Minutes - Council - 06/24/2003 - Laserfiche WebLink

Home

CouncilmeffiberlCook noted that within a few months they would have a development agreement for the Towr~ Ceta. ter that identifies what will be included on the site. Mr. Uecker ~tat ~e,d that people lose their jobs in this economy so to have an attitude that a City employee cag't l.~se their job was not right. Mr. Parry inquired as to what the utility companies will be making off the franchise fee. Finance OffiCer ,Lurid explained that the utility companies do not receive an administration fee for collectin§th~ franchise fee. The City receives the entire 4.5 percent. Mr. Hendri~sen; CenterPoint Energy, Minnegasco, explained that the original franchise agreement wlth the City of Ramsey was done in 1984, and it was outdated and it was due to expire in 20~9. i When they talked to the City, they stated that they would entertain a new franchise, which iis what was addressed in the previous case. The franchise agreement permits the City to c~arg~ a franchise fee according to State Statute and then they are required to pass that onto the user~, which is then given back directly to the City. Eric Zaetch, !54th Avenue NW, Ramsey, stated that the City's consultants can go as a way to cut the budget stroh ~ The Tinklenberg Group and the McCombs Group. In addition, the City is talking about[3 ~illion dollars for a private development, and questioned why. He stated that the City should tull ~e Town Center developers to pay for their own roads. The City of Andover was faced wilh tlte same question and they had the courage to say no. The City should not add the franchise fees: Jim Gromberg, C. onnexus Energy, stated that franchise fees are a pass through for them to the customers and it Will appear as a line item on their bill. It is a decision that has to be made by the City. Finance Offi~[er Lund inquired as to how many cities have contacted them regarding franchise fee. Mr. Grornber~ explained that they have been contacted by the cities of Andover, Anoka, Ramsey, and Champlin!. Councilmemb~r Cook inquired as to how many cities had contacted CenterPoint Energy. Mr. Hendriks~n explained that they currently have six cities out of their 200 franchise cities that charge a franchis{ fee, but they have had 37 cities that have recently requested information since the State redu{ed local government aid. Mr. Enstrom ~tat~ that the City needs money and the City feels there is no more ways to make cuts, but one bf the ways the City could have saved money was to not spend time on putting together ~nformat~0n regarding franchise fees. City Council/June 24, 2003 Page 14 of 37