Agenda - Council - 07/22/2003 - Laserfiche WebLink

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ADOPT ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY, MINNEGASCO AND ADOPT ORDINANCE IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON CONNEXUS ENERGY AND CITY OF ANOKA ELECTRIC By: Diana Lund, Finance Officer Background: The attached Ordinances were presented to Council for review and discussion at its regular meeting of May 27, 2003, with a public hearing on June 24, .2003, and brought back for introduction of the Ordinance at the July 8, 2003 City Council meeting. Before a ~ancl'fise fee can be implemented, the respective utility comparfies require 60 days to enter necessary customer data and testing. This time period will bring the City to the recommended start date of fourth quarter 2003. At the date of this case, I have received approximately 15 phone calls relating to the post cards mailed out by the North Metro Chamber of Commerce regarding the franchise fees. A few of these phone calls were okay with the franchise fee once it was presented to. them about how a freeze on property tax levies works and that there was a three-year sunset period and 6-month reviewal period written into the Ordinances. The remainder of the calls, which included about four businesses, were adamantly against the proposed franchise fee. The City of Rarnsey is proposing a franchise fee of 4.5% of gross revenues on all users. Recommendation: Staff recommends adoption of these ordinances. Council Action: Motion to adopt Ordinance #03- and Ordinance #03- establishing franchise fees on gas and electric utilities at the rate of 4.5% of total revenues. Reviewed by: City Administrator 07-22-03 -101-