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HomeMy WebLinkAboutCCMP 4-12-22 Full NOTICE OF MEETING City Council Workshop 3800 Laverne Avenue North April 12, 2022 6:30 PM AGENDA I. Call to Order 6:30 PM II. Review Status of Unfinished Developments and Next Steps 6:30 PM III. Franchise Fees 7:00 PM IV. Remote Meetings 7:30 PM V. Items for Future Work Session Agenda 7:45 PM VI. Adjourn 8:00 PM Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership with our Community. STAFF REPORT DATE: April 12, 2022 DISCUSSION AGENDA ITEM: Update on Development Projects and Potential Enforcement Action for Non-completed Projects. SUBMITTED BY: Jack Griffin, City Engineer Chad Isakson, Assistant City Engineer REVIEWED BY: Kristina Handt, City Administrator Molly Just, Planning Director Marty Powers, Public Works Director ISSUE BEFORE COUNCIL: Should staff initiate enforcement actions in accordance with the respective Development Agreement for Non-completed Development Projects? PROPOSAL DETAILS/ANALYSIS: The City of Lake Elmo currently has 59 active development projects with construction work in progress that are responsible for the construction of various municipal infrastructure. The attached spreadsheet itemizes each active project together with any warranty expiration dates and remaining security amounts. City staff will provide a status update on these active development projects with a focus on the older, non-active developments that remain incomplete, and discuss options available to the city for development completion. Developments of specific concern that will be discussed include the following: 1. Savona 1st-4th Additions. Developer remains non-responsive for very aged punch lists. There are 3 infiltration basins within these developments that are not functioning as designed. 2. Royal Golf Club 1st Addition. The developer is disputing their obligation to replace the South Lift Station Generator that failed before warranty expiration. 3. Inwood PUD 6th Addition (Kwik Trip). Developer remains non-responsive for very aged punch lists and submittal of record drawings for the improvements. 4. Easton Village 3rd-4th Addition. Work remains incomplete and inactive. Work, including record drawings, has not been accepted. There is a rear yard drainage issue between the 3th and 4th Additions that has been ignored by the developer that is resulting in frequent property owner complaints and finger pointing between builder and developer. 5. Easton Village 7th Addition. Developer is disputing the scope of work required in regards to the removal of the 32nd Street Access closure to Manning Avenue and monument relocation. 6. Legacy at North Star 1st-4th Additions: All infiltration basins within the development remain inoperable. Developer remains non-responsive in developing corrective action/measures. 7. Boulder Ponds 3rd Addition. An infiltration basin continues to experience significant erosion requiring a site redesign to address a permanent solution. 8. Halcyon Cemetery Site Improvements. Aged Project. Securities remaining. 