The Brookings City Council will continue to discuss charging Coos-Curry Electric Cooperative a franchise fee, although councilors agree that isn’t possible until after 2022 unless the utility agrees to it.

The council heard a report about franchise fees from City Manager Gary Milliman at a work session on Monday. He said that most Oregon cities have an electric franchise fee ranging from 3 percent to 8 percent.

Bandon, which operates its own electric utility, “has a franchise fee leveled on itself – a 6 percent fee,” Milliman said.

 He said that in Brookings, Gold Beach and Port Orford, Coos-Curry provides street lights instead of a franchise fee.

Milliman said that was set up in 1953 under an agreement that no franchise fee could be charged until after 2022, without both parties agreeing to the change.

He said that Coos-Curry furnishes streetlights in Brookings at a savings to the city of $60,000 a year.

“A 1 percent franchise fee would equal $80,000,” Milliman said. “A 3 1/2 percent franchise fee would be $300,000 a year in Brookings, instead of the $65,000-$70,000 the city saves this year.”

Milliman said that Brookings is paying about $11,000 for street lights in addition to the lights provided by the utility.

He said the lights that the utility provides and those the city provides are almost equivalent to a 1 percent fee.

“Verizon, now Frontier, had a contract that expired in 2004, but has continued to pay a 3.5 percent fee,” Milliman said.

He said that is limited by federal law to 5 percent, but many cities are charging 7 percent.

Milliman said Charter Cable’s franchise fee expired on Aug. 31, 2010, but it was extended through 2011 or until a new contract is reached. That fee is 5 percent.

Curry Transfer and Recycling pays a 1/2 percent fee that was established in 1995.

“That fee is a little different. There is no termination date and it requires a 10 year notice to change,” he said.

Milliman said Coos-Curry, the telephone company and cable company all conduct business on city property, use city streets and alleys.

Milliman said that at the county’s first Citizens’ Committee meeting a week ago, he learned that the county receives $450,000 annually from Coos-Curry.

“Speaking with (Coos-Curry General Manager) Roger Meader, I understand Coos-Curry gives a gross receipts tax to the state of Oregon – 4 percent of adjusted gross revenue.

“They pay 4 percent to the state of Oregon, with 66 percent of that 4 percent remitted to the county and 33 percent to the school districts. The cities receive nothing,” Milliman said.

Mayor Larry Anderson said the council would discuss franchise fees in the first part of 2012.

“I don’t think there’s any urgency in this,” he said.

“I would like the subject matter to come before the council and have an open discussion about it,” Councilor Jake Pieper said.

Meader, Coos-Curry’s general manager, had invited the council to appear at last month’s co-op board of directors’ meeting, but the city had to decline because the utility board does not hold open meetings. Meader had agreed to appear at Monday’s council workshop, but then canceled. Two members of the utility’s board attended as observers.