2003-10
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GAS ORDINANCE
CENTERPOINT ENERGY MINNEGASCO
ORDINANCE NO. 2003-10.
CITY OF RICHFIELD HENNEPIN COUNTY, MINNESOTA
AN ORDINANCE GRANTING CENTERPOINT ENERGY MINNEGASCO, A DIVISION
OF CENTERPOINT ENERGY RESOURCES CORP., A DELAWARE 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 PRIVATE USE AND TO USE THE PUBLIC WAYS AND GROUNDS
OF THE CITY OF RICHFIELD, MINNESOT A, FOR SUCH PURPOSE; AND,
PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF.
THE CITY COUNCIL OF THE CITY OF RICHFIELD, HENNEPIN COUNTY,
MINNESOTA, ORDAINS:
SECTION 1. DEFINITIONS.
For purposes of this Ordinance, the following capitalized terms listed in alphabetical order
shall have the following meanings:
City. The City of Richfield, County of Hennepin, State of Mirmesota.
City Utility System. Facilities used for providing public utility service owned or operated
by City or agency thereof, including sewer, stonn sewer, water service, street lighting and traffic
signals, but excluding facilities for providing heating, private lighting, or other forms of energy.
Commission. The Minnesota Public Utilities Commission, or any successor agency or
agencies, including an agency of the federal government, which preempts all or part of the authority
to regulate gas retail rates now vested in the Minnesota Public Utilities Commission.
Company. CenterPoint Energy Minnegasco, a division of CenterPoint Energy Resources
Corp., a Delaware corporation, its successors and assigns including all successors or assigns that
own or operate any part or parts of the Gas Facilities subject to this franchise.
Gas Facilities. Gas transmission and distribution pipes, lines, ducts, fixtures, and all
necessary equipment and appurtenances owned or operated by the Company for the purpose of
providing gas energy for public or private use.
Gas. Natural gas, manufactured gas, mixture of natural gas and manufactured gas or other
forms of gas energy.
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Non-Betterment Costs. Costs incurred by Company from relocation, removal or
rearrangement of Gas Facilities that do not result in an improvement to the Gas Facilities.
Notice. A writing served by any party or parties on any other party or parties. Notice to
Company shall be mailed to CenterPoint Energy Minnegasco, V.P., Regulatory & Supply Service,
800 LaSalle Avenue, Minneapolis, MN 55402-2006. Notice to the City shalI be mailed to the City
Manager/Administrator, City of Richfield, 6700 Portland Avenue South, Richfield, MN 55423.
Any party may change its respective address for the purpose of this Ordinance by written notice to
the other parties.
Public Way. Public right-of-way within the City as defined in Minn. Stat. S 237.162,
subd.3.
Public Ground. Land owned or otherwise controlled by the City for park, open space or
similar public purpose, which is held for use in common by the public.
SECTION 2. ADOPTION OF FRANCHISE.
2.1. Grant of Franchise. City hereby grants Company, for a period of 20 years from the
date this Ordinance is passed and approved by the City, the right to import, manufacture, distribute
and sell gas 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 the future. This right includes the provision of Gas that is
(i) manufactured by the Company or its affiliates and delivered by the Company, (ii) purchased and
delivered by the Company or (iii) purchased from another source by the retail customer and
delivered by the Company. For these purposes, Company may construct, operate, repair and
maintain Gas Facilities in, on, over, under and across the Public Ways and Public Grounds, subject
to the provisions of this Ordinance. Company may do all reasonable things necessary or customary
to accomplish these purposes, subject however, to such lawful regulations as may be adopted by
separate ordinance and as currently exist under City Right of Way (ROW) Ordinance Code, Section
802, or other applicable ordinances or as they may be lawfully amended from time to time during
the franchise term. The Company shall be notified 60 days in advance of proposed changes to City
Code (ROW) Section 802. By agreeing to the City's right to incorporate amendments to City Code
(ROW) Section 802 into this Ordinance during the franchise term, Company does not waive its
right to challenge any such amendment, in accordance with Section 2.5 of this Ordinance and based
on the limits of City police power authority under Minnesota law. If a provision of City Code
(ROW) Section 802 conflicts with a provision on the same subject in this Ordinance, this Ordinance
will control.