9. Northport 1st Addition. City holding $100,000 for the future relocation of storm sewer pipe that was installed along Manning Avenue. OPTIONS: 1) Direct staff to take no action at this time and continue to work with the developers at the staff level to encourage project completion. 2) Direct staff to issue an enforcement letter to one or more of these Development Projects with a response deadline, requiring the developer to submit a work plan and schedule for project completion. 3) Direct staff to bring one or more of these Development Projects before a future council meeting with recommendations for initiating enforcement actions. ATTACHMENTS: • Development Status Spreadsheet. CITY OF LAKE ELMODEVELOPMENT PROJECTS CONSTRUCTION TRACKINGConstruction StatusGrading PlansConstruction PlansEng. Items Completed for Building PermitsUtility Warranty ExpirationPublic Improvements Warranty ExpirationLandscape Improvements Warranty ExpirationSTATUS: Comments/RemarksTOTAL SECURITYWateramin OversizingSanitary Sewer OversizingCROSSROADS‐LAUNCH BUSINESS PARK PENDING 11/30/2021 BLDG‐PHASED Preconstruction meeting pending DA Right to Proceed PL $3,460,754 $585,250 100% $1,005,859 100% $1,252,787 100% $187,302 100% $429,556 100%ENTERPRISE RENT‐A‐CAR PENDING 2/21/2022 2/21/2022 Preconstruction meeting pending DA approval and Right to Proceed PL $910,000 $325,000 100% $47,500 100% $368,750 100% $93,750 100% $75,000 100%LAKEWOOD CROSSING 2ND ‐ PHASE 1 IN PROGRESS 9/27/2017 NA LOC reductions pending Phase 2 construction $235,100 $0 0% $97,881 100% $58,750100% $40,969 100% $37,500 100%LAKEWOOD CROSSING 2ND ‐ PHASE 2 IN PROGRESS 10/4/2021 NA Pending preconstruction meeting / full size plansSPRINGS AT LAKE ELMO IN PROGRESS 4/20/2020 BLDG‐PHASEDAccetance and LOC reductions Pending 11/03/2021 PL completion, VBWD sign‐off + Record Plans; Re‐inspection to be held in Spring 2022$3,325,186 $1,186,625 100% $483,609 100% $1,125,605 100% $328,159 100% $201,188 100%LEGACY AT NORTH STAR 1ST WARRANTY + BMP 9/7/2018 YES 9/17/2021 1/5/2022 Pending 12/23/2021 warranty PL + 12/3/2021 utility warr. PL + BMP completion $995,094 $247,500 100% $210,415 25% $351,562 25% $92,817 25% $92,800 100%LEGACY AT NORTH STAR 2ND IN PROGRESS 4/22/2019 YES 1/21/2022 Pending 12/22/2021 utility warranty PL + BMP completion $663,295 NA $181,887 25% $275,802 25% $103,606 100% $102,000 100%LEGACY AT NORTH STAR 3RD IN PROGRESS 4/3/2020 YES 1/5/2023 Pending 12/03/2021 substantial completion PL; No record plan submittal $1,109,482 NA $195,655 25% $647,797 50% $137,657 100% $128,375 100%LEGACY AT NORTH STAR 4TH IN PROGRESS 4/27/2021 YES 1/4/2024 Pending 11/17/2021 substantial completion PL; No record plan submittal $671,618 NA $122,052 25% $389,847 50% $52,219 100% $107,500 100%NORTHPORT 1ST IN PROGRESS 11/2/2017 YES 1/15/2021Pending 02/01/2021 PL (resent 12/3/2021); Pending 12/14/2020 Utility warranty PL (resent 12/3/2021); Pending Record Plans (per 10/18/2021 email)$1,542,954 $0 0% $263,281 25% $767,134 50% $272,508 100% $240,031 100%NORTHPORT 2ND IN PROGRESS 8/3/2018 YES 1/15/2021Pending 02/01/2021 PL (resent 12/3/2021); Pending 12/14/2020 