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� <br />EN HILLS <br />MEMORANDUM <br />DATE: Novernber 30, 2009 <br />TO: Honorabl� Mayor and City Cauncil Memb�rs <br />Ron Maorse, City Administrator <br />FROM: James Lehnhoff, Community Development Director <br />Jerry Filla, City Attomey <br />SUBJECT: Xcel Gas and Electric Franchise Agreement Renewal <br />Requested Action <br />Motion to approve Ordinance 2009-014 and a sumrnary of Ordinance 2009-014 %r the Natural <br />Gas Franchise Ordinance v�rith Xcel Energy as proposed in the Novernber 30, 2009, memo to the <br />City Council. <br />Mo�ion to approve Ordinance 2009-015 and a summa�ry of Ordin.azace 2009-015 for the Elec�ric <br />Distribution and Transrnission Franchise Ordinance �vith Xcel Energy as proposed in the <br />November 30, 2009, memo to the City Council. <br />Back�round <br />Xcel Energy is the natura� gas and electric service provider to properties in the City of Arden <br />Hills. Ordinance 262, the na#ural gas franchise ardinance, and Ordinance 263, electric <br />distribution ar�d transmission franchise ordinance, were approved by the City on September 24, <br />1989. Both oxdinances had twenty year terms that expired on September 24, 20Q9. City staff <br />and the City Aitorney have been working with Xcel to prepare updated franchise ordinances for <br />review. While the franchise agreement is structured as an ordinance, it is legally considered a <br />cantract that requires approvai from both parties. Despite the short lapse in. tlae fra�nchise <br />agreement, the City is not without protection because the right-of-way ordinance regulates vvork <br />that would be completed within the right-of-r�vay. <br />Accarding to the League of Minnesota Cities, the primary puzpose of these franchise ordinances <br />is to provide uniform provisions that incorporate the broad municipal statutory franchise rights <br />that exist in Minn�sota Statutes and rules from the Minnesota Public Utilities Commission <br />City Council Meeting <br />11Ahdocs11ah1AHdatalPlanninglCommunaty DevelopmentlXcel Franchise Agreementsll 13009 - Regular Meeting - <br />CC Report - Xcel Gas and Electric Franchise Agreements.doc <br />Page 1 of 4 <br />