A major problem for the city of Shreveport is excavations in public right of ways that cause damage to streets, water mains and sewer lines.  

The area between the street curbs and sidewalks is property of the city. Repairs and installations by utilities, internet wireless companies, and plumbers necessitate excavations and/or borings in this area. All too often the damage is done and no culprit can be identified. 

The solution proposed by the Perkins administration is a permitting process. An ordinance scheduled to go into effect on Nov. 1 imposes a $400 permit fee. Months of negotiation with the parties involved has now resulted in a new ordinance with a $150 fee.

Centerpoint estimates the permit fees could exceed $300,000 per year. Swepco says the yearly fees will be substantial.

Both utilities claim exemptions from any permit fee citing the franchise contracts each has with the city that require yearly payments. SWEPCO's fees are based on electricity usage and could be as much as $12 million. Centerpoint pays $1.6 million per year in franchise fees.

Two basic questions were identified by councilman John Nickelson at the council's Infrastructure Committee meeting yesterday: 1. Can the city charge the permit fee to utilities? 2. Should the city charge these fees? 

The answer to the first question will depend on the legal interpretation of each franchise agreement that vary in verbage.  Opinions by the city attorney's office have been suspect in the past and there is little doubt that the ultimate decision will be made by the courts.

The ordinance slated to be effective Nov. 1 as well as the proposed amended ordinance will also affect ATT&T, Verizon, and other internet companies as well as private enterprise like local plumbers and electricians. 

The permit fee will certainly be added to repair/installation bills by the private sector which has bee largely overlooked in this process. Both SWEPCO and Centerpoint will undoubtedly attempt to add these fees to utility bills. 

All parties point to bad guys that are usually independent contractors who work for other utilities (not SWEPCO or Centerpoint) who are out of the area. The real problem for the city is identification of all digs/borings while they are happening to ensure permit compliance.

The first step in resolving this gordian knot is to delay the effective date of the $400 permit ordinance. After that a detailed review of actual administration cost to the city for the permitting process and an effective way of enforcement should be top priority.  An happy ended for all is NOT expected.