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City Council Regular Meeting Minutes 05 June 24, 2003 Page 4 1 been used in other cities and was derived from a model prepared by the League of Minnesota 2 Cities with certain modifications. The franchise ordinance gave CenterPoint Energy Minnegasco 3 a nonexclusive right to use public grounds to distribute gas to customers within the City. 4 5 Mr. Gilligan added that the franchise ordinance did not impose a franchise fee; however, it did 6 give the City Council the ability to impose said fee in the future should it choose to do so. He 7 added that, if the City chose to impose the franchise fee, like fees would need to be charged to 8 any other energy providers in the City to make the "playing field" level. 9 10 Motion by Councilmember Faust to approve First Reading of Ordinance 2003-008 re: 11 CenterPoint Energy Minnegasco franchise renewal. 12 13 Discussion: 14 Mayor Hodson asked if most Cities put together a franchise fee and, if so, by what process was 15 the fee determined. 16 17 Connie Hargest, Senior Specialist in Local Government Relations at CenterPoint Energy, came 18 forward to address the Council. She stated that many of the cities in the first-ring suburbs were 19 looking at franchise fees. She added that the franchise fees were an option for cities under State 20 statute. Ms. Hargest stated that she would appreciate if the City would work with CenterPoint 21 Energy if they decided to pursue a franchise fee, as CenterPoint Energy had experience in this 22 area. 23 24 Councilmember Faust commented that he did not know that the City was planning to implement 25 the franchise fee. At this point, the goal was to clean up some of the ordinances. 26 27 Councilmember Horst suggested discussing this issue at a future work session. 28 29 Ms. Hargest noted that the franchise agreement was a 20-year working agreement that allowed 30 CenterPoint Energy to operate within the City. 31 32 Motion carried unanimously. 33 34 D. Consider Resolution 03-044, re: Approve application for a grant through Livable 35 Communities. 36 City Manager Morrison indicated that the Metropolitan Council Livable Communities 37 Demonstration Account was designed to fund a variety of community development projects 38 through loans or grants that linked development and redevelopment with transit, linked 39 affordable housing with employment growth areas, intensified land use that led to more compact 40 development/redevelopment, encouraged public infrastructure that connected urban and 41 suburban communities, attracted sector investment or provided employment opportunities for 42 residents. 43 44 Mr. Morrison added that, for the 2003 funding round, staff wished to submit an application for an 45 $850,000 implementation grant that would be utilized for development of a central park with 46 lighting, kiosks, benches, etc., as well as improvements to the storm water and infiltration ponds. 47 If awarded funds, the City would be able to assure that the public park would be developed as