07-23-2003 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 23, 2003 Mr. Blesener introduced the following resolution and moved its adoption: RESOI. UTION NO. 2003-7-14 - ADJOURNING THE ECONOMIC DEVELOPMENTAUTHORITYANll RECONVENING THE CITY COUNCIL. MEETING The foregoing resolution was duly seconded by Anderson. Ayes (5) LaValle, Montour, Anderson, Fahey, Blesener. Nays (0). Resolution declared adopted. Sherman asked if the Council had any concerns with the site plan for The Village. The City Planner indicated that the site plan reflects what his office hoped to accomplish in recommending the changes it did. FRANCHISE Colette Jurek, Xcel Energy, reported that she submitted the City's FEE proposal for the collection of franchise fees on gas and electric to Xcel's upper management and obtained the following responses. Xcel is agreeable to collecting a flat franchise fee on electric, but did not approve the City's request to impose a percentage fee. Xcel's billing department can begin collecting franchise fees for Little Canada in October, but would like to have six weeks advance notice. Xcel is agreeable to a two-year sunset renewal on franchise fees. Jurek reported that Xcel's law department is currently reviewing the draft agreement. Jurek reported that Xcel wants to work with the City and collect the dollars that the City needs. However, Xcel's position is that they want to make sure the fees are being collected in a manner that is fair and equitable to their customer base. Fahey pointed out that Xcel has made arrangements with other cities to collect franchise fees on a percentage basis. Fahey suggested that if Xcel is rejecting the City's request to collect these fees on a percentage basis, then the City Council must explore whether or not it wants to amend its franchise ordinance. Fahey stated that if Xcel will not give Little Canada the same consideration that it has given other cities, then he would propose that the City Attorney prepare an amendment to the ordinance that would impose the fees on a percentage basis without opening up and extending the franchise agreement. In the meantime, discussions could continue with Xcel on the issue. Fahey stated that Little Canada is serious about being treated in the same manner as other cities, and Little Canada's definition of what is fair and equitable is just as important to us as it is to Xcel. Fahey felt that a franchise fee that is based on usage is a pretty clear-cut way to impose such a fee, while a flat fee has a disproportionate impact on commercial acrd industrial users. 16