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Agenda Section: 7 . — 2) <br /> lir <br /> OUND REQUEST FOR COUNCIL CONSIDERATION STAFF REPORT Report Number: 91-1 1 0 <br /> Report Date: 1 1 —(l 7-91 <br /> El <br /> Council Action: <br /> ❑ Special Order of Business <br /> CITY COUNCIL MEETING DATE November 12 , 1991 III Public Hearings <br /> ❑ Consent Agenda <br /> ik Council Business <br /> Item Description: Ordinance No. 498 Implementing A Franchise r'ee on <br /> Gas and Electric Utilities <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> Explanation/Summary (attach supplement sheets as necessary.) <br /> SUMMARY: <br /> Minnesota Statute 2168.36 provides that a municipality may require that a <br /> utility pay to the municipality fees to raise revenues or defray increased <br /> municipal costs accruing as a result of utility operations . The Franchise <br /> Agreement between Northern States Power and the City provides for the City <br /> to impose, at any time, during the term of the Franchise, a franchise fee <br /> of no more than 4% of annual gross revenues . <br /> Chapters 75 and 76 of the Mounds View Municipal Code and the Franchise <br /> Agreement, require the City to implement franchise fees by ordinance. <br /> The attached ordinances have been prepared which propose implementation of <br /> a franchise fee on gas, electric, or gas and electric utilities . The <br /> estimated revenue (based on 1990 Northern States Power gross revenues) of <br /> the three options and possible fee percentages are detailed below: <br /> REVENUE FROM PROPOSED PERCENTAGES <br /> ELECTRIC <br /> In 1990, NSP's gross operating revenues were $4,290,000 for ELECTRIC. <br /> BaRPd nn this figure, the City of Mounds View_could generate the foil• ' i • <br /> approximate amount of revenue: <br /> . at 4%, $171,600 <br /> . at 3%, $128,700 <br /> . at 2%, $ 85,800 <br /> . at 1%, $ 42,900 <br /> Samantha Orduno, City Administrator <br /> RECOMMENDATION; <br /> Waive the reading and approve the first reading of Ordinance No. 498 <br /> Implementing A Franchise Fee on Gas and Electric Utilities <br />