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REQUEST FOR ORI EL ACTION DATE: 7/1 3/98 ITF,M NO..- J- Department Approval@.- Manager Reviewede, Agenda Section. Ordinances and Resolutions Item Descriptione P Gas acid Electric Franchise Agreement Renewals Background: State law allows cities to require franchise agreements of gas and electric utilities. Traditionally, such agreements give cities a means to control how a utility company constructs., operates, repairs and maintains its facilities. while Roseville has opted not to charge a fee, state law also allows cities to charge for the right to provide service within City boundaries. The existing NSP franchise agreements for gas and electric service were implemented in 1978 and expired on May 1, 1998. New franchise agreements for council consideration are attached. For the most art� new proposed e ro osed are very similar to the original 1978 agreement. p � rnall changes have been made in consideration of the City's proposed right-of-war ordinance and to clari and strength areas in the old agreement which were vague or insufficient. Ma jor features of the proposed agreements include: • Allows the City Council} at its discretion to impose a franchise fee • Defers to the City's right-of-way ordinance for restoration standards • Allows the City to determine if facilities should be placed underground • Requires NSP to assume all costs associated with abandoned facilities • Requires NSP to enter into individual agreements with the City to set deadlines for TF ro'ects and establish penalties for delays: F � Franchise agreements are to.be adopted by ordinance. As such, it is the Council's practice to p'rovide_an opportunity for public input at two City Council meetings before final adoption. The July 13, 1-998 meeting will be the first opportunity for the public to review the proposed franchise agreements. -'RECOMMEP(DED COUNCIEL ACTIONE Continue final adoption of the NSP Gas and Electric franchise agreements to July 7, 1998. p - Prepared by: Karl F. Keel