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City Attorney Long stated the ordinance contained in the meeting packet was presented by <br />Reliant Energy Minnegasco but tonight he has distributed an ordinance his firm prepared for <br />Council consideration based on the standard LMC format. He stated this is called an ordinance <br />but a franchise agreement must be agreed on by both parties. <br />City Attorney Long explained that over a year ago an existing customer of Minnegasco opened a <br />business in Mounds View and asked if Minnegasco could continue providing service. At that <br />time, staff began to prepare a franchise agreement but, since there was a lot of discussion about a <br />model ordinance, it was placed on hold. However, the City did allow Minnegasco to extend a <br />line to that one customer so Minnegasco has been operating in Mounds View (for that one <br />business) for some time. Staff recommends the City consider a franchise ordinance that <br />incorporates the newest provisions including a franchise fee at the same level as NSP. <br />Council Member Marty asked if Minnegasco is running their own lines in or using NSP lines <br />with a Minnegasco meter. <br />Peter Melander, representing Reliant Energy Minnegasco, explained that Zeff Manufacturing is <br />being serviced by their own line and they are now working on an account that would require a <br />new line. He stated Minnegasco could handle that under the permitting process but needs the <br />franchise agreement to address the Zeff Manufacturing account and any new accounts would be <br />handled individually. <br />Council Member Marty stated this is first reading so the technical issues do not need to be <br />addressed tonight and can be discussed during the work session. <br />City Attorney Long stated the meeting agenda tonight should have included an item on the LMC <br />prepared model right-of-way ordinance dealing with digging in public rights-of-way for utilities. <br />He stated it might not be a bad idea to think about the right-of-way ordinance so it is in place for <br />any utility company that wants to dig lines in those areas. City Attorney Long suggested that <br />issue also be discussed at the workshop meeting. <br />MOTION/SECOND: Quick/Marty. To waive the reading and approve first reading of Ordinance <br />625, an Ordinance Granting to Reliant Energy Minnegasco, a Natural Gas Utility, a Division of <br />Reliant Resources Corporation, a Delaware Corporation, its Successors and Assigns, a <br />Nonexclusive Franchise to Construct, Operate, Repair and Maintain Facilities and Equipment for <br />the Transportation, Distribution, Manufacture and Sale of Gas Energy for Public and Private Use <br />and to Use Public Ways and Public Grounds of the City for Such Purposes and Prescribing <br />Certain Terms and Conditions Thereof. <br />Ayes - 4. Nays - 0 Motion carried. <br />B. YMCA Agreement <br />C:\ADMIN\MINUTES\CC\CC052499.MIN <br />