HomeMy WebLinkAbout8.c. Minnegasco Natural Gas FranchiseCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: JANUARY 7, 1992
AGENDA ITEM: MINNEGASCO - NATURAL GAS
FRANCHISE
AGENDA SECTION:
NEW BUSINESS
PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR
AGENDAIN= A # Q C
ATTACHMENTS: DRAFT ORDINANCE
AP B
Minnegasco, a division of Arkla, Inc., has made application to receive a
franchise for the operation of a gas utility in the City of Rosemount.
Minnegasco actually has operated for several years in two small service
areas in the city. One area is along 160th Street east of State Hwy 52 and
another is just a trunk line in the Right of Way of County Road 33 (Diamond
Path) just north of County Road 42.
Minneagasco wishes to formalize this operation and receive a franchise
authorizing them to do so. The Utilities Commission has considered the
franchise and recommended its approval pending our city attorney's review
of the franchise.
This has been completed and the franchise is found to be in legal format
acceptable to him.
RECOMMENDED ACTION:
Motion to adopt an Ordinance Granting to Minnegasco, a Division of
ARKLA, Inc., -a Delaware Corp., Its Successors and Assigns, Permission
to Erect a Gas Distribution System for the Purpose of Installing,
Enlarging, Operating, Repairing, and Maintaining in the City ...etc.
COUNCIL ACTION:
ORDINANCE NO.
AN ORDINANCE GRANTING TO MINNEGASCO, A
DIVISION OF ARKLA, INC., A DELAWARE CORPORATION,
ITS SUCCESSORS AND ASSIGNS, PERMISSION TO
ERECT A GAS DISTRIBUTION SYSTEM FOR THE
PURPOSE OF INSTALLING, ENLARGING, OPERATING,
REPAIRING, AND MAINTAINING IN THE CITY OF
ROSEMOUNT, MINNESOTA, THE NECESSARY GAS
PIPES, MAINS, AND APPURTENANCES FOR THE
TRANSMISSION OR DISTRIBUTION OF GAS TO SAID CITY
AND ITS INHABITANTS AND OTHERS AND
TRANSMITTING GAS INTO AND THROUGH SAID CITY
AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS
OF SAID CITY FOR SUCH PURPOSES.
THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, DAKOTA COUNTY,
MINNESOTA, DOES ORDAIN:
SECTION 1. Definitions
Subd. 1. In this Ordinance "City" means the City of Rosemount, County of -
Dakota, State of Minnesota.
Subd. 2. "City Utility System" refers to the facilities used for providing any
public utility service owned or operated by City or agency thereof, including sewer and
water service.
Subd. 3. "Company" means Minnegasco, a Division of Arkla, Inc., a
Delaware corporation, its successors and assigns.
Subd. 4. "Gas" as used herein shall be held to include natural gas,
manufactured gas, or other form of Caseous energy.
Subd. 5. "Notice" means a writing served by any party or parties on any
other party or parties. Notice to Company shall be mailed to the Senior Vice
President, Operations, thereof at 201 South Seventh Street, Minneapolis, Minnesota
55402. Notice to City shall be mailed to the CITY CLERK.
Subd. 6. "Public grounds" means city parks and squares as well as land
held by City for the purpose of open space.
1
Subd. 7. "Public ways" means streets, avenues, alleys, parkways, walkways,
and other public rights-of-way within City.
Subd. 8. "Gas System" means all mains, pipes, and all other equipment
appurtenances and equipment for the transmission, distribution, and sale of natural
gas in City.
SECTION 2. Grant of Franchise
City hereby grants Company, for a period of 15 years from the date hereof, the
right and privilege of erecting a gas distribution system and using the public ways and
public grounds of City for the purpose of installing, operating, repairing, and
maintaining, in, on, over, under, and across the same, all gas pipes, mains, and
appurtenances, usually, conveniently, or necessarily used in connection therewith, for
the purpose of the transmission of gas, or the distribution of gas, for public and
private use within and through the limits of City as its boundaries exist or as they may
be extended in the future. Company may also do all reasonable things necessary or
customary to accomplish these purposes subject, however, to the further provisions of
this franchise.
SECTION 3. Restrictions
Subd. 1. All gas pipes, mains, regulators, and other property and facilities
shall be so located, constructed, installed, and maintained as not to endanger or
unnecessarily interfere with the usual and customary trade, traffic, travel upon, and use
of public ways of City. In installing, repairing, and maintaining, removing, or replacing
said gas pipes, mains, and appurtenances, Company shall, in all cases, place the
public ways, in, on, under, or across which the same are located in as good condition
as they were prior to said operation.
