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51690.: <br />fimk!/fAevr ^ <br />Mayor and City Council <br />Mark E. Bernhardson, City Administra^^|i|^ <br />DATE:May 16,1990 <br />TO: <br />FROM: <br />SUBJECT: NSP and Wright Hennepin Franchises <br />PUBLIC HEARING 7:00 P.M. <br />NSP FRANCHISE AGREEMENT <br />WRIGHT HENNEPIN FRANCHISE AGREEMENT <br />Attachments: <br />ISSUE - <br />A.NSP Draft Franchise Agreement <br />B.Wright Hennepin Draft Franchise Agreement <br />C.Notice of Publication <br />D.Summary Ordinances for Publication <br />1.Hold a public hearing for consideration of adoption of the two <br />franchises. <br />2.Determine if the Council desires to adopt the franchise <br />agreements for NSP and Wright Hennepin. <br />3.Determination as to what the Council desires to adopt for <br />summary publication. <br />INTRODUCTION - Utility companies in order to use the city's <br />rights on right-of-ways enters into franchise ordinance <br />agreements with the cities which generally spell out the terms of <br />those arrangements. The City is a member of the Suburban Rate <br />Authority who jointly negotiated the basic form of this <br />electrical franchise with the two electrical utilities involved <br />together with the involvement of the State's Public Utility <br />Commission. Any significant deviation from the basic form that <br />is desired should be negotiated between the City, the Electric <br />Utilities and the State's Public Utility Commission. <br />DISCUSSION - As mentioned the primary purpose of the franchise <br />agreement is to spell out the terms under which the franchisee <br />will be able to use the City's public right-of-ways for its <br />electrical utility lines and other structures. This does not <br />apply to right-of-ways with the County or the State and <br />specifically the agreement references that any federally funded <br />state trunk highway project has a reimbursement clause in the <br />statute which is handled by the Commissioner of Transportation. <br />Additionally if the City were to have any federally assisted <br />redevelopment programs etc. that would require the relocation the <br />terms of that cost for relocation %#ould be determined through the <br />Federal Rules. <br />FRANCHISE FEE - The agreement does allow the City to impose up to <br />a 6% £rancTiTie fee on the utility. It is estimated that between