Agenda - Council - 06/28/1994 - Laserfiche WebLink

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The alternative of billing all residential properties through rite billing system at AEC has been discussed. V~qfilc this is a viable alternative, thc question of cost effectiveness still remains. To add this line item to approximately 4,500 accounts would cost the City a one-time charge of $5,625.00 to establish the line item on each property and a quarterly billing charge of approximately $1,350.00. This assumes that all of the zl.500 households arc currently serviced by AEC. The costs would go up if m~), of the affected properties are non-members of AEC. An additional alternative, that could be caused to affect only residential properties, would be thc imposition of a franchise fee of approximately one percent (1%)to one and one half percent (1-1~%). The franchise fee could be collected from Mirmegasco, Anoka City Electric Utility and Anoka Electric Cooperative. At one percent (1%), the City would collect approximately ~52,269, which would cover the annual costs associated with the capital rccoveD, costs and operation and maintenance costs at virtually no cost to the City. This funding source could be used to fund this program and alternative}3, other programs, such as curbside recycling, which currently has an ammal cost of $41,290 (after County subsidies), and benefits primarily residential properties. Staff Recommendation: IL is staffs recommendation that the imposition of franchise fees be utilized as a viable alternative Lo funding the installation and ongoing operations and maintenzmce of the priority arterial street lights and as funding source for other programs that benefit primarily residential properties. Committee Action: Based on discussion. Reviewed By: City Administrator Finance Director City Engineer ]PC: 06/28/94