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14 <br /> MEMORANDUM <br /> TO: Mayor and Members of the City Council <br /> Michael Mornson, City Manager <br /> FROM: Jerome P. Gilligan <br /> DATE: June 18, 2003 <br /> RE: CenterPoint Energy Minnegasco Franchise <br /> Renewal Ordinance <br /> CenterPoint Energy Minnegasco has been working throughout the metro area over the <br /> past 12-18 months renewing their franchise agreements with cities. The existing franchise with <br /> St. Anthony will expire in the near future. The attached form of franchise ordinance has been <br /> used in other cities and is derived from a model prepared by the League of Minnesota Cities with <br /> certain modifications. The franchise ordinance gives CenterPoint Energy Minnegasco a <br /> nonexclusive right to use public grounds to distribute gas to customers within the City. <br /> The proposed franchise ordinance differs from the prior franchise since it does not <br /> specify policies and procedures related to the location of facilities in the City's streets and rights- <br /> of-way. Instead the proposed franchise ordinance incorporates the City's Right-of-Way . <br /> Management Ordinance (Section 1165 of the City Code), with respect to the location of facilities <br /> in the City's public grounds. <br /> Under the proposed franchise ordinance the City has the right to adopt a franchise fee by <br /> a separate ordinance. The franchise fee must be imposed on a same or greater equivalent amount <br /> on all other energy providers in the City that the City has a right to impose such a fee.or tax. The <br /> fee may be calculated on the basis of a percentage of gross revenues received from customers, a <br /> flat meter based fee or a combination thereof. <br /> The adoption of the franchise ordinance does not impose a franchise fee but gives the <br /> City Council the ability to do so in the future should it wish to do so. <br /> DORSEY & WHITNEY LLP <br />