Subd. 2. Company shall not construct any new or modified installations
within or upon any public grounds without receiving the prior written consent of an
authorized representative of City for each such new installation.
Subd. 3. Company shall provide field locations for all its underground
facilities within 48 hours of notification to Gopher State One -Call as required by state
law.
Subd. 4. Before Company constructs any new structure or converts any
existing structure for the manufacture or storage of gas, Company shall first obtain the
approval of the structure and the location thereof from City. Such approval by City
shall not be unreasonably withheld.
2
Subd. 5. After undertaking any work requiring the opening of any public
way or public ground, 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. If Company shall not promptly perform and complete the work,
remove all dirt, rubbish, equipment, and material and put the public way or said public
ground in the said condition, City shall have, after demand to Company to cure said
condition and the passage of a reasonable period of time following the demand, but
not to exceed five days, the right to make the restoration at the expense of Company.
Company shall pay to City the cost of such work done for or performed by City
including its administrative expense and overhead. This remedy shall be in addition to
any other remedy available to City.
SECTION 4. Service, Rates
The service to be provided and the rates to be charged by Company for gas
distribution or transmission service in City are subject to the jurisdiction of the Public
Utilities Commission of this State or its successor agency.
SECTION 5. Relocating
Subd. 1. Whenever City shall grade, regrade, or change the line of any
public way, or construct or reconstruct any City utility system therein and shall, in the
proper exercise of its police power, and with due regard to seasonable working
conditions, when necessary order Company to relocate permanently its mains,
services, and other property located in said public way, Company shall relocate its
facilities at its own expense. City shall give Company reasonable notice of plans to
grade, regrade, or change the line of any public way or to construct or reconstruct
any City utility system therein. However, after Company has so relocated, if a
subsequent relocation or relocations, shall be ordered within ten (10) years from and
after first relocation, City shall reimburse Company for such non -betterment relocation
expense which Company may incur on a time and material basis; provided, if
subsequent relocations are required because of the extension of City utilities to
previously unserved areas, Company may be required to relocate at its own expense
at any time.
Subd. 2. Nothing contained in this
relocate, remove, replace, or reconnect at its
relocation, removal, replacement, or reconne
necessity in the construction or reconstructio
thereof.
franchise shall require Company to
own expense its facilities where such
tion is for convenience and not of
i of a City utility system or extension
S,�i .¢ I Any relocation, removal, or rearrangement of any Company
facilities made necessary because of the extension into or through City of a federally
aided highway project shall be governed by the provisions of Minnesota Statutes
Section 161.46 as supplemented or amended; and further, it is expressly understood
that the right herein granted to Company is a valuable property right and City shall not
order Company to remove or relocate its facilities without compensation when a public
way is vacated, improved, or realigned 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 a relocation and
the loss and expense resulting therefrom are first paid to Company.
bd. 4. Nothing contained herein shall relieve any person, persons, or
corporations from liability arising out of the failure to exercise reasonable care to avoid
injuring Company's facilities while performing any work connected with grading,
regrading, or changing the line of any public way, or with the construction of any City
utility system.
SECTION 6. Indemnification
Company shall indemnify, keep, and hold 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, or operation of Company's gas facilities located in,
on, over, under, or across the public ways and public grounds of City, unless such
injury or damage grows out of the neglic_wnce of City, its employees, or agents, or
results from the performance in a proper manner of acts reasonably deemed
hazardous by Company, but such performance is nevertheless ordered or directed by
City after notice of Company's determination. In the event a suit shall be brought
against City under circumstances where the above agreement to indemnify applies,
Company at its sole cost and expense shall defend City in such suit if written notice
thereof is promptly given to Company within a period wherein Company is not
prejudiced by lack of such notice. If such notice is not reasonably given as
hereinbefore provided, Company shall have no duty to indemnify nor defend. If
Company is required to indemnify and defend, it will thereafter have complete control
of such litigation, but Company may not settle such litigation without the consent of
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 City; and
Company, in defending any action on behalf of City shall be entitled to assert in any
action every defense or immunity that City could assert in its own behalf.
SECTION 7. Vacation of Public Ways
City shall give Company at least two weeks' prior written notice of a proposed
vacation of a public way. Except where required solely for a City improvement project,
the vacation of any public way, 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. In no case, however, shall City be liable to the
Company for failure to specifically preserve a right-of-way under Minnesota Statutes
Section 160.29.
SECTION 8. Written Acceptance
Company shall, if it accepts this Ordinance and the rights and obligations
hereby granted, file a written acceptance of the rights hereby granted with the City
Clerk within ninety (90) days after the final passage and any required publication of
this Ordinance.
