04/23/2012 Council Packet - Laserfiche WebLink

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P 1 7 CITY COUNCIL WORK SESSION April 2, 2012 DRAFT 46 other utilities as profit making companies. A meeting between parties seems appropriate. 47 Mr. Bundy recalled a vote at the utility board to select two representatives to come to the 48 Lino Lakes City Council meeting to discuss the agreement; he is surprised that never 49 occurred. 50 51 The council discussed how a franchise works; it gives the exclusive right for a utility to 52 provide services within the area it covers. For Lino Lakes, there are three gas utilities 53 and three agreements. There is an option to have another utility take over the area 54 currently covered by Centennial Utility. A council member asked about the city's 55 recourse if the fees are not collected; they are budgeted funds. The city attorney 56 responded that court action requiring collection of the funds is a possibility and that can 57 be carried out at any time. The mayor suggested a parallel path where the city looks at a 58 franchise change while trying to work this out. The mayor and Council Member 59 O'Donnell will negotiate on the city's behalf and the city administrator will make the 60 necessary contacts to set up communications. 61 62 2. CenterPoint Energy Franchise Ordinance — CenterPoint Energy Area Manager 63 Roger Brandel was present. He reported that CenterPoint also has a franchise agreement 64 to provide gas serviced to a certain area of Lino Lakes. That agreement is also expiring 65 and they are interested in renewing the franchise. They use the League of Minnesota 66 Cities model for their agreements. Typically they are looking for a twenty year term. 67 68 The mayor noted concern about the standard language in the proposed agreement 69 specifically related to franchise charges being the same across the board. He believes the 70 city wants to work out the agreement with appropriate changes. 71 72 City Attorney Langel also noted the franchise fee language and that it would have to be 73 changed. There is also some broad language that concerns him as far as enforceability. 74 Also on the restoration of ground, the six months noted doesn't seem realistic. So there 75 are a few tweaks to be made but overall the contract is good except for the franchise fee. 76 77 Mr. Brandel further explained that, of course, CenterPoint' s preference is for no franchise 78 fee but, if it does come into play, it can be done either on flat fee per meter basis or 79 percentage of revenue. When a discussion of prices occurred, Mr. Brandel reminded the 80 council that their rates are set by the Public Utilities Commission. 81 82 The mayor suggested that the council will have a full discussion about the agreement and 83 since ifs not time sensitive, he is leaving the matter open and will invite Mr. Brandel 84 back for more review if necessary. 85 86 3. Anoka County Assessor — Board of Appeal Process — Anoka County Assessor 87 Linda Weiner provided some written information for review. She confirmed that one 88 council member (Mr. Roeser) has received the required training; Council Member 89 O'Donnell volunteered to attend training this year. Ms. Weiner reviewed sales 90 information for different types of property and the period covered. She reviewed the •