2.2. Effective Date; Written Acceptance. This franchise shall be in force and effect
from and after its passage of this Ordinance and publication as required by law and its acceptance
by Company. If Company does not file a written acceptance with the City within 90 Days after the
date the City Council adopts this Ordinance, or otherwise places the City on written notice, at any
time, that the Company does not accept all terms of this franchise, the City Council by resolution
may either repeal this ordinance or seek its enforcement in a court of competent jurisdiction.
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2.3. Service and Gas Rates. The service to be provided and the rates to be charged by
Company for gas service in City are subject to the jurisdiction of the Commission
2.4. Publication Expense. The expense of publication of this Ordinance shall be paid
by Company.
2.5. Dispute Resolution. If either party asserts that the other party is in default in the
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. Representatives of the pmties
must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute
is not resolved within 30 days of the written notice, the parties may jointly select a mediator to
facilitate further discussion. The parties will equally share the fees and expenses of this mediator.
If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first
meeting with the selected mediator, either party may commence an action in District Court to
interpret and enforce this franchise or for such other relief permitted by law.
2.6. Continuation of Franchise. If the City and the Company are unable to agree on the
terms of a new franchise by the time this franchise expires, this franchise will remain in effect until
a new franchise is agreed upon, or until 90 days after the City or the Company serves written Notice
to the other party of its intention to allow the franchise to expire.
SECTION 3. LOCATION. OTHER REGULATIONS.
3.1. Location of Facilities. Subject to regulation under City Code (ROW) Section 802,
Gas Facilities in the Public Way shall be located, constructed, and maintained so as not to disrupt
normal operation of any City Utility System. Gas Facilities may be located on Public Grounds as
detennined by the City.
3.2. Restoration of Public Wavs and Public Ground.
A. Restoration of the Public Way shall be subject to City Code (ROW) Section 802.
E. After completing work requiring the opening of Public Ground, the Company
shall restore the Public Ground to as good a condition as formerly existed, and
shall maintain the surface in good condition for one (I) year on unpaved
surfaces, two (2) years on paved surfaces thereafter. All work shall be
completed as promptly as weather pem1its. If Company shall not promptly
perform and complete the work, remove all dirt, rubbish, equipment and
material, and put the Public Ground in the said condition and after demand to
Company to cure, City shall, after passage of a reasonable period of time
following the demand, but not to exceed ten working days, have the right to
make the restoration of the Public Ground at the expense of Company.
Company shall pay to the City the cost of such work done for or perfonned by
the City or it's assigned. This remedy shall be in addition to any other remedy
available to the City for noncompliance with this Section.
3.3. Waiver of Performance Security. The City hereby waives any requirement for
Company to post a construction perfom1ance bond, certificate of insurance, letter of credit or any
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other fonn of security or assurance that may be required under City Code (ROW) Section 802
currently or in the future. The City reserves all other rights under City Code (ROW) Section 802 to
enforce Company performance requirements for work in the Public Way or Public Ground.
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3.4. Avoid Dama2:e to Gas Facilities. Nothing in this Ordinance relieves any person
from liability arising out of the failure to exercise reasonable care to avoid damaging Gas Facilities
while performing any activity.
SECTION 4. RELOCATIONS.
4.1. Relocation of Gas Facilities.
A. Relocation of Gas Facilities 111 Public Ways shall be subject to City Code
(ROW) Section 802.
B. City may require Company at Company's expense to relocate or remove its Gas
Facilities from Public Grounds upon a finding by City that the Gas Facilities
have become or will become a substantial impairment to the existing or
proposed public use of the Grounds. Relocation Gas Facilities in Public Ground
shall comply with applicable City ordinances consistent with law.
4.2.
Proiects with Federal Funding. Relocation, removal, or rearrangement of any
Company Gas 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. The City is not
obligated to pay Company for those portions of its relocation costs for which City
has not received federal funding.
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4.3. No Waiver. The provisions of Section 4 apply only to Gas Facilities constructed
in reliance on a permit or franchise from City and Company does not waive its
rights under an easement or prescriptive right or State or County permit.
SECTION 5. CHANGE IN FORM OF GOVERNMENT.
Any change in the form of govermnent of the City shall not affect the validity of this
Ordinance. Any governmental unit succeeding the City shall, without the consent of Company,
succeed to all of the rights and obligations of the City provided in this Ordinance.
