Ordinance No. 0787 10-03-1983�
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ORDINANC� N0. 787
AN ORDINANCE ADOPTING A NEW CHAPTER 404 ENTITLED "GAS
FRANQ3ISE" ADID REPEALING OLD CHAPTER 404 OF THE FRIDLEY
CITY CODE IN ITS II�TIRETY
An ordinance granting Minnegasco, Inc., a I�Zinnesota corporation, its
successors and assigns, a nonexclusive franchise to construct, operate, repair
and maintain facilities and equipment for the transportation, distribution,
manufacture and sale of gas energy for public and priv�te use and to use the
public ground of the City of Fridley, M.innesota Eor such purposes; and
prescribinq certain terms and conditions thereof.
The Council of the City of Fridley does ordain as Pollaas:
404.01 DEFINITIONS
The follaaing terms shall rnean:
1. Com�ny.
P4innegasco, Inc., a Minnesota corporation, its successors and assiyns.
2. Gas.
Natural gas, manufactured gas, mixture of natural gas and manufactured gas or
other forns of gas energy.
3. Plunici�lity, Municip�l Council, I9unici�al Clerl;.
These terms mean respectively, the City of Fridley, the Counc�l of i:he City of
Fridley and the Clerk of the City of Fridley.
4. Public Ground.
All streets, alleys, public ways, utility easements and �ublic grounds of the
PTunicipality as to which it has the right to grant the use of the Com�ny.
404.02 FRANQiISE G�'RAr.r.y
1: Grant of Franchise.
There is hereby granted to the Cang�ny froin the effective date hereof through
June 30, 2003, the right to import, manufacture, transport, distribute anc]
sell gas for public and private use in the [�iunici�ality, and for these
purposes to construct, operate, repair and maintain in, on, over, under and
across the Public Ground of the Piunicipality, all facilities and equiFmlent
used in connection therewith, and to do all tk�ings which are necessary or
customary in the accomplishment of these ob�ectives, sub�ect to zoning
ordinances, other applicable ordinances, permit grocedures, customary
practices, and the provisions of this franchise.
2. Effective Date; Written Zscceptance.
This franchise shall be in force and effect from and after its passage and
publication as required by law, and its acce1�tance by the Conpany in writing
filed with the tlunicip�l Clerk within 60 days after publication.
3. Noriexclusive Franchise.
This is not an eacclusive franchise.
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1 4. Franchise Fee,
The Campany may be required to �y to the t4unici�lity, in the manner and at a
rate prescnbed by a se�rate orclinance, a fee determinea by collections from
sales of Gas, but not to exceed 5s of the Ccxnpany's gross revenues from the
sale of Gas within the Municip�lity. Such ordinance rnay be adopted, amended,
renealed or readopted at any time during the term of this irancYiise. The fee,
if required, shall be effective 90 days after written notice of the orcinance
to the Company. No such fee shall be effective as to sales made before
January 1, 1984. The fee shall be sep�rately stated on gas bills rendered to
custaners within the rlunicig3lity.
5. Publication Expense,
The expense of publication of this Chapter shall be �aid by the Cam�ny.
6. Default.
If the Comp�ny is in default in the performance of any materiol part or this
franchise for more than 90 days after receiving written notice from the
hiunicipality of such default, the P�funicipal Council may, by orciinance,
terminate all rights granted hereunder to the C:om�ny. The nctice oi def-ault
shall be in writing and shall specify the provisions of this £ranchise under
which the default is claimed and state the 13ases therefor. Such notice shall
be served on the Comg�ny by personally delivering it to an oL-iicer thereof at
its princi�l glace oi business in I�linnesota.
If the Company is in default as to any plrt of this franchise, the
� [lunici�lity may, after reasonable notice to the Company and the failure of
the Com�ny to cure the default within a reasonable time, take such actaon as
may be reasonably necessary to a6ate the condition caused by the deiaul'r, and
the Com�ny agrees to reimburse the Municig-�Iity £or all its reasonable costs
and for its costs of collection, including attorney fees.
rlothing in this section shall bar the Com��any irorn challenging the
tZUnicipality's claim that a default has occurrecl. In the ev�nt of
disagreement over the existence of a default, the burden of proving the
default shall be on the t�lunicig�lity.
