The ordinance under consideration makes changes to Chapter 122 of the Municipal Code. This chapter addresses the procedures and permitting requirements for utilities that are installed within our street rights-of-way (R/W) by non-franchise utility companies. Currently, companies such as MidAmerican Energy, Centurylink, Mediacom and Black Hills Energy have franchise agreements, such that the provisions of this chapter do not apply to these companies.
The changes that are proposed to Chapter 122 address the recent change in the state laws that pertain to small wireless facilities and non-franchise utility accommodation. The new law that was put into effect by the Iowa Legislature on July 1, 2019 established a number of new procedures and requirements for municipalities to follow when permitting non-franchise utilities to occupy a public city R/W.
One of the new requirements was the elimination of a municipality's ability to charge an annual utility license fee for underground conduits with the R/W. Current provisions in Chapter 122 allowed the City of Ankeny to recoup its costs by requiring utility companies to pay an annual license fee based on the length of cable or conduit installed within our R/W. The new law eliminated those provisions for annual licensing. This amendment removes those provisions and replaces them with a new permit fee that is based on the estimated value of a company-acquired easement adjacent to the street if the company were to obtain such an easement.
Amending Chapter 122 will facilitate the City of Ankeny being current with state legislation and allow the City to recoup at least a portion of their costs associated with allowing for-profit utility companies to occupy the street rights-of-way.
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