Agenda - Charter Commission - 08/27/2020

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Charter Commission Meeting Date: 08/27/2020 By: Colleen Lasher, Administrative Services 5.4. Information Title: Resume Consideration of Pending Motion Regarding Franchise Fees Purpose/Background: The purpose of this case is to resume consideration of a pending motion regarding Franchise Fees. The pending motion was made at the February 13, 2019 Charter Commission meeting, as follows: Motion by Commissioner Bendtsen, seconded by Commissioner Anderson, to table the motion until a study can be commissioned. As background, the tabled motion read as follows: Motion by Chairperson Field, seconded by Commissioner Sivertson, that Charter Chapter 10, Section 10.4 would be amended to state, "except that any franchise fees imposed under applicable State Statute must be limited to defraying increased municipal costs accrued as a result of utility operations, and may not be used to raise general revenue." Following this motion, Chairperson Field stated that he would entertain a motion to table this action until a study can be completed. The study has since been completed (report attached) and the Commission may resume consideration of the motion. An attached spreadsheet regarding Franchise Fees has been provided by Charter Commission member Jim Bendtsen. In addition, the Finance Director Lund's spreadsheet is attached, along with the road funding study report and presentation completed by the University of Minnesota. Charter Commission Case from February 13, 2019 The Ramsey City Council has been discussing road funding options, most recently again beginning in March 2018. The Council reviewed draft scenarios of possible future debt for the next 10 years which included funding for roads, capital equipment and a public works campus. Staff also presented the net impact if road related debt was removed and other funding was identified. The Council expressed the desire to have input from the public on road funding options as well. Subsequently, the City contracted with WSB Engineering to do a review of financing options and a citizens engagement process over an eight -month period to identify the best funding options. It was felt that this period of time would allow for a thorough discussion among all stakeholders. The proposal stated that road funding options to be discussed include those currently being utilized. Currently the city uses shared funding between the City tax levy and special assessments. The city also wanted to explore alternative options such as the utility franchise fees. The Council formally approved a contract with WSB Engineering to administer the community discussion on road funding options at their August 28, 2018 meeting. The first open house to discuss road funding options was held in January 2019 with members of the various city commissions. Additional meetings are scheduled on March 20 and 21 to continue the discussion and to respond to questions from the community. Prior to adopting the current assessment policy for road construction during 2013-2014, the city explored the use of franchise fees. Alternatives are being considered given the fact that the city now better knows the actual cost of projects, and has data to analyze the impact of the assessment method on residents and overall city debt levels. Previously, the Charter Commission was involved with the discussion in terms of potential charter language that