06/05/2002 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION JUNE 5, 2002 Mr. Keineth stated the current franchise fee goes from 3% to 7% on the gross for commercial and residential use. Mayor Bergeson stated the City did put a cap on the franchise fee when the gas prices increased. Mr. Keineth reviewed the Lino Lakes Gas Franchise Data relating to franchise fees and the cost of gas. Councilmember Carlson stated she would like to have legal advice before a decision can be made. She noted the agreement is a legal agreement between the two entities for 25 years and the Council only has two documents to rely on for information. She expressed concern because the issue only seems to be the franchise fee and does not include other parts of the agreement. The City did give up all rights for e ent domain and the right of first refusal as part of the agreement. Mayor Bergeson stated that one of the decisions the Co R h make is if the City should be charging anyone a franchise fee. He stated he ie £- s there should be a franchise fee because there is a cost to the City to have ut here. If the Council determines there should be a franchise fee there . _• - questions such as how to charge and if the charges should be the same for all pr. ' • ers e City looks at equality in terms of the users. He added he does not beli e ity should take action that makes one provider pay more than another provid Mr. Vern Reinert, Centennial Utilities create a source of revenue for the Ci source would be carried on to oth to obtaining a franchise agreem agreement was that certain areas intent of the original agreement was to greement also intended that the revenue s. He stated the Commission was very close gasco in 1995. The other intent of the be set aside for certain providers. Mayor Bergeson asked if ' e e ; al would like to discuss the territory piece of this issue. Mr. Keineth stated time has ited the opportunities to grow in Lino Lakes. Therefore, the territory piece is not an issue at this time. Councilmember Carlson stated that Centennial Utilities purchased some rights when they entered into the agreement. Perhaps that is not important to them at this time. She referred to the Option to Terminate in the agreement and stated the City gave up the right to amend the agreement without terminating it. She read from the agreement the section relating to eminent domain and right of refusal. She stated there is not a level playing field and she needs legal counsel to make a decision. Mr. Keineth stated amendments could be made without terminating the agreement. 2