Agenda - Charter Commission - 10/21/2013

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TO: Ramsey Charter Commission MEMORANDUM FROM: Joseph J. Langel, City Attorney Bruce Westby, City Engineer DATE: October 16, 2013 RE: Franchise Fees The City Council held a public hearing on October 8, 2013, to obtain public comments on proposed franchise fees. On October 10th, Chairman Field submitted a memorandum to City staff requesting information on a number of issues related to those fees. This memorandum is staff's response to Chairman Field's requests, which are set forth below in bold. 1. Minnesota statutory authority for franchise fees complete with dates of enactment and copies of same. Minnesota Statutes section 216B.36 authorizes the adoption of franchise fees. The full statute is attached, but the relevant language is as follows: Under the... franchise, the utility may be obligated by any municipality to pay to the municipality fees to raise revenue or defray increased municipal costs accruing as a result of utility operations, or both. The fee may include but is not limited to a sum of money based upon gross operating revenues or gross earnings from its operations in the municipality... This statute was enacted in 1974 and was amended four times after that, most recently in 1991. 2. A synopsis of present City Charter provisions perceived to pertain to franchise fees. Chapter 10 of the Charter regulates the use of franchises. Within that Chapter, only section 10.4 directly relates to franchise fees. That section contains the following language: Subject to any applicable state statutes, the council may by ordinance reasonably regulate and control the exercise of any franchise, including the maximum rates, fares, or prices to be charged by the grantee.