Decorah City Council votes down the first reading of a proposed franchise agreement with Alliant Energy

On a 4-3 vote, the Decorah City Council has rejected a proposed franchise agreement with Alliant Energy.

City council members Emily Neal, Steve Luse, Johanna Bergan and Ross Hadley voted against the agreement, while city council members Randy Schissel, Kirk Johnson and Andy Carlson voted in favor of it.

A big concern discussed Monday night was the lack of a designated franchise fee in the proposed agreement.  Most communities with franchise agreements collect a 3 percent to 5 percent fee through utility bills.  Bergan said it would be difficult to pass a franchise agreement without a franchise fee and then try to discuss adding it at a later date.

Since a franchise fee is a "pass through," utilities typically do not object to it, but the franchise agreement would require approval by Alliant Energy to begin a franchise fee.

The vote Monday night means the city council will have to hold either a work session or a special session to discuss what lies ahead.