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Agenda Section: 9.n <br /> cams REQUEST FOR COUNCIL CONSIDERATION Report Number: 92-335C <br /> Report Date: <br /> Council Action: 7-93-9 <br /> 1111, <br /> STAFF REPORT <br /> E Special Order of Business <br /> CITY COUNCIL MEETING DATE July 27, 1992 ❑ Public Hearings <br /> ❑ Consent Agenda <br /> MI Council Business <br /> Item Description: Consideration of Setting a Public Hearing for 7:05 p.m. , August 24, 1992 to <br /> Consider an Ordinance Approving an Electrical Energy Franchise Agreement with Northern <br /> States Power (NSP) <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> —Explanation/Summary (attach supplement sheets as necessary.) <br /> SI LMMARI% <br /> This staff report will address the Council Business Item 9.D. and also <br /> Council Business Item 9.E. <br /> Last fall, the City Council held a public hearing and considered an <br /> ordinance which would establish a franchise fee of up to 4% on Northern <br /> States Power's gross operating gas and electric revenues as permitted <br /> under the Franchise Agreement with NSP. <br /> The provisions of the franchise allowed for payment of franchise fees no <br /> later than April 1 of each year, with the fees based upon the gross <br /> operating revenues for the preceding calendar year. The result of this <br /> provision enabled NSP to collect and retain the fee for a full year <br /> (based on a late Fall passage) , before paying the City. This provision <br /> was a major issue of concern of residents who attended the public <br /> hearing and members of the Council. <br /> The ordinance failed due to a 3-2 vote. <br /> Since that time, Council has directed staff to pursue a new franchise <br /> agreement with NSP which would provide for monthly payments of the <br /> franchise fees. <br /> All new franchise fee agreements for gas and electrical energy have been <br /> negotiated and provide for the desired payment schedule. <br /> As per City Charter, separate public hearings must be held on both new <br /> franchise agreements and the implementation of franchise fees on gas <br /> and electric operating revenues as • • ided by the agreements. <br /> a Orduno, C !Administrator <br /> a' <br /> JtECOMMENDATION; <br /> Motion to set a public hearing for 7: 05 p.m. on August 24, 1992 to <br /> consider an ordinance approving an electrical energy franchise agreement <br /> with Northern States Power (NSP) . <br />