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City Council Study Session -10/18/04 Minutes - Page 7 communities, for charging for-profit utility companies (i.e., Xcel, Comcast, or Quest) for using public right-of-way property, as allowed by state law. Mr. Beets noted that the City currently had a utility franchise agreement with Xcel for accessing the City's right-of-way, but there was no charge at this time. Discussion Councilmember Maschka sought anticipated revenue projections. City Manager Beets anticipated $200,000, based on a proposed 1.5% fee, which had already been included in the proposed 2005 budget and was one of the City Manager's recommendations. Mr. Beets noted that if the Council chose not to consider a utility franchise fee, cost saving equivalencies would need to be identified. Councilmember Schroeder sought clarification of use for anticipated revenues. City Manager Beets responded that revenues would be deposited in the City's General Fund to be used for all city services. Councilmember Schroeder expressed his concerns with City Manager Beet's original suggestion that funds be used for burying power lines. City Manager Beets clarified that his intent in using funds, after regular obligations were met, would be to dedicate a portion of the funds for burying power lines as part of reconstruction projects (i.e., South Owasso currently has overhead lines); but noted that for 2005 and the foreseeable future, revenues would be directed to the General Fund. Councilmember Kough observed that the franchise fees would be passed on to customers by the utility companies. Councilmember Schroeder discussed right-of-way permits, and depletion of those fees as part of franchise agreement language related to permit fees. City Manager Beets noted that the projected $200,000 was net of