7D Electric Service and Gas Service Franchise Ordinance Renewal with Xcel Energy

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(MPUC) inta an ordinance ar agreement for each service. The franchise agreements also provide the City an opportunity to negotiate and charge a franchise fee, which is discussed in further detail in the below section. It is important to note that the franchise agreernents anly apply to the use of public rights-of-vvay and public property, which includes public roads, parks, and trails. Eleciric or gas lines that cross private property are subject to the regulatzans in the underlying private easernent. �xoposed Chan�es The draft ordinance is based on the League of Minnesota Cities (LMC} model ordinance, updates proposed by Xcel, and language provided by the City Attorney. While there is some flexibility in the language of the ordinance, much of it is guided by existing State stat�tes and rules. Despite one ordinance being for natuxal gas service ar�d the other for eIectrical se�tvice, the provisions of the two ardinances are iden�ical. Both ordinances are propased to ha�e tvventy years terms. Since the structure of the new and old ordinar�ces has changed, it is not possible to provide a direct, black-line comparison of the new and old ordinances. However, the notable changes or additions in the new ardinance are as follows: Section 1— Definitians — A definition of "Comrnission" far the Minnesota �'ublic Uriliries Coininissian was added. A defitut�on for "Electric Faciliiies" and "NatuYal Gas Facilit�es" was added to more clearly define what facilities axe owned by Xcel. Sec�ion 2.5 — Dispute Resolution — This }�rovision was updated to include the option of mediai�on before taking action in Disirict Caurt. This section is based off the modeI ardinance from the LMC. Section 2.6 — Cantinua�ion of Franchise — The n�w ordinance wi11 a1low the continuation of the new ordinance for be#ween 90 days and one year after its expirat�on to help provide continuity between the expiration of the new ordinance and the approval of the next ordinance. This flexibiIity alIows for addi�ional time for negotiation if needed. Section 3.1 — Location of Facilities �-- The new ordinance requires Xcel io remove abandoned facilities if ihose abandoned facilities interfere with a public improvement project. The prevzous ordinance was silent on the issue of abandoned facilities. Section 3.2 and 3.3 — Street Openings and Restoratian — T'hese two sections include ihe req�irezxzent for work conducted in the pu�lic way or on public grounds, states that a permit and fees may apply, and states t1�e restoration requirements. These activi�es are further regulated by the City's right-of-way ordinance (Section 3b0 of the City Code). CiEy Council Meeting 11Ahdocs11ah1AHdatalPlanninglCommunity DevelopmentlXcel Franchise Agreemenfs1113009 - Regular Meeting - CC Report - Xcel Gas and Electric Franchise Agreements.doc Page 2 of 4