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