CCP 07-26-1999 - Laserfiche WebLink

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. . , e OPTIONAL PROVISIONS FOR IMPOSITION OF USER FEES Historically, cities have varied widely in their approaches to charging utilities and others for the privilege of placing equipment and facilities in public rights-of-ways. The approaches used have gone from the requirement of a minimal fee to cover the cost of permit issuance to the more significant practice of granting a franchise and imposing a franchise fee. The model ordinance imposes fees that reflect a fair approximation of the city's cost in managing its public rights-of-way. However, the charges are not intended to compensate the city for the value of the privilege of being able to use the public rights-of-way. Cities have approached this issue in a variety of ways. One method has been to grant franchises and collect franchise fees. This remains a viable altemative for all utilities except telecommunications companies. (Recent law changes prohibit franchising fees on telecommunications companies.) As an alternative to franchise fees, other cities have considered imposition of "user fees." The user fee concept rests on the premise that the right-of-way has a value associated with it and that it is appropriate to require payments as reimbursement or return to the public for that use value - particularly from those who obtain revenue or profit from such use. Again, under current law, user fees are permissible except as against telecommunication rights-of-way users. Because the practice of charging for the use of the public rights-of-way varies significantly from community to community, the user fee concept is not included in the main body of the model ordinance. However, for those cities that would like to impose user fees on non- telecommunication companies, several suggested additions to the model ordinance have been provided. The principal modifications to the model ordinance consist of the following: I) An addition to paragraph (b) in the "Findings and Purpose" section (Section 1.01); 2) A definition of "user fee" in Section 1.02, 3) A new section 1.06 in the "Grant of Right; Payment of user fee," and 4) Inclusion of user fees in Section 1.09, "Permit Applications." The text that follows is written so that the user fee concept can be incorporated into the model ordinance with only minor modifications. If the text is included, sections of the model ordinance will need to be renumbered accordingly. Text of additions to model ordinance. I. Section 1.01 of the model ordinance should include a subparagraph (b) as follows: (b) Use Fee. In addition to the foregoing recovery of costs and regulation of use, the City Council determines that there is an existing and legitimate state and local public policy, which authorizes the City to require payments as reimbursement or return to the public for the use value 'll