HomeMy WebLinkAbout2016-01-13 CC Handout (2) Centerville Franchise Fee Ordinance and Franchise Agreements
Council Discussion Outline
Issue 1—Bonds/Insurance
Our position: We would like to require some form of surety(a bond,or Letter of Credit)when a utility is
working within our right-of-way to protect the city in case they damage city infrastructure and do not
repair it in a timely manner. We would also like to have a certificate of insurance submitted for similar
reasons.
Their position: Bonds or other surety are unnecessary expenses. The city is protected by the franchise
agreement and state law which requires the utility to repair damaged infrastructure. Additionally, the
Public Utilities commission and/or Office of Pipeline Safety can be contacted if there are unresolved
issues and can intervene on the city's behalf.
Issue 2—Abandonment of Facilities
Our position:We would like language that requires removal of abandoned facilities if and when the city
reconstructs the street above these facilities.
Their position: The agreements generally say that they will remove abandoned facilities if they are in
the way of the current project.
Issue 3—Location of Facilities
Our position:We would like language that allows our standards and policies to guide the placement of
utilities in our right-of-way. We could do so by ordinance, but do not currently have such an ordinance.
Their position: They do not wish to have the city dictate the location of their facilities.
Issue 4—Advanced Notice of Projects
Our position:We would like to rely on current law which requires us to hold at least one Preliminary
Design Meeting and a Preconstruction Conference to give utilities advanced notice of projects.
Their position: They would like more specific language about advanced notification.
General
An overarching issue is that the utilities have a strong desire to have consistency among their franchise
agreements across often hundreds of cities. Therefore, substantial changes to the agreements make it
difficult to adhere to their conditions. Furthermore,they point to the successful partnership they have
had with our city to date and to the successful partnerships they have with many other cities across the
metro. They feel that they are in a unique position as utilities in that they are regulated by bodies which
take public input very seriously and therefore have strong incentive to remedy situations as they may
arise.