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The alternative of billing all residential properties through the billing system at AEC has been discussed. While this is a viable alternative, the 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 4,500 households are currently serviced by AEC. The costs would ~o up if an>, of the affected properties are non-members of AEC. An additional alternative, dmt could be caused to afl'eCL only residential properties, would be the imposition of a franchise fee of approximately one percent (l%)to one and one half percent (1-1/2%). The franchise fee could be collected from Minnegasco, Anoka Git5' Electric Utility and Anoka Electric Cooperative. At one percent (1%), the City would collect approximately $52,269, which would cover rite annual costs associated with thc capital recovery, costs and operation and maintenance costs at virtually no cost to the City. This funding source could be used to fund this program and alternatively other programs, such as curbside recycling, which currently has an annual 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 to funding the installation and ongoing operations and maintenance 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 FC: 06/28/94