Agenda - Council - 07/14/2020 - Laserfiche WebLink

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The City is proposing a franchise fee of $7.00 per utility, or $14.00 per month on residential users that have both electric and gas utilities. This would equate to $168.00 per year for residents connected to both gas and electric utilities. Commercial/Industrial users are proposed to be charged a per meter fee based on meter size. Most churches are proposed to be charged $20 per month ($10 per utility), which is the same as a small commercial fee. See attached franchise fee rate sheet for more detail. There will be no more than one gas and one electric franchise fee charged per address. If a property was to contain more the one meter, example: commercial properties, the franchise fee will be calculated based off of the largest meter only. The following terms and conditions were incorporated into the attached draft ordinances based on input from the City Council: • Collected franchise fees can only be spent on Pavement Management Program projects. • Collected Fees will be deposited into a committed fund - "Pavement Management Program Fund" • Annual review by City Council of franchise fees collected, funds expended and balance remaining in Pavement Management Program Fund • Rebate Program - Discussed below • A 5-Year sunset term on 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. A rebate program is proposed that will return the annual franchise fee to those have been assessed since 2015. The rebate program will apply to those currently paying an assessment on a street reconstruction or overlay project that was levied, starting in 2015 (first year of city's Pavement Management Program), or who paid their assessment upfront (prepaid) and would otherwise still be paying an assessment. The rebate would be capped at the lesser of the annual assessment amount or annual franchise fees paid. The rebate is no longer eligible if a property has been sold since the assessment was levied. Homeowners will need to apply for the rebate annually. See attached franchise fee rebates summary. Notification: Public Hearing notifications for July 14, 2020 were published in the Anoka Union on June 26 and July 3. L Letters were also sent out to Connexus Energy, Centerpoint Energy & City of Anoka Electric on June 11, 2020 notifying them of the city's intention of adopting a franchise fee. Observations/Alternatives: The following is the Proposed Franchise Fee Adoption Schedule: May 12, 2020 WS Consensus of Council directed staff to bring forward franchise fee option. June 9, 2020 WS Council reviews draft ordinances with proposed franchise fee rates and terms. Consensus was a $7 per month per utility for residential and commercial properties would be charged a fee for each respective utility based on meter size (if more than one meter, largest meter would be used to determine fee. June 11, 2020 Letters to Connexus Energy, City of Anoka, and Centerpoint Energy notifying of intention of City to introduce a Franchise Fee Ordinance. June 23, 2020 CC Motion Calling for a Public Hearing on the Proposed Franchise Fee