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City Council Regular Meeting Minutes June 24, 2003 Page 4 1 C. Consider Ordinance 2003-008, re: CenterPoint Energy Minnegasco franchise renewal Cl! 2 reading). 3 Mr. Gilligan indicated that CenterPoint Energy Minnegasco had been working throughout the 4 metro area over the past 12 to 18 months renewing their franchise agreements with cities. The 5 existing franchise with St. Anthony would expire in the near future. The proposed ordinance had 6 been used in other cities and was derived from a model prepared by the League of Minnesota 7 Cities with certain modifications. The franchise ordinance gave CenterPoint Energy 8 Minnegasco a nonexclusive right to use public grounds to distribute gas to customers within the 9 City. 10 11 Mr. Gilligan added that the franchise ordinance did not impose a franchise fee; however, it did 12 give the City Council the ability to impose said fee in the future should it choose to do so. He 13 added that, if the City chose to impose the franchise fee, like fees would need to be charged to 14 any other energy providers in the City to make the "playing field" level. 15 16 Motion by Councilmember Faust to approve First Reading of Ordinance 2003-008 re: 17 CenterPoint Energy Minnegasco franchise renewal. 18 19 Discussion: 20 Mayor Hodson asked if most Cities put together a franchise fee and, if so, by what process was 21 the fee determined. 22 23 Connie Hargest, Senior Specialist in Local Government Relations at CenterPoint Energy, came 24 forward to address the Council. She stated that many of the cities in the first-ring suburbs were 25 looking at franchise fees. She added that the franchise fees were an option for cities under State 26 statute. Ms. Hargest stated that she would appreciate if the City would work with CenterPoint 27 Energy if they decided to pursue a franchise fee, as CenterPoint Energy had experience in this 28 area. 29 30 Councilmember Faust commented that he did not know that the City was planning to implement 31 the franchise fee. At this point, the goal was to clean up some of the ordinances. 32 33 Councilmember Horst suggested discussing this issue at a future work session. 34 35 Ms. Hargest noted that the franchise agreement was a 20-year working agreement that allowed 36 CenterPoint Energy to operate within the City. 37 38 Motion carried unanimously. 39 40 D. Consider Resolution 03-044, re: Approve application for a grant through Livable 41 Communities. 42 City Manager Mornson indicated that the Metropolitan Council Livable Communities 43 Demonstration Account was designed to fund a variety of community development projects 44 through loans or grants that linked development and redevelopment with transit, linked 45 affordable housing with employment growth areas, intensified land use that led to more compact 46 development/redevelopment, encouraged public infrastructure that connected urban and