City of Española, NM Article III Franchise Agreements

§ 204-10 Granting of franchises.

The City of Española may permit any person, firm or corporation to operate a franchise for the following purposes:

A. To construct, maintain and operate a natural gas system; or

B. To construct, maintain and operate and operate a telephone system; or

C. To construct, maintain and operate a CATV system; or

D. To construct, maintain and operate an electrical distribution and transmission system; or

E. To construct, place or maintain pipes for the operation of a water plant or water distribution system; or

F. To construct, place or maintain a wastewater treatment facility and affiliated collection system; or

G. To operate maintain or otherwise conduct a solid waste collection business; or

H. To utilize the public rights-of-way for the purpose of conducting any business that is not prohibited by law.

§ 204-11 Application; franchise requirements.

A. Application requirements.

(1) No formal application form is required. Each utility company shall submit a letter with the required information and submittals.

(2) All applications for franchise agreements shall have the following information:

(a) Name of the company.

(b) Copy of Articles of Incorporation.

(c) Name of company representative to the City of Española.

(d) Statement of intent to apply for a franchise, including the type of franchise sought and the term for which the applicant is applying.

B. Franchise requirements. If the City Council permits a franchise for any activity specified in § 204-10 of this article, such franchise shall be subject to the following provisions:

(1) All contracts granting or giving any such original franchise, right or privilege, or extending or renewing or amending any existing grant, right, privilege or franchise to engage in such franchise, shall be made by ordinance, and not otherwise.

(2) A franchise complying with the provisions of the Act shall be deemed reasonable and shall be adopted by the City Council, absent a showing that approval of the franchise violates public health, safety and welfare.

(3) No contract, grant, right, privilege or franchise to engage in such an activity, hereafter granted, shall be extended for a period of time not more than 10 years from the date of such grant or extension. Options for renewal may be negotiated within individual agreements.

(4) Any contract, grant, right, privilege or franchise to engage in such activity hereafter granted shall include a mid-term review, not to exceed five years from the date of approval of the franchise. The intent of this provision is to ensure compliance with all aspects of the franchise agreement as approved.

(5) No person, firm or corporation shall be granted any exclusive franchise, right or privilege whatsoever. All franchise contracts shall remain competitively neutral and may not be unreasonable or discriminatory.

(6) No such grant, right, privilege or franchise shall be made to any person, firm, corporation or association unless it provides for adequate compensation or consideration therefor to be paid to the City. Such grantee shall pay annually such charge as may be prescribed in the franchise ordinance.

(7) A franchise agreement shall have the following provisions:

(a) That the utility company file reports listing the maps, plans and documents available to the City of Española for use in infrastructure planning, as required in Article I, § 204-8, of this chapter.

(b) That the franchise agreement is transferable; however, should the franchisee be sold or control of the original company be merged with another company, a new agreement may be required at the discretion of the City Council, which is not under any obligation to approve said transfer.

(c) That the franchisee submit an economic development plan showing how the utility company proposes to further the economic development goals of the City of Española. Such plan shall indicate, at minimum, the number of employees currently serving the City of Española, the number of new employees planned, if any, and any capital improvements intended to be placed within the City of Española, as well as any explanation as to any deficits from previous years. This is intended to be used as a development tool for the City of Española in conjunction with its own infrastructure capital improvements plan.

(d) That the utility company provide access and copies, if necessary or as requested, of all spatial and analytical data in the form of maps and databases to assist in the planning of future service areas, in conformance with Article I, § 204-8, of this chapter.

(e) That the utility company schedule a meeting to discuss improvements to be considered within the City, such list to be presented biannually. The improvement list shall be utilized to coordinate repairs, maintenance and new service areas within the City by all affected utility companies and the City of Española, thereby providing for proper infrastructure planning and providing minimal impact to municipal rights-of-way.

C. A contract franchise must be competitively neutral and may not be unreasonable or discriminatory.

D. No franchise shall be denied or revoked without reasonable notice and an opportunity for a public hearing before the City governing body.