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Home My WebLink About6.c. Approve Dakota Electric Franchise � � • • � � ' � ) } , �• , �� ' � � . � '_ , �1 �� . � 'r�.�'_ 1 1 f I f . �� 5 . . � t7tl�� t 1' �.��.�. r,din.)f E -1^, � ,��'. ��: �=� ��'��-f��t��'t� ,,. , , �,,, $a fi � � . . . . . �� . . � . . . ��•�: . . .. . . . . . . . . "� . � � . � . � '�� . � � . . f T0: Mayor Hoke Gouncilmembexs Napper � � � k° Qxborough : Walsh � Wippermann � .� FROM: Stephan Jilk �,,. �: ? DATE: May 10, i989 RE: Dakcata Electric Franchiae Renewal �� For the past few months we have been in negotiation with repres�ntatives of Dakota Electrie for the renewal of their electric franchise which terminated in December of 19$8. �.; The process has been lengthened because the city has attempted to negotiate �� from a bit of a dif€erent apprcaaeh from previous {� years. Rather than si.mpiy � renew the franchise for another 20-25 years with no reimbursement to the � city or finaneial benefit, we negotiated for and accomplished the following: � i: 1. 'Fhe £ranchi�e eriod is for a ' P period ending in September of 1995 �o a� to e4incide with th�a fiermination of the NSP electra.c franchise. The importance of this is that the city has asked for certain things from Dakota Electric which we will have to have from all electric utilities to go into f�ree. That is, we have put into place an option for the city to require up to 3 percent in franehise fees basesl upon the sale o� electricity in the city. To require ehis of one utility without doxrtg so with others would allow unfair c4mpetition for one ar the other. Secondly, this allows the city an opportunity to recognize other items, in terms of such utiliti�s, and get them in place withovt waiting 15-20 years, . 2. The franchise also sets out requirements for the utility to provide training for citp employees in case of emergencies invoiving their utility and a 24 hour emergency access telephone for the ciCy to use sidestepping the normal serviee needs phone. 3. Finally, outside of the franchise, but as part af our negotiation cliscussions, we have received commitment fram i�akota F.1Pctrie for technzcal and serviee assistance in our eeanomic devel.apment program for printing of brochures and literature and other assistance in the Star City program which provide a cost savings to us amounting to several thousand doliars over the next few years, Economic assistance for the eity's program was em�hasized from the t�e�innin�; af tl�e ne�;oti�rtion�, <lnci w� h�lic�v� n,�k�r� Ts1�ct:ric I�rts r�.�c�l�c�<i n e.le�r undprstandin�; c�f tl�c� im�art:�nce we pl1e� �n tl�i.s. The Utility Commission has recommended your cansideration and approval of the franchise ordinance as presented to you. ' � ;� i�� C t� � . f , � �� ,�� .. . 4 ,. . � � � . . � . . � t°'ir . � . . " � . � . . . jv4 .; : . . .. . ., . �� L4�� . . . . � � .4', � . . ��t' � . . . � � . . . � d- � { 9 �'�"��T . �'��I�O��O��'_'�I� . ��1�,1f'�V�� F . . �� . . . � . .�. . �,.�fi�� . xj•.. t . . . ' � . .. . . . .1!. � � 430t) 220tti Strer.t West ��' # � , FARM{NGTON, MINNESOI'A 55U24 '`„� � �� 7�LEPHONE:463-7134 ,��,� . � � r� � � � May 9, I989 ; Stephan Jilk $ City Administrator R �� L"•0• D�}� �10 . � . � . ...:i 2845 i�5tn street west 'MAY 1 C� 19$� Rqsemount, MN 55068 CLE�K'� C?�FICE , CITY OF ROSEMOUNT Dear Mr. Jilk, Enclosed for your review is the final draft of the proposed franchisa agreement between the City of Rasemount and Dakota Electrie Association (DEA) . Per our diseussion on Tuesday, May 9, Section 2 , Item 2 . 1. specifies �he length of the agreement to be from the date of ' signing until September, 1995. This coincides with the expira- ` tion of NSP eleetric franchise agreement. Section 11, Item 11.4, addresses your request that the word energy be modified t,o read electric energy. �, Please cantact me directly at 463-6242 if you have any °�' questions or require additional clarificatian. Sincerely, �.-_., r_. 1 ,�� f t � f , ,/�... �'i�",� ��; � c�t / '�,+.�..• Da,�.e W. Detjen � `t)t;�, Member Services Manager I mac .� ti c: Jim Van Epps, General Manager � Eldon Johnsan, Assistant Manager LaDonna Riste, Community Relations Coordinator � � . �� g' t'' �i ,, �< ;t; ky; � � . . . . .�::t 1� � . • fff . . . . . ....