A proposal to begin charging Coos Curry Electric Cooperative a franchise fee is on hold while city officials study the status of all such fees in Brookings.

The possible fee on CCEC surfaced during Brookings City Council discussions earlier this month.

Most Oregon cities collect a franchise fee from their local electric utility, based on gross receipts. However, an agreement between the city and CCEC allows the utility to maintain a number of street lights in lieu of paying a franchise fee.

The question never was put on the council’s agenda. Instead, City Manager Gary Milliman said Thursday that franchise fees for Charter Cable, Frontier and Curry Transfer and Recycling – along with a potential fee for CCEC – will be discussed during the council’s Dec. 5 work session.

CCEC General Manager Roger Meader said he will attend that meeting, which is also open to the public. Meader has said the utility will have to increase its rates to Brookings customers if a fee is enacted.

He has not taken a position for or against a franchise fee, but said this week he is willing to talk with city officials about the idea.

“The key is, we want to work with the city,” he said.

Milliman said part of the reason to step back and consider franchise fees as a whole is because different companies pay different rates.

Currently, Charter pays 5 percent, Frontier pays 3.3 percent and Curry Transfer pays 0.5 percent, according to city Finance Director Janell Howard. Milliman said he won’t make a recommendation to the council during the December meeting.

Council President Ron Hedenskog said he expects the issue to reach a council agenda eventually, based on “the interest that this topic has within the council.”

Although CCEC has a contract with the city that prohibits franchise fees from being assessed through 2022, there is a mechanism to change the policy. If either the city or CCEC asks to renegotiate the agreement, both sides must sit down to talk, Meader said.

Both sides would have to agree to the fee in order for it to be enacted.

Based on figures supplied by the utility, Milliman said a 3.5 percent fee on CCEC’s gross receipts would raise $297,000 to $315,000 annually. A 5 percent rate would generate $425,000 to $450,000, he said.

Franchise fees of 3.5 percent are common in Oregon, Milliman said.

Some council members have expressed interest in pursuing the fee. Jake Pieper called it “a big revenue source” for the city.