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City Administrator Ulrich stated that using franchise fees each property would pay an equal <br />share, therefore each residential property would pay the same amount, $14 per month, which <br />would be used for road improvements. He stated that everyone uses the roads the same amount <br />in the community, regardless of property value. <br />Councilmember Musgrove stated that lower property values and those on a fixed income would <br />have a higher cost as some of those people may not drive and therefore it may not be an equal <br />split. <br />Councilmember Riley used the example of the Jarvis Street and Andre Street assessments. He <br />explained that those are through streets where much of the wear and tear on the road is caused by <br />others in the neighborhood rather than those property owners and yet their assessments exceeded <br />$6,000. <br />Councilmember Heinrich asked the number of projects that residents have petitioned against in <br />the past five years. <br />City Engineer Westby replied that there were two projects successfully petitioned against in the <br />past five years. <br />Councilmember Heinrich asked if a franchise fee would tax nonprofit organizations. <br />City Engineer Westby confirmed that to be true. <br />Mayor LeTourneau asked the number of projects that were completed in the past five years and <br />the percentage that those petitioned projects would be. <br />City Engineer Westby replied that there were 12 assessment projects in five years and therefore <br />one sixth of the projects have been petitioned and canceled. <br />Councilmember Musgrove asked if businesses would pay less under the franchise fee model <br />compared to an assessment. <br />City Administrator Ulrich confirmed the franchise fee would be less than an assessment. He <br />explained that the assessment is only paid for a project that benefits the business, whereas <br />franchise fees would collect an amount each month from the business to fund road <br />improvements. <br />Councilmember Musgrove stated that businesses have an easier way of accommodating changes <br />in fees, as they can pass charges onto their customers, whereas some residents do not have that <br />option as they are on a fixed income. She stated that residents in lower tax brackets will have a <br />higher impact compared to those in higher priced homes. She asked if the City would have to do <br />a rebate for those residents that paid assessments during the past five years. <br />City Council / August 12, 2019 <br />Page 6 of 13 <br />