Agenda - Council - 10/22/2013 - Laserfiche WebLink

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CC Regular Session 7. 1. Meeting Date: 10/22/2013 By: Bruce Westby, Engineering/Public Works Information Title: Continuation of Introduction of Franchise Ordinances with Anoka Municipal Utility and Connexus Energy Purpose/Background: The purpose of this case is the introduction of two draft franchise ordinances; Ordinance #13-19 with Anoka Municipal Utility, and Ordinance #13-20 with Connexus Energy. If Council supports both draft franchise ordinances as introduced, a second reading of the franchise ordinances may be called for the November 12th City Council meeting. After the second reading, Council may adopt both ordinances if no further revisions are desired. Both utilities were previously granted franchise rights through Ordinance #92-13 allowing them to install, operate and maintain their utilities within city right-of-ways. However, Ordinance #92-13 expired at the beginning of this year so both utilities have since been installing, operating and/or maintaining their utility's within city right-of-ways without a current franchise ordinance The City's other utility operator, Centerpoint Energy, renewed their franchise agreement with the City in 2003. On October 8th, two draft franchise ordinances were reviewed at a public hearing, however, the consideration of the introduction of the ordinances was continued to tonight's meeting. Adopting these ordinances will grant both utilities the right to continue to install, operate and maintain their utilities within city right-of-ways for another 20 years. One of the provisions included in both draft franchise ordinances, which was also included in Ordinance #92-13, allows the City to impose franchise fees on the utilities, which would help fund our long-term street maintenance program. As such, these draft franchise ordinances must be adopted prior to the adoption of any franchise fee ordinances. Two draft ordinances are needed to replace expired ordinance 92-13 as each utility now has unique ordinance language requirements. If Council requests minor revisions to either or both draft ordinances, a second reading of the ordinances can still be called for November 12th, and staff can make the requested revisions prior to the second reading. However, if major modifications are requested to either or both draft ordinances, another Public Hearing to introduce the revised ordinances is recommended before adoption of the ordinances is considered. Notification: None required. Observations/Alternatives: Draft ordinance language was provided to the City by both utility companies, which staff used to develop the attached draft ordinances. Staff then discussed the draft ordinances with both utility companies to make sure they approved of the draft ordinances prior to tonight's meeting so staff does not anticipate any objections by either utility company. There has been an effort to keep the provisions of all three of our franchise agreement consistent with each other, so that all utilities are operating under similar rules. The Centerpoint Energy agreement that was passed by ordinance