Agenda - Council - 12/10/1996 - Laserfiche WebLink

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experiences significant cost increases in r~ommendadon. ~ ~v¢ ~scnt~ for yo~ consid~fion at ~ ~ is set~g ~¢ f~ m a 1¢v¢1 of i% 'of residenfiM revenues. At ~¢ ~to~ 22 race.g, ~mm~md~ffi~ pmp~es should sh~ flow mve~ ~at ~ eff~k ~e7 ~y ~e. For ~ ~ment ~mmst e~gs towed ~¢ P~ fund (w~ch ~en is us~ ~ ~venue to pay for se~a~g). For ~e next five ye~s, ~ese revenues ~ pmj~t~ to average muggy $98,000. ~e msidenfiM ff~chise f~ is e~t~ to ~se $62,0~. Nona~eless we have propos~ a .3% f~ ag~st ~e ~me~i~ revenue b~e. pays t~es at a rate of 4.6% M~ ~¢ av~age msidenfi~ customer pa~ng at ~e rote of 1.37% (30% of ~e co~emi~ rote). ~erefom, ~e ~fe~g rotes here even ~at pla~ng field somewhat. insfimfion~ customer is pro~s~ at 1%. ~e c~h flows ~ntemplate r~eipt of ~ese ~chise revenues during 1997. F~er, however, ~m ~ntemplat~ is ~ eS~afion of ~e s~coafing ~sessment prog~ as a result Given ~at · e ~sessment po~on of ~e s~a~g a~ut $150,~ ~u~ly, ~at mpmsenB a nice ¢~¢ to ~e ~nefit of ~e rcsidenfi~ customer b~e. ~s ~nefit m ~e customer is only possible, due to ~¢ ~ ~sfer ~d ~e fact ~at ~e P~ has s~cient funds ~ough p~t ~d ~e proj~t~ revenues assessment. It should ~ not~, however, ~at ff furze revenues do not ~e~e sig~c~fly a~ve projections (or ex~n~s d~e) ~ in~e in ~e ~chise f~ ~ ne~ to ~c~ prior to ~e ye~ 2~3. ~e ~W could IeW a ~chise fee for rent ~d m~ten~ce of o~ fight-of-ways to ~e ~nefit.of u~iw comp~es ag~st ~e en~ Rmsey custom~ base. However, ff ~e revenues ~e, in fact d~cat~ to ~e s~a~g pro~ ~e ~~ customer eff~fively residenfiM pro~ M~ ~ ~nefit (~ to a gene~ ~ le~). ~erefore, ~e re~en~fion is ~at ~e f~ ~ le~ ag~nst ~e customer base which is ~e p~ ~nefici~ of ~e ~nten~ce expense ex~fienc~ by ~e ~. Reg~ess of ~e d~cafion of revenues (to s~a~g or some o~er p~ose) ~e ~W should levy a ch~ge ag~st ~e ufiSfies. As Coun~ is aw~e, protection of mu~p~ rights-of-way has ~come a major concern of ~e 2a~e of Cities ~d its smm~de ~d nafion~ mem~m. It is not prudent to provide ~e ~nefit of use of prope~ m ~e u~fies ff~ of ch~ge. ~e 5% ch~ge ag~st cable mle~sion revenues r~o~s ~e huge ~nefit ~at indusW has r~v~ by ~s prolog pro~ for ~ek ~cmm. ~e ener~ u~i~es ~e receiving ~e sine ~nefiu but, to date, have avoid~ a conMbufion towed ~is ~nefit M~ the CiW of R~sey. ~e reset of ~e a~ve h~ ~e s~e impact upon delete ($150,0~ ~nu~ assessment $62,~ free,se fee customer). ~erefore, we ~e recommen~ng this pro~ as ~ eff~five t~ r~ucfion prog~. Committee Action: Motion to r~o~end Council in¢~uce ~n~ce ~6-~ Establishing El~c ~d Gas Pr~chise Fees. Reviewed by: Ci~ Ad~s~tor Fin~ce ~ficer Ci~ Eng~eer Ciw A~omey FC: 10/22/96 ~mt I I I I I I I I I I I I I I I I I