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0-1 Little Can <br />dQd <br />COMMUNITY PRIDE <br />1953 - 2003 <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />mm\ci.little- canada.mn. us <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />Shelly Rueckert, Accounting Supervisor <br />DATE: Judy 3, 2003 <br />RE: Franchise Fees on Utilities <br />rbffll"OR <br />Michael 1. Fahey <br />COUNCIL <br />Jim LaValle <br />Matt Anderson <br />Rick Montour <br />Bill Blesener <br />ADMINISTRATOR <br />Joel R. Hanson <br />Subsequent to the April 23`' Council meeting, staff has been working with Xcel Energy to draft a <br />new franchise agreement that contemplates a City franchise fee. Based on our meeting with Xcel, it <br />appears that a franchise fee can be implemented as early as the October 3rd billing cycle. Xcel has <br />forwarded initial drafts of the following: <br />> Electric Franchise Ordinance (Attachment A); <br />> Ordinance implement electric service franchise fee (Attachment B); <br />> Gas Franchise Ordinance (Attachment C); <br />> Ordinance implementing gas service franchise fee (Attachment D); <br />The above documents were received July 151. A preliminary review of these drafts reveals the <br />following: <br />Electric Franchise Ordinance <br />Section 2.1 Term 20 years. <br />Section 3.3 No waiver of right -of -way permit fees. <br />Section 4.1 Relocation expenses will be the responsibility of Xcel unless if the relocation is <br />within five years of a prior relocation of the same facilities. <br />Section 4.3 This is a new provision to protect Xcel as it relates to future Federally funded projects. <br />Section 9.1 Boilerplate for fee section stating initial fee rates. Rates to be inserted. <br />1 <br />