03/26/2012 Council Packet - Laserfiche WebLink

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• • • CITY COUNCIL WORK SESSION March 5, 2012 P1 6 DRAFT 89 Bruce Miller, property owner in the assessment area, noted that his company has already 90 obtained appraisal information and it indicates that the improvement costs are 91 appropriate. When asked he confirmed that his company does have a client interested in 92 the area and as the process draws out longer and longer, there is always a possibility of 93 losing them. A council member noted that he feels certain that all properties assessed 94 will benefit from the improvements and he is afraid also that time kills all deals. The 95 mayor noted that it appears that the council prefers to move ahead with the plans and 96 specifications knowing that the appraisal will come. City Engineer Wedel then reviewed 97 a possibility construction schedule with the council. It could be completed this year but 98 he warned that a condemnation process could slow everything down. 99 100 The council concurred to put the matter of authorizing plans and specifications for the 101 project onto the next council agenda. 102 103 4. Centennial Utilities Franchise Ordinance — Administrator Karlson recalled that the 104 city has a franchise ordinance with Centennial Utilities (run by the City of Circle Pines) 105 that expires on March 31 of this year. He received a proposal for a new ordinance from 106 Circle Pines City Administrator Jim Keinath. Included in the proposal are some changes: 107 1) the original franchise agreement included language that would allow the city to 108 purchase its share of the system; that option no longer exists as of 2010; 2) the franchise 109 fee in place (7 %) would be capped at 5 %; 3) the Utility will no longer collect the fee at all 110 unless other utilities are charged (currently only Centennial customers are charged a 111 franchise fee in Lino Lakes); and 4) that the Lino Lakes representative be eliminated from 112 the commission that oversees the utility. Mr. Karlson noted that he had the proposed 113 agreement reviewed by the city's attorney and has been advised that the utility cannot 114 unilaterally change the contract that has been in place including stop collecting the 115 franchise fee as they have suggested; that fee is included in a contract and the contract 116 must be renegotiated. Mr. Karlson noted that his report includes a history of council 117 discussions on utility franchise fees across the board in the city and also information on 118 the status of other franchise agreements. 119 120 The Mayor noted that Centennial Utilities is a non - profit organization, not like Xcel 121 Energy or Centerpoint Energy. The franchise fee collected by Centennial would not 122 become part of a profit but would be part of the budget and therefore reduce the cost of 123 services. He suggested that he doesn't think it is a good idea to make a change to 124 customers during this time of a difficult economy. He would prefer to not act and 125 perhaps look at the issue again next year. The council expressed an interest in seeing a 126 rate comparison between all utilities. The council concurred that they would not accept 127 the proposed franchise ordinance at this time. 128 129 5. Upgrade to City Website — Administrator Karlson explained that city staff has been 130 encouraged by a council member to improve the city's Web site. He explained that 131 historically the city's Web site was managed by the receptionist who was laid off several 132 years ago. After that two employees were assigned work on Web matters, one of those 133 employees being part time and both of those employees having also been asked to assume 3