04-23-2003 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCII, APRIL 23, 2003 Blesener asked what the City mighC give up in waiving the right-of-way permit requirement other than the permit fee. The City Administrator suggested that in renegotiating the franchise agreement, the City could require better protection on the relocation of utilities away from public improvement projects. The City has experienced some difficulty in addressing this issue with Xcel and a renegotiated franchise agreement would provide an opportunity to spell this out. Blesener pointed out provision 4.2 in the New Brighton agreement and asked if it pertained to light rail. The Administrator thought it did and was an attempt by Xcel to protect itself in this regard. Fahey noted that the City has the ability to amend its ordinance and impose franchise fees without giving away any rights. Fahey stated that he was reluctant renegotiate a franchise agreement with Xcel that would involve precluding future possibilities such as the location of a light rail transit hub in Little Canada. Fahey stated that if a franchise agreement can be renegotiated that is fair and not unduly restrictive, he would support it. Otherwise, the City can renegotiate the ordinance and impose a 3.5% franchise fee on the gas and electric utilities. Anderson questioned getting into this issue before the City knows the outcome of legislative actions on the budget. Anderson stated that his first preference would be to increase the levy. Fahey agreed, but suggested that the negotiation process should begin so that the City is ready to act, if necessary. Montour pointed out that the City can move through the process and impose a 0% franchise fee on gas and electric for this year so that the mechanics are in place to begin collecting this fee in the future should the need arise. Blesener suggested that the process start and that two target dates be established. Blesener suggested information be gathered, negotiations conducted, and either an ordinance put in place or a renegotiated franchise agreement be entered into by July with the goal that franchise fees would begin to be collected by September. Blesener pointed out that there are a lot of factors that will impact whether or not the City implements franchise fees on gas and electric, and, if so, the level of those fees. Some of these factors include the State budget impact to the City, the status of trail grant applications, etc. Mr. Blesener introduced the following resolution and moved its adoption: RESOLUTION NO. 2003-4-8~-AUTHORIZING TILE CITY ADMINISTRATOR TO BEGIN NEGOTIATIONS WITH XCEL ENERGY ON BOTH ELECTRIC AND GAS FRANCIIISE FEES