Utility warranty PL (resent 12/3/2021); Pending Record Plans (per 10/18/2021 email)$436,763 NA $41,604 25% $294,503 50% $35,031 100% $65,625 100%NORTHPORT 3RD IN PROGRESS 3/16/2020 YES 1/4/2024 Pending 10/07/2021 substantial completion PL; Pending Pond 4SE as‐builts $669,952 NA$132,925 25% $432,125 50% $104,902 100% $0 0%UNION PARK 1ST IN PROGRESS 6/8/2020 YES 4/20/2023 Acceptance Pending 10/7/2021 PL completion + Record Plans $1,378,982 $0 0% $196,211 25% $943,315 100% $193,681 100% $45,775 100%UNION PARK 2ND IN PROGRESS 4/22/2021 YES$1,699,860 $155,606 100% $591,525 100% $669,548 100% $87,438 100% $195,743 100%UNION PARK WEST IN PROGRESS 7/6/2021 NO$2,731,771 $608,853 100% $848,352 100% $927,170 100% $241,713 100% $105,683 100%ROYAL GOLF CLUB 3RD (Lennar) IN PROGRESS 7/15/2021 7/15/2021 NO Construction in progress; No as‐builts / verifications completed $5,044,448 $1,155,575 100% $1,336,330 100% $1,939,447 100% $296,485 100% $316,611 100%ROYAL GOLF CLUB 5TH (Lennar)HIDDEN MEADOWS 2ND ‐ PHASE 2 IN PROGRESS 10/31/2017 10/31/2017 YES 1/18/2024 Pending Pending Pending 11/05/2021 Substantial Completion PL; Pending Record Plans $1,464,242 $156,250 100% $125,001 25% $391,361 50% $560,380 100% $231,250 100% $58,064HIDDEN MEADOWS 2ND ‐ PHASE 1 IN PROGRESS 6/5/2018 10/31/2017 YESWILDFLOWER AT LAKE ELMO 1ST CLOSED YES 2/16/2018 12/5/2018$0 NA $0 $0 $0 $0WILDFLOWER AT LAKE ELMO 2ND CLOSED 3/3/2017 YES 12/5/2019 11/5/2020$0 NA $0 $0 $0 $0WILDFLOWER AT LAKE ELMO 3RD WARRANTY 6/11/2018 YES 11/19/2021 7/6/2022 Landscape acceptance pending $299,014 NA $0 $265,895 25% $20,619 25%$12,500 100%WILDFLOWER AT LAKE ELMO 4TH PENDING 11/15/2021 2/16/2022 NO Preconstruction meeting pending DA Right to Proceed PL $2,626,238 NA $595,198 100% $1,848,963 100% $175,827 100% $6,250 100% $20,512 $9,102EASTON VILLAGE 1ST CLOSED 6/12/2015 6/12/2015 YES 8/2/2018 5/15/2019 Escrow received for Manning closure ($27K); Easements received for UPRR crossing $0 $0 0% $0 0% $0 0% $0 0% $0 0%EASTON VILLAGE 2ND WARRANTY 6/21/2017 5/24/2017 YES 2/7/2020 2/4/20212/4/2022 Pending 11/03/2020 Street+Storm warranty PL; last sent 09/29/2021 $127,754 $0 0% $0 0% $87,883 25% $25,493 25% $14,378 25%EASTON VILLAGE 3RD WARRANTY 7/10/2017 7/10/2017 YES 2/7/2020 2/4/20212/4/2022 Pending 11/03/2020 Street+Storm warranty PL; last sent 09/29/2021 $137,708 $0 0% $0 0% $86,206 25% $20,698 25% $30,804 25%EASTON VILLAGE 4TH IN PROGRESS 7/25/2018 7/25/2018 YES 1/15/2021 Pending PendingPending 12/14/2020 Utility warranty PL; last sent 09/29/2021; Acceptance pending Record Plans (02.21.2021 memo)$454,178 NA $62,088 25% $319,727 100% $52,488 100% $19,875 100%EASTON VILLAGE 5TH IN PROGRESS 7/19/2019 7/19/2019 YES 10/6/2022 Pending Pending Pending 06/10/2021 Grading + ESC PL; last sent 09/29/2021 $926,389 NA $170,172 25% $737,128 50% $3 0% $19,086 25%EASTON VILLAGE 7TH PENDING 6/17/2021 6/17/2021 NO Preconstruction meeting pending closure of 32nd Street Access to CSAH 15 $1,200,734 NA $421,648 100% $685,433 100% $59,272 100% $34,381 100%INWOOD PUD 1ST+2ND CLOSED 6/2/2015 YES 3/21/2019 12/1/2021 Final security