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�;.� EN HILLS <br />MEMORANDUM <br />DATE: November 30, 2009 <br />TO: Honorable Mayor and City Council Members <br />Ron Moorse, City Administrator <br />FROM: James Lehnhoff, Community Development Director <br />Jerry Filla, City Attorney <br />SUBJECT: Xcel Gas and Electric Franchise Agreement Renewal <br />Requested Action <br />Motion to approve Ordinance 2009-014 and a summary of Ordinance 2009-014 for the Natural <br />Gas Franchise Ordinance with Xcel Energy as proposed in the November 30, 2009, memo to the <br />City Council. <br />Motion to approve Ordinance 2009-015 and a summary of Ordinance 2009-015 for the Electric <br />Distribution and Transmission Franchise Ordinance with Xcel Energy as proposed in the <br />November 30, 2009, memo to the City Council. <br />Background <br />Xcel Energy is the natural gas and electric service provider to properties in the City of Arden <br />Hills. Ordinance 262, the natural gas franchise ordinance, and Ordinance 263, electric <br />distribution and transmission franchise ordinance, were approved by the City on September 24, <br />1989. Both ordinances had twenty year terms that expired on September 24, 2009. City staff <br />and the City Attorney 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 />contract that requires approval from both parties. Despite the short lapse in the franchise <br />agreement, the City is not without protection because the right-of-way ordinance regulates work <br />that would be completed within the right-of-way. <br />According to the League of Minnesota Cities, the primary purpose of these franchise ordinances <br />is to provide uniform provisions that incorporate the broad municipal statutory �ranchise rights <br />that exist in Minnesota Statutes and rules from the Minnesota Public Utilities Commission <br />City Council Meeting <br />\�Ahdocsl\ah�.AHdata\Planning\Community Development\Xcel Franchise Agreements\113009 - Regular Meeting - <br />CC Report - Xcel Gas and Electric Franchise Agreements.doc <br />Page 1 of 4 <br />