Minutes - Council - 11/12/1996 - 11/12/9

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Case #12: Report from Finance Committee 1) Introduction of Utility Franchise Fee City Administrator Schroeder stated that from the time Ramsey was a township, we have been granting the use of right-of-ways to the gas and electric companies. Also, for a number of years the City has been providing a sealcoating program. In the beginning, the City assessed 100% of the cost of sealcoating to home owners. In 1991, the City started cost sharing the sealcoating projects. Proposed within this case is that the City begin charging utilities for rights-of-way and using that revenue gain toward sealcoating in order to eliminate sealcoating assessments, starting in 1997 and thereafter. Proposed is introduction of the ordinance that would provide for this. The Finance Committee recommended Council introduce the utility franchise fee ordinance. Adoption would require a second reading. Motion by Councilmember Beahen and seconded by Councilmember Peterson to introduce the ordinance entitled "Electric and Gas Franchise Fees". Further discussion: The question was raised if the practice would continue of the developer escrowing for sealcoating, to which Mr. Schroeder replied yes. Councilmember Peterson asked if overlays would be included in this to which Mr. Schroeder replied no, there is not enough funding to include overlays. Councilmember Peterson suggested that should then be clarified in the ordinance language. Subdivision 6 would be amended to say sealcoating. Tom Gamec, 16021 Neon Street NW, Ramsey, stated that Ramsey has approximately 216 homes on dirt roads. Will you force them to blacktop? How do they feel about paying for this? He added, however, there is an expense to plowing and grading these dirt streets. Mayor Hardin stated that these people have been contacted about blacktopping. Mr. Schroeder stated that a couple years ago, it was intended that $20,000 a year be budgeted for three years to pave the existing dirt streets. When that project came back to the table, Council decided not to go forward with that because the assessment cost was more than they would like it to be. Estimates put into the cash flows here are conservative and it's hoped that if revenues are more than projected, we could come back and propose a street paving program in the future. Councilmember Peterson stated it's been projected that the cost will be about $14 total per year per resident as opposed to a typical sealcoating assessment fee of $150. Motion failed. Voting Yes: Councilmembers Beahen and Peterson. Voting No: Mayor Hardin, Councilmembers Beyer and Zimmerman. Mr. Schroeder asked to bring this franchise fee ordinance back in December with some sort of recommendation to address the dirt street situation. Council agreed. 2) Review and Adopt Proposed 1997 - 2002 Capital Improvement Program Mr. Schroeder stated that each year since 1993, Council has reviewed and adopted a seven year Capital Improvement Program (CIP). This is the newest iteration of that. This plan is very comparable to the plan adopted a year ago at this time. A space needs study was conducted. The needs of Public Works and the Police Department have been addressed. Now the CIP shows dedication of funds for the Fire Department's space needs with a satellite station in 1998 and expanding Station #1 in the year 2002. There are no other significant changes. The Committee recommended adoption of the CIP. Motion by Mayor Hardin and seconded by Councilmember Beahen to adopt the Proposed 1997 - 2002 Capital Improvement Program. City Council/November 26, 1996 Page 15 of 17