Agenda - Council - 08/12/2019 - Laserfiche WebLink

Home

Council and Charter Commission. • Collected franchise fees can only be spent on pavement management program projects. • A 5-year sunset term applies to all Ordinances to allow a thorough review of revenues versus expenditures, to consider other potential funding sources in the future, and to make adjustments as desired or needed. Staff worked with the gas and electric utilities to prepare the draft Franchise Fee Ordinances. No formal objections from the utility companies are therefore anticipated. Rebate Program A rebate program is proposed to prevent those currently paying an assessment levied with a pavement management program project, or who paid their assessment up -front but would otherwise still be paying an assessment, from paying franchise fees on top of their assessment. See attached franchise fee rebates summary. Notification: Public Hearing notifications for September 10, 2019, will be published in the Anoka Union Herald on August 16, 2019. Observations/Alternatives: Local Street funding study. The city has requested a local road funding study for fall of 2019, in conjunction with the Charter Commission, through the University of Minnesota. Proposed Franchise Fee Ordinance Adoption Schedule At the Council work session on June 25, 2019, City Council consensus was to proceed with the local road funding study requested by the Charter Commission, and to proceed with the introduction of franchise fee ordinances for public review. At the regular Council meeting on July 9, 2019, the City Council authorized an expenditure of up to $5,000 for the local road funding study by the University of Minnesota. City staff has since prepared draft ordinances and the following actions are anticipated as the ordinance is brought forward for review: • July 29, 2019 - Letters were mailed to utilities notifying them of the City's intention to introduce a Franchise Fee ordinance • August 12, 2019 — The draft ordinances will be reviewed with Council and Council will be asked to establish a public hearing date of Tuesday, September 10, 2019. • August 13 — August 30, 2019 - Publish and post notice of public hearing. • September 10, 2019 - Public hearing to officially introduce and complete first readings of ordinances. • Tuesday, September 24, 2019 — Final reading and adoption of ordinances. This date is subject to change based upon input at the public hearing and can be established for a later date at the discretion of the City Council. • November 1, 2019 — Last day to notify utility companies for a January 1, 2020 effective date. A 60-day notification is required. This date can be moved to a later date at the discretion of the Council. • January 1, 2020 - Target date for 2020 implementation (if approved). Alternatives: Alternative # 1 Motion to order a Public Hearing for September 10, 2019, to Introduce Ordinances #19-11 implementing a gas franchise fee on Centerpoint Energy for providing gas service within the City of Ramsey, #19-12 implementing an electric franchise fee on Connexus Energy for providing electric service within the City of Ramsey, and #19-13 implementing an electric franchise fee on the City of Anoka Electric for providing electric service within the City of Ramsey. Alternative #2 Motion of other.