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City Council Study Session —10/18/04 <br />DRAFT Minutes - Page 7 <br />2. Should Council create a Utility Franchise Fee? <br />City Manager Beets reviewed this proposal, used by neighboring <br />communities, for charging for-profit utility companies (i.e., Xcel, <br />Comcast, or Quest) for using public right-of-way property, as <br />allowed by state law. Mr. Beets noted that the City currently had <br />a utility franchise agreement with Xcel for accessing the City's <br />right-of-way, but there was no charge at this time. <br />Discussion <br />Councilmember Maschka sought anticipated revenue projections. <br />City Manager Beets anticipated $200,000, based on a proposed <br />1.5% fee, which had already been included in the proposed 2005 <br />budget and was one of the City Manager's recommendations. <br />Mr. Beets noted that if the Council chose not to consider a utility <br />franchise fee, cost saving equivalencies would need to be <br />identified. <br />Councilmember Schroeder sought clarification of use for <br />anticipated revenues. <br />City Manager Beets responded that revenues would be deposited <br />in the City's General Fund to be used for all city services. <br />Councilmember Schroeder expressed his concerns with City <br />Manager Beet's original suggestion that funds be used for <br />burying power lines. <br />City Manager Beets clarified that his intent in using funds, after <br />regular obligations were met, would be to dedicate a portion of <br />the funds for burying power lines as part of reconstruction <br />projects (i.e., South Owasso currently has overhead lines); but <br />noted that for 2005 and the foreseeable future, revenues would <br />be directed to the General Fund. <br />Councilmember Kough observed that the franchise fees would be <br />passed on to customers by the utility companies. <br />Councilmember Schroeder discussed right-of-way permits, and <br />depletion of those fees as part of franchise agreement language <br />