Posted on

Charles City Council pursuing franchise fee agreement for energy utility

By Travis Fischer, tkfischer@charlescitypress.com

The Charles City Council talked about the city pool, franchise fees, and water projects during its workshop meeting on Wednesday, Nov. 29.

The meeting began with a report from Parks and Recreation Director Tyler Mitchell and plans for next year’s repair and maintenance of the Lions Field swimming pool.

In lieu of a total renovation of the pool, which would require a bond referendum to finance, the city Parks and Recreation Board has opted for recommending a proposal that would focus on the pool’s most immediate needs while still coming in under the $910,000 threshold that would force a bond financing vote.

The work would focus on repairs to the pool floor, joints, gutters, surge tank, and mechanical system along with a replacement for the diving stand.

“I think if we’re able to do this, it’s going to prolong the life of the pool for a long time,” said Mitchell.

Commenting on the overall use of the pool this year, Mitchell said attendance numbers were down this summer and lifeguard staffing remains a persistent issue, however a boost from concessions and more efficient use of chlorine resulted in the pool operating at less of a loss than usual.

“Overall, we lost less money this year than in past years,” said Mitchell.

The $900,000 project is estimated to extend the lifespan of the pool by another 20 years, prompting a discussion amongst the council about the value of that investment against declining usage. The value of city amenities, the pros and cons of splash pads, and more were discussed as the council considered the future of the pool and its place in the city’s Capital Improvement Plan.

Moving on, the council met with Tyler Gartenberg with MidAmerican Energy to discuss the implementation of a franchise agreement.

The city is considering going into a new 25-year franchise agreement with MidAmerican Energy, which would incorporate a 5% franchise fee from the utility expected to generate roughly $830,000 per year.

The franchise fee would be added to the utility customer’s bill and pass directly from MidAmerican Energy to the city.

“It’s a good way to diversify away from property tax,” said City Administrator Steve Diers.

Though the franchise fee would be set at 5%, the actual increase would come out to 4% due to the franchise fee overriding the already existing 1% Local Option Sales Tax charge.

In effect, a $100 utility bill that currently costs customers $101 due to the Local Option Sales Tax would increase to $105 under the franchise fee.

A franchise fee is an increasingly common revenue source for cities to utilize as state limits to what cities collect in property tax put strain on city budgets.

“Legislative actions aren’t helping small town Iowa,” said council member Patrick Lumley. “We’re going to have less money to work with to provide the same services we have today.”

In other business, the council reviewed two requested change orders for the Clearwell Project. The is a welcome reduction in cost as $7,641 worth of concrete sealer was determined to be unneeded.

The second change order asks that work on the project involving water or paving be suspended over the winter, to be started up again on April 1.

“Everything is stopped so we don’t have a 500,000 gallon ice cube in two weeks,” said Water Superintendent Corey Spieker.

Spieker also discussed with the council a plan to install a water filling station at the fire station, which would allow contractors and businesses access to a bulk water supply that can be more easily used and monitored than the current method of using fire trucks and hydrants.

In addition, Spieker presented the council with a contract with Dixon Engineering & Inspection Services for the recoating and painting of the Charles Street water tower. The project itself is planned for the 2025 fiscal year, but getting it out to bid early may save the city money as contractors plan out their schedules.

Moving to streets, the council discussed a change order for the Mill Race Parking Lot Project, requesting an additional $46,282.62 for material costs.

As an aside, the council discussed feedback received from the community about the new parking lot, acknowledging comments about the need for additional handicap parking spaces, which will be a consideration when the city plans to repaint the parking lines next spring.

The Mill Race Parking Lot was largely paid for with sponsored project funds due to utilizing permeable pavers. For next year, the city is making plans to install more permeable pavers along Howard Street.

Social Share

LATEST NEWS

2

pages remaining