`��. ORDINANCE NO. ;� . �'. CITY OF ROSEMOUNT ;' DAK�TA COUNTY, MINNESOTA „'±,� AN ORDINANCE GRANTING TO DAKOTA ELEC'�RIC ASSOCIATION, A MINNESf)`1'A CORPt3RA7'IONr ITS SUCCCSSOI2S 1,Ni) ASSiCNS, PERMISSIOAT TO CONSTRUCT, UPERATE, REPAIR, AND MAINTAIN sy IN THE CITY OF Rt�SEMOUNT, MINNESOTA, AN ELECTRIC � �� DiSTRIBUTION SYSTEM .AND TRANSMISSION LINES, INCLUDING x NECESSARY FOLES, LINES, FIXTURES, ANQ APPURTENIINGES, FQR THE FURNISHING OF ELECTRZC ENERGY TO THE GITY, ITS ,�' INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC WAYS AND � PUBLIC GROUNDS OF THE CITY F�R SUCH PURPOSES � THE CITY COUNCIL OF THE CITY OF ROSEMOUNT DOES ORDAI�I: j , SECTION 3. DEFINITIQNS i.i "�ity". In this ordinance, "City" means the City of ; Rosemount, County of Dakota, State of Minnesota. 1.2 "City Utility System" means the facilities used for ; i providing sewer, water, or any other public utility service owned or operated by City or agency thereof. 1.3 "Company" means DAKOTA ELECTRIC ASSOCIATIC}N, a Minnesota corporation, its successars and assigns. 1.4 "Notice" meatzs a writing served by any p�arty ar parties an any other party or part�ies. Notice to company shall be mailed to Dakota Electric Association, Farmingtan, Minnesota 55024 . Notice to Fy City shall be mailed to the City Clerk. ;� 1.5 "Public Way'� means any street, alley, or other public ;�, right-of-way within the City. '�; 1.6 "Public Ground" means land owned by the City for park, i� open space, or similar purpase, which is held for use in comman by the � public. � ; N It J� 1.7 Electric Facilities means electric transmission and dist�ibutian towers, polesr lines, guys, anchors, ducts, fi�ctures, and �� necessary appurten�nces owned or operated by the Company far the :;; purpose of providing eleetric energy for publie use. SECTION 2. FRANCHZSE .t.i 2.1 Grant of Franchise. The City hereby grants Company, � ', from the date of signing until September 1995, the right ta trans- mi� and furnish electric energy far light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in �he �uture. For these purpases, the Company �may construet, operate, repai�, and maintairt Electric Facilities in, on aver under , ,;:g � . . �, r. . � � �: • - . . . . . . the provisions of this ordinance. The Company may da all reasanabie � things n�cessary or eustomary to accomplish these purposes, subject, however, ta zaning ordinances, other applieable ordinances, permit procedures, and ta the further provisions af this franchise. 2.2 Effective Date; Written Aceeptance. This franehise shall be in force and effect from and after its gassage and its acceptance by the Company, and its publication as required by law. An acceptance by the Campany must be filed with the City Clerk within ninety (90) days after publicatian. 2.3 Service Rates and Area. The service to be provided and the rates to be charged by Company for electric service in the City currently are sub3ect to the jurisdiction of the Minnesota Public Uti�.ities Commission, The area within the City in wktich the Company may provide e�.ectric service currently is sub�ect to the provisions of Minnesota Statutes, Section 216B.40. 2.4 Publication Expense. The expense of publication of this ordinance shall be paid by the Company, Z.5 Default. If either party asserts that the oth�:r party i,s in default in the perf4rmanae of any obl.igation hereunder, the ccamplain3,ng party �ha11 notify �hs other p�rty o� the defauit and t�he desired re�m�dy. The ncati,fication sha�.l be w�ftten. If �the dispute i� not resolved within thirty (30) days of the written notice, either party may commence an aetion in District Court to interpret and enforce this franchise of for such other relief as may lae permitted by law or equity for breach of contract, or either party may take any other ';; � action permitted by law. �� ,� � � . � � . . � . � � . . . . � . .i�� SECTION 3. IACATION` QTHER REGULATIONS �; 3.1 Location of Facilities. Electric Faeilities shall be '� located and constructed so as not to interfere with the safety and ' conven�ence of ordinary travel aiong and aver Public Ways and they � shall be located on Public Grounds as determined by tMe City. The �` Company's construction, recanstruction, operation, repair, maintenance, and locata.on of Electric Faeilities shall be subject to other reasonabl.e regu�.ations of the City. 3.2 Field Location. The Company shall provide field Iocations for ar�y of its underground Electric Facilities within a reasonable period c�f time on request by the City. The period of time wili be cQnsidered reasonable if it compares favorably with the average time required by the cities in the same county to locate municipal underground facilities for the eompany. 