§ 2. Adoption of Franchise.  

Latest version.
  • 2.1. Grant of Franchise. The City hereby grants the Company, for a period of ten (10) years, as further described in Section 11.3, from the date this Ordinance is passed and approved by the City, the right to transmit and furnish electric energy for 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 the future. For these purposes, the Company may construct, operate, repair and maintain Electric Facilities in, on, over, under, and across the Public Way and Public Ground within the City, subject to the provisions of this Ordinance. The use of the Public Way and Public Ground by the Company and the regulation of the same by the City shall be consistent with state law and (a) shall be subject to reasonable regulations by the City Council, including, but not limited to, applicable ordinances and permit procedures; (b) shall be consistent with the use of the Public Way for proper purposes by the public, by the City, by the public utilities, and others; and (c) shall be consistent with the use of the Public Ground by City and the public for the public purposes for which they are used and intended.

    2.2. Option to Extend. Provided both parties agree, the term described in Section 2.1 may be extended up to two (2), five (5) year extension periods.

    2.3. Other Authority. Other than giving the Company the right to use the Public Way and Public Ground, this Ordinance is not intended in any way to affect or modify or surrender any powers held by the City.

    2.4. Effective Date. This Franchise shall be in force and effect from and after the passage of this Ordinance and publication as required by law and upon the Company's duly authorized acceptance as executed within sixty (60) days after passage and publication of this Ordinance. The City, by Council resolution, may revoke this Franchise if Company does not file a written acceptance with the City within sixty (60) days after publication.

    2.5. Annual Franchise Performance and Planning Meeting; Annual Reporting. Company and City shall meet annually to discuss items of concern or interest related to this Franchise, including, but not limited to, collaborative infrastructure planning, vegetation management and reliability performance. Company shall annually, upon City's request, provide to City reporting information on service reliability, including System Average Interruption Duration Index (SAIDI) and other measures as may be beneficial and mutually agreeable, such as Customers Experiencing Multiple Interruptions (CEMI) or other outage data, infrastructure investments and capital improvements, and customer usage and program participation, the exact format and content of which shall all be mutually agreed to by City and Company.

    2.6. Service and Rates. The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216B.40.

    2.7. Publication Expense. The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company.

    2.8. 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 in writing of the default and the desired remedy. Representatives of the parties 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 Hennepin County 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.

(2014-Or-086, § 1, 10-17-14, eff. 1-1-15)