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CITY COUNCIL <br />�.. AGENDA ITEM 3B <br />STAFF ORIGINATOR: Jeff Karlson <br />MEETING DATE: February 25, 2013 <br />TOPIC: Consider 2nd Reading of Ordinance No. 06-12, Granting a <br />Nonexclusive Gas Franchise to CenterPoint Energy <br />VOTE REQIURED: 3/5 <br />INTRODUCTION <br />The City Council is being asked to consider the adoption of Ordinance No. 06-12, granting a <br />nonexclusive gas franchise to CenterPoint Energy for a 20 -year period. The first reading of the <br />ordinance was approved on February 11, 2013. <br />BACKGROUND <br />The City's 25 -year franchise agreement with CenterPoint Energy expired on the same day as <br />Circle Pines/Centennial Utilities, which was March 31, 2012. The City was able to reach a <br />settlement with Centennial Utilities last October, which included a four percent franchise fee. <br />The gas franchise with CenterPoint is nearly identical to Centennial Utilities' except that <br />CenterPoint customers in Lino Lakes will not be charged a franchise fee; however, the City <br />Council reserves the right to impose a franchise fee with the condition that similar fees are <br />charged to other gas utilities. The only other gas utility operating in Lino Lakes is Xcel Energy. <br />RECOMMENDATION <br />Staff is recommending: adoption of the 2nd reading of Ordinance No. 06-12, granting a <br />nonexclusive franchise to CenterPoint Energy; and (2) adoption of Resolution No. 13-19, <br />approving a summary of Ordinance No. 06-12 for publication. <br />ATTACHM ENTS <br />Ordinance No. 06-12 <br />Resolution No. 13-19 <br />