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96-34` Council File # /(O — J / � : ; � � � �� i ,� �� Ordinance # Green Sheet # �� a � ORDINANCE OF SAINT PAUl., MINNESOTA �� Presented By Committee: Date Referred To A legislative ordinance to grant a franchise to Northern States Power Company for the use of streets and other public properry within the City of Saint Paul for the supply of electricity for a term beginning April i, �SI$3 1996 and ending " "=�i June 30, 1996; and to fix ail 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 ORDATN: 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 electricity for all purposes within the City of Saint Paul under Ordinance No. '''� 17211, as amended by Council File No. 93-700, effec6ve June 15. 1993, which shail expire on Mazch 31, �S3 1996, 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, �983 1996, to *� June 30, 1996. Section 2 The franchise granted herein shali extend to the company's use of ali streets and public properry now being used by the company in connection with such service and of such other streets and pubiic property as may from time to time be designated by the city. Such franchise to use the stteets and other pnblic property located 'zn such city shall include such use for the purpose of erecting, laying, constructing, installing, maintaining and operating poles, posts, wires, conduits, subways, pipes, mattholes, service boxes, cables, conductors and all other necessary and convenient facilities used in conducting, transmitting, distributing and supplying electric energy to and through said city for public and private use. Section 3 In locating its electrical 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 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 tius franchise to remove or a�'�� ,�1:,1� relocate the physical property of the company located within or upon any of the streets or `�—�� 4 10 11 12 13 14 15 16 17 18 14 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 �2 t3 4 public property in the City of Saint Paul, because of such interference or use by the ciry, or as a resuit of any pubiic 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 Pau1, and shall place the streets or public property in the sazne condi6on as they were prior to said removal or relocation. However, after company has so relocated its facilities, the company shall not within ten (10) years thereafter be required at its own expense to make any fiu�ther relocation of the same facilities if at the time of the first relocation the city had actual notice or knowledge of the subsequent public nnprovement project; except that the company may be required to fiuther relocate any such faciliues at its own expense where required because of the e�ension 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 federaliy aided state trunk highway, included within the Nationai Sysiem of Interstate Highways, shall be governed by the provisions of Minnesota Statutes 1971, Section 161.46, as supplemented or amended. Section 4 The company in the instailation, maintenance and operation of its facilities shall be subject to such reasonable regulations as may be provided by the council, and no poles, masts or conduits shall hereafter be instailed, erected 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 sha11 make reasonable gaod 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 pubiic property which might affect the other pariy or require its coordination. The company shall reasonably make available to the city space on its utility poles for city fire, water utility, and police facilities. Whenever directed by the council by resolution, the company shall make reasonable extensions of its street lighting faciliries for the instaliation of street lights, without cost to the city, but said facilities shall remain the property of the company. Sect3on 5 (a) During the term of the franchise hereby granted, and in lieu of any pernut or other fees relating to the instaliation, repair, maintenance and operafion 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 earnin�s as hereinafter defined, such fee to be paid in monthly installments on or before the last day of the following month. In tto 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 e�sting franchise held by another energy supplier, after I?ecember 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 electric service to customers within the city. The term "gross earnings" means all sums, excluding said surchazge, received by the company from the sale of electricity 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 ] 89 of the 1979 2 '/C� (z,lc >' q���y Minnesota Session Laws and amounts exempted from the surchazge due to the "annual cap" described below. The francluse fee shall be in the amount of the percentages set forth below on that portion of gross earnings derived from sales to the company's customers based on the company's biiling months for the applicable period of time: Alt Customer Class�cations 1985 through 1987 . . . . 8.�°!0 1988 and 1989 . . . . 8.6°/a 199Q and 1991 . . . . $.4°!0 1992 and 1993 . . . . 8.2% 1994 and thereafter . . . . 