08-27-2003 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL AUGUST 27, 2003 FEES discussions with Xcel Energy, the proposal is to impose a franchise fee on electric only. The Administrator reviewed the proposed fee schedule for the various customer classifications. Given equity concerns for the Large Commercial & Industrial customers, a fee of 3.75% per months with an annual cap of $2,400 has been proposed. A flat fee is proposed for all other customer classes that was based on a 3.75% average of that class. It was noted that the total revenue projected to be collected is $202,000 annually. Fahey expressed concern that the proposed franchise agreements seem to indicate that Xcel's permission would be required if the City decided to impose a franchise fee on the gas utility. The City Administrator reported that that language has been revised to reflect that should the City decide to enact a gas franchise fee, recent standards enacted in other cities would be used as the basis for determining this fee. Fahey stated that it was his hope that the electric franchise fee was a temporary measure, and that the State would release cities from levy limits so they have the ability to raise this revenue through taxes. The City Administrator pointed out that the franchise fee would become effective 20 days after publication of the ordinance. If adopted this evening, Xcel Energy would begin collection on October 1, 2003. The Administrator informed the Council that he has had further discussions with Xcel on language in the ordinance relative to the removal of abandoned infrastructure. Xcel has agreed that they would remove any abandoned infrastructure that is exposed and is creating a conflict for existing work. The Administrator felt that was acceptable. Mr. Blesener introduced the following resolution and moved its adoption: ORDINANCE N0. SSO - AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/]3/A XCEI. ENERGY ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR, AND MAINTAIN IN TIZE CITY OF LITTLE CANADA, MINNESOTA, AN ELECTRIC DLSTRII3UTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, L INES, FIXTURES AND APPURTENANCES, FOR THE FURNLSHING OF ELECTRIC ENERGY TO THE CITY, ITS INHA73ITANTS, AND OTHERS, AND TO USE THE PUI37.IC WAYS" AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES SU73JECT TO ANY MINOR MODIFICATIONS 73Y THE CITY ATTORNEY OR XC'EL ENERGYAND AUTHORIZING THE MAYOR AND CITY 19