3.3 Street Openinqs, The Company shali not open or disturb the paved surface of any Public Way or Public Ground for any purpose without first having obtain�d permission from the City, for which the City may impose a reasonable fee. Permit conditions imposed on the Company shall not be more burdensome than thQse imposed on other utilities for similar facilities Qr work. The Company may, however, open and disturb the paved surface of any Public Way or Public Grcaund without permission from the City where an emergency exists requiring the immediate repair of Eleetric Facilities. In su�h event the Campany J- •. •.. � � �• . . . � . � , . . . . . .:.��; shall notify the City by telephone to the of�ice designated by the City k before c�pening or disturbing a paved surfa�e of a Public Way or Public ; Ground. Not later than the second working day therea€ter, the Company t shall obtain any required permits and pay any arequired fees. , 3.4 Restoration. After undertaking any work requiring the � opening of any Puktlic Way ar Public Ground, the Company shall restore rij the same, including paving and i�s foundation, to as good condition as �� formerly existed, and shall maintain the same in good condita.on €or twa (2) years the�eafter. The work shall b� completed as promptly as � weather permits, and if the eompany shall not promptly per€Qrm and complete the wark, remove all dirt, rubbish, equipment and material, and put tY�e Fublic Way or Public Ground in the said condition, the ; City shall have, a€ter demand to the Company to cure and the passage af a reasonable periad of time following the demand, but not to exceed ` five (5) days, the right to make the restoration at the expense of the Company, The Company shall pay to the City the cost of such work done �� for or performed by the City, including its administxative expense and " overhead, plus ten percent additional as liquidated damages. This �� remedy shall be in addition to any other remedy available to the Cit�y. ;� ' ,a 3.5 Shared Use of Pales. The �ompany shall make space !� available on its poles or towers for City fire, wat�r utility, police � or c�ther City facilities whenever such use wil.i not interfere with the �� use of such poles or towers by the Company, by anather electric ,f' utility, by a telephone utility, or by aMy cable television company or ather fQrm of communication company. In addition, the City shall pay � for any added cost incurred by the ��mpany because of such use by the �' City. Any City facilities shall be installed and maintained in �` aceordance with the National Electrical Safety Code. SECTION 4. RELOCATIONS 4.1 Relocation of Electric Facilities in Public Wa�rs. � Exc�pt as provided in Section 4.3, if the City determines to vacate for � a City improvement project, or to grade, regrade, or change the line of {� any Public Way, or construct or reconstruct any City Utility System in � any Public Way, it may order the Company to relocate its Electric Faci3ities locat�d therein. The Company shall relocate its Electric Facilities at its own expense, The Gity shall give the Company reasonable notice of plans to vacate for a City improvement projec�, or to grade, re+grade, or change the line of any Fublic Way or to construct or reconstruct any City Utility System. If a relocation is ordered within five (5j years of a priar relocation of the same Electrie Facilities, which was made at Company expense, the City shall reimburse Company for non-betterment expenses on a time and material basis, provided that if a subsequent relocation is required because af the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. Nothing in this ordinance requires Company to relocate, replace, or recc�nnect at its own expense its facilities where such replacement, or reconstruction is solely for the convenienee of the relocation, removal, replac�ment, or reconstruction is solely for the - convenienee of the City and is not reasonably necessary for the canstruction or reconstruction of a Public Way or City Utility System or other City improvement. � � , � � . . . . . . . .. . � . . :C�.. 4.2 Relocation of Electrie Facilities in Pubiic Graund. � Except as may be provided in Section 4.3, City may require the Company to relocate or remove its Electric Facilities from Public Ground upan a � finding by City that the Electric Facilities have become or wi11 become � a substantial impairment of the public use to which the Pub3ic Ground � is or will be put. The relocation or removal shall be at the Company's expense. The provisions of 4.2 apply only ta Electric Facilities �' construeted in re2iance an a franchise and the Company does not waive �a its rights under an easement or prescriptive right. �' .