Agenda Packets - 1999/12/13 - Laserfiche WebLink

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Mounds View City Council November 22, 1999 Regular Meeting Page 6 Quick/Thomason. To Continue the Public Hearing, and to Direct Staff to Prepare Notice to the Applicant that at the Next Public Hearing, it Will Be the Intent of the City to Deny the Application, Based Upon the Lack of Information Provided. Council Member Marty inquired if the motion was simply to direct staff to notify the applicant. Mayor Coughlin stated this was correct. City Administrator Whiting stated staff would attempt to schedule this item for consideration at the December 13, 1999 City Council Meeting. Ayes—5 Nays—0 Motion carried. B. Consideration of NSP Request to Modify Method Used to Calculate the Franchise Fee on Electric and Natural Gas Sales in the City of Mounds View. City Administrator Whiting stated after the recent action the City has taken with regard to the franchise fee, Northern States Power Company approached staff and suggested changing the method of determining the collection of the franchise fee. He indicated that Northern States Power is proposing they utilize a meter based charged, rather than a usage based charge. City Administrator Whiting advised there is some good logic for considering this proposal, in that the industry is facing de-regulation, and Northern States Power Company could actually find themselves in the position of being the transporter, rather than the seller of electric and natural gas. He explained this would mean that the company's businesses throughout the nation would be able to purchase wholesale, and gas and electricity would be transported over the system to businesses within the community. He pointed out that if the system collects the fees based upon usage, and the electricity or gas is being sold somewhere else, there could be some difficulties in calculating and collecting the fees. City Administrator Whiting stated he, Mayor Coughlin, and Finance Director Kessel met with John Theis and Senior Attorney, Harold Bagley of Northern States Power Company to discuss the pros and cons of this proposal. He indicated the City would require time to review how the cost would actually be divided amongst the users in the community, if it is collected on a per meter basis. He explained that there is some concern there might be a tendency to shift more toward the homeowners, and away from the businesses, based upon the future concerns of Northern States Power Company. City Administrator Whiting advised some of these concerns highly effect the largest users in the community, and it is necessary to have an understanding of their concerns, in addition to those of the residents. He stated staff suggests that rather than attempt to act upon the issue at this time, the members of the Chamber of Commerce and the business community meet with staff during the first half of 2000, prior to the budget, and attempt to determine the specifics regarding the City's consumption. He pointed out that the current franchise ordinance will expire at the end of 2000, and the debate of this issue will continue again in the summer. He advised that at this time, more information is necessary, and staff does not recommend any change to the Council's commitment to the year 2000. Mayor Coughlin inquired if staff's recommendation was to continue the discussion of this issue at some point during the first half of 2000. City Administrator Whiting stated this was correct.