Introduce Ordinance #23-11, Granting Centerpoint Energy a Nonexclusive Franchise and Public ROW Access

On July 8, 2003, Ordinane #03-16 was adopted to grant Centerpoint Energy permission to construct, operate, repair and maintain in the City of Ramsey a gas distribution system, for the furnishing of natural gas energy to the City, its inhabitants and others and to use public ways and public grounds of the City for such purposes. The ordinance became effective on August 11, 2003 for a term of twenty (20) years. The ordinance expires on August 11, 2023. Ordinance #03-16 is attached for your review. 

Draft Ordinance #23-11 proposes the same language as adopted Ordinance #03-16. Centerpoint Energy is in favor of the City granting them the franchise for a period of twenty (20) years, as shown in Section 2 Adoption of Franchise, 2.1 Grant of Franchise. 

The Public Works Department works with Centerpoint Energy on a regular basis and they have a positive and professional working relationship with each other. Therefore, City staff supports the continued franchise agreement with Centerpoint Energy.

If the City Council introduces Ordinance #23-11, the next steps are as follows:

June 13, 2023, City Council adopts Ordinance #23-11, publication on June 16, 2023 and effective date thirty (30) days afterward.

This ordinance is being handled as part of normal staff duties.  However, any time work is done, the City collects a Right-of-Way Permit fee from Centerpoint. Fees are adopted each year.  In 2022, the City collected $1,755. The 2023 fees are as follows: 
Boring/Open Trench   $95 + $15 per driveway
Road Closing              $20
Bond Per Mile              $10,000

City staff recommends City Council introduce Ordinance #23-11. 

Introduce Ordinance #23-11 An Ordinance Granting Centerpoint Nonexclusive Franchise Rights