Consideration of Adoption of Ordinances #13-19 and #13-20; Franchise Ordinances with Anoka Municipal Utility and Connexus Energy.

The purpose of this case is to complete second readings of both 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 written, these ordinances can be adopted immediately.  However, if Council wants to request that minor revisions be made to one or both of the draft ordinances, this item should be tabled until November 26^th at which time a second reading of the revised ordinances can be held.  Alternatively, if Council requests major revisions to one or both draft ordinances, a Public Hearing should be called for November 26^th to reintroduce the ordinances.

Anoka Municipal Utility and Connexus Energy 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 2013 so both utilities have since been installing, operating and/or maintaining their utility’s within city right-of-ways without a current franchise ordinance. Adopting both franchise 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.

On October 22^nd, both draft franchise ordinances were introduced, after which Council called for a second reading of the draft ordinances this evening.  At that time it was noted that a provision is included in both draft franchise ordinances that would allow the City to impose franchise fees on the utilities under separate ordinance.  This provision was also included in expired Ordinance #92-13 (attached), and is included in existing Ordinance #03-16 with CenterPoint Energy.  However, the draft franchise ordinances in and of themselves do not allow the city to charge franchise fees without separately adopted franchise fee ordinances.

If minor revisions are requested by Council to either or both draft ordinances, the second reading of the revised ordinance(s) can be tabled until November 26^th to allow staff the necessary time to make the requested revisions.  However, if major modifications are requested to either or both draft ordinances, staff recommends calling for another Public Hearing where the revised ordinances can be reintroduced, after which a second reading would again be required prior to adopting the revised ordinances.

None required.

Both utilities have expressed approval with the draft franchise ordinances so no objections from the utility companies are anticipated.

CenterPoint Energy is currently operating under existing Ordinance #03-16 (attached).  Staff has therefore attempted to keep the provisions of all three franchise agreements consistent with one another so all utilities will operate under similar rules.

Alternatives –

Alternative #1 – Waive the City Charter requirement to read the ordinances aloud and adopt franchise ordinances #13-19 and #13-20 as drafted.

Alternative #2 - Waive the City Charter requirement to read the ordinances aloud and direct staff to make minor modifications to the draft franchise ordinances and table the second reading of the ordinances to November 26^th.

Alternative #3 - Waive the City Charter requirement to read the ordinances aloud and direct staff to make major modifications to the draft franchise ordinances and call for a Public Hearing on November 26^th to reintroduce the revised ordinances.

Preparation of the draft ordinances was completed by City staff as part of normal staff duties. The city attorney also reviewed the draft ordinances.

Staff recommends alternative #1 or #2 if Council approves of both franchise ordinances as drafted with no, or only minor, revisions requested.

Staff recommends alternative #3 if Council directs substantial modifications to the franchise ordinances.

Motion to waive the City Charter requirement to read the ordinances aloud
 
-- AND --
 
Adopt franchise ordinances #13-19 and #13-20 as drafted.

-- OR --

Table the second reading of the ordinances until November 26^th, 2013 pending the following minor revisions to the ordinances (to be determined).

-- OR --

Call for a Public Hearing on November 26^th, 2013 to reintroduce the revised franchise ordinances pending the following major revisions to the ordinances (to be determined).


Roll Call Vote:

Councilmember Johns
Councilmember Kuzma
Councilmember Tossey
Councilmember Backous
Councilmember LeTourneau
Councilmember Riley
Mayor Strommen