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HomeMy WebLinkAbout2.d. Proposed Gas and Electric Franchise | Ordinances for Xcel EnergyAGENDA ITEM: Proposed Gas and Electric Franchise Ordinances for Xcel Energy AGENDA SECTION: DISCUSSSION PREPARED BY: Andrew J. Brotzler, P.E., City Engineer AGE ft 2 ATTACHMENTS: Proposed Ordinances APPROVED BY: RECOMMENDED ACTION: Discussion only 1 4 ROSEMOUNT CITY COUNCIL City Council Work Session: September 14, 2005 EXECUTIVE SUMMARY With the recent adoption of Ordinance XI.25 on May 17, 2005 that requires utility companies to have in effect a current franchise agreement with the City, Xcel Energy has presented the attached gas and electric franchise ordinances to the City for Council considerauon Staff and the City Attorney have reviewed the proposed gas and electric franchise ordinances and at this tune are seeking Council consideration and direction. By way of background, the above referenced ordinance amendment was adopted by Council to address the City's concern with the inability of the City to legally regulate the extension of gas hnes throughout the City in an orderly and safe manner While the ordinance amendment itself does not grant the City the authority to define "service areas" for gas utility companies, the intention was that the City would have the opportunity, through the execution of franchise ordinances to estabhsh agreed to "service areas" with gas utility companies or take other steps to address the City's concerns. Currently, Aquila is the only gas utility company that has a franchise agreement m effect with the City and therefore is the sole gas utility company that can be permitted to construct new gas service lines. The gas franchise ordinance presented by Xcel Energy would encompass the entire City for future expansion of their gas system Another item for Council consideration is the inclusion of language in the franchise ordinance that would enable the City m the future, if desired or determined to be necessary, to implement franchise fees The franchise ordinances as proposed by Xcel Energy do not include provisions for future franchise fees. Based on the requested term of 20 years for the franchise oidmances, the City Attorney is advising that Council consider the implications of not including provisions for future franchise fees m a final ordinance. Should Council concur that the above two items are significant and should be considered by Xcel Energy to be included m the proposed franchise ordinances, it would be appropriate for the City to advise Xcel Energy of the desired additions to the franchise ordinances as proposed Based on past discussions with Xcel Energy, Staff is anticipatmg that Xcel Energy is reluctant to the inclusion of these items in a franchise ordinance and therefore may request the opportunity to address Council and present their position. G \GAS FRANCHISE INFO\091405 ccmemo xcelfranc}use.doc CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE NO. AN ORDINANCE RELATING TO GAS PIPELINES; AMENDING CITY CODE SECTION 4 -2 -1 THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS as follows: Section 1. PURPOSE. The City Council recognizes that advantages to the public are secured by the terms of franchise agreements with gas utilities and further recognizes the costs and risks to the City and its property and to the public health, safety and welfare associated with installation, maintenance, repair and replacement of gas utility lines without the control and protection afforded by franchise terms This ordinance has the following purposes, among others: 1. To protect public property and the public investment in public streets and utilites; 2. To reduce the administrative burdens of oversight of installation, maintenance, repair and replacement of underground utilities; 3. To reduce interruptions to public travel and inconvenience to owners of properties adjacent to the public right of way; 4. To minimize the risks to the public health, safety and welfare and the risk of exposing the City to civil liability; and 5. To avoid all other adverse effects of unregulated installation of gas facilities on the public grounds and in the public right of way. Section 2. City Code, Section 4 -2 -1, is amended as follows: 2. INSTALLATION APPROVED. a. The location of all underground utilities, including but not limited to natural gas pipes and mains, electrical distribution and transmission lines and conduits, cable television cables, telephone cables and conduits, and appurtenances laid or constructed within State highways, County roads, City streets, alleys, public grounds and easements, shall be subject to the direction and approval of the City and shall be laid or constructed only after ca- 26119ov1 1 RS215 -3 Al ZEST: receiving written approval from the City Clerk. All private utility companies shall request approval in writing and shall furnish a drawing or plat showing the proposed underground utility. The location of said utilities shall not interfere with other pipes, tunnels or conduits already laid or constructed. All companies requesting approval shall direct four (4) copies of the request and maps or plats to the City Clerk. The City Clerk will direct three (3) copies to the City Engineer for histhe Engineer's recommendation. The City Engineer shall make such revisions of the drawings as Bathe Engineer shall deem necessary. The Engineer will make a written recommendation to the City Clerk, returning two (2) copies of the revised drawings. The City Clerk will then, in writing, issue itsthe Clerk's approval, requests for revisions or denial of the request for approval. b. After the effective date of this Ordinance no permits will be issued for installation of gas pipes and mains to entities that do not hold a current franchise from the City. This prohibition does not apply to installation of gas transmission mains that are not designed. intended or used for local service or local distribution, or to installation of gas pipes and mains to serve areas of the City to which existing gas franchisees cannot or will not extend service. Section 3. This Ordinance shall be in effect following its passage and publication. Underlining indicates new material indicates deleted material. ADOPTED this day of 2005, by the City Council of the City of Rosemount. CITY OF ROSEMOUNT William H. Droste, Mayor Linda Jentink, City Clerk Published on 2005 in the Rosemount Town Pages. CLL- 261190v1 2 RS215 -3 t