HomeMy WebLinkAboutNB 3 WTR FRANCHISE FEES 4-6-81DATE: April 1, 1981
NEW BUSINESS
4-6-81
l te -Cor
TO:
HONORABLE ~I~YORAND CITY COUNCIL
FROM: DA~ R;ANK~SHIP, CITY ADMINISTRATOR
SUBJECT: '[,'~TER FRANCHISE FEES
The City of Tustin has previously received an annual franchise payment from the
Tustin Water Works for the use of public streets and rights of way. In addition,
the Tustin Water Works paid annual franchise payments ~o the County of Orange and
the City of Orange. Below is a record of these payments for the last 3 years and
10 months. The 10 month period is for that part of the operation of the Tustin
Water Works as a privat~ company during 1980 and up to November 1, 1980.
FRANCHISE FEES
City cf ~astin
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 (1C ,.mos.) 10,899.42 16,691.72 294.12
The City hms notifiec +~ne County of Orange and the City of Orange that we no
lo~ger belie~,~ a fr=~ndqise is required, nor a franchise fee. We have receive~ no
acknowleCg~ent or disa~cr.£~_ment to that position so far, as the letter was mailed
on Marcin 27, 1981 wi~n "-qeir ten mDnth 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
amount is not large as can be seen above. Cn the other hand, the City is
providing a number of administrative services without reimbursement at the present
time. Examples are payroll ar~ accounts payable services, and even time by the
City Administrator, department heads and other staff on water related matters.
Eventually, more of these services will be charged back to the water servio~ when
the water fund becomes more healthy.
There is a good case for ~ontinuing the franchise payment, but it is not a
critical matter one way or the other. ~on Nault leans toward not continuing the
payment, while I lean toward oon~inuing 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.
DAN BLANKEi~SHIP, ~
City ~dministrator