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MINUTES <br />CITY COUNCIL <br />JULY 9, 2003 <br />The City Administrator pointed out staff's concern that a flat fee would be <br />regressive in nature when applied against a low volume versus high <br />volume user. Staff's intention was to have a fee that fair both within <br />classes of customers and between classes of customers. <br />Anderson asked why not charge a percentage on gas. Jurek replied that <br />gas would have to be a per meter charge, however, there maybe an <br />opportunity to look at different price points per month. Jurek indicated <br />that Xcel Energy would like these fees to be reasonable. <br />Anderson suggested a percentage fee for gas with a cap. He felt this <br />would provide equity for low end users. <br />Jurek pointed out that a flat fee was predictable for property owners and <br />resulted in predictable revenue for the City. <br />Council continued their discussion of how to structure the gas and electric <br />franchise fee to ensure equity between property owners while keeping in <br />mind that this fee is, in reality a replacement property tax and property <br />taxes are based on property valuation. <br />Jurek stated that Xcel Energy strongly recommends a flat fee rather than a <br />percentage fee. Fahey indicated that a flat fee does not strike him as <br />equitable and provides no additional incentive to property owners for <br />conservation efforts. Anderson stated that he preferred a percentage fee <br />with a cap. Fahey agreed. <br />Jurek reported that she will discuss this with Xcel Energy. She also <br />suggested that the City's review period be established as every two years. <br />The City Administrator indicated that he would like to compare the <br />language in New Brighton's franchise agreement with that of Little <br />Canada's, as it appears the New Brighton language is more favorable to <br />the City. <br />Fahey pointed out the staff's comments regat-ding the restoration of certain <br />cuts. It was the consensus of the Council that conference expenses should <br />remain as a cut to the 2003 Budget, with the Council discussing the issue <br />as part of the 2004 Budget review. Fahey felt that the fall street sweeping <br />should be reinstated for 2003. <br />Fahey recommended that skating rink hours be re-established as he felt it <br />was important to provide winter activities to City residents. The City <br />Administrator suggested that this be based on actual usage, and if there is <br />10 <br />