� 4.3 Pro�ects with State ar Federal Fundinq. Relocation, � removal, or rearrangement of any Company facilities made necessary because of the extension into or through City of a federally-aided highway project sha11 be governed by the provisions of Minnesota ` Statutes Section 161.46 as supplemented or amended. Tt is understood � that the right herein granted to Company is a valuable right; City q;, shall not order Company to remove, ar relocate its facilities when a Public Way is vacated, improved, or realigned because af a renewal or a redevelopment plan which is fa.nancially subsidized in whole or in part by the Federal Gavernment or any agency thereof, unless the '� reasonable non-b�tterment costs of such relocation and the lass and � expense resulting therefrom are first paid to Company, but the City nesd not pay those ja0�'t1021S of such for which reimbursement to it is � not avai3able. � � � � 4.4 Liabilitv. Nothing in the ordinance relieves any person frvm liability arising out of the failure tca exercise reasonable care � to avoid damaging El.eetric Faciiities while perfoz�ing any activity. � Section 5. TREE-TRIMMING �i The Company may trim all trees and shrubs in the Public Ways and {, Public Grounds of the City interfering with the proper constru�tion, operation, repair, and maintenance of any Electric Facilitzes installed hereunder, provided that the Company sha11 save the City harmiess frorn any liability arising therefrom, and subject to permit ar other , reasonable regulation by the City. Section 6. INDIIKNIFICATION 6.1 The Company shall indemnify, keep and hold the City free and harmless �rom any and all liabila�ty on account of injury to persons or damage to property oecasioned by �he construction, maizatenance, repair, inspectian, the issuance of permits, or the opera�ion Qf the Electric Facilities lacated in the City. The City, shall not be indemnified for losses ar claims occasian�d through its own negligence except for losses or claims arising aut of or alleging the City's negiigence as to the issuance of permits for, ar inspection of, the Company's glans or work. 'The City shall not be indemnified if the injury or damage results from the performanee in a proper manner of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or direeted by the City after notice of Company's determinatian. 6.2 Tn the event a suit is braught ag�inst the City under circumstances where this agreement to indemnify applies, the Company at ' � a � �fa �� . ,; its sole cost and expense shall defend the City in such suit if written ° notice thereof is promptly given to the Company within a period wherein �� the Comgany is not prejudiced by lack of such notice, If the Company 'si is required to indemnify and defend, it will thereafter have control of y; such litigation, but the Company may not settle suGh litigation withaut the consent of the City, which consent shall nat be unreasonably withheld. This section is not as to third parties, a waiver of any defense or immunity otherwise available to the City; and the Company, in defending any action an behalf of the City shall be entitled ta '# assert in any action every defense ar immunity that the City could ' assert in its awn behalf. �� z SECTION ?. VACATION OF PUBLIC WAYS The City shali give the Company at least two (2) weeks' pri4r written notice of a proposed vacation of a Public Way. Except where required for a City street or other improvement project, the vaeation of any Pubiie Way, after the instaliation of Eiectric Facilities, shall not operate deprive the Gompany of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such reloeation are first paid to Company. In no case, however, shall City be liabl,e to the Campany for failure to specifically preserve a right-of-way, under Minnesota Statutes, Seetion 160.29. SECTION 8. CHANGE IN FORM OF GOVERNMENT Any change in the form of government of the City shal2 not affect the validity of this ordinance, Any governmental unit succeeding the City sha11, without the consent of the Company, suceeed to a11 of the rights and obligations of the Ci�y provided ,in this ordinance. SECTION 9. SAFETY TRAINING The Company sha11 provide annually, the first of which within 90 days from the adoption and acceptance of the franchise, training for emplayees of the City, basie response