10.1. SR 01-22-2013 - Laserfiche WebLink

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i (1tv or E flk.. REQUEST FOR ACTION -% ACTION REQUESTED Implementing a franchise fee to fund the Pavement Management Program; and provide: 1) Authorization to review and re- negotiate franchise agreements with Centerpoint Energy; 2) Authorization to negotiate new franchise agreements with Connexus Energy and ERMU; and 3) Authorization to draft Franchise and Franchise Fee Ordinance for adoption (requires 60 -day notice to utilities prior to adoption). ACKGROUND/ ISCUSSION Funding options for the city's Pavement Management Program were discussed by the Council on July 9, 2012, August 6, 2012, October 8, 2012, November 19, 2012, and January 7, 2013. Council consensus was to proceed with evaluating and implementing a franchise fee to fund the Pavement Management Program. A franchise fee is proposed to be collected from existing gas and electric service providers in the city. State law provides cities the ability to impose such fees for utilities using the public right -of -way. The fee would be dedicated to pay for the maintenance of existing city streets and would eliminate the need for special assessments. Franchise fee revenues combined with current state aid allocations, are projected to fully fund the Pavement Maintenance and Reconstruction Program (or Pavement Management Program) for the existing paved, city -owned street system. Staff is working on the 2013 Street Improvement project. The process for developing the project has, to this point, followed the existing procedure for funding through special assessments. Direction from the January 7, 2013, meeting was to consider combining like projects to equalize assessments. While this may be consistent with past practices, it is very likely that it would not be defendable if an assessment were challenged. The disparity in assessments proposed with the 2013 Street Improvement project further emphasizes the need to consider a different funding option. Proposed Fee Amounts The Pavement Management Program would require an additional $1.5 million annually to maintain current pavement conditions. Initially, staff suggested collecting required revenues through an estimated monthly fee of $7 from residential properties, $50 from small commercial /industrial properties, and $200 from large commercial /industrial properties. Council asked staff to relook at the amount proposed for PO E 0 f a 0 Y NAWRE