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60 <br /> MAJOR GENERAL FUND REVENUES <br /> FRANCHISE FEES <br /> Cable Franchise <br /> Prior to the passage of State Bill AB2987, Federal and State laws allowed cities to grant <br /> franchises to cable companies to use the public right-of-way to install and provide video <br /> service. The cable company, in turn, applied for a permit to install the video facilities. The <br /> permit also allowed for maintenance work once the installation was complete. Under the <br /> current franchise agreement, the cable company pays San Leandro an annual franchise <br /> fee of 5% of gross revenues, in quarterly installments. State Bill AB 2987 allows <br /> companies to apply for statewide cable television franchises, and the new bill maintains <br /> the City's franchise fee. In addition to the franchise fee, the bill allows the City to receive <br /> an additional fee of 1% of the gross revenue for Public, Educational and Government <br /> (PEG) purposes. The PEG funds are captured in a special revenue fund 180. <br /> Electric and Gas Franchises <br /> These franchise fees (ultimately paid by the consumer) are variable fees based on gross <br /> receipts for the sale of electricity or gas within the City, and is the greater of these two <br /> calculations: <br /> 1. Electric or Gas Franchise Ordinance: 2% of gross receipts attributable to miles of <br /> line operated; or <br /> 2. 1937 Act Computations: gross receipts within the City multiplied by 1%. <br /> Electric and Gas franchise fees are paid into the General Fund. Electric and gas franchise <br /> payments are based on two methods of calculating gross receipts. The electric and gas <br /> company must complete both calculations, and the payment made is the greater amount. <br /> In addition, the Public Utilities Commission (PUC) approved a franchise fee surcharge <br /> since Pacific, Gas and Electric (PG&E) no longer handles all energy service, and to <br /> prevent cities from losing franchise revenue generated by third parties. The surcharge is <br /> an estimate of the amount of revenues generated by third parties multiplied by the <br /> franchise fee rate. <br /> Refuse and Recycling Franchises <br /> The City has Franchise Fee Agreements primarily with companies such as Alameda <br /> County Industries (ACI), Waste Management, Oro Loma, and others for refuse, green <br /> waste, solid waste and recycling collection within the City limits. The Fee calculation <br /> includes complex calculations based on a variety of bases such as per ton or percent of <br /> gross receipts between 10% and 12%. These rates may be adjusted annually by CPI. <br /> M + <br /> w � m <br /> whn , <br />