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AGENDA ITEM 3B <br />STAFF ORIGINATOR: Linda Waite Smith <br />DATE: 7/12/99 <br />TOPIC: Authorize City Administrator to Negotiate. Franchise Fees with <br />Utility Companies <br />VOTE REQUIRED: 3/5 <br />BACKGROUND: <br />Circle Pines Gas pays a franchise fee to distribute natural gas in Lino Lakes. In <br />1997, the Lino Lakes City Administrator was negotiating with other gas <br />distributors Minnegasco and NSP to establish franchise fees. When that City <br />Administrator left the organization, the negotiations stopped. Mayor Sullivan has <br />requested that the City Council: <br />1. Affirm its direction to the current City Administrator to reopen the negotiations <br />and <br />2. Consider dedicating any new franchise fees to a road reconstruction fund. <br />OPTIONS: <br />1. Direct the current City Administrator to reopen negotiations with Minnegasco <br />and NSP to establish franchise fees. <br />2. Decide how to allocate any franchise fees collected from Minnegasco and <br />NSP. <br />3. Return the recommendation to staff for further review. <br />RECOMMENDATION: <br />1. Direct the current City Administrator to reopen negotiations with Minnegasco <br />and NSP to establish franchise fees. <br />2. Decide how to allocate any franchise fees collected from Minnegasco and <br />NSP. <br />