07-06-26 - City Council Work Session Minutes

Home Search

6. FRANCHISE AGREEMENTS The City Clerk reviewed that at the June 1, 2026 City Council Work Session, the Council reviewed the status of the current franchise and franchise fee agreements with gas and electric service providers. While the franchise fee enabling legislation is included in the draft franchise agreements a separate ordinance setting the franchise fee is proposed. The City has one existing utility franchisee fee set at 4%. At the meeting in June, the City Council considered adopting a 4% fee for the utilities that did not currently have a franchise fee agreement in place. It was requested that the Council provide further direction regarding the franchise agreements and franchise fee agreements. Status of Agreements • Circle Pines Utilities (DBA Centennial Utilities) — Gas Service, Current 20-year franchise adopted in 2012. o Franchise Fee established as part of franchise agreement: Collecting 4% Fee on Residential/Non-Interruptible Customers • CenterPoint Energy - Gas Service, Current 20-year franchise was adopted in 2013. o Agreement identifies that a franchise fee may be collected if established by a separate ordinance. The fee must be of the same or a substantially similar amount to that charged to other energy suppliers. • Xcel Energy - Gas & Electric Services, No current agreement • Connexus Energy - Electric Service, No current agreement Council Consensus It was the consensus of the City Council to advance the franchise agreement ordinance drafts as presented with the amendment requested by the utility company to be reviewed by the City Attorney. Furthermore, to continue the discussion on the franchise fee ordinance to a future meeting with no further action taken this evening. 7. BOARD APPOINTMENT The City Clerk reported that Planning and Zoning Board Member and Chair Michael Root submitted his resignation. His term ends December 31, 2027. She requested that the City Council review the current list of Board and Committee members for possible transfer to the Planning and Zoning Board, and any recent applications and provide direction to staff regarding the selection and appointment process. It was noted that the application to serve on the Planning and Zoning Board was posted to the City website. Mayor Rafferty recommended that Economic Development Advisory Board Member Blakely LaCroix be appointed to fill the vacancy.