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<br /> <br />Mr. Wilhelmy thanked staff for the detailed presentation. He reported many cities choose to have a franchise <br />agreement versus franchise fees. He stated in terms of the fee, New Brighton was using an older style and he <br />would like to see the City switching over to a flat fee. He commended the City for their forward thinking <br />regarding energy use and conservation. <br /> <br />Councilmember Abdulle asked if the previous franchise fee was use based. Mr. Wilhelmy stated this was the <br />case. He was of the opinion a flat rate would be easier for users to understand. <br /> <br />Further discussion ensued regarding how residents could work to conserve energy in order to reduce their <br />overall energy bill. <br /> <br />Mayor Niedfeldt-Thomas clarified the incentivization to use less energy was to have lower energy bills, but <br />noted the proposed franchise fees would remain a minimal constant on bills. Mr. Wilhelmy reported this was <br />the case. <br /> <br />Councilmember Allen questioned what the break down was between residential and non-residential for energy <br />use when it comes to electric and gas. Mr. Wilhelmy reported the City has many more residential users, but <br />they use less energy than the commercial and industrial properties in the City. He indicated he could get this <br />information to the Council. <br /> <br />Mayor Niedfeldt-Thomas stated if the City were to move forward with a flat fee, could this be changed to a <br />percentage next year. Mr. Wilhelmy stated he would encourage the City not to take this action. He indicated he <br />wants his customers to understand their bill and not for their to be changes occurring frequently. <br /> <br />Mayor Niedfeldt-Thomas explained the City has very large goals when it comes to energ y use and she feared a <br />flat franchise fee rate does not incentivize energy conservation. Mr. Wilhelmy stated he understood this point, <br />but he believed it was more important to have customers understanding the franchise fee noting conservation <br />would come with behavior changes. <br /> <br />Mayor Niedfeldt-Thomas questioned why energy use was on the decline since the pandemic. Mr. Wilhelmy <br />stated as the price for energy goes up, people tend to use less or some residents are purchasing more efficient <br />appliances. He commented on the EV program Xcel had in place which encouraged residents to charge their <br />vehicles at night. <br /> <br />Councilmember Allen asked if fluctuations in rates from Xcel would impact the franchise fees collected. <br />Massopust reported this would not occur if the City moves to a flat rate for the franchise fees. <br /> <br />Councilmember Dunsworth stated she appreciated how the public could be educated on the flat rate and how <br />residents could work to reduce their bill through conservation efforts. <br /> <br />Mayor Niedfeldt-Thomas was of the opinion those residents who use more energy should be paying more for <br />the franchise fee. Mr. Wilhelmy indicated his system would not allow for this type of billing. He reiterated that <br />the franchise fee would only represent 1% to 3% of users total bill. He discussed how Xcel was working to be <br />carbon free in order to be more environmentally friendly. He commented on how wind and solar would reduce <br />costs for users over time. <br /> <br />Councilmember Abdulle stated he supported the City revisiting the franchise fee rate every five years. He <br />commented on how he was uncomfortable entering into a 20 year agreement given how the energy climate was <br />changing. Massopust discussed how the use of the City’s right-of-way would remain the same even as the <br />energy climate changes. Mr. Wilhelmy commented it was quite common for cities to have 20 year franchise