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City 4�� L <br />E <br />River <br />REQUEST FOR ACTION <br />TO <br />ITEM NUMBER <br />Mayor and City Council <br />8.4 <br />AGENDA SECTION <br />MEETING DATE <br />PREPARED BY <br />General Business <br />Aril 15, 2013 <br />Justin Fe rite, P.E., City Engineer <br />ITEM DESCRIPTION <br />REVIEWED By <br />Implementation of a Franchise Fee to Fund the City Pavement <br />Suzanne Fischer, Community <br />Management Program <br />Operations and Development <br />Director <br />REVIEWED BY <br />Cal Portner, City Administrator, Tim <br />Simon Finance Director <br />ACTION REQUESTED <br />Authorize the collection of a franchise fee to fund the Pavement Management Program through adoption <br />and approval of the following items: <br />Adopt Connexus Energy Franchise Ordinance. <br />2. Adopt ERMU Franchise Ordinance. <br />3. Adopt Electric Fee Ordinance. <br />4. Adopt CenterPoint Energy Fee Ordinance. <br />5. Approve Franchise Fee rebate form for previously assessed properties. <br />6. Approve transfer resolution from the Street Improvement Reserve Fund to the Pavement <br />Management Fund. <br />BACKGROUND /DISCUSSION <br />With direction from the January 22, 2013, City Council meeting, staff assembled the attached franchise <br />fee documents for final consideration and approval. Council approval of the above listed items will <br />implement the collection of franchise fees from gas and electric service providers in the city to fund the <br />City Pavement Management Program. <br />The fee, as specifically detailed in the fee ordinances, will be dedicated to pay for the maintenance of <br />existing city streets and would eliminate the need for special assessments and sale of reconstruction <br />improvement bonds to fund the program. Franchise fee revenues, combined with current state aid <br />allocations, are projected to fully fund the Pavement Management Program for the existing paved, city - <br />owned street system. <br />Staff has communicated the idea of the Franchise Fee with estimated costs with the community through <br />use of direct mailings, inserts in the Chamber of Commerce newsletter, Elk River Star News Articles, a <br />press release, an open house, and the city website. The public returned comments via phone calls, blog <br />entries, and hand written notes. A copy of all written notes and blog entries are attached for your <br />consideration. Phone call comments largely reflect the same comments received on the blog. <br />Final Fee Amounts <br />The proposed monthly fees to be collected on from different property classifications are as follows: <br />P Q w E H E D A T <br />UREJ <br />