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$123,000). At this point, it is the staff expectation that the City participation in the sealcoating program in amounts greater than the current 50% should be phased in over a period of a few years. The City could levy a franchise fee for rent and maintenance of our rights-of-ways to the benefit of utility companies against the entire Ramsey customer base. However, if the revenues are, in fact, dedicated to the sealcoating program the commercial customer effectively will be subsidizing the residential program with minimal benefit (similar to a general tax levy). Therefore, the recommendation is that the fee be levied against the customer base which is the primary beneficiary of the maintenance expense experienced by the City. Regardless of the dedication of revenues (to sealcoating or some other purpose) the City should levy a charge against the utilities. As Council is aware, protection of municipal rights-of-way has become a major concern of the League of Cities and its statewide and national members. It is not prudent to provide the benefit of use of property to the utilities free of charge. The 5% charge against cable television revenues recognizes the huge benefit that industry has received by cities providing property for their infrastructure. The energy utilities are receiving the same benefits but, to date, have avoided a contribution toward this benefit within the City of Ramsey. Committee Action: Motion to recommend Council introduce Ordinance 96- Franchise Fees. Establishing Electric and Gas Reviewed by: City Administrator Finance Officer City Engineer FC: 10/22/96 /jmt