Agenda - Charter Commission - 11/17/2021

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Commissioner Deemer noted that the proposed language would remove the option for the City to raise revenue from franchise fees, which is allowed by State Statute. He agreed that roads have been a long-term issue but noted that residents do not want to pay an assessment to repair the roads. Commissioner Moore asked if the purpose of the Charter Commission is to determine whether it is legal to add language to the Charter Commission; specifically, whether it is legal to add the language, regardless of personal opinion. Chairperson Field stated that the Commission does not deal with the legalities of things but has the legal power to change the Charter by suggestion, which then goes before the residents for a vote. Commissioner Leistico stated that the language is already within the Charter and the proposed amendment would be to restrict the Council from using the franchise fee in the manner they wish. Commissioner Fuhreck asked if the special assessments are currently being levied per driveway. City Administrator Ulrich explained that the assessments are levied on a per unit basis for residential development and front footage for commercial. Commissioner Fuhreck stated that if his home were worth $600,000 and his neighbor's home were worth $200,000, they would then be assessed equally, which sounds regressive to him. Chairperson Field stated that he would be curious to know how the city of Coon Rapids uses special assessments and bonding for roads, without using franchise fees. City Administrator Ulrich stated that Coon Rapids does use franchise fees but uses them for the general fund and not for roads. Finance Director Lund explained that Coon Rapids uses the franchise fee for general City expenses and not for roads. Chairperson Field stated that would have been pertinent information to include in the study. He stated that Eagan, Stillwater, and White Bear Lake do not use franchise fees. He stated that he finds that the study is not what he expected. Finance Director Lund stated that from the 2015 study, Eagan does have a franchise fee. Commissioner Leistico stated that the study identifies cities that use franchise fees for road purposes, not whether the city uses franchise fees for general fund purposes. Chairperson Field stated that if the motion does not pass, the City would be able to continue to use the franchise fee as desired and if the motion passes, a limit would be placed on the amount the City could charge for the franchise fee. He noted that if passed, this would need to go before the residents for a vote. Charter Commission/ August 27, 2020 Page 7of11