Discuss Provisions of the Charter that Pertain to Funding Sources for the City (i.e. Franchise Fees, General Levy, Special Assessments) and Determine Whether Applicable Charter Amendments Should be Implemented

Purpose:  The purpose of this case is to discuss funding sources for the City - including the use of franchise fees, general levy and special assessments - and to seek feedback from Charter Commissioners before possible Charter amendments are considered.. 

Background:  As the Charter Commission is aware, the City Council is currently considering implementing franchise fees as a source of funding for the Street Maintenance Program.  The City Council conducted a public hearing on Tuesday, October 8 relating to the introduction of an ordinance to establish franchise fees.  It was noted that 22 people spoke at the public hearing, with 18 people opposing the use of franchise fees for funding road maintenance.  Council postponed introduction of such ordinance(s) to the next meeting (October 22).  The draft ordinances are attached for Commission information.

During public input, questions were raised about the Charter and how it meshed with the Council's consideration of instituting a franchise fee.  Attorney Langel was asked to weigh in on the inquiry.  Mr. Langel's response was that there is no question that the City Council has the authority under the current Charter language to institute a franchise fee, as the Charter gives the City Council authority unless otherwise stated in the Charter.  Attorney Langel explained the Charter Commission can put parameters/limitations on a franchise fee if it does not conflict with State law but the Charter is a constitutional document so the Commission needs to use care when amending for any issue.

Chairperson Field suggested it would be helpful for the Charter Commission to have some type of historical and legal analysis of franchise fees and submitted a list of questions to City staff. Mr. Fields' request, as well as the responses by the City Attorney are attached for Commission review.  Attorney Langel supplied responses to all but item #4 which was referred to City Engineer Bruce Westby.  Number 4 is a request for a summary of metro area and a few outstate charter provisions and ordinances that pertain to the establishment or amendment of franchise fees.  Staff has not had a chance to dedicate a lot of time to this research; however, we will attach what information is available at this time.  The City Engineer is aware of 43 cities who currently have a franchise fee with CenterPoint Energy; that list of cities is attached.  It is possible that is not a complete list.  Staff also included the franchise fee language from the Charters of the following cities:  Anoka, Blaine, Coon Rapids, Ham Lake, and Lino Lakes.  Staff had communication with Jeanette Behr, Attorney with the Research Department at the League, and she will compile some franchise fee data and the cities who are using franchise fees for funding sources and email it to staff by Monday.  Therefore, it is anticipated more information will be available and distributed at the meeting.  

Chair Field has stated he will allow public input/comment during the discussion of this case.

Chairperson Field also requested that any Charter Commissioners who had suggestions for amended Charter language to submit such draft language in advance of the meeting so that it could be included with the agenda.  Staff received two suggested amendments from Commissioner Zaetsch, which are attached to this case. The amendments are suggested for Chapter 7 and Chapter 10.  Staff received an email from Commissioner Deemer suggesting also that the Commission members review Chapters 7 and 10 of the Charter as they seem to be the two sections that may govern what the City Council can do. The current Chapters 7 and 10 are attached to this case as well.

Commissioner Zaetsch asked that the Commission receive the copy of State Statute 410.09 Regulations of Franchises (attached) and enter into discussion regarding same.





 

The Charter Commission was notified of this meeting via email. 
 

As stated, Chairperson Field called this Charter Commission meeting to discuss/receive feedback relating to funding sources.  Mr. Field has also stated that following discussion, the Commission may work to craft language for a proposed Charter amendment.

Review the information and be prepared to discuss possible amendments to the City's Charter as it relates to funding sources.

Based upon discussion.