relased 12/7/2021 $0 $0 0% $0 0% $0 0% $0 0% $0 0%INWOOD PUD 3RD CLOSED 5/24/2016 YES 3/21/2019 12/17/2020 Final security relased 12/7/2021 $0 NA $0 0% $0 0% $0 0% $0 0%INWOOD PUD 4TH WARRANTY 10/25/2016 YES 9/5/2019 10/19/2022$145,015 NA $0 0% $124,352 25% $10,663 25% $10,000 25%INWOOD PUD 5TH IN PROGRESS 5/22/2017 YES 3/6/2020 Pending Pending updated 08/09/2021 Substantial completion PL (previoulsy sent February 2021);  $1,367,574 NA $0 0% $539,734 50% $602,840 100% $225,000 100%INWOOD PUD 6TH (KWIK TRIP) 1/14/2020 NA Pending 09/28/2020 PL (resent 6/2/2021); Pending Record Drawings (12/1/2020 memo) $439,246$203,053 100% $72,325 100% $90,650 100% $36,340 100% $36,878 100%SAVONA 1ST DEFAULT YES 12/20/2018 9/3/2020Pending 09/08/2020 Warratny PL/Enforcement warning (resent 04/26/2021 as default Notice); Includes 08/31/2020 PL$483,454 $0 0% $0 0% $392,841 25% $60,227 25% $30,386 25%SAVONA 2ND DEFAULT YES 12/20/2018 9/3/2020Pending 09/08/2020 Warratny PL/Enforcement warning (resent 04/26/2021 as default Notice); Includes 08/31/2020 PL$405,946 NA $0 0% $339,427 25% $18,577 25% $47,942 25%SAVONA 3RD DEFAULT YES 1/16/2020 9/3/2020Pending 09/08/2020 Warratny PL/Enforcement warning (resent 04/26/2021 as default Notice); Includes 08/31/2020 PL$544,562 $0 0% $0 0% $469,108 25% $45,698 25% $29,756 25%SAVONA 4TH IN PROGRESS 6/13/2016 YES 1/16/2020 Pending 10/21/2019 PL; Pending 10/31/2019 Utility warranty PL $757,791 NA $0 0% $545,520 25% $145,429 25% $66,842 25%DEVELOPMENTOVERSIZE COST STATUSSECURITY STATUSAPPROVED PLAN DATES CONSTRUCTION STATUSGradingSanitary Sewer + WatermainStreets + Storm SewerAs‐builts + Misc CategoriesLandscapingPRINT DATE: 4/7/2022PAGE 1 OF 2 CITY OF LAKE ELMODEVELOPMENT PROJECTS CONSTRUCTION TRACKINGConstruction StatusGrading PlansConstruction PlansEng. Items Completed for Building PermitsUtility Warranty ExpirationPublic Improvements Warranty ExpirationLandscape Improvements Warranty ExpirationSTATUS: Comments/RemarksTOTAL SECURITYWateramin OversizingSanitary Sewer OversizingDEVELOPMENTOVERSIZE COST STATUSSECURITY STATUSAPPROVED PLAN DATES CONSTRUCTION STATUSGradingSanitary Sewer + WatermainStreets + Storm SewerAs‐builts + Misc CategoriesLandscapingBOULDER PONDS 1ST ADDITION CLOSED YES 1/16/2019 1/16/2019 Final security release 10/05/2021 $0 $0 0% $0 0% $0 0% $0 0% $0 0%BOULDER PONDS 1ST / 5TH STREET NORTH CLOSED NA 2/21/2019 6/16/2021 Final security release 12/07/2021 $0 NA $0 0% $0 0% $0 0% $0 0%BOULDER PONDS 2ND PENDING LANDSCAPING YES 9/5/2019 6/16/2021 Landscape security remaining. $67,500 NA $0 0% $0 0% $0 0% $67,500 72%BOULDER PONDS 3RD WARRANTY YES 3/5/2021 4/20/2022 Pending 02/24/2021 utility warranty PL; Pending Improvements warranty $273,976 $0 0%$72,583 25% $63,688 25% $105,354 25% $32,351 25%BOULDER PONDS 4TH (SR LIVING FACILITY) WARRANTY YES 10/5/2023 10/5/2022 10/5/2023 Pending warranty expirations $88,752 $0 0% $23,914 25% $33,842 25% $7,594 25% $23,402 25%BOULDER PONDS 5TH (Lot Split only) CLOSED YESNAHAMMES ESTATES 1ST WARRANTY 9/28/2021 9/30/2016 YES 9/5/2019 11/17/2021 Pending Pending 10/21/2021 warranty PL; Utility