SECTION 9. Provisions of Ordinance
u d. 1. 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. Where
a provision of any other City ordinance conflicts with the provisions of this Ordinance,
the provisions of this Ordinance shall prevail.
ubd. 2. If either party (City or Company) asserts that the other party is in
default in 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 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.
Subd. 3. This Ordinance constitutes a franchise agreement between City
and Company as the only parties and no provision of this franchise shall be in any
way inure to the benefit of any third person (including the public at large) so as to
constitute any such person as a third party beneficiary of the agreement or of any one
or more of the terms hereof, or otherwise give rise to any cause of action in any
person not a party hereto.
SECTION 10. Safety Training
Company shall provide annually, the first of which within 90 days from the
adoption and acceptance of this franchise, training for employees of City, basic
response and awareness techniques as to the safe operation and maintenance of the
Company system. The purpose of this training is to assist the City Public Works
Department and the City Fire Department in response to incidence requiring their
assistance relating to Company's facilities in the City.
5
SECTION 11. Emergency Response Telephone Number
Company shall provide a 24-hour emergency telephone number providing
access to Company by City for emergency response purposes. This telephone
number' must be separate from the general service response telephone number and
must provide meaningful access to Company for emergency response.
SECTION 12. Publication Expense
The expense of any publication of this Ordinance required by law shall be paid
by Company.
SECTION 13. Effective Date
This Ordinance is effective as provided by statute or charter, and upon
acceptance by Company as provided in Section 8.
Passed and approved: 19
Mayor
Attest:
City Clerk
A.ROSEMOUN.FR • RSG 6
d . W
ACCEPTANCE OF ORDINANCE NO.
CITY OF ROSEMOUNT, DAKOTA COUNTY, MINNESOTA
ACCEPTANCE OF FRANCHISE:
WHEREAS, the City Council of the City of Rosemount, Dakota County,
Minnesota, on the day of '19 passed and adopted
Ordinance No. , entitled:
AN ORDINANCE GRANTING TO MINNEGASCO, A
DIVISION OF ARKLA, INC., A DELAWARE CORPORATION,
ITS SUCCESSORS AND ASSIGNS, PERMISSION TO
ERECT A GAS DISTRIBUTION SYSTEM FOR THE
PURPOSE OF INSTALLING, ENLARGING, OPERATING,
REPAIRING, AND MAINTAINING IN THE CITY OF
ROSEMOUNT, MINNESOTA, THE NECESSARY GAS
PIPES, MAINS, AND APPURTENANCES FOR THE
TRANSMISSION OR DISTRIBUTION OF GAS TO SAID CITY
AND ITS INHABITANTS AND OTHERS AND
TRANSMITTING GAS INTO AND THROUGH SAID CITY
AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS
OF SAID CITY FOR SUCH PURPOSES.
which Ordinance was duly published according to law on the day of
'19 , in the Dakota County Tribune, a newspaper printed and
published in the City of Rosemount, County of Dakota, State of Minnesota, and which
Ordinance is not effective unless accepted in writing by Minnegasco, a Division of
Arkla, Inc.
NOW, THEREFORE, Minnegasco, a Division of Arkla, Inc., a Delaware
corporation for itself and its successors and assigns, does hereby accept all the terms
and conditions of said Ordinance.
IN WITNESS WHEREOF, Minnegasco, a Division of Arkla, Inc. has caused this
document to be executed in its corporate name by its duly authorized persons and its
corporate seal to be hereto affixed this day of , 19
MINNEGASCO, A DIVISION OF
ARKLA, INC.
By
Its
ATTESTATION:
ARKLA, INC.
By
Its Assistant Corporate Secretary
[CORPORATE SEAL]
kROSEMOUNYR RSG 2
PEOPLES NATURAL GAS 2665 145th St west 612-423.5900
P.O. Hoz 455
Rosemount, MN 550664927
January 7, 1992
The attached memo was sent to various Rosemount City
officials and administrative personnel in December 1989.
At that time, the Rosemount Utility Commission was
considering a request from Minnegasco for an operating
franchise. Our position has not changed since that time.
We still feel that a third operating franchise in the City
of Rosemount is totally unnecessary, and can only result in
additional staff work for your personnel.
Peoples Natural Gas has a significant investment in
your community, and must rely on a mutual working
relationship with you to ensure the continued growth of our
involvement in your economic development.
We would now, as stated
the opportunity to meet with
administrative, officials to
allow us the opportunity to
final decision.
in our letter of 1989, welcome
any of your elected, or
discuss this issue. Please
do so, prior to making any
Thank you for your consideration.
