(A) Furnishing electric energy. This section grants the Northern States Power Company, a Minnesota corporation, its successors and assigns, permission to construct, operate, repair and maintain within the city an electric distribution system and transmission lines, including necessary poles, pole lines, fixtures and appurtenances, for the furnishing of electric energy to the city and its inhabitants and others, and to use the public ways and public grounds of the city for such purposes.
(B) Granting rights. There be and hereby is granted to Northern States Power Company, a Minnesota corporation, it successors and assigns, hereinafter referred to as “company” during the period of 20 years from the date hereof, the right and privilege of construction, operating, repairing and maintaining, in, on, over, under and across the streets, alleys and public grounds of the City of Henderson, Sibley County, Minnesota, hereinafter referred to as “city”, and electric distribution system and electric transmission lines, including poles, pole lines and fixtures and appurtenances, usually conveniently, or necessarily used in connection therewith, of the purpose of transmitting and furnishing electric energy for light, heat, power and other purposes for public and private use in and to the city and the inhabitants thereof, and others, and for the purpose of transmitting into and through the city electric energy, so located as in no way to interfere with the safety and convenience of ordinary travel along and over the streets, alleys and public grounds; and, provided that, the company, in the construction, operation, repair and maintenance of poles, pole lines and fixtures and appurtenances, shall be subject to such reasonable regulation as may be imposed by the City Council.
(C) Service and rates. The service to be provided and the rates to be charged by company for electric service in the city shall be subject to the jurisdiction of the Public Utilities Commission of the state. The company shall provide reasonably efficient and adequate service to members of the public within the city who apply for service in accordance with the rules and regulations of the company.
(D) Right-of-way. There is also granted to the company, during the term hereof, permission and authority to trim all trees and shrubs in the streets, alleys and public grounds of the city which may interfere with the proper construction, operation, repair and maintenance of any poles, pole lines and fixtures and appurtenances installed in pursuance of the authority hereby granted; provided that, the company shall save the city harmless from any liability in the premises.
(E) Hold harmless.
(1) The 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 electric facilities located in, on, over, under or across the public ways and public grounds of city, unless the injury or damage grows out of the negligence of the city, its employees or agents, or results from the performance in a proper manner of acts reasonably deemed hazardous by the company, but the performance is nevertheless ordered or directed by the city after notice of the company’s determination.
(2) In the event a suit shall be brought against the city under circumstances where the above agreement to indemnify applies, the company at its sole cost and expense shall defend the city in suit if written notice thereof is promptly given to the company within a period wherein the company is not prejudice by lack of the notice. If the notice is not reasonably given as herein before provided, the company shall have no duty to indemnify nor defend, it will thereafter have complete control of the litigation, but the company may not settle the litigation without the consent of the city, which consent shall not be unreasonably withheld. This otherwise available to the city; and the company, in defending any action on behalf of the city shall be entitled to assert in any action every defense or immunity that the city could assert in its own behalf.
(F) Notice of vacation. The city shall give the 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 electric facilities, shall not operated to deprive the company of its rights to operate and maintain the electric facilities until the reasonable cost of relocating the same and the loss and expense resulting from the relocation are first paid to the company. In no case, however, shall the city be liable to the company for failure to specifically preserve a right-of-way under M.S. § 160.29, as it may be amended from time to time.
(G) Assignment of rights. The company shall have full right and authority to assign to any person, persons, firm or corporation all rights conferred upon it by this chapter; provided that, the assignee of the rights, by accepting the assignment, shall become subject to the terms and provisions of this chapter.
(H) Writer acceptance. The company shall, if it accepts this chapter and the rights and obligations hereby granted, file a written acceptance of the rights hereby granted with the City Clerk within 90 days after the final passage and any required publication of this chapter.
(I) Franchise agreement. Upon adoption of this chapter, the city has the right to renegotiate a franchise agreement with the company per state statutes as enforced by the state’s Public Utilities Commission.
Editor’s note:
Ord. 225, passed 12-21-2011, adopted a franchise fee on the Northern States Power (d/b/a Xcel Energy) electricity franchise. See Attachment A of the ordinance for the most current rates.