404.03 CONDITIONS OF USE
1, Use of Public Ground.
All utility facilities and equipment of the Company shall be Iecated,
constructed, installed and maintained so as net to endanger or unnecessarily
interfere with the usual and customary traffic, travel, and use of Public
Ground, and shall be sub�ect to permit conditions oi the I�lunicipality. The
permit conditions may provide for the right of inspection by the P�unicip�lity,
and the Com�ny agrees to make its facilities and ec�uipnent available for
inspection at all reasonable times and places.
2. Permit Required.
The Comp�ny shall not open or disturb the surface of any Public Ground for �ny
purpose without first having obtained a permit irom the Municipality, for
which the Munici�lity may impose a reasonable fee to be p�id by the Company.
� The perrnit conditions imposed on the Company shall not k�e more buraensc�rne than
those imposed on other utilities for similar facililties or �oorlc, The mains,
services and other property placed pursuant to such perntit shall !� located as
sha11 be designated by the t4unici�lity.
The Comg�riy �y, haaever, open and disturb the surface of any Public Ground
without a permit where an�nergency exists r�uiring the inUlediate repair or
its facilities. The Can�ny in such event shall request a perrnit not later
than the second working day thereafter.
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� 3. Restoration.
Upon completion of any work requiring the opening of any Public Ground, the
Comp�ny shall restore the same, including paving and its foundations, to as
good condition as formerly, and shall exercise reasonable care to m«intain the
same for two (2) years thereafter in good condition. Said work shall be
completed as promptly as weather permits, and if the Company shall not
pr�iptly perforra and complete the work, remove all airt, rubbish, equiprnent
and material, and put the Public Ground in yood condition, the Mwlicipality
shall have the right to put it in yood condition at the e�pense of the
Company; and the Com�ny shall, upon demand, pay to the Piunici�lity the cost
of such work done for or performed by the Municipality, including its
administrative expense and overhead, togetkier with ten percent (100�)
additional as liquidated d�-images. This remedy shall be in addition to any
other renedy available to the Municip�lity.
4. Relocation of Utility Facilities.
The Com�ny shall promptly, with due regard for seasonal working ccnditions,
permanently relocate its facilities or equipment whenever the Municipality
orders such relocation. If the relocation is a result of the proper exercise
of the police power in grading, regrading, changing the locatian or shape of
or otherwise inproving any Public Ground or c:onstructing or reconstructing any
sewer or water syst� therein, the relocation shall be at the expense of the
Com�riy. If the relocation is not a result of the proper exercise of the
police power, the relocation shall be at the ex�nse oz the hIunicipality. If
such relocation is done without an agreenent L-irst being nade as to who shall
� p�y the relocation cost, such relocation oi the racilities by the Company
shall not be construed as a waiver of its right to be reimbursed for the
relocation cost. If the Com�ny claims that it should be reimbursed for such
relocation costs, it shall notify the P•iunicipality within thirty (30) days
after receipt of such order. The Municipality shall give the Company
reasonable notice of plans requiring such relocation.
Nothing contained in this Subsection shall require the Company to remove and
replace its mains or to cut and reconnect its service pipe running irom the
main to a customer's premises at its own expense where the removal and
replacement or cutting and reconnecting is made for the purpose of a more
expeditious operat�.on for the construction or reconstruction of underground
facilities; nor shall anything containec7 herein relieve any gerson irom
liability arising out of the failure to exercise reasonable care to avoid
damaging the Conp�ny's facilities while performing any worY. in any Public
Ground.
5, Relocation When Public Ground Vacated.
The vacation of any Public Ground shall not operate to de�rive the Company of
the riyht to operate and maintain its facilities therein. Unless orderec�
under Section 404.03.4, the Com�ny need not relocate until the reasonable
cost of relocating and the loss and e:ipense resulting frorn such relocat�on are
first paid to the Company. When the vacation is for the benefit of the
Municipality in the furtherance of a public purpose, the Company shall
relocate at its own e�ense.
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� 6. Street Improvenents, Paving or P.esurfacing.
