According to a letter from Alliant Energy, they will not accept the terms for a franchise agreement as most recently submitted by Mason City.
The letter, dated September 8th, states “during the September 1, 2011 city council work session, the Mason City council suggested it might pass a franchise agreement regardless of approval from Alliant Energy.”
Alliant then “reminds” the council that it “will not accept a franchise agreement including the terms as you most recently provided to our company.”
The letter claims that there are “only a few items remain to be solved.”
The letter then hints that without an agreement, the city will be on the hook for a big payment to Alliant.
“As we’ve mentioned previously, a bill for more than $500,000 is coming due October 1, 2011 to the city.”
The bill is for relocating power lines and other facilities since March 1, 2011.
“We don’t want the burden of thse costs to fall to Mason City taxpayers, that;s why finalizing a mutually acceptable franchise is so critical,” the letter states.
At the council work session held on September 1st, Council member Scott Tornquist was not impressed with Alliant’s latest proposal to the City, pointing out that Alliant seems to keep bringing back the same old agreement, and crossing out all the changes the City is asking for.
Council member Jeff Marsters noted, “we like our agreement we have drafted” and the Council was prepared to vote on that agreement and then present it to Alliant for them to accept or turn down. Max Weaver noted that for years, the City has been waiting for the chance to re-negotiate a deal with Alliant, as far back as the mid 1990’s.
Watch video of the September 1st, 2011 city council work session, with Alliant representatives in attendance: