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Bellevue utilities seek updated franchise agreement with Europointe, clarify rate changes tied to excise taxes
Summary
Utilities director Lucy Liu outlined proposed updates to a decades-old franchise agreement with the Town of Europointe and recommended city code changes allowing water and sewer rates to be adjusted if excise taxes change; the consent calendar containing the items passed as part of the meeting’s consent vote.
City of Bellevue Utilities Director Lucy Liu told the council on Feb. 11 that the utilities department seeks council approval — via the consent calendar — of an updated franchise agreement with the Town of Europointe and amendments to the city’s water and sewer rate ordinances to address excise taxes.
Liu said Bellevue provides water and sewer services to about 37,000 customer accounts within the city and in neighboring points communities, and that providing service sometimes requires using public rights-of-way owned by other jurisdictions. The existing franchise agreement with the Town of Europointe dates to 1994 and “needs some updates,” Liu said, adding the new agreement would add modern provisions covering emergency response procedures, facility removal and relocation processes, better coordination to minimize community disruption and clearer rules for collecting franchise fees and taxes.
Liu explained that current city rate ordinances already permit adjustments to utility rates when franchise fees change, but do not address excise taxes. The proposed ordinance amendments would allow the utilities department to adjust rates when excise taxes increase or decrease, in the same way the ordinances allow adjustments for franchise-fee changes. Liu and city manager’s staff emphasized the proposal does not change Bellevue’s water or sewer rate structure and that the costs caused by franchise fees and excise taxes are passed through only to customers located in the affected community.
Council approved the meeting’s consent calendar (which included these utilities items) by voice vote; the motion to approve the consent calendar was moved, seconded and passed with all members saying “aye.” The council did not hold separate roll-call votes on the individual franchise-or-rate amendments at the Feb. 11 meeting.
Ending: The updated franchise agreement and ordinance amendments will appear on the consent calendar documentation and, having been approved as part of the consent calendar, will be reflected in the city’s administrative actions and published agenda materials.