security released; Landscape security remaining $750,901 $0 0% $0 0% $288,546 25% $156,202 25% $306,153 100% $25,573HAMMES ESTATES 2ND WARRANTY 9/28/2021 1/23/2017 YES 11/20/2020 11/17/2021 Pending Pending 11/06/2020 Utility warranty PL; Pending 10/26/2021 warranty PL;  $272,936 NA $71,698 25% $117,265 25% $16,988 25% $66,985 100%HAMMES ESTATES 3RD WARRANTY 3/21/2018 10/3/2018 YES 3/17/2022 11/17/2021 Pending Pending 10/26/2021 warranty PL $861,169 NA $277,543 25% $269,317 25% $48,934 25% $265,375 100% $130,235ROYAL GOLF CLUB GRADING CLOSED 9/25/2017 NA NA NA NA Final security release 10/06/2020 $0 $0ROYAL GOLF CLUB SITE UTILITIES CLOSED 7/28/2017 NA 7/2/2021 7/2/2020Final security release 08/04/2021 $0 NA $0ROYAL GOLF CLUB 1ST PENDING PL / GENERATOR 9/27/2017 YES 7/2/2021 7/2/2020 Pending utility warranty PL dated 06/17/2021; Generator repair/replacement $341,371 NA $341,371 25% $0 $0 $0ROYAL GOLF CLUB 2ND CLOSED 7/24/2018 YES 1/15/2021 12/17/2020 Final security release 11/16/2021 $0 NA $0 $0 $0 $0SOUTHWIND AT LAKE ELMO WARRANTY ‐ LANDSCAPING YES 1/16/2020 12/17/2020 4/16/2023$70,328 $0 0% $0 0% $0 0% $0 0% $70,328 25%LAKE ELMO SENIOR LIVING WARRANTY 3/6/2020 NA 2/2/2023 11/16/2022 11/16/2023$135,990 $0 0% $67,094 25% $45,188 25% $9,063 25% $14,645 25%FOUR CORNERS 1ST WARRANTY NA 9/21/2023 9/21/2022 9/21/2023$441,632 NA $254,847 25% $156,019 25% $28,578 25% $2,188 25%ISD #834 STILLWATER BUS FACILITY WARRANTY WARRANTY NA 10/5/2023 NA Landscape security remaining. $89,063 NA $39,063 25% NA NA $50,000 100%HUNTERS CROSSING 1ST CLOSED YES 12/20/2018 2/5/2020 2/5/2020$0 $0 0% $0 0% $0 0% $0 0% $0 0%HUNTERS CROSSING 2ND CLOSED YES 12/20/2018 2/5/2020 2/5/2020$0 NA $0 0% $0 0% $0 0% $0 0%HALCYON CEMETERY SITE IMPROVEMENTS UNKOWN 8/16/2018 NA Watermain testing complete (04/22/2021 email) $56,250 $0 0% $31,250 100% $0 0% $0 0%$25,000 100%PRINT DATE: 4/7/2022PAGE 2 OF 2 STAFF REPORT DATE: April 12, 2022 TO: Mayor and Council FROM: Samuel Magureanu, Finance Director AGENDA ITEM: Utility Franchise Fees BACKGROUND: City Staff have been researching options to generate additional revenues for the City and would like to explore the option of Utility Franchise Fees. Utility Franchise Fees are used by many cities to cover increasing costs of providing important services. ISSUE BEFORE THE CITY COUNCIL: Should the City Council direct City Staff to work toward implementing Utility Franchise Fees? DISCUSSION: City staff conducted independent research and gathered data on the topic. Additionally, City staff has reached out to Xcel Energy and requested a preliminary analysis to help assist discussion regarding franchise fees. FISCAL IMPACT: Fiscal impact will be determined based on the amount of revenues the City would decide to generate. Possible decrease in property taxes if used to replace revenues otherwise levied. Higher utility bills for Lake Elmo residents. OPTIONS: Direct Staff to work toward implementing Utility Franchise Fees ATTACHMENTS: 1) Utility Franchise Fees Presentation 2) Additional Documents provided by Xcel Energy Utility Franchise Fees Why Franchise