8.0% Provided, however, there is hereby exempted from the franchise fee any requirement that the company pay or coliect by such surcharge a franchise fee in excess of six hundred twenty thousand dollars ($620,000.00) in any calendar yeaz ("annual cap") from any large commercial and industrial class customer, such amount to be measured by the cwnulative billings of the company in that customer's name derived from meters measuring electric consumption at the customer's place(s) of business; provided, however, that this paragraph is subject to ail provisions of the Saint Pau1 City Charter. The foregoing time and manner of collecting said surchazge is subject to the approval of the Minnesota Public Urilities Commission which the company agrees to use its best efforts to obtain. (c) The company shali file monthly with the director of the department of finance and management services a report showing electric 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 the company, based upon the company's electric operations within the City of Saint Paul. The city may at its option, not more than once a year, require that the collection and disbursement of franchise fees be verified by a certified audit at the expense of the city. Secrian b The electric service of company and the rates to be chazged by company for electric service in the city shall be subject to the jurisdiction of the Public Util3ties Cominission 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 accordance with the rules and regulations of company. Section 7 T'he company shall file with the city cierk, and any other person designated by the council, copies of all rate schedules and rules and regulations pertaining to the sale of electric energy in the City of Saint Paul which shall be kept open by city officiais for pubiic inspection. 3 ,/£� �z(e�/o�' Section 8 �'G-3f Except where required for a public improvement project, the vacation of any street or public ground, after the installation of electric facilities, shall not operate ta deprive company of its rights to operate and maintain such electric facilities, until the reasonahle cost of relocaring the same and the loss and expense resulting from such relocarion aze first paid to company. Section 9 Before this ordinance shall be finally adopted by the council, a public heazing shall be held upon ten (10) days' published notice in the officiai newspaper and after said hearing the council may pass this ordinance, revise or amend the same. The company shali 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 hy or azising out of the construction, maintenance, operation 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 azising 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 systems, including, but not limited to, the issuance of permits and inspection of plans or work. Tlus 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 acfion, provision or part of this ordinance is declazed 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. Section 12 Company shall, within thirty (30) 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 parry 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 inciude, but is not limited to, termination and forfeihue of the franchise a anted herein. 4 sf" E � i z/z r �sf 2 3 4 5 6 7 Section 14 �'� -3� This ordinance shail take effect and be in force after the public heazing prescribed in Section 9 and thirty (30) days after its passage, approvai and publicauon, and upon its acceptance as provided in Section 12 hereof. �`�P��'.��,,� P, ;� , <, �«�es�� . �� ����. k By Approved by By: Requested by Department of: C, � /�/�m�>,,�, By: _ � �, � � Form Approved by City Attorney BY: _lfivr,�.!� 2. ✓/�Cv1Z� i��2i��J� Adopted by Council: Date � (� Adoption Certified by Counci Secretary J�� ' 3� DEPARTMENT/OFFICFJCOUNCII DATEINITIATED GREEN SHEE N� 3 5 6 2 8� City Attorney INRIAUDATE INITIAVDATE CON7ACTPERSQY&PHONE QDEPARiMEMDIRECiOR QCIT'CAUNCIL Phil B rne �wx �CRYATfOFNEY �CIT'CLERK MU5T BE ON CAUNCII. AGENDA BV (DATE) MIIYBER FOA O BUDGEf DIRECTOR � FlN. fi MGT. SERVICES DIR. ROUTiNG 080ER O MAYOfl (OR ASSISTANT) O 70TAL # OF SIGNATURE AAGES (CLIP ALL LOCATlONS FOR SIGNATURE) ACf10N RE�UE5TED: Passage of ordinance to extend the NSP electric franchise from March 31, 1996 to June 30, 1996. RECOMMENDA7loNS: Approva (A) or Reject (R) pERSONAL SERVICE CONTRACTS MUST ANSWER TXE FOLLOWING �UESTIONS: _ PLANNMG CAMMISSION _ GNIL SEHViCE COMMIS$IpN �- Has this perwntfirtn ever worked under a contract for this tlepartment? - _ CIBCOMMITTEE YES 'NO _ STAFF 2. Has this personffirm ever been a ciry employee? — VES NO _ DIS7pICi COUtii — 3. Does Mis persoMirm possess a skill not normally possessed by any curreM ciry empioyee? SUPPORTS WHICH COUNCIL O&IECTIVEI YES NO Explain al� yes answers on seperate sheet antl attach to green sheet INITIATING PHOBLEM, ISSUE. OPPOFiTUN�TY (Who, Whet, When. Where, Why): t AOVANTA6ESIFAPPFOVEO: DISADVANTAGES IF APPROVE�. DISADVANTAGES IF NOTAPPROVED: TO7AL AMOUNT OF 7R4NSACTION S COST/FiEVENUE BUDGETED (CIRCLE ONE) YES NO FUNDIHG SOURCE ACTIVI7Y NUMBER FINANCIAL INFOflMAT10N: (EXPLAIN) March 7, i 896 To the Honorable Mayor and Members of the City Gouncil Saint Paul, Minnesota Re: Acceptance of Electric Franchise Gentlemen: The undersigned, Northern States Power Company, does hereby accept and agree to abide by, keep and perform ali of the terms, limitations, conditions and provisions of Council File No. 96-34, being Ordinance No. 96-34, adopted by the Council on January 31, 1996 and approved by the Mayor on February 5, 1996. NORTHERN STATES POWER COMPANY � . Er�jkson, Director Customer _ « Service APPROVED AS TO FORM: Sutton Ploinbon Assistant Secretary l� .f � ��G.. .;►_ J ��_ �� � Interdepartmental Memorandum CITY OF SAINT PAUL �r,�s!s?,=� �;a���ii Ji1�J 0 } i996 DATE: January 4, 1996 TO: Nancy Anderson Assistant Council Secretary FROM: Philip B. Byrne�" Assistant City Attorney RE: Public Hearing _.r Please place the attached Notice on the Council Agenda. It gives notice of a Council Hearing on the franchise extension ordinances to be held�January 24, 1996. The Notice will be published in the Legal Ledger 10 da�s before the hearing in order to comply with the Charter requirement for pub].ished notice of such hearings on franchise ordinances. �� - `� NOTICE OF PU3I,IC HEARING BEFORE THE COu70CIL OF THE CITY OF SAINT PAUL PLEASE TAKE NOTICE that a public hearing will be held, pursuant to Sectica 16.03 0£ the Charter of the City of Saint Paul, on Wednesday, January 24, 1996, on ordinances to extend the existing Northern States Power Company gas and electric franchises for an additional three mor.th p=riod beginning April 1, 1996 and ending June 30, 13°5. The hearing will be in the City Council Chambers on the third floor of the Saint ?Gul City Hall and Ramsey County Courthouse, 15 West Kellogg Blvd., during the regular meeting of the City Council which begins at 3:30 p.m.