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City Commission <br />Special Workshop Presentations <br />Investor Owned Electrical Providers <br />Page 27 <br /> <br />Casselberry, it was standard response with other municipalities and we went to court and had that <br />changed and Florida Power has continued to pay franchise fees. However, in some of our sister <br />cities, namely Winter Park, City of Longwood, Florida Power has in fact withheld some of those <br />franchise fees and in fact one could even term it as being used as a big stick to wield for <br />negotiations and that could certainly be substantial as you indicated over a million dollars; a <br />million dollars is a million dollars, that is a big number. For some cities it will be bigger, others <br />smaller. The question I have is what assurance or guarantees do we have that we will continue to <br />receive those franchise fees and they won't be used as any kind of wedge against the City. <br /> <br />RALEY: Mayor Pronovost I am not the best one to answer that question. I think that that is a <br />legal question and some of our attorneys would have to answer that. I know that we do have <br />concerns about the fees. In some cities we have been ordered to not pay and actually the cities <br />have been ordered to refund that money. That is something that is a legal issue and that decision <br />is with someone else. I am sorry I can't provide that. <br /> <br />PRONOVOST: But you understand the concern... <br /> <br />RALEY: Absolutely <br /> <br />PRONOVOST: that our citizens continue receiving, and the franchise fees basically are a <br />rental fee, if you will, for the use of the rights-of-way. <br /> <br />RALEY: I think there is one excellent way to put that concern to rest and that is to enter into a <br />new franchise agreement with the City, between the City and progress Energy and we are <br />certainly willing to do that. We want to do that. <br /> <br />PRONOVOST: Other questions, Commissioner Cook. <br /> <br />COOK: Regarding the franchise fees, that is just money that is being collected from the <br />citizens now and turned around to the City, so it is not any fronting benefit for Progress Energy to <br />keep that money. And based on my bills, it is running about thirteen percent between the two <br />different municipal charges. Thirteen percent of my electric bill is money that they are collecting <br />and it is being turned backed to the City. Correct. <br /> <br />SEGRETO: It is being turned back to the City, but not all of it is tumed backed to the City. <br />The way their agreement is structured at the present time, they charge our residents a franchise <br />fee, but we do not get 100 percent of the franchise fees. They left out any charges for permits <br />and they let out any charges for property taxes. In the new franchise fee ordinance we have <br /> <br /> <br />