12/11/2000 Council Packet - Laserfiche WebLink

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• COUNCIL MINUTES SEPTEMBER 25, 2000 Utilities pays none. Staff also considered that a fee that is a percentage of the customer's bill fluctuates a great deal. For example, there are predictions that natural gas prices will skyrocket this winter. A percentage franchise fee would bring in more revenue in a situation like this, but it would be especially burdensome to people and hard to budget for. An alternative that made more sense was a meter fee that would be the same for all customers in a particular classification every month. To establish a monthly fee amount, staff analyzed the number of customers and their average bills. Staff concluded that an average, a 3% monthly fee would be about $1.50 for a residential customer. Staff used the same formula to determine the proposed fees for other customer classifications: a fee that amounts to about 3% of the average bill for those customers. Meter fees in the proposed amounts would raise between $60,00 and $65,000 a year. Staff felt budgeting is easier if customers know their fee will be $1 hand, over the period of the franchise agreement, the value of $ staff is recommending that the 2001 fee be increase by 3% i 00 provided handouts that show the fee amounts each year uii 1 t ran residential customers will be paying $2.08 per month instea eac '" onth. On the other moth erodes. Therefore, eh year after. Staff has cise agreement expires in 2012, It is the City Council's intent that as franchise a, the same period so the City can negotiate simil year and setting different terms for the next e Council's original intent that franchise f ' nclu is exp ` e, the City will make them all cover r all rather than setting terms for one this down the road. It was also the City ed in all renegotiated agreements. The City Council has instructed tha y ewe chise fees collected will be dedicated to road reconstruction. A number of c "`` h. asked whether that is in conflict with The Charter. Staff conferred with the Chair of t er 5mmission and the City Attorney for opinions about that Both indicated there is n. hing e Charter that prohibits use of franchise fees for road reconstruction. A number of callers expressed concern that a franchise fee is just another type of tax. The City Council is aware of that and is making every attempt to ensure that people subject to the proposed fee have an opportunity to provide input. Staff sent letters to every Lino Lakes customer of Reliant Energy Minnegasco in August. Staff allowed a month before holding any public hearings, then scheduled two (2) — the first one tonight and the second on October 9, 2000. Staff has kept track of phone calls and letters of everyone who has contacted the City about the fee and forwarded them to the City Council Members. If the meter fee is approved, there must be two (2) readings of the ordinance. Those are scheduled for October 9 and October 23, 2000. Then the ordinance must be published. It would actually go into effect January 1, 2001. 11