SECTION 6. FRANCHISE FEE.
6.1. Reservation of Ri2:hts. The City reserves all rights under Minn. Stat. ~ 216B.36,
to require a franchise fee at any time during the term of this franchise. If the City elects to
require a franchise fee it shall notify Company and negotiate in good faith to reach a mutually
acceptable fee agreement, which shall be set forth in a separate ordinance and not adopted until I
at least 60 days after Notice enclosing such proposed ordinance has been served upon the
Company by certified mail. If the City and Company are unable to agree on a franchise fee or on
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any terms related thereto, each hereby consents to the jurisdiction of State District Court,
Hennepin County, to construe their respective rights under the law, subject to all rights of appeal.
SECTION 7. LIMITATION ON APPLICABILITY~ NO WAIVER.
This Ordinance constitutes a franchise agreement between the City and its successors and
the Company and its successors and permitted assigns, as the only parties. No provision of this
franchise shall 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 anyone or
more of the terms hereof, or otherwise give rise to any cause of action in any person not a party
hereto. This franchise agreement shall not be interpreted to constitute a waiver by the City of any
of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466.
SECTION 8. AMENDMENT PROCEDURE.
Either party to this franchise agreement may at any time propose that the agreement be
amended. This Ordinance may be amended at any time by the City passing a subsequent ordinance
declaring the provisions of the amendment, which amendatory ordinance shall become effective
upon the filing of Company's written consent thereto with the City Clerk within 60 days after the
effective date of the amendatory ordinance.
SECTION 9. PREVIOUS FRANCHISES SUPERSEDED.
This franchise supersedes and replaces previous franchises granted to the Company or its
predecessors. Upon Company acceptance of this franchise under Section 2.2, the previous franchise
shall terminate.
Passed and approved: May 27, 2003.
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Mayor of the:.cjty~6f Richfield, Minnesota
Attest:
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newspapers
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
ss.
COUNTY OF HENNEPIN)
Richard Hendrickson, being duly sworn on an oath states or affirms, that he is the Chief
Financial Officer of the newspaper known as Sun-Current , and has full
knowledge of the facts stated below:
(A) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minn. Stat. ~331A.02, ~331A.07, and other applicable
laws, as amended.
(B) The printed public notice that is attached was published in the newspaper once each week,
for ~ successive weeks; it was first published on Thursday, the ----1I- day of
July , 2003, and was thereafter printed and published on every Thursday to and
including Thursday, the _ day of , 2003; and printed below is a copy of the
lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the
. size and kind of type used in the composition and ~tion..o
I abcdefghijklmnopqrstuMYZ ,.',
BY: ~ /'-
CFO
Subscribed and swore-t
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MERIDEL M. HEDBLOM I
NOTARY PUBlIC.MINNESOTA
MY COMMISSION EXPIRES 1.31.2005
.
RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
$
2.85 per line
(2) Maximum rate allowed by law
$
6.20 per line
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(3) Rate actually charged
$
1.40 per line
City of Richfield
(Official Publication)v
SUMMARY PUBLICATION
BILL NO. 2003.10
FRANCHISE ORDINANCE AND AGREEMENT
BETWEENCENTERPOINTnMINNEGASCOAND
THE CITY OF RICHFIELD
This summary of the ordinance is published pursuant to
Section 3,12 of the Richfield City Charter.
The purpose of this franchise ordinance and agreement is
to grant .Centerpoint Energy Minnegasco, a division of I
Centerpomt Energy Resources Corp.. a nonexclusive fran- '.
chlse to .construct. operate, repaIr and maintain facilities ,j
and eqUipment for the transportation, distribution, man-
ufacture and sale of gas energy for public and private use
and to use the public ways and grounds of the City ofRich.
field, Mmnesota, for such purpose; and, prescribing cer-
tain terms and conditions thereof.
~opies of the ordinance are available for public inspection
In the Public Works Department during normal business
hours or upon request by calling Engineering Supervisor
George Atkinson at 612-861-9191.
Adopted by the City Council of the City of Richfield Min-
nesota this 8th day of July, 2003. '
Martin J. Kirsch, Mayor
ATTEST:
I Nancy Gibbs, City Clerk
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(July ll,_2QJ}3)D2IBill 200~10
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