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AGENDA ITEM #10.2 <br /> city of `' <br /> Pequot <br /> Lakes= - <br /> REPORT TO CITY COUNCIL <br /> Report Prepared by: Nancy Malecha <br /> Date: March 5, 2019 <br /> Subiect: Gas Franchise Ordinances <br /> Report: At the February S�' City Council Meeting, the Council directed me to <br /> seek information from Xcel Energy as to a listing of neighboring cities who have <br /> implemented gas franchise fees with Xcel Energy. I contacted Xcel Energy for a <br /> listing of cities in Crow Wing and Cass counties who have gas service franchise <br /> fees and Baxter is the only city currently with a fee. Their Franchise Fee <br /> Ordinance is attached. <br /> Also, attached are the City of Pequot Lakes' draft ordinances for your review. As <br /> you can see, the gas service franchise fee ordinance defines a monthly flat <br /> franchise fee of$2 to customers within the City of Pequot Lakes'jurisdiction. <br /> This fee would generate approximately $22,344 in revenue to the City per year. <br /> The draft ordinances have been reviewed by Xcel Energy, the City Attorney, and <br /> myself. <br /> Please know that if the City implements a franchise fee on Xcel Energy, the draft <br /> gas franchise ordinance states that the City agrees to impose an equivalent <br /> franchise fee upon all other energy providers (Minnesota Power and Crow Wing <br /> Power) operating in the City and we have until April 30, 2021 to do so or the <br /> franchise fee on Xcel Energy shall expire. <br /> I am requesting a consensus from the Council to proceed with the draft gas <br /> franchise ordinances as presented or provide direction on changes. <br /> Council Action Requested: Council consensus to proceed with the gas franchise <br /> ordinance and the gas service franchise fee ordinance with Northem States <br /> Power/Xcel Energy as presented or provide direction on changes. <br />