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(MPUC) into an ordinance or 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 agreements only apply to the use of public rights-of-way and public property, which includes public roads, parks, and trails. Electric or gas lines that cross private property are subject to the regulations in the underlying private easement. Proposed 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 statutes and rules. Despite one ordinance being for natural gas service and the other for electrical service, the provisions of the two ordinances are identical. Both ordinances are proposed to have twenty years terms. Since the structure of the new and old ordinances 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 ordinance are as follows: Section 1— De�nitions — A definition of "Commission" for the Minnesota Public Utilities Commission was ad�ed. A definition for "Electric Facilities" and "Natural Gas Facilities" was added to more clearly define what facilities are owned by Xcel. Section 2.5 — Dispute Resolution — This provision was updated to include the option of mediation before taking action in District Court. This section is based off the model ordinance from the LMC. Section 2.6 — Continuation of Franchise — The new ordinance will allow the continuation of the new ordinance for between 90 days and one year after its expiration to help provide continuity between the expiration of the new ordinance and the approval of the next ordinance. This flexibility allows for additional time for negotiation if needed. Section 3.1 — Location of Facilities — The new ordinance requires Xcel to remove abandoned facilities if those abandoned facilities interfere with a public improvement proj ect. The previous ordinance was silent on the issue of abandoned facilities. Section 3.2 and 3.3 — Street Openings and Restoration — These two sections include the requirement for work conducted in the public way or on public grounds, states that a permit and fees may apply, and states the restoration requirements. These activities are further regulated by the City's right-of-way ordinance (Section 360 of the City Code). City Council Meeting \�Ahdocsl\ah�AHdata\Planning\Community Development\Xcel Franchise Agreements\113009 - Regular Meeting - CC Report - Xcel Gas and Electric Franchise Agreements.doc Page 2 of 4