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0.1 <br />COMMUNITY PRIDE <br />1953 — 9003 <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />wvW ci.l.ittle- canada.umus <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />Shelly Rueckert, Accounting Supervisor <br />DATE: July 9, 2003 <br />RE: Franchise Fee Supplement <br />MAYOR <br />Michael I. Fahey <br />COU\'CII, <br />Jim M aValle <br />Matt Anderson <br />Rick Montour <br />Bill Blesener <br />ADMJ JSTRATOR <br />Joel R. Hanson <br />As we noted in our earlier memo, Xcel has a preference for a flat fee for gas. Today, we <br />received a flat fee proposal for electric. This proposal starts with a percentage of <br />revenues to determine an overall fee collected. The flat fee is then calculated by dividing <br />the annual fee generated by the number of accounts and then by twelve for the monthly <br />figure. While this gives a steady collection month to month, it is still considered <br />regressive in nature. The flat fee is the same for the smallest user in the class as the <br />largest. The same type of calculation of a flat fee can be made for gas and again the <br />result is considered regressive. We have attached the models to illustrate the flat fees <br />being produced at the 2.5% equivalent fee for both gas and electric. <br />Additionally, Xcel has requested an accommodation for billing purposes until January <br />2004 (see e -mail attached.) <br />H: \KrisP \Correspondence \Kris' 2003 \Franchise Fee Supplernent.dor <br />