Laserfiche WebLink
wait for residents to come forward. Then the City can move forward with reconstruction projects <br />as funding becomes available or petitioned by residents. He noted the residents may object to <br />paying a franchise fee of $14 /month in addition to taxes to budget for maintenance projects. <br />Councilmember Strommen asked whether staff's analysis included a franchise fee for <br />commercial and tax- exempt properties. <br />Public Works Director Olson indicated staff ran the numbers including a $28 /month franchise <br />fee for commercial and tax- exempt properties, equaling $1.53 million. <br />Councilmember Elvig asked whether the figure of $3.06 million included curb and gutter. <br />Public Works Director Olson answered in the affirmative but noted it does not cover buyout of <br />residents who have been assessed the last two -three years. <br />Councilmember Elvig stated he thinks there will be push back from residents who just paid an <br />assessment the past couple of years. He noted the annual budget has $500,000. <br />City Engineer Himmer explained that if you incorporate assessments, the overall program has <br />$600,000. <br />Councilmember Elvig asked what is the rationale to charge commercial and nonprofit more than <br />residential. <br />Public Works Director Olson stated it is based on the higher property tax valuation per <br />commercial property versus residential and because the amount of traffic generated by a <br />commercial facility is much more than generated by a residential home so need is higher. <br />Councilmember Elvig pointed out that commercial traffic does not generally go down back roads <br />as much as it uses County and freeway roads so he cannot support that analysis. <br />Public Works Director Olson explained if commercial paid the same franchise fee as residential, <br />it would equal about $40,000 for CenterPoint and $35,000 for Connexus. <br />Councilmember McGlone stated he has a hard time with this discussion without first having <br />decided on road standards because it affects this decision. He noted the City does not have the <br />luxury of a good economy in which to have this conversation, the roads were built when they <br />were built, and the issue is here for this Council and future Council's. Councilmember McGlone <br />felt a fee was a fee and the Council will get the same public input on a $14 /month franchise fee <br />as on a $28 /month franchise fee. However, over time, when a resident figures out they just <br />escaped a $5,000 assessment by paying $28 a month, it will be even. He noted he owns three <br />parcels but his house does not generate more traffic than a house on one parcel. Councilmember <br />McGlone agreed with the argument that there is a positive economic development aspect when <br />roads are reconstructed. He stated his support for a franchise fee since it would solve the <br />problem from this day forward and asked the Council to first determine road standards and how <br />to make funding fair. <br />City Council Work Session / January 24, 2012 <br />Page 3 of 9 <br />