HomeMy WebLinkAboutOB 1 WTR FRANC FEES 04-20-81DATE:
April 1, 1981
OLD BUSINESS
TO:
FROM:
SUBJECT:
H]NORABLE MAYOR AND CITY COUNCIL
DAN BLANK~SHIP, CITY ADMINISTRATOR
~ATER FRANCHISE FEES
The City of Tustin has previously received an annual franchise payment from the
Tustin WaterWorks for the use of public streets and rights of way. In adaition,
the Tustin Water Works paid annual franchise payments to the County of Orange anO
the City of Orange. Below is a record of these payments for the last 3 years and
10months. The 10month period is for that part of the operation of the Tustin
Water Works as a private company during 1980 and up to November 1, 1980.
FRANCHISE FEES
City of Tustin
County of Orange
City of Orange
1977 8,439.00 13,007.00 229.00
1978 9,252.12 14,190.74 251.74
1979 10,509.34 16,137.50 283.34
1980 (10 mos.) 10,899.42 16,691.72 294.12
The City has notified the County of Orange and the City of Orange that we no
loc~ger believe a franchise is required, nor a franchise fee. We have receive/ no
acknowled~.~e_nt or disagreement to that position so far, as the letter was mailed
on March 27~ 1981 wiCn their ten m~nth franchise check.
The question before Co~:cil is whether or not it wishes to continue to receive a
franchise fee from ~ne water service o~ sales within the City of Tustin. The
amo,~nt is not large as cmn he seen above. Cn the other hand, the City is
providing a number of administrative services without reimbursement at the present
time. Ex~_mples are payroll ar~ accounts payable services, arm even time by the
City Administrator, department heads and other staff on water related matters.
Eventually, more of these services will he charged back to the water service when
the water fund becomes more healthy.
There is a good case for continuing the franchise payment, but it is not a
critical matter one way or the other. Ron Nault leans toward not continuing the
payment, while I lean toward continuing the payment as a reasonable recovery of
costs by the City. However, neither of us feel strongly on the subject.
ACTICN BEFORE COUNCIL:
Establish policy on whether or not water service will continue to pay equivalent
franchise fee to City of Tustin.