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Eureka staff to examine whether Rocky Mountain Power easement fee can be added to franchise renewal
Summary
City staff said Eureka already levies a municipal franchise tax but is exploring whether a separate easement-use fee can be included in the Rocky Mountain Power franchise renewal; staff will consult with Nephi City and report back.
Council members reviewed a planned renewal of the Rocky Mountain Power municipal franchise ordinance and asked staff to explore whether the city can add a separate fee for use of the public easement in addition to the existing franchise tax on usable energy.
"The municipal franchise tax is charging...usable energy, whereas there's a potential fee that they could put in place for the use of the easement that the city owns," staff member Shay said, citing Nephi City as an example. Shay said she would speak with Nephi's administrator, examine how that city structured fees and report back to Eureka.
Council members noted that many municipalities surveyed on the Wasatch Front did not include an easement-use fee in franchise agreements, though some cities do charge disturbance or excavation permits. Staff said they would follow up and include council members in the conversation before any ordinance adoption.
No final action was taken at the work meeting; staff will return with a recommendation.
