8.1 Electric Utility Franchise CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
10/16/00 4:00 P.M.
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED FOR
NO. 8 AGENDA:
CITY MANAGER
ITEM 1 ~
NO. BY: Dennis M. Ki~inger BY:
Item
Preliminary staff report and overview of iss,ues related to a request for issuance of an electric utility
franchise.
Backqround
Under Kansas State law, municipalities are granted the control over use of the public right-of-way within
their city limits, and the authority to grant certain business uses (e.g. electric utility operation). Other
aspects of electric utility law and regulation rest with the State.
A prior item on this October 16 City Commission agenda involves the requested annexation of some new
territory southeast of Salina into the City limits. Along with this annexation comes the need to make a
determination as to electric utility service. The subject property is currently in an area designated by the
Kansas Corporation Commission as a service area for D.S.&.O., a rural electric cooperative providing
service to customers in various central Kansas counties, including customers in Saline County outside the
Salina city limits. However, D.S.&.O. does not currently have a franchise to provide electric utility service
in Salina. D.S.&.O. has formally requested the City issue a franchiSe to them. The City Commission last
considered a D.S.&.O. franchise request in 1995. At that time, the request was denied. This new request
for a franchise is now scheduled for City Commission consideration.
Due to the complexity of the issues involved in this matter, staff recommends that the subject be
addressed at two separate Commission meetings. At this Monday's (October 16) Commission meeting,
the City Manager and City Attorney will provide an overview of the maps, laws, parties at interest and the
basic issues involved in this decision. We will want to discuss with you what items you believe will be
helpful in making your decision. No action will be taken October 16. We also recommend the public
comment period be scheduled for October 23. During the following week and prior to the October 23rd
Commission meeting, staff will complete our comprehensive reports on this issue, including identifying
options available to the Commission. On the October 23 agenda, the D.S.&.O. request will be considered
as an action item, most likely through the consideration of a Resolution of Intent to issue an electrical
utility franchise to D.S.&.O. This will be considered in conjunction with 2nd Reading of the annexation
ordinance.
Action:
No formal action is anticipated, but the City Commission may provide additional direction to staff
regarding items to be included in the full staff report for October 23, 2000.