Fruit Heights City Council discussed the possibility of adding franchise fees to utility agreements and received an update on a state law the staff said will impose per‑square‑foot charges on houses in wildfire‑mapped areas beginning in January.

The matter matters because franchise agreements can provide a recurring revenue source for the city, and the state mapping charge could add a new cost to affected property owners while creating administrative responsibilities for local governments.

City staff member Darren told the council the city is negotiating updated franchise agreements with utility companies, including Enbridge Gas, and described areas of disagreement in draft contracts such as permit and activation fees the utility now pays but seeks to change. “This is just on the agenda for the council,” Darren said, noting the council would see proposed franchise agreements as discussions progress.

Darren also briefed the council on a newly created state law that will take effect in January and that, as explained in the meeting, will charge a set amount per square foot for houses falling inside the state’s wildfire mapping. “The state created the law this year that goes in effect in January,” Darren told the council, adding that the state will collect the money into a fund to pay for wildfire response and mitigation. He said the law, as discussed in the meeting, limits homeowners’ ability to challenge their designation for three years and may require cities or fire districts to assign staff to review properties for mitigation credits after that period.

Darren said local fire chiefs have expressed opposition to the law both because of cost and added administrative work. He also noted Fruit Heights is one of the few nearby communities that does not collect a municipal franchise fee and that the council may consider franchise revenue as one tool among others to address city funding needs.

Council members asked about how much revenue such a franchise would generate; Darren said that would depend on the rate the city sets and that the matter will return for further discussion as draft agreements are negotiated.

No formal action was taken; staff said they will continue negotiating franchise contract terms before presenting any ordinance or interlocal measures to the council.