March 28, 2024

City to renew franchise fee agreements

Electric and gas fee increase anticipated

Two public hearings will be set to discuss the renewal of the electric and natural gas franchise agreements with the Newton City Council.

The public hearings will cover the 25 year electric franchise with Alliant Energy and natural gas franchise with Black Hills Energy. Both plan to add franchise fees starting at 2 percent and gradually increasing to 4 percent.

Alliant Energy is also offering a Hometown Rewards Program that Newton could compete for.

“They do an in-depth multi-year partnering with that community. In that they work at a grassroots level providing technical support, capacity building, different ideas and initiatives and resources to promote energy efficiency, better energy usage, different way to save money on your utility bills,” Bryan Friedman, director of Finance and Development said. “Also, if you meet their goals and the goals you set as a community, there’s also some potential for rewards where they give substantial grants to projects of the communities choosing.”

Alliant will select one or two new communities each year out of several surrounding communities of varying sizes to work with. The council will have the opportunity to move forward with the application at the next meeting.

The council approved two resolutions to award contracts for the demolition of eight properties that have been deemed dangerous or needing demolished. Owners of the properties at 1219 S. Fourth Ave. E., 721 E. Seventh St. N., 520 N. Third Ave. E. and 602 W. Second St. S. were given a 60-day notice to comply and since no action was taken, the city began soliciting bids to demolish the buildings. Buildings at 315 N. Fourth Ave. E., 323 E. Fourth St. N., 304 E. Fourth St. N. and 321 W. Third St. S. were all purchased by the city earlier in the year after they were identified as needing demolished.

In other business:

• The council closed a public hearing and approved the contract to WRH, Inc. of Amana for the 2014 Southeast Pump Station Improvement Project. The improvements will replace and upgrade of the approximately 30-year-old lift station equipment that is showing age and deteriorating.

• With a 5-1 vote the council approved amending an agreement with the developer of Okoboji Grill, J&J Real Estate Holdings, LLC, to end a minimum assessment agreement and receive two years of partial property tax rebates. The company found that the tax rate they were being charged in the minimum assessment agreement was exceeding the actual market value. The city bonds that were used to fund the development assistance for the project were complete in June. The property also achieved the goals set out by the city in the original agreement.

Contact Staff Writer Jamee A. Pierson at (641) 792-3121 ext. 6534 or jpierson@newtondailynews.com.