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

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The old ordinance was less clear on this requirernent, and the praposed language is based on the LMC model ordinance. Section 3.4 — Perfortnance Security — This new section states that a perforn�ance security is not xequired for day �a day op�rations, but the City may require such a secuz-ity if a City project is contingent upon the timely completion of an Xcel project. Section 4.1 — Reloca�ion in Public Ways — 7`his section requires Xcel to relocate utilities in txte right-of-vvay far City projecis. Similar requirements were in the previous ordinance but have been updated to refer to the regulations in Minnesota Rule 7819.3100, which states: 7819.310Q RELOCA710N OF EXISTING FACILITI�S. Subpart 1. Requiremenf. A right-of-way user shall prorr3ptly and at its own expense, wifh du� regard for seasonal warking conditions, permanently rerno�e and relocate its facilities in the right-of-way w�en it is necessary #o pre�ent interference, and not merely for con�enience of ihe lacai government unit, in connection with: (1) a preser�t ar future local ga�ernmeni use of the right-of-way for a public project; (2} the public healtf� or safety; or (3) the safety and con�enience of tra�el over the righ#-of-way. Subp. 2. Exception. Natwithstanding subpart 1, a right-af-way user is nat required to remove or relocate its facilities from a right-af-way that has been �acated in fa�or of a nango�ernmental eniaty unless and until the reasonab[e costs io da so are first paid to the right-o%way user. Section 4.2 — Relocation in Pubtic Grounds — This section specifically applies to relocating utili�ies for public projects that are on public property, which is different than the public right-of-way. The issue of relocating utilities on the public ground was not addressed in the previous ordinance. The new lang�age is based on the LMC model ordinance. Secfion 5— Tree Trimming — This sectzon was in the previous ordinance but a provision specifically requiring Xcel to promptly cleanup and remove all debris related to the trirnrning activities was added. Section 9— Franchise Fee — The previous ordinance did not address the City's abiIity to colleci a franchise fee from Xcel. The updated ardinance reflects the City's ability to add a franchise fee at a Iater date. The fee and the process for callec�ing the fee wouid be nego�iated in a separate ordinance. Arden Hills has not imposed a franchise fee on gas and electric services in the past. When a city collects a franchise %e, the utility company typicaily includes a line on the biil to the customer that states the fee is imposed by the city, and the cost is passed directly io residents. The fee can be a flat fee per customer or a percentage of gross revenues. Having this provision in the ordinance allows the City to readdress a franchise fee in the future if the City determines the fee is necessary. City Council Meeting 11Ahdocs11ah1AHdatalPlanninglCommunity DevelopmentlXcel Franchise Agreements1113009 - Regular Meeting - CC Report - Xce] Gas and Electric Franchise Agreements.doc Page 3 of 4