03/05/2012 Council Packet - Laserfiche WebLink

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The following table shows each gas and electric provider in Lino Lakes and the current status of the franchise agreement. Franchise Provider Service Expires Franchise Fee Centennial Utilities Natural gas 3/31/12 7% CenterPoint Energy Natural gas 3/31/12 None Connexus Energy Electricity No agreement None Xcel Energy Gas & Electric Expired in 2008 None In April 2008 the former administrator informed the City Council the franchise agreement between the City of Lino Lakes and Xcel Energy was going to expire June 2008. Mr. Heitke pointed out the following: (1) the City was collecting a franchise fee from Centennial Utilities, (2) there was a provision in the franchise agreement with CenterPoint Energy to collect a franchise fee but the City was not collecting it, and (3) the City did not have an agreement with Connexus Energy. The Council directed staff to incorporate the ability to establish franchise fees in the Xcel Energy renewal agreement and to further explore the idea of establishing franchise fees for the other utilities. The City Council considered implementing a franchise fee for the other gas utilities during several meetings, but no official action was taken. Staff had consulted with James Strommen, an attorney with Kennedy & Graven, who specializes in utility franchise agreements. Mr. Strommen prepared a memo, dated April 29, 2008, that included his recommendations. Strommen recommended the adoption of a Right -of -Way Ordinance to regulate the City's public rights -of -way and the establishment of one uniform franchise agreement and rate design for all utilities. Attached is a table that Finance Director Al Rolek created in 2008, which showed what the potential revenues would be if the City of Lino Lakes implemented a uniform franchise fee for gas and electric service, which were based on revenues collected by the gas and electric utilities in 2007. Requested Council Direction Staff is seeking further direction from the Council on how you would like to proceed with the franchise renewals. Attachments Centennial Utilities' New Franchise Proposal Estimated Utility Fee Revenues Based On 1997 Gross Revenues