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In April 2008 the former administrator, Gordon Heitke, informed the City Council the <br />franchise agreement between the City of Lino Lakes and Xcel Energy was going to <br />expire June 2008. Mr. Heitke pointed out the following: (1) the City was collecting a <br />franchise fee from Centennial Utilities, (2) there was a provision in the franchise <br />agreement with CenterPoint Energy to collect a franchise fee but the City was not <br />collecting it, and (3) the City did not have an agreement with Connexus Energy. The <br />Council directed staff to incorporate the ability to establish franchise fees in the Xcel <br />Energy renewal agreement and to further explore the idea of establishing franchise fees <br />for the other utilities. The City Council considered implementing a franchise fee for the <br />other gas utilities during several meetings, but no official action was taken. <br />Staff had consulted with James Strommen, an attorney with Kennedy & Graven, who <br />specializes in utility franchise agreements. Mr. Strommen prepared a memo that included <br />his recommendations. He strongly recommended the adoption of a Right -of -Way <br />Ordinance to regulate the City's public rights -of -way, and to establish one uniform <br />franchise agreement and rate design for all utilities. <br />Attached is a graph that Finance Director Al Rolek formulated in 2008, which showed <br />what the potential revenues would be if the City of Lino Lakes implemented a uniform <br />franchise fee for gas and electric service. The numbers were based on revenues collected <br />by the gas and electric utilities in 2007. <br />Action Requested <br />Staff is seeking further direction from the Council on how you would like to proceed with <br />the franchise renewals. <br />• <br />• <br />• <br />