Memorandum

City of Lawrence

Legal Services Department

TO:	David L. Corliss, City Manager
FROM:	Toni Ramirez Wheeler, Interim Director of Legal Services
CC:	Debbie Van Saun, Assistant City Manager
Date:	February 22, 2006
RE:	Ordinance Adjusting Franchise Fee for Kaw Valley Electric Cooperative

As part of the 2007 City of Lawrence Budget, the City Commission authorized the preparation of ordinances phasing in amendments in the franchise fees paid by utility providers in the City. 

Attached please find Ordinance No. 8080 which amends the franchise fee Kaw Valley Electric Cooperative pays to construct, maintain, extend and operate its facilities for the purpose of supplying electric service to the City and its inhabitants.  Currently, Kaw Valley Electric Cooperative pays four percent (4%) of the total gross receipts from the sale of electrical energy.  Under the proposed ordinance, Kaw Valley Electric Cooperative will pay five percent (5%) of the total gross receipts from the sale of electrical energy.  The fee modification will be effective 90 days after the effective date of the ordinance.

Staff recommends the adoption of the ordinance.