Laserfiche WebLink
• s? <br />WORK SESSION STAFF REPORT WS— Item <br />• <br />Work Session Item 6 <br />Date: Council Work Session, April 7, 2008 <br />To: City Council <br />From: Gordon Heitke <br />Re: Utility Franchise Agreements <br />Background <br />The current franchise agreement between the City of Lino Lakes and Xcel Energy for <br />providing natural gas and electrical services will expire in June, 2008. It has become <br />common in franchise agreements to have a provision which allows for a franchise fee, <br />payable to the host city. The current agreements with Xcel Energy do not provide for the <br />collection and payment of a franchise fee. <br />The City of Lino Lakes currently provides for and receives a franchise fee from <br />Centennial Utilities for natural gas service (language attached). The franchise agreement <br />with the other natural gas provider, CenterPoint Energy, has a provision for franchise fees <br />to be established, but the City has not established any fee. <br />The remaining electrical utility serving Lino Lakes, Connexus Energy, does not have a <br />franchise fee agreement with Lino Lakes, however, they do have such agreements with <br />several other municipalities they serve. A fee can be established with Connexus Energy <br />by city ordinance. <br />In summary, the following table indicates the actions needed to establish and collect a <br />franchise fee for all electrical and natural gas utilities in Lino Lakes. <br />PROVIDER SERVICE FRANCHISE FEE ACTION TO ESTAB. FEE <br />Xcel Energy gas, elect. Not in agreement Include in new agreement, <br />Adopt ord. establishing fee <br />Centennial Utilities gas In agreement Currently collecting fee <br />CenterPoint Energy gas In agreement Adopt ord. estab. fee <br />Connexus Energy electricity No agreement Adopt ord. estab. fee <br />