Laserfiche WebLink
Couneilmember Cook noted that within a few months they would have a development agreement <br />for the Town Center that identifies what will be included on the site. <br /> <br />Mr. Uecker stated that people lose their jobs in this economy so to have an attitude that a City <br />employee can't lose their job was not right. <br /> <br />Mr. Parry inquired as to what the utility companies will be making off the franchise fee. <br /> <br />Finance Officer Lund explained that the utility companies do not receive an administration fee <br />for collecting the franchise fee. The City receives the entire 4.5 percent. <br /> <br />Mr. Hendriksen, CenterPoint Energy, Minnegasco, explained that the original franchise <br />agreement with the City of Ramsey was done in 1984, and it was outdated and it was due to <br />expire in 2009. When they talked to the City, they stated that they would entertain a new <br />fi'anchise, which is what was addressed in the previous case. The franchise agreement permits <br />the City to charge a franchise fee according to State Statute and then they are required to pass that <br />onto the users, which is then given back directly to the City. <br /> <br />Eric Zaetch, 154th Avenue NW, Ramsey, stated that the City's consultants can go as a way to cut <br />the budget such as The Tinklenberg Group and the McCombs Group. In addition, the City is <br />talking about 3 million dollars for a private development, and questioned why. He stated that the <br />City should tell the Town Center developers to pay for their own roads. The City of Andover <br />was faced with the same question and they had the courage to say no. The City should not add <br />the franchise fees. <br /> <br />Jim Gromberg, Connexus Energy, stated that franchise fees are a pass through for them to the <br />customers and it will appear as a line item on their bill. It is a decision that has to be made by the <br />City. <br /> <br />Finance Officer Lund inquired as to how many cities have contacted them regarding franchise <br />fee. <br /> <br />Mr. Gromberg explained that they have been contacted by the cities ofAndover, Anoka, Ramsey, <br />and Champlin. <br /> <br />Councilmember Cook inquired as to how many cities had contacted CenterPoint Energy. <br /> <br />Mr. Hendriksen explained that they currently have six cities out of their 200 franchise cities that <br />charge a franchise fee, but they have had 37 cities that have recently requested information since <br />the State reduced local government aid. <br /> <br />Mr. Enstrom stated that the City needs money and the City feels there is no more ways to make <br />cuts, but one of the ways the City could have saved money was to not spend time on putting <br />together information regarding franchise fees. <br /> <br />City Council/June 24, 2003 <br />Page 14 of 37 <br /> <br /> <br />