12/11/2000 Council Packet - Laserfiche WebLink

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COUNCIL MINUTES SEPTEMBER 25, 2000 Council Member Reinert moved to adopt Resolution No. 00 — 64, as presented. Council Member Dahl seconded the motion. Motion carried unanimously. Resolution No. 00 — 64 can be found in the City Clerk's office. UNFINISHED BUSINESS - None NEW BUSINESS Public Hearing on Ordinance No. 14 — 00, Adopting a Franchise Agreement with Reliant Energy Minnegasco — Mayor Bergeson advised the public hearing will be continued to take additional comments. Another Council developed the idea of a franchise fee approximately four (4) years ago. The previous Council directed staff to work on the agreement. The current City Council will determine whether or not to approve the proposed agreement. The City Administrator advised a Home Rule Charter governs the that charter states that property taxes, which is the City's maid local improvements such as road reconstruction unless a refer fund the projects. of Lino Lakes. Chapter 8 of e ore enue, cannot be used for held and the voters agree to For several years the Charter Commission has urged ey City ouncil to identify revenue sources other than property taxes for reconstruction of 1 e al roa One potential source of revenue is franc city. State Statues, Chapter 216b.36 seta conduct business can be required t the law allows cities to charge from utility companies using im osed on utility companies that do business in a utility company that uses city rights of way to t or franchise agreement from the City. In exchange, revenue or to help defray increased city costs that result way. In Lino Lakes, three (3) ut " • ide natural gas service: Circle Pines Utilities, NSP and Minnegasco. All three (3) ` liti s have franchise agreements with the City, usually for a period of 20 years. The franchise agreement with Circle Pines includes a 7% franchise fee on gross revenues earned in Lino Lakes by Circle Pines Utilities. The franchise agreements with NSP and Minnegasco were finalized before the one with Circle Pines Utilities. Those agreements did not include any franchise fees. When the Minnegasco agreement expired and the City Council directed staff to negotiate a new agreement that would include a franchise fee of some type in order to take advantage of this potential non - property tax revenue source. Staff considered several factors in making a recommendation to the City Council. Staff acknowledged the fact that Minnegasco pays $75,000 per year in property taxes and Circle Pines 10 • •