Laserfiche WebLink
Agenda Section: VIII -1 <br />CITY OF NEW BRIGHTON Report Number: Q2-263 <br />REQUEST FOR COUNCIL CONSIDERATION Report Date: Nov. 26, 2002 <br />ITEM DESCRIPTION: <br />GAS AND ELECTRIC FRANCHISE ORDINANCES <br />DEPT. HEAD'S APPROVAL: <br />MANAGER'S REVIEW/RECOMM <br />No comments to supplement this <br />EXPLANATION: <br />Comments attached <br />The purpose of this item is to recommend Council approval of the attached Gas and Electric Franchise <br />Ordinances and Ordinances Establishing Franchise Fees with Xcel Energy. We have been working with <br />Xcel Energy for the past several months on the franchise agreements and fee ordinances. Jim <br />Strommen with Kennedy and Graven, the City's legal counsel on this matter, will be at the November 26, <br />2002, council meeting to answer any questions Council may have. <br />The gas and electric franchise ordinances grant Xcel Energy permission to construct, operate, repair <br />and maintain a gas and electric distribution utility in the public ways and public grounds of the City of <br />New Brighton. The term of the franchise ordinances is 20 years. Xcel Energy is the sole provider of <br />natural gas and electricity in the City of New Brighton. Their gas and electric utility systems occupy an <br />estimated 84 aces of City street right-of-way and they benefit from the all weather access afforded by <br />the City streets that are repaired and maintained by City taxpayers. <br />One of the important provisions of the franchise ordinances is that it enables the City to charge Xcel <br />Energy a fee for their use of the public ways and grounds (street rights-of-way and other City owned <br />property). The proposed franchise fee equals 2.5 percent of Xcel's gross revenues from the New <br />Brighton service area, or $484,000 annually. Xcel, in turn, would pass along the franchise fee to its <br />customers in New Brighton based on their monthly gas and electric usage. A typical family would see <br />an additional monthly fee of $1.37 based on gas consumption and a monthly fee of $1.46 for electricity <br />usage. The City is facing a loss of state aid to local governments (LGA) and the franchise fee will <br />enable current City service levels to be maintained, i.e. police and fire protection, street maintenance, <br />parks, etc. The establishment of the franchise fee is consistent with the Council's strategic directive of <br />utilizing user fees to support and diversify general fund non -property tax revenues. <br />RECOMMENDATION: <br />To waive the readings and adopt the attached gas and electric franchises and franchise fees <br />ordinances. <br />R <br />Leslie Proper, Public Worles Director <br />i•%cwAP=nirn wire ---1 � <br />