The Municip�lity shall give the Com�ny reasonable written notice oi plans for
street improvements where paving or resurfacinq of a permanent nature is
involved. The notice shall contain the nature ar.d character of the
improvements, the streets upon which the improvements are to be made, the
extent of the improvements and the time when the Municipality will start the
work, and, if nore than one street is involved, the arder in which this work
is to proceed. The notice shall be given to the Camp�ny a sufficient length
of time in advance of the actual commencernent of the work, considering
seasonable working conditions, to permit the Company to make any additions,
�lterations or repairs to its facilities the Com�ny deems necessary,
In cases where streets are at final width and qrade, �nd the l+iunicipality has
installed underyround sewer and water mains and service connections to the
property line abutting the streets prior to a pexn�anent paving or resurfacinq
of such streets, and the Company's main is located under such street, the
Company may be required to install gas service connections prior to such
paving or resurfacing, whenever it is apparent that yas service will be
required during the five (5) years follaaing the �ving or resurfzcing.
404.04
The Com�ny shall indemnify, keep and hold the P4unicipality, its elected
officials, officers, employees, and agents free and harniless fram any and all
claims and actions on account of in�ury or death of persons or damage to
property occasioned by the construction, maintenance, repair, removal, or
� operation of the Com�riy's property located in, on, over, under, or across the
Public Ground of the P�funicig�lity, unless such in�ury or damage is the result
of the negligence of the Municipality, its elected officials, enployees,
officers, or agents. The hiunicipality shall not be entitled to reimbursement
for its costs incurred prior to notification to the Company of claims or
actions and a reasonable opportunity for the Carn�ny to accept and undertake
the defense,
If a claim or action shall be brought ayainst the Municipality under
circtmstances where indemnification applies, the Con�ny, �t its sole cost and
e�cpense, shall defend the Municipalrty if written notice of the claim or
action is prornptly given to the Comp�ny within a period wherein the Comp�ny is
not pre7udiced by lack of such notice. The Company shall have complete
control of such claim or action, but it may r.ot settle without the consent of
the Munici�xlaty, which shall not be unreasonably withheld. This section is
not, as to third parties, a waiver of any defense or immunity otherwise
available to the Nlunicipality, and the Company in defending any action on
behalf of the Municipality shall be entitled to assert every defense or
immunity that the t•lunici�lity could assert in its own behali.
404.05 ASSIGIa1ENT
The Company, upon notice to the Municipality, shall have the right and
authority to assign all rights conferred upon it by this franchise to any
person. The assignee of such rights, by accepting such assignnent, shall
become sub�ect to the terms and provisions oi- tYiis franchise.
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404.06 CF111I�E IN FORM OE GOVII�P'�7T
Any change in the form of government o£ the Nunici�lity shall not affect the
validity of this franchise, P.ny governmental unit succeeding the P•'iunicip�lity
shall, without the consent of the Cam�ny, aut�atically succeed to all of the
rights and obligattons of the hiunicl�lity provided in this franchise.
404.07 SEVII�BILITY
If any portion of this franchise is found to be invalid for any reason
whatsoever, the validity of the rest of this frar:chise shal.l not be affected.
404.08 NOTICES
Any notice required by this franchise shall be sufficient if, in the case of
notice to the Comg�ny, it is delivered to Minnegasco, Inc., attention Vice
President, Minnesota Operations, 201 South Seventh Street, Pdinneapolzs,
Nu nnesota 55402, and, in the case of the t•iunicip�lity, it is delavered to:
City Nlanager
6431 Umversity Avenue N.E.
Fridley, MN 55432
404.09 PRE�VIOUS FRAN(iiISFS SUPIItCIDID
`i'his franchise supercedes all previous franchises granted to the Company or
its predecessors.
PASSED AND ADOPTED BY THE CITY OF FRIDLEY THIS 3RD DAY OF OC'I'OBER� 1983.
ATTF5T:
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SZDNEY C, 7AN - CITY Q,ERY.
