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CITY COUNCIL WORK SESSION April 2,2012 <br /> APPROVED <br /> 46 other utilities as profit making companies. A meeting between parties seems appropriate. <br /> 47 Mr. Bundy recalled a vote at the utility board to select two representatives to come to the <br /> 48 Lino Lakes City Council meeting to discuss the agreement; he is surprised that never <br /> 49 occurred. <br /> 50 <br /> 51 The council discussed how a franchise works; it gives the exclusive right for a utility to <br /> 52 provide services within the area it covers. For Lino Lakes,there are three gas utilities <br /> 53 and three agreements. There is an option to have another utility take over the area <br /> 54 currently covered by Centennial Utility. A council member asked about the city's <br /> 55 recourse if the fees are not collected;they are budgeted funds. The city attorney <br /> 56 responded that court action requiring collection of the funds is a possibility and that can <br /> 57 be carried out at any time. The mayor suggested a parallel path where the city looks at a <br /> 58 franchise change while trying to work this out. The mayor and Council Member <br /> 59 O'Donnell will negotiate on the city's behalf and the city administrator will make the <br /> 60 necessary contacts to set up communications. <br /> 61 <br /> 62 2. CenterPoint Energy Franchise Ordinance—CenterPoint Energy Area Manager <br /> 63 Roger Brandel was present. He reported that CenterPoint also has a franchise agreement <br /> 64 to provide gas serviced to a certain area of Lino Lakes. That agreement is also expiring <br /> 65 and they are interested in renewing the franchise. They use the League of Minnesota <br /> 66 Cities model for their agreements. Typically they are looking for a twenty year term. <br /> 67 <br /> 68 The mayor noted concern about the standard language in the proposed agreement <br /> 69 specifically related to franchise charges being the same across the board. He believes the <br /> 70 city wants to work out the agreement with appropriate changes. <br /> 71 <br /> 72 City Attorney Langel also noted the franchise fee language and that it would have to be <br /> 73 changed. There is also some broad language that concerns him as far as enforceability. <br /> 74 Also on the restoration of ground,the six months noted doesn't seem realistic. So there <br /> 75 are a few tweaks to be made but overall the contract is good except for the franchise fee. <br /> 76 <br /> 77 Mr. Brandel further explained that, of course, CenterPoint's preference is for no franchise <br /> 78 fee but, if it does come into play, it can be done either on flat fee per meter basis or <br /> 79 percentage of revenue. When a discussion of prices occurred, Mr. Brandel reminded the <br /> 80 council that their rates are set by the Public Utilities Commission. <br /> 81 <br /> 82 The mayor suggested that the council will have a full discussion about the agreement and <br /> 83 since it's not time sensitive, he is leaving the matter open and will invite Mr. Brandel <br /> 84 back for more review if necessary. <br /> 85 <br /> 86 3. Anoka County Assessor—Board of Appeal Process—Anoka County Assessor <br /> 87 Linda Weiner provided some written information for review. She confirmed that one <br /> 88 council member(Mr. Roeser)has received the required training; Council Member <br /> 89 O'Donnell volunteered to attend training this year. Ms. Weiner reviewed sales <br /> L 90 information for different types of property and the period covered. She reviewed the <br /> 2 <br />