and awareness techniques as to the safe operation and mair�tenance of the Company system. The purpose of this training is to assist the Gi.ty public works department and the City fire depar�ment in response to incidence requiring their assistance relating to the Campany's facilities in the City. ;i SECTION 10. EMERGENCY RESPONSE TELEFHONE NUMBER � � The Company shall prcavide a 24 hour emergency phone number providing � access to the Company by the Gity for emergency response purpases. This telephone number mus� be separate from the qeneral service response telephone number and mus� pravide m�aningful access to the Gompany f'ar �mergency r�sspons�, SECTION 11. FRANCHTSE FEE 11.1 Separate Ordinance. During the term of the franchise hereby granted, and in lieu a� any permit or ott�er fees being impossd on the Company, the City may impose on the Company a franchise fee of it' � , , � � , � � �""� r,; not more than three (3$) percent of the Company's g�ass revenues as �i hereina�t�r defined. The fran�hise f�e s�a�ll be imposea by a separate *' ordinance duly adopt�ad by the City Council, which ordinance sha11 not be adopted until at least sixty (60) days af�er written noti.ce esnclQ�3.ng such prQpQsed ordinance has been served upon the Company by certified mail, The fee shall not become effective until at e 1 ast sixty (�Oj days after written notiee enclosing such adopted ordinance has been served upon the Company by certified mail� 11.2 Terms Defined. The term "gross revenue" means all. sums, excludinq any surcharge or similar addition to the Company's charges ta customers for the purpose of reimbursing the Company for the cost resulting from the franchise fee, received by the Company from the sale of electricity to its retail customers within the corporate limits of the City. 11.3 �ollection of the Fee, The franchise fee shall be payable quarterly, and shall be based on the gross revenues of the Company during complete billing months during the period €ar which payment is to be made. The percent fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and percentage may not be changed more often than annually, Such �ee shall not exceed any amount which the company may 1e9ally charge to its customers prior to payment �o �he City by imposing a surcharge equiva3ent to such fee in its rates for eleetric serviee. The Campany may pay the City the f�e based upon the surcharge billed subject to subsequent reductions to aceount far uncollectibles or customer refunds. The time and manner of collecting the franchise fee is subject to the approva3 of the Public Utilities Commission, : which the Comgany agrees to use best efforts to obtain. The Company ; agrees to make its gross revenues records available far inspectivn by � the City at reasonable times. 11.4 Gonditions vn the Fee. The separate ordinance imposing `� the fee shall not be effective against the Company uniess it lawfully f impases and the City quarterly or more often collects a fee or tax of ` the same or greater�percentage on the receipts from sales of eleetric '#, energy within the City by any other electric energy supplier, p�ovided that, as to such a supplier, the City has the autharity to require a franchise fee or to impose a tax. The franchise fee or tax shall be ' _ agplicable to electrie energy sales for any electric energy use rei- �; ated to heating, cooling, or lighting, as well as to the supply of � � electric energy needed ta run machinery and appiianees on pr�mises �� located within or adjacent to the City, but shall not apply to energy sales fc�r the purpose of providing fuel for vehieles. �' �, SECTION 12. SEVERABILITY a` If any portion of this franchise is found to be invalid for �� any reason whatsoever, the validity of the remainder shall not be � affected. � SECTION I3, AMENDMENT � ;' , This ordinance may be amended at any time by the City passing a subsequent ordinance deelaring the prcavisions �of the am�ndment, which ` amendatory ordinance shall become effec�ive upon the filing of the � ;; , -;, >� � ;� : . t ' ` �� . . . . �! . . . . � . . Company�s written consent thereto with the City Clerk within ninety(9o) days after the effective date of the amendatory ordinance. SECTION 14. FREVIOUS F'RANCHISES SUPERSEL?ED This franchise supersedes any previous electric franchis� granted the the Company or its predecessor. PASSED and duly adopted by the Rosemount City Council this day of , 1989. CITY OF R(?SEMOUNT BY: Rollan Hoke, Mayor ATT�ST: Stephan Jilk, City Administrator