Minutes - Council Work Session - 11/15/2011

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Councilmember Strommen suggested creating a table format with the average home value, assessment amount, monthly amount, and the time period so it is easier to compare. She explained she wants residents to understand how it affects them so they provide comment. Chuck Tombarge, representing Himle- Horner, explained this information will be coupled with other materials in the Communication Plan. Councilmember Tossey stated he does not like the comparison with the cost of a cup of coffee a day and recommended that verbiage not be used. Public Works Director Olson stated that analysis can be removed but when staff did the initial analysis of other communities, they indicated that was a successful communication piece. Mayor Ramsey agreed that analysis should be removed. Councilmember Elvig noted, in that analysis, the City is trying to sell the point instead of just explaining the problem, being descriptive of the problem, and asking residents for their solutions. Mayor Ramsey stated he supported an analysis of the City's other fees, for example the storm water utility, water utility fees, surface water treatment plant, and street light fee, which should be addressed early next year. He noted the survey indicated that 49% supported a franchise fee and proposed that rather than starting with $28 /month/household, the City start with $14 /month/household. Councilmember McGlone stated at this point the overriding issue is how to be solvent. Councilmember Wise felt that residents do not care about anything but to fix the road and do it cheaply. Public Works Director Olson explained that information was included because if the Council was going to take political pressure for instituting a franchise fee, there should be a discernible benefit to the property. He noted a 50/50 assessment still costs a significant amount to the property owner and they will ask why they are paying a franchise fee. Or, the Council could consider pushing off some of the improvements as far as possible, start with a lower franchise fee, and spread it over roads with major evidence of deterioration. In that way, the City may be able to justify a higher franchise rate in the future. Councilmember Backous stated the City needs to communicate the problem, quantity the facts, and find a solution. He supported the suggestion of starting with a lower franchise fee. Councilmember Elvig agreed it is a good idea to start a cash flow and look at how it would be disbursed. He noted while the road construction is a $28 /month/household problem, the Council could consider reducing it to $14 /month/household and pursuing other funding and legislation but ultimately the City needs the resident's support. City Council Work Session / November 15, 2011 Page 3 of 9