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• <br />CITY COUNCIL <br />AGENDA ITEM 3A <br />STAFF ORIGINATOR: Jeff Karlson <br />MEETING DATE: November 26, 2012 <br />TOPIC: Consider 2nd Reading of Ordinance No. 09 -12, Granting a <br />Nonexclusive Gas Franchise to Circle Pines /Centennial Utilities <br />VOTE REQIURED: 3/5 <br />INTRODUCTION <br />The City Council is being asked to consider the adoption of Ordinance No. 09 -12, granting a <br />nonexclusive gas franchise to Circle Pines /Centennial Utilities for a 20 -year period. The Council <br />approved the first reading of the ordinance on November 13, 2012. <br />BACKGROUND <br />The City's 25 -year franchise agreement with Centennial Utilities expired on March 31, 2012. <br />After several months of negotiations, we were able to reach a settlement with Circle <br />IIPines /Centennial Utilities. <br />The new terms include a four percent franchise fee for non - interruptible customers, retroactive to <br />October 1, 2012, which can be increased to a maximum of five percent if Lino Lakes imposes a <br />franchise fee of one percent or more for the other natural gas providers. The previous franchise <br />fee was seven percent. <br />RECOMMENDATION <br />Staff is recommending approval of the 2nd reading of Ordinance No. 09 -12, granting a <br />nonexclusive franchise to Circle Pines /Centennial Utilities. <br />ATTACHMENTS <br />Ordinance No. 09 -12 <br />• <br />