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MI:MORANDUM <br /> <br />Item # 5.1. <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Pat Klaers, City Administrator <br /> <br />DATE: <br /> <br />February 24, 2003 <br /> <br />SUBJECT: Gas Franchise Renewal Ordinance <br /> <br />The city has had a non-exclusive gas franchise agreement in place since 1953. Recendy, the <br />name of the gas company changed from Minnegasco to Reliant Energy to CenterPoint <br />Energy. The f~rst two agreements were for 25 years each. This proposed franchise renewal <br />ordinance is for 20 years. While the franchise agreement is non-exclusive, it should be noted <br />that the City Council did hear a request from NSP in 1998 to offer gas services within the <br />city limits and this request was denied. <br /> <br />The city has been working with Arne Hendrickson, Program Manager for Local <br />Government and Economic Development, on this franchise renewal. Arne has been <br />excellent to work with. <br /> <br />This gas franchise renewal has been discussed a few times by the City Council over the past <br />eight months. Most of the conversation regarding the franchise renewal had to do with a <br />possible franchise fee rather than any issues related to the actual renewal of the franchise <br />agreement. As you may recall, the City Council decided to not initiate a franchise fee; <br />although it should be noted that due to recent budget concerns, the gas company has had <br />numerous inquiries from municipalities regarding the franchise fee issue. <br /> <br />The draft ordinance that is before the City Council is a combination of two model gas <br />ordinances (a short version and a long version), as recommended by the League of <br />Minnesota Cities. The short form is the most accepted version and has been adopted in a <br />number of communities within the last six months. Director of Planning Michele <br />McPherson and Prosecuting Attorney Chris Johnson reviewed both the long and short <br />models and felt it was best to combine some language from both in order to meet all of our <br />particular needs. The attached draft ordinance is a product of their work. The city has also <br />adopted the League model right of way ordinance (with a few minor changes) and there are a <br />number of references in this gas franchise ordinance to the right of way ordinance. All of the <br />language in both ordinances is compatible. In the future, it will be much easier to change the <br /> <br /> <br />