Sincere Regards,
4erard F. Lovell
District Manager
GFL/amh
PEOPLES NATURAL GAS
•t
Memo To File:
2665145th St. West 612423.5900
P.O. Box 455
Rosemount, MN 55068.49V
December 27, 1989
This memo is meant to document the concern
of Peoples Natural Gas Co. regarding the possibility
of the City of Rosemount issuing a "franchise to
operate" in the City, to Minnegasco. We would like to
go on record as being strongly opposed to such an
action.
Peoples Natural Gas Co. (P.N.G.) has served the
community of Rosemount continuously since 1933, and
feels that it has been a mutually rewarding relation-
ship. We have operated our system in an efficient
and safe manner and we have remained alert to the
future growth areas of the community, in order to be
able to serve these "added" areas when the growth
arrived.
For example, over the past two years --1988 and
1989--, P.N.G. has expended approximately $1,211,000
in this community to increase the efficiency &
capacity of our existing system, and to add the
necessary facilities to serve the coming growth in
the community --which we feel to be primarily in the
East, and Southeast areas of the city. In addition,
we have budgeted at this time, another $150,000 for
1990 construction in Rosemount.
These dollars have been invested in this com-
munity, with the belief that we would be allowed to
conduct our business in the same manner that we have
for the past 56 years. However, this year, the City
of Rosemount saw fit to issue a gas franchise to
Northern States Power Co. --without even giving P.N.G.
the opportunity to provide input as to our already -
planned expenditures for additions to our system.
Now, you are contemplating the issuance of yet a
third franchise.
We, therefore, would like the record to show
that we feel it to be totally unnecessary for a third
operating franchise to be issued. We can assure
- J."
PEOPLES NATURAL GAS
Page 2
you most stringently, that Peoples Natural Gas Co. is
-entirely capable of serving any, and all, customers
in your community --now and in the years to come.
As we have demonstrated, we are very willing to
invest in this community --as, indeed, we are, in all
communities which we serve --providing we feel that we
will be allowed the opportunity to grow and to earn a
realistic return on such investments. Because of
the very nature of our business, we must plan well
ahead for our growth, and also be willing to make
investments "today" for growth loads which may, in
reality, not reach fruition for several years. How-
ever, once investment is made, it is the=e perman-
ently --we cannot pick it up and move it, such as a
retail store for example. That is why it is so
important for good, and fair, relationships between
our company and the communities which we serve.
So, we would like to emphasize, once more, our
objection to the issuance of another gas franchise in
Rosemount.
We would be happy to meet with anyone to fur-
ther explain our concerns --as we have met in the
recent past with Steve Jilk and Rich Hefti.
Hopefully, we can continue to serve this
community in a fair and open manner for another 56
years --or more --as we continue our business part-
nership well into the 21st century.
Sincerely,
a d F.o 1 -,
District Manager
cc: Steve Jilk, Rosemount City Administrator
Rich Hefti, Director, Public Works
Rosemount Mayor and City Council Members
Rosemount Utility Commission Members
Minnegascoe
A Division of Arkla, Inc.
January 10, 1991,
Mr. Stephan Jilk
City Administrator
City of Rosemount
2875 145th St. W.
P.O. Box 510
Rosemount, MN 55068
Dear Steve:
We at Minnegasco are committed to completing the approval process necessary to obtain
a franchise with the City of Rosemount and appreciate the opportunity to provide you with
additional information as requested. As you know, your Public Utilities Commission had
recommended approval of our request at its December 9 meeting.
Minnegasco is seeking a franchise for the following reasons:
*Utilities are required by law to obtain franchises in all cities in which they operate.
*Minnegasco and its predecessors have had facilities within the existing city limits of
Rosemount since 1961 when natural gas service was provided to the town of Coates.
At that time, these facilities were located in Rosemount Township.
*We currently serve 13 customers in Rosemount from a two-inch gas main on County
Road 48. This main was installed under permit from Dakota County in 1961 and
also serves customers in Nininger and Vermillion Townships.
*We have agreed to the franchise stipulations supplied by Rosemount officials which
are currently in force with other natural gas utilities and do not wish to disrupt the
relwtionshirs your city has with other utility companies operating in the area
*We would appreciate the opportunity to serve additional customers in the area as
designated by your Public Utilities Commission.
We look forward to meeting with you on January 15 to discuss this issue further. It is our
hope that we could have this matter on your council's January 21 agenda for further
consideration.
wr.y- L
f
Kimberly . Ro n
Director, T overnment/Community Relations
gni e,,.,«�, cam, o.,,�, c..e,,•
RECEI\IED
CLERKS OFFICE
CITY of ROSEMOUNT,