Minutes - Council Work Session - 11/15/2011

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charged him $28 /month/household because then he would not have to worry about neighbors defeating a project through a petition. Councilmember Wise asked if it will offend the public if the Council takes input and approves the franchise fee anyway. Councilmember Elvig noted another option is through the budget process, to increase the levy by $1 million a year to fund roads. But, this relies on trust of the future Councils to continue that funding. He stated he thinks the Communication Plan is a good piece to the public to ask for their input. Councilmember Tossey asked how much revenue would be generated by a $14 /month/household franchise fee plus franchise fees toward businesses and retail. Public Works Director Olson responded $5.29 million annually Councilmember Tossey pointed out that a franchise fee would raise revenue even with stagnant growth. He noted there may be additional future revenue based on projected growth, as predicted by the Metropolitan Council over the next 15 years. If that occurs, the franchise fee could be lowered. Councilmember Wise felt the franchise fee was the only way to fund road reconstruction because it includes all property including the City Hall, churches, etc. Mayor Ramsey clarified he is not advocating considering a franchise fee without first talking to the public about it, but he does not want to belabor the point. He felt that $14 /month/household was reasonable but noted street design like concrete curb and gutter and sidewalks cannot be determined until each project is considered. Public Works Director Olson agreed each project will be different but there are standards on road width and sidewalks. He thanked the Council for its input and indicated staff will refine the Communication Plan, as discussed, and contact key stakeholders for presentation. Public Works Director Olson recapped Council's direction to consider a franchise fee of $14 /month/household, to create a source to fully fund the issue without assessments. Councilmember Elvig asked staff to e -mail the updated Communication Plan so members can quickly respond. Councilmember Strommen stated her support for the other packet attachments. She noted there is a need to be clear the City has completed a survey, this is the direction the Council is headed based on resident input to date, and there will be future opportunities to provide input. City Engineer Himmer clarified that with the "Do Nothing" option, the City does not have an existing assessment policy for reconstruction projects. Councilmember Strommen noted the Chamber of Commerce will be a key stakeholder. City Council Work Session / November 15, 2011 Page 6 of 9