Columbus, Georgia

Agenda Item #



Columbus Consolidated Government



Council Meeting



11/08/2005



Agenda Report #



TO: Mayor and Council



SUBJECT: Georgia Power Franchise Agreement/MOU



INITIATED BY: Finance Department







Recommendation: Approve an ordinance granting a franchise to Georgia Power

for a term of 35 years for constructing, maintaining, operating and extending

poles, lines, cables, equipment and other apparatus for transmitting and

distributing electricity and for other purposes; give the City Manager

signature authority for the Memorandum of Understanding.



Background: The City of Columbus has a current franchise agreement with

Georgia Power since March 1, 1976 for a period of 35 years. Although the

current agreement would expire in 2011, Georgia Power has submitted a new

agreement to the City. This new agreement would be effective for 35 years

and will expire in 2040. It contains new provisions that would be favorable

to the operations of the City particularly in movement of utilities for City

projects and increased revenue potential at Fort Benning. The new agreement

contains the provisions negotiated by the Georgia Municipal Association that

will apply to all municipalities served by Georgia Power. The attached

memorandum of understanding outlines the plan to help preserve, protect and

develop a safe and health urban forest in the community.



Financial Consideration: Both the current franchise agreement and the new

agreement contain the rate of 4% of revenues from residential and commercial

customers (as prescribed by Georgia Public Service Commission) within the City

limits. The rate is negotiated with the Public Service Commission for all

municipalities within the state. In FY05, the City received $6,604,923 in

revenues. Staff has budgeted this same amount in FY06. Georgia Power has

estimated that we will receive approximately $120,000 more annually in revenues

from a portion of Fort Benning, which was not incorporated in the old agreement.



Legal: This ordinance will replace Ordinance 75-137 in its entirety.



Recommendation: Approve the franchise agreement with Georgia Power for a term

of 35 years; give the City Manager signature authority for the Memorandum of

Understanding.