07/07/2008 Council Minutes - Laserfiche WebLink

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• • • CITY COUNCIL WORK SESSION -4- July 7, 2008 APPROVED 139 7. Xcel Utility Franchise Agreement — Administrator Heitke recalled that the 140 council reviewed a draft franchise agreement with Xcel Energy at the last work session. In 141 response to concerns about limiting language in the proposed ordinance, the consulting 142 attorney has provided a memorandum that explains that there are legally no limitations but 143 the fees must be reasonable (not yet determined by courts). Additionally there is no law 144 that requires fees on any or all utilities. The proposed ordinance reflects the removal of 145 limitations and would leave the city ready to negotiate with Xcel Energy. In response to 146 discussion about how many cities are instituting the fees, Mr. Heitke suggested that the 147 trend is certainly to add the fees as cities are revisiting these generally old franchise 148 agreements. The providers prefer a flat meter fee with tiers for business/commercial use. 149 150 The council discussed the impact of fees on consumers as well as the option of putting 151 language into an agreement so there is an option of implementing in the future. The 152 council agreed to an agreement with a seven percent franchise fee cap on gross revenues 153 (matching Centennial Utilities) and to change the term of the agreement from twenty to ten 154 years. Further the council would like some legal advice on whether and how they could 155 include a freeze on implementation. 156 157 8. Goals and Objectives Quarterly Update — Administrator Heitke and the 158 department directors reviewed the report and update on goals. 159 160 9. Amending Park Dedication Fees — Public Services Director DeGardner reported that 161 staff has reviewed the current park dedication fee and, based on updated assumptions and 162 data presented in the staff report, is recommending that it be increased from $2,075 163 to$2,500 per unit. Staff may wait until January to make the necessary amendment to the 164 Fee Schedule but wanted to get a council direction. The city attorney recommended 165 against writing in an allowance for future inflationary increases; it's something that should 166 be considered when you can link the fees to actual values. The last increase occurred in 167 2004. 168 169 The council concurred with the proposed process to increase the fees. 170 171 10. Process for Cancellation of Regular Council meetings and Council Work 172 Sessions (requested by Bergeson and Reinert) - The Mayor recently took the authority 173 to cancel a pre -council work session and that authority was questioned by a council 174 member. The question of that authority was brought to the League of Minnesota Cities 175 who suggested that it is an internal question that the council itself should decide. 176 177 The council concurred that the question of cancelling a meeting should be posed to the 178 whole council and majority rules. 179 11. Regular Council Meeting Agenda of July 7 — There were no changes to the regular 180 agenda. 181