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CHARTERED <br />James M. Strommen <br />470 US Bank Plaza <br />200 South Sixth Street <br />Minneapolis MN 55402 <br />(612) 337 -9233 telephone <br />(612) 337 -9310 fax <br />email: jstrommen @kennedy- graven.com <br />MEMORANDUM <br />TO: Gordon Heitke, City Administrator <br />FROM: Jim Strommen <br />DATE: April 30, 2008 <br />RE: City Gas and Electric Franchise, Franchise Fee Options <br />INTRODUCTION <br />You have asked for a short, introductory memo that identifies issues facing the City in light of <br />expiring franchises with Xcel Electric and Gas, gas franchises with Centennial Utilities Energy, and no <br />franchise with Connexus Energy. <br />Summarized below are the current franchise ordinances between the City and its multiple gas and <br />electric utility providers, and some policy considerations, franchise /right -of -way management issues, and <br />franchise fee (revenue generation) options before the City. <br />DISCUSSION <br />Current Franchises. You have provided me with copies of several franchises and identified the <br />utility providers to customers in the City. They are: <br />1. Xcel Energy d/b /a Northern States Power, Electric, Ord. No. 06 -88 expires on <br />June 13, 2008. <br />2. Xcel Energy d/b /a Northern States Power, Gas, Ord. No. 07 -88, expires on June <br />13, 2008. <br />3. City of Circle Pines n/k/a Centennial Utilities, Gas, Ord. No. 13 -86, expires on <br />March 23, 2012. <br />4. CenterPoint Energy, Gas, f/k/a Reliant Energy Minnegasco, Ord. No. 14 -00, <br />expires on March 31, 2012. <br />5. Connexus Energy, Electric. No franchise. <br />It is my understanding that the City has not adopted the comprehensive right -of -way ( "ROW ") <br />management ordinance enabled by the 1997 state legislation and as set forth in the League of Minnesota <br />Cities Model Right -of -Way Ordinance. (see Model on website, revised 12- 15 -05). Thus, the above <br />332569v1 JMS KG400 -3 <br />