2023.09.12 CC Packet - Laserfiche WebLink

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August 22, 2023 Page 3 of 4 Councilmember Axberg asked what type of increase the average resident would see. Community Assets and Development Director Schlichting explained the franchise fee would increase 82 cents per month or $10 per year for a residential customer. Councilmember Axberg commented the Council was still working on the Climate Action Plan. She questioned if the City could accrue funding for a document that was not yet approved. Community Assets and Development Director Schlichting indicated the City’s Climate Action Plan initiatives would far exceed $100,000, but staff was proposing to set aside $100,000 in franchise fees to assist with these expenditures. Councilmember Abdulle thanked staff for the detailed presentation. He inquired if multi-family residents were charged a franchise fee. Community Assets and Development Director Schlichting reported this would only occur if the multi-family residents had a separate gas or electric meter. Mayor Niedfeldt-Thomas explained Xcel Energy attended the Council worksession meeting on April 23, 2023 and talked with the Council about this topic. She indicated she originally had concerns with moving to a flat rate versus a usage based fee, however she understood the usage based fee was challenging for staff. She stated she appreciated the fact the City would be putting money aside for climate action initiatives in order to have match dollars available for future strategies. Councilmember Abdulle commented on how the actions at a local level mattered to the community. He explained he appreciated the partnership the City had with Xcel Energy and he supported the City putting aside $100,000 each year for climate action items. Councilmember Allen commented on how infrastructure costs have gone up in recent years and noted he could support the proposed flat rate franchise fees. He thanked staff for all of their efforts on this item. Councilmember Axberg indicated this would be a pass through fee that would be passed onto residents. City Manager Massopust reported this was the case. Councilmember Axberg questioned why the City would be pursuing this fee versus raising the levy. Community Assets and Development Director Schlichting explained franchise fees can be collected from all properties in the City, including churches, non-profits and school district properties. Motion by Councilmember Dunsworth, seconded by Councilmember Abdulle to adopt Ordinance 902, establishing an Electric Franchise. 4 Ayes, 0 Nays, 1 Abstain (Councilmember Axberg)-Motion Carried Motion by Councilmember Abdulle, seconded by Councilmember Dunsworth to adopt Ordinance 903, establishing a Gas Franchise. 5 Ayes, 0 Nays-Motion Carried Motion by Councilmember Allen, seconded by Councilmember Abdulle to adopt Ordinance 904, for the collection of Electric Franchise Fees. 5 Ayes, 0 Nays-Motion Carried Motion by Councilmember Dunsworth, seconded by Councilmember Abdulle to adopt Ordinance 905, for the collection of Gas Franchise Fees. 5 Ayes, 0 Nays-Motion Carried Motion by Councilmember Allen, seconded by Councilmember Axberg to adopt a Resolution for Summary Publication of Ordinances 902, 903, 904 and 905. 5 Ayes, 0 Nays-Motion Carried