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90 The adoption of franchise fees may disproportionately burden low-income households. These residents <br />91 often spend a higher percentage of their income on utilities and may live in older, less energy-efficient <br />92 housing. In addition, franchise fees are often misunderstood by the public and can lead to mistrust of <br />93 government, especially for communities with language barriers or limited access to civic information. <br />94 <br />95 Budget Implications <br />96 The additional revenue from franchise fees would be used to replace existing levy funds put towards <br />97 right-of-way infrastructure capital funds and allow for reallocation of existing levy to other parts of the <br />98 City budget. Based on the scenarios presented in Attachment 9, the adoption of franchise fees will <br />99 allow for $2.3 to $2.8 million in new capital funding depending on the scenario chosen. <br />100 <br />101 Staff Recommendations <br />102 Staff requests that the City Council approve the Electric (Attachment 1) and Gas (Attachment 2) <br />103 Franchise Ordinances, Summary Ordinances for the Electric and Gas Franchise Ordinances <br />104(Attachments 3 and 4) and approve the Electric (Attachment 5) and Gas (Attachment 6) Franchise Fee <br />105 Ordinances and the Summary Ordinances for the Electric (Attachment 7) and Gas (Attachment 8) <br />106 Franchise Fees. <br />107 <br />108 Requested Council Action <br />109 Motion to approve the Electric (Attachment 1) and Gas (Attachment 2) Franchise Ordinances <br />110-and- <br />111 Motion to approve Ordinance Summary of Electric (Attachment 3) and Gas (Attachment 4) Franchise <br />112 Ordinances <br />113-and- <br />114 Motion to approve the Electric (Attachment 5) and Gas (Attachment 6) Franchise Fee Ordinance. <br />115-and- <br />116 Motion to approve Ordinance Summary of Electric (Attachment 7) and Gas (Attachment 8) Franchise <br />117 Fee Ordinances <br />118 <br />119 <br />Patrick Trudgeon, City Manager <br />Prepared by: <br />1.Electric Franchise Ordinance <br />Attachments: <br />2.Gas Franchise Ordinance <br />3.Summary Publication Resolution - Electric Franchise Ordinance <br />4.Summary Publication Resolution - Gas Franchise Ordinance <br />5.Electric Franchise FEE Ordinance <br />6.Gas Franchise FEE Ordinance <br />7.Summary Publication Resolution - Electric Franchise FEE Ordinance <br />8.Summary Publication Resolution - Gas Franchise FEE Ordinance <br />9.Memo regarding franchise fee impacts to the 2026 budget and levy <br />120 <br />Page 4 of 4 <br />Qbhf!::!pg!384 <br /> <br />