Public Hearing: Septc�nber 26, 1983
First Reading: September 26, 1983
Second Reading: October 3, 1983
Publish: October 12, 1983
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GTILLIANI J. NE P7AYOR
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OFFICIAL TI7Y,E AND S'UMhI��d3Y
ORDINANC� N0. 787
I. TI'II�E
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AN ORDINANCE ADOPTING A NEW CHAPTER 404, ENTITLED "GAS FRANCHISE" AND
REPEALING OLD CfIAPTER 404 OF THE FRIDLEY CITY CODE IN ITS ENTIRETY, THERE�Y
GRANTING MINNEGASCA� INC„ A MINNESOTA CORPORATION, ITS SUCCESSORS AND
ASSIGNS� A NONE}CCLUSIVE k'RANQ3ISE 7.0 QONSII2UGT� OPERP��TE� REPAIR AND MAINTAIN
FACILITIES ADID EQUIPN]EN'P FOR 'iHE 7R1�1NSPORTATION, DIS�2IBUTION, MANUFACiURE ADID
SALE OF GAS ENIItGY FOR PCIBLIC AAID PRIVATE USE AND � USE ZiIE PUBLIC GROUND OF
THE CITY OF ERIDLEY� MINNESOTA FOR SUCH PURPOSES; AND PRESCRIBING CERTAIN
TERMS I� CONIDITIONS THEREOF.
II. SOI�RY
THE OWNCIL OF THE CITY OF FRIDLEY� MINNFSOTA ORDAINS:
That the follaaing simmr�ry shall clearly inform the public of the intent and
effect of the ordinance and shall be published in the ofiicial newspaper of
� the City.
A. GENII2FIL PROJISIONS.
1. Zhe franchise is granted to the Com�ny from the effective date
of this ordinance through June 30, 2003.
2. The Comps� may be required by separate ordinance to pay to the
City of Fridley a fee not to exceed 5% of the Company's gross
revenues from gas sales within the City.
3. If the Camg�ny defaults in performinc� any materi�l part of the
franchise for more than 90 days after written notificatxon by the
City of Fndley of the default, the City Council may terr�inate all
rights granted to the Company or cure the c�efault with costs
reimbursable by the Cam�ariy.
B, OOAIDITIONS OF USE.
1, The Compariy's facilities shall not endanger or unnecessarily
interfere with the usual traffic and use of the public arounds,
2. The Company is requ�red to obtain a permit from the City ot
Fridley before disturbing any public yround surface, unless an
emergency exists requiring re�ir oi f-acilities.
� 3. The Company shall restore any public ground to its former
condition, or otherwise �y the City of Fridley for the cost of the
work, achninistrative eacpenses and l0o liquidated damages.
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Page 7— Ordinance t7o. 787
4. The Campany shall relocate its facilities whenever the City of
Fridley orders so and will incur tl�e e�ense if relocation is the
result of the proper exercise of police power.
5. Vacation of any public ground shall not deprive the Company of
the right to operate facilities thereon. The Company shall not
relocate until the C1ty of Fridley pays its reasonable ea�enses and
costs of relocat�.on.
6. The City of Fridley shall give reasonable written notice to tne
Comp�ny of street improvement plans.
c. o�nz Pawrszorrs.
1. The Comg�riy sh�l.l indemnify and hold the City of Fridley and its
offlcials and employees harmless fram claims on account of persons'
injuries or death or damage to property causec3 by the Company's
operations unless such occurence is due to the City's, its official.s'
or its employees' negligence. The Com�ny shall defend the City of
Fridley against any claim or acticn for which the indemniiication
applies.
2. The Campany, upon notice to the City of Pridley, has the right to
assign all franchise rights to any person.
3. Changes in the City of Fridley's government shall not affect tl�is
franchise's validity.
III. NOTICE
This Title and Sia�¢nary has been published to clearly ir�form the public of the
intent and effect of the City of Fridley Gas Franchise Chapter. A cogy of the
Ordinance, in its entirety, is available for inspection by any person during
regular office hours at the office of the City Clerk and at the Anoka County
Library.
PASSID P�ID ADOPTID BY THE CITX COtJNCIL OF `IfI� CITY OP FftIDLEY THIS 3RD DAY OF
OC'i1�SER, 1983.
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J. R� - �]AYOR
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SIDNB'Y C. 7AN - CITY CL�RK
� Public Hearing: Sept�r 26, 1983
First Reading: September 26r 1983
Second Reading: October 3, 1983
Publish: October 12, 1983
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