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The old ordinance was less clear on this requirement, and the proposed language is based on the LMC model ordinance. Section 3.4 — Performance Security — This new section states that a performance security is not required for day to day operations, but the City may require such a security if a City project is contingent upon the timely completion of an Xcel project. Section 4.1 — Relocation in Public Ways — This section requires Xcel to relocate utilities in the right-of-way for City projects. Similar requirements were in the previous ordinance but have been updated to refer to the regulations in M�nnesota Rule 7819.3100, which states: 7819.3100 RELOCATION OF EXISTING FACILITIES. Subpart 1. Requirement. A right-of-way user shall promptly and at its own expense, with due regard for seasonal working conditions, permanently remove and relocate its facilities in the right-of-way when it is necessary to prevent interference, and not merely for convenience of the local government unit, in connection with: (1) a present or future local government use of the right-of-way for a public project; (2) the public health or safety; or (3) the safety and convenience of travel over the right-of-way. Subp. 2. Exception. Nofinrithstanding subpart 1, a right-of-way user is not required to remove or relocate its facilities from a right-of-way that has been vacated in favor of a nongovernmental entity unless and until the reasonable costs to do so are first paid to the right-of-way user. Section 4.2 — Relocation in Public Grounds — This section speci�cally applies to relocating utilities 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 language is based on the LMC model . ordlnance. Section 5— Tree Trimming — This section was in the previous ordinance but a provision speci�cally requiring Xcel to promptly cleanup and remove all debris related to the trimming activities was added. Section 9— Franchise Fee — The previous ordinance did not address the City's ability to collect a franchise fee from Xcel. The updated ordinance reflects the City's ability to add a franchise fee at a later date. The fee and the process for collecting the fee would be negotiated 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 fee, the utility company typically includes a line on the bill to the customer that states the fee is imposed by the city, and the cost is passed directly to 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 \�Ahdocs 1\ah�AHdata\Planning\Community Development\Xcel Franchise Agreements\ 113009 - Regular Meeting - CC Report - Xcel Gas and Electric Franchise Agreements.doc Page 3 of 4