10/09/2000 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES OCTOBER 9, 2000 ADMINISTRATION DEPARTMENT REPORT, DAN TESCH 2000 Community Service Award, Dan Tesch — Staff advised the Lino Lakes Community Service Award was designed to recognize residents who have made a substantial contribution to the community, protection of the environment, or improved the quality of life. A Committee was organized and advertised in the newsletter and on Channel 16 requesting nominations to be submitted. Those nominations were reviewed and the Committee recommends the 2000 Community Service Award be presented to Art Hawkins and Loretta Zarambo. Mayor Bergeson read a list of accomplishments of Loretta Rambo and presented her with the 2000 Community Service Award. He extended the City's appreciation to Ms. Rambo for her contributions to Lino Lakes. All acknowledged her contribution with a round of applause. Mayor Bergeson read a list of accomplishments of Art Hawkins and presented him with the 2000 Community Service Award. He stated Mr. Hawkins is considered to .. e environmental conscience for Lino Lakes and extended the City's appreciation to Mr. Hawki for h r, ontributions. All acknowledged his contribution with a round of applause. Public Hearing, FIRST READING on Ordinance No. -R ^ Ad ting a Franchise Agreement with Reliant Energy Minnegasco (continued from S. pteber 2000, 3/5 Vote Required), Linda Waite Smith — Mayor Bergeson noted the att bert Swintek, representing Reliant Energy Minnegasco. Staff explained the City of Lino Lakes is ga•�� --�� ome Rule Charter and Chapter 8 of that • Charter states that property taxes, whicity s main source of revenue, cannot be used for local p im rovements such as road reconsesreferendum is held and voters agree to fund the projects. For several years, the Ch sion has urged the Council to identify revenue sources other than property tax r. s nstruction of local roads. One potential source of revenue is franchise fees imposed on utip =s that do business in the City. Staff reviewed the State Statutes that provide for u s osm fee and advised of the utility providers in Lino Lakes. • It was noted that the City's anc= 'se agreement with Minnegasco, now known as Reliant Energy Minnegasco, expired severears ago. In 1999, the City Council directed staff to work towards making all the City's franchise agreements more consistent in terms and effective dates. Staff advised of the factors considered to determine how the fee should be established and recommendation for a flat fee for similar customer classes. Staff advised that flyers were sent out but it was learned that the flyer was not clear and caused some confusion that the City was suggesting a percentage fee. Staff explained meter fees in the proposed amounts would raise between $60,000 to $65,000 and the Council has specified that any revenue raised from the franchise will be dedicated to road reconstruction. Several callers asked if this is in conflict with the City Charter. However, both the City Attorney and Charter Chair said it is not a conflict. Staff advised that several callers also expressed concern that a franchise fee is another type of tax. It was noted that the Council is aware of that opinion and has made every attempt to make sure those who will pay the fee have had the ability to provide input. Flyers were sent out, a comment 2