City Council Approves Franchise Fee Agreement

Oskaloosa City Council

Oskaloosa, Iowa- The Oskaloosa City Council approved the third and final reading of the proposed Franchise Fee Agreement. The agreement itself was approved unanimously with little discussion, however, approval of the revenue purpose statement for the agreement was not as easy. Most of the debate on the revenue purpose statement was centered around the two choices the Council is designating revenue generated from the franchise fees towards. A motion made by Lori Smith was that choices F and G be what the revenue generated will be put towards.

Choice F reads, “The establishment, construction, reconstruction, repair, equipping, remodeling, and extension of public works, public utilities, and public transportation systems.” Choice G reads, “The Construction, reconstruction, or repair of streets, highways, bridges, sidewalks, pedestrian underpasses and overpasses, street lighting fixtures, and public grounds, and the acquisition of real estate needed for such purposes.”

Council Member Ver Steeg objected to choice F being in the statement. “I think F should not be in there at all. It opens up too many doors. I’ve been telling my people, I think we’re all telling people the same thing, it’s gonna be for streets only. [inaudible] just remodeling. That opens up anything. Public Works opens up anything, and this is not what I had in mind. I can’t support this with F in there,” Ver Steeg said.

Ver Steeg’s concerns focused mainly on choice F, specifically the word “remodeling.” Ver Steeg continued, “But that word remodeling opens up a lot of doors, and we’re not gonna be the council that is in charge of this thing forever. Like Tom said last week, once we start this franchise fee it’s there for the next generation.”

Council Member Moore voiced her support for choice F. “I am not that knowledgeable about roads. I read several books when I ran and tried to [inaudible] information, but my knowledge base of go out and fix a road doesn’t know if we have it all covered with ‘g,’ especially when people, our staff, feel like we need ‘f.’ That’s why I’m going to support F and G.”

Council Member Walling also offered his thoughts the remodeling portion of choice F. “I don’t think F says you can build and remodel a building. I’m not sure. I’ve asked before. This public works. If you look at B that’s [inaudible] buildings, and E is equivalent. I don’t think F is talking about equipment or buildings, but that’s the way I am reading it. That’s why I don’t have a problem with F. But am I right or wrong?”

In the end, the Council voted 6-1, with Council Member Ver Steeg voting No, to allocate Franchise Fee funds towards choices F and G. In other action, the City Council:

• Approved the Franchise Fee Agreement for an Electric System unanimously and set the Franchise Fee percentages at 3% for Residential, Commercial and Public Authority Customers and 1.5% for Industrial Customers.
• Approved the Franchise Fee Agreement for a Natural Gas System unanimously and set the Franchise Fee percentages at 3% for Residential, Commercial, Public Authority, and Transportation Customers and 1.5% for Industrial Customers.
• Approved the 1st reading of an ordinance establishing a three-way stop intersection at High Ave West and North A Street unanimously
• Approved the 1st reading of an ordinance amending the zoning ordinance of Oskaloosa to allow for the rezoning of property owned by Mahaska Health Partnership at 1212 E Ave East from R-1, Single Family Residential District, to R-3, Multiple Family Residential District unanimously

The next meeting of the Oskaloosa City Council will be on October 17th, 2011 at 6:30 PM in the City Council Chambers.