........................... .. 8.7%
1988 and 1989............. ...... .......... .... .�.... ... .. 8.6%
1990 Snd 1991............................. .............. 8.4% � I
1992 and 1993........................ .... .......... .... . 8.2�7� i
, 1994 andthereafter...................... ................ 8.0%
A large volume commercial and industrial customer means a customer so '
classified by the Company and whose maximum daily requirements are 200 Mcf
or more:The foregoing time and manner of coilecting said surcharge is subject to
the approval of the Minnesota Public Utilities Commission which the Company
agrees to use its best efforts to obtain.
, (C)The Company shall file monthly with the Director of the Department of j
Finance and Management Services a report showing gas consumption and !
revenues by classes of service for the preceding month,and shall file a quarterly
report containing such further information as may be agreed to by the City and I
• the Company,based upon the Company's gas operations within the city of Saint
Paul.The City may at its option, not more than once a year, require that the col-
lection and disbursement of franchise fees be verified by a certified audit at the '
exgense of the City.The Company shall use its best efforts to monitor sales and
consumption of gas to estimate the effect of decreases in franchise fee pementage ',
rates on such sales and consumption; and the Company and said Director shall i
meet annually, beginning in June of 1986, to discuss the results of such studies
and other matters qf mutual concern regarding the franchise.
� SECTION 6
The gas service of Company and the rates to be charged by Company for gas
service in the City shall be subject to the jurisdiction of the Public Utilties Com- �
mission of this State. Company shall provide reasonably efficient and adequate !
service to members of the public within the City who apply for such service in ac-
cordance with the rules and regulations ef Company.
SECTION 7
. 'IYie Company shall file with the City Clerk,and any other person designated
by the Council,copies of all rate schedules and rules and regulations pertaining to I
the sale of gas in the City of Saint Paul which shall be kept by City officials for '
publk inspection. '
' SECTION 8
Except where required for a public improvement project,the vacation of any
street or public property.after the installation of gas facilities,shall not operate
to deprive Company of its rights to operate and maintain such gas facilities,until
the reasonable cost of relocating the same and the loss and expense resulting from
such relocation are first paid to Company. ,
SECTION 9 •
Before this ordinance shall be finally adopted by the Council, a public hear-
ing shall be held upon ten(10)days' published notice in the official newspaper
and after said hearing the Council may pass this ordinance, revise or amend the
same.The Company shall bear the costs of publication of the franchise ordinance �
and shall make a sufficient deposit with the City Clerk to guarantee publication
before the ordinance is passed.
SECTION 10
The Company shall indemnify and save the City whole and harmless from
any and all claims€or injury or damage to persons or property occasioned by or I
� arising out of the construction,maintenance,operation or repair of said transmis-
sion and distribuiion system or by the conduct of the Company's bnsiness in the
City.The foregoing does not indemnify the City for its own negligence except for
claims arising out of or alleging the City's negligence where such negligence
arises out of or is primarily related to the construction, operation, maintenance
or repair of said system,inciuding but not limited to,the issuance of permits,and
inspection of plans or work.This section is not, as to third parties, a waiver of
any defense or immunity otherwise available to the Company;and the Company,
in defending any action on behalf of the City,shall be entitled to assert in any ac-
tion every defense or immunity that the City could assert in its own behalf.
ST. PAUL LEGAL LEDGER, SATURDAY, FEBRUARY 16, 1985
�� � � �� ' � Gas Franchise
...' � Page 3 � �l�_�,�
�` 0
SECTION 11
Every section, provision,or part of this ordinance is declared separate from
every other section,provision or part;and if any section,provision or part shall
be held invalid,it shall not affect any other section,provision or part.If any fran-
� chise fee or franchise fee percentage rate for a particular class of customers,or as
applied to an individual customer, is ruled, adjudged or declared invalid or
unlawful or its collection from customers or distribution to the City enjoined or
not approved by a final order of a court of competent jurisdiction or by the Min-
nesota Pubhc Utilities Commisison;(a)the franchise fee per�centage rate forthat
class and all classes of customers shall be increased as soon as the applicable sur-
charge can be adjusted so that all such rates are uniform and equal at the highest '
percenta�e of all ��r�h rafes, nnt to:e�ccee��t�R t�ighest.franchise fee Pe�centa�e
� ` _�. �_ _ _.. . ,>. I
I
rate in effect at that time for any class,and(b)this franchise ordinance shall be i
amended as soon as possible to the extent necessary to comply with such order of .
the court or Public Utilities Commisison,and at the same time,to return as close-
ly as possible to the intent and purposes of this franchise ordinance in regard ta
the respective rights and obligations of the City and Company.
SECTION 12
Company shall, within thirty days after the passage,approval, and publica-
tion of this ordinance,file with the City Clerk of said City its written acceptance
thereof in form to be approved by the City Attorney, and therein shall agree to
abide by,keep,and perforrn all the terms,limitations,conditions and provisions
of this ordinance.
SECTION 13
Upon any breach or failure to comply with any of the terms or conditions of '
this franchise ordinance,either party may bring an action at law or in equity to
• seek compliance by the other with the said terms and conditians, money
damages,or any other appropriate relief which may include but is not limited to
termination and forfeiture or the franchise granted herein. � . '
SECTION 14
This ordinance shall take effect and be in force after the public hearing -
prescribed in Section 9 and thirty days after its passage, approval and publica=
tion,and upon its acceptance as provided in Section 12 hereof. �
Adopted by the Council February 12, 1985. _
Yeas—Councilmen Masanz, Nicosia, Scheibel and Sonnen-4. Nays—Coun-
cilmen Drew,Tedesco and Wilsqn-3.
Approved February 13, 1985. �
GEORGE LATIMER, Mayor �
(February 16, 1985)
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Northern States Power Company
414 Nicollet Mall
Minneapolis,Minnesota 55401
Tetephone(612)330-5500
March 1, 1985
To the Honorable Mayor and .r, .�
-=�+ �
Members of the City Council ��� �
Saint Paul, Minnesota _ T=� � ,r-
'r'�, a+�
�'''�' � Q
;� �„
Re: Acceptance of Gas Franchise �� _�°-=
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Gentlemen: �" �
The undersigned, Northern States Power Company,
does hereby accept and agree to abide by, keep and perform
all of the terms, limitations, conditions and provisions
of Council File No. 85-36, being Ordinance No. 17210,
-- --- adopted by the Council on February 12, 1985, and approved
by the Mayor on February 13, 1985.
NORTHERN ST S POWER COMPANY
,
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�o�.�--
Jos ph A. Cascalenda
�
� Vice President , , ' .
' "� ' ;` , .'
�na �.��� �
Shirley 'ch ; ; .~ .,'� �
Assist t Secreta y
APPROVED AS TO FORM:
City Attorney
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SONNEN _ .:: - -°�.,
WILSON
MR. PRESIDENT TEDESCO
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