ITEM 3.6 Right of Way Permit Fees0
OtCI�egoF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Engineering
City Engineer Wagner
June 22, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator Johnson
3.6 — Right -of -Way Permit Fees
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of the revised fee schedule for ROW permits to include an obstruction
fee for utilities not installed within a joint trench.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No.
No.
BACKGROUND/JUSTIFICATION:
As new developments have started to be constructed, we have noticed two utilities in particular have
not installed their lines within the joint trench. Century Link and Charter have been applying for right-
of-way (ROW) permits after installation of the joint trench has been completed. I have talked to them
and written the City Code requirements to locate within a joint on their permits to no avail. The
reasoning we have heard from them for not installing within the joint trench is they do not know how
many if any customers will want land phone lines, internet or cable TV. With the advancing numbers
of people using dish and going completely wireless, these two providers appear to be taking a wait
and see approach. However, not placing their lines in the joint trench increases the cost to the
utilities that are abiding the joint trench requirement, increases the amount of disruption and
potential damage to infrastructure the developer has placed and uses up limited ROW space.
Section 6-6-11 of the City Code establishes provisions for requiring payment of a permit for installation
of utilities within public ROW. Included in the permit fee structure is an obstruction cost for use of the
public ROW. Utilities installed within a joint trench are exempted from the obstruction fee by Section 6-
6-13 of the City Code for minimizing disruption and more efficiently utilizing space within the ROW. The
fee schedule does not currently include an obstruction fee and City staff is proposing to establish such a
charge of $2.50 per linear foot. The proposed obstruction fee was discussed by the Public Works
Subcommittee at their meeting on June 16, 2015 and they recommend approval of implementing the
additional change to encourage use of the joint trench for utility installation within the ROW.
SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE
A. Ordinance 2015-04
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve Ordinance 2015-04 amending the City Code to establish fees for right-of-way
permits.
BUDGET INFORMATION
BUDGETED: ❑ YES
❑ NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
ORDINANCE NO.: 2015-04
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE TO ESTABLISH FEES FOR RIGHT-
OF-WAY PERMITS.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 2-4-2.1.7 of the City Code (ROW permit) is hereby amended
to read as follows:
7. R.O.W. Permit:
a. Excavation Fee: $200.00 + costs incurred
b Obstruction Fee: $2.50/linear foot
Section 2. Section 6-6-11.A of the City Code (ROW Management — Permit
Fees) is hereby amended to read as follows:
A. Excavation Permit Fee. The excavation permit fee shall be established by
DireEter in Section 2-4-2 of the City Code for joint installations as provided for by
Section 6-6-13 of the City Code and individual excavations in an amount
sufficient to recover the following costs:
1. The City management costs.
2. Degradation costs, if applicable.
3 Use of the limited area within public right-of-way.
Section 3. This Ordinance shall become effective immediately upon its passage
and publication.
1
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 22nd day of June,
2015.
ATTEST:
Tami Loff, City Clerk
I
CITY OF OTSEGO
Jessica L. Stockamp, Mayor