Agenda - Council - 09/10/2013 - Laserfiche WebLink

Home

No notifications are required as part of this case however, if Council orders the required Public Hearings notifications will be posted in the Anoka County Union and in a special edition of the Ramsey Resident at least 10 days prior to the Public Hearing. Observations/Alternatives: Franchise fees, which cities are authorized by state statute to impose upon utilities operating within the public right-of-way, are fees charged to private utilities that benefit financially from using public right-of-ways to conduct their business. This fee is typically passed along to the consumer in the utility companies monthly or quarterly invoice, along with a note stating that the fee is being imposed by the city as a means to help fund specific public improvements. Therefore, electric and gas utilities operating within Ramsey would likely add notes to their invoices notifying customers that the fee is being charged to help pay for the city's long-term street maintenance program. Again, this fee would be dedicated solely to help pay for the maintenance of city streets and would eliminate the use of special assessments as long as the Franchise Agreements remain in force. Franchise fees of $8 per month per each gas and electric utility serving commercial, industrial and residential properties throughout the city would generate approximately $1.7M in annual revenues to help pay for our long-term street maintenance program. If Council approves the draft Franchise Agreement and Ordinance terms outlined above, staff will meet with our local gas and electric utility company representatives to solicit their feedback and receive input on the draft Franchise Agreements and Ordinances for each gas and electric utility provider. Once the Agreements and Ordinances are complete, Council must hold Public Hearings prior before formally adopting the Agreements and Ordinances. A waiting period of up to 90-days as determined by each utility company will then be required following adoption of the Franchise Agreements and Ordinances before invoicing can begin. Therefore, the earliest any franchise fee revenues could be billed would be in January or February of 2014. Recommendation: Staff recommends that Council approve the draft Franchise Agreement and Ordinance terms outlined above and order two (2) Public Hearings, one for the proposed Franchise Agreements and Ordinances, and one for the Right -of -Way Ordinances, to be held during the October 8th regular City Council meeting. If Council approves the draft terms and orders the public hearings, staff will then work with the gas and electric utilities to prepare the draft Franchise and Right -of -Way Agreements and Ordinances, and will publish notices for the Public Hearings in the Anoka Union on September 27th, and will prepare and mail a special edition of the Ramsey Resident containing notice of the hearings for delivery no later than September 27th. If possible, this special edition of the Ramsey Resident will be mailed with the utility billing. If the Public Hearings are held on October 8th, adoption of the Franchise Agreements and Ordinances could then occur at the following Council meeting on October 22nd after the second reading of the Ordinances. Staff also recommends communicating with the public early and often throughout the Ordinance adoption process to ensure that the purpose and expected outcome of the franchise fee is well communicated to the public. This is proposed to be done by mailing literature to residents and businesses throughout the city, as well as posting literature on the city's web site. Funding Source: Preparation of the Agreements and Ordinances would be completed by City staff as part of normal staff duties. Council Action: Staff requests that Council approve the draft Franchise Agreement and Ordinance terms, and Order the Public Hearings for October 8th per attached Resolutions 13-09-161 and 13-09-162. Attachments Res 13-09-161