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CITY COUNCIL WORK SESSION May 5, 2008 APPROVED •89 have a legal organization (in the past the event was officially sponsored by the Lino Lakes 90 Jaycees) and that makes it difficult to designate an authority to expend the funds. Ms. Lynn 91 Bergman of the Ambassador's Program is a possible designee. The staff report outlines what the 92 fees could be used for but an official designation is still needed. 93 The council requested that the group submit a budget and they will then consider a resolution 94 officially designating a certain person to expend the funds. 95 96 Xcel Energy Franchise Agreement — Administrator Heitke noted the council's previous 97 direction that staff report on how the city could incorporate franchise fees into a renewal contract 98 with Xcel Energy as well as with other utilities serving the city. Assistance was received from 99 Mr. James Strommen, an attorney specializing in utility franchise agreements and negotiations, 100 who recommends that the city adopt a right-of-way ordinance that would provide overall 101 regulations regarding the public right-of-way. He is also recommending that the city institute a 102 uniform franchise agreement for all the utilities with a common rate design. 103 Mr. Heitke also noted that the city of Circle Pines is undergoing a similar process at this time and 104 the attorney is suggesting that it may make some sense to bring forward a coordinated 105 agreement. Administrator Heitke explained that he isn't recommending that but wanted to 106 understand how the council would like to proceed. The real issue is that the city is incurring 107 costs but has no cost recovery. The current situation is that only those residents receiving 108 services through Centennial Utility pay an extra 7 percent but it benefits others. 0109 Public Services Director DeGardner reported that the city does attempt to charge for public 110 property repairs when damage is done by utility contractors; however, there have been occasions 111 when the city cannot make a connection with who caused the damage. A right-of-way ordinance 112 would put in a place a defined system for contractor work so the city can recoup costs. Lino 113 Lakes is one of the few cities in the area that has not instituted right-of-way regulations. 114 A council member noted that the right-of-way regulations would seem to just represent a pass 115 through because the citizens pay one way or another. How would this reflect on customer bills? 116 Staff responded that this is typically related to new service areas and it would be difficult to 117 quantify on a bill. 118 The council concurred that the right of way matter should remain separate from the franchise fee 119 question. 120 Administrator Heitke noted that he has received direction from the council to include franchise 121 fee language in the Xcel Energy agreement that is currently being drafted. 122 The right of way ordinance will be brought to the next work session. 123 124 Lino Lakes Lions Club Sign Donation - Neal Benjamin, Lino Lakes Lions Club, reported that 125 the Lions are interested in donating funds to the city for a community based reader board sign. 126 They have done some initial research on size and costs, etc. as a starting point. They are 127 interested in partnering with the city in planning something, but it is not their goal to dictate the 128 process. They believe that two signs would best serve the community based on geography and W29 the desire to get the word out all over.