Fees? Utility franchise fees help cities cover increasing costs of providing important services –such as maintaining aging facilities and infrastructure –without raising property taxes. Many cities in Minnesota have them in place. These fees are also more equally distributed than property taxes, and would be paid by ALL utility customers -even those who do not currently pay property tax. What are the Pros and Cons of Franchise Fees? When comparing franchise fees as a revenue sources to property taxes, some advantages include: Cover a wider base than property taxes Will diversify the City’s revenue sources Reliable sources of revenue A flat-rate franchise fee would be the same for each property, making it easy to administer New construction would contribute immediately, which would eliminate any lag for the City to receive property taxes. Improve internal processes for ROW’s. What are the Pros and Cons of Franchise Fees? Some potential disadvantages include: Everyone must pay since gas and electricity are needed. This is unlike a cable franchise fee where only subscribers choosing to receive the service are subject to paying the fee A flat-rate franchise fee would be the same for all homes, regardless of their value It will eliminate part of the ROW (right of way) revenues for the City 2020 ROW revenues: $15,678 2021 ROW revenues: $19,881 Franchise Fees Comparison Afton 2.00$ 2.00$ 5.00$ 5.00$ 1.00$ 1.00$ 1.00$ Bayport 1.50$ 3.00$ 25.00$ 50.00$ 3.00$ 3.00$ 25.00$ Burnsville 4.00$ 12.00$ 40.00$ 180.00$ -$ -$ -$ Cottage Grove 1.65$ 1.65$ 8.25$ 33.00$ 3.00$ 0.75$ 8.25$ Inver Grove Heights 2.75$ 3.00$ 25.00$ 95.00$ -$ -$ -$ Mahtomedi 1.30$ 1.38$ 14.40$ 110.28$ 12.71$ 0.63$ 14.84$ Maplewood 3.00$ 4.75$ 30.00$ 180.00$ 4.00$ 4.00$ 4.00$ Lake Elmo 4.00$ 4.00$ 20.00$ 35.00$ 10.00$ -$ -$ Little Canada 2.75$ 5.25$ 40.00$ 230.00$ 15.00$ 2.00$ 3.00$ Newport 1.00$ 1.50$ 14.00$ 70.00$ 5.00$ 1.00$ 10.00$ Oakdale 1.50$ 3.00$ 10.00$ 8.00$ 6.00$ 2.00$ 8.00$ Rogers 5.00$ 7.00$ 45.00$ 210.00$ 17.00$ 12.00$ 65.00$ Stillwater 2.00$ 2.50$ 18.00$ 125.00$ 4.00$ 2.00$ 18.00$ City Small Commercial Large Commercial Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand ELECTRICAL - FRANCHISE FEES Small Commercial Non-demand Residential Lake Elmo Est. Annual Collection: $296,544 Franchise Fees Comparison Afton 2.00$ 4.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ Bayport 1.25$ 10.00$ 25.00$ 10.00$ 50.00$ 10.00$ 10.00$ Burnsville Cottage Grove 1.65$ 4.95$ 8.25$ 16.50$ 24.75$ 24.75$ 24.75$ Inver Grove Heights 2.00$ 10.50$ 50.00$ 90.00$ 100.00$ 15.00$ 15.00$ Mahtomedi Maplewood 3.00$ 12.00$ 100.00$ 75.00$ 110.00$ 2.50$ 2.50$ Lake Elmo 2.25$ 11.25$ 20.00$ 35.00$ 35.00$ -$ -$ Little Canada Newport 1.00$ 5.00$ 10.00$ 15.00$ 15.00$ 15.00$ 15.00$ Oakdale 1.50$ 5.00$ 8.00$ 17.00$ 17.00$ 17.00$ 17.00$ Rogers 4.00$ 7.00$ 20.00$ 70.00$ Stillwater 1.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ Medium and Large Interuptible Firm Transportation Interuptible Transportation GAS - FRANCHISE FEES City Rsidential Commercial Firm Non-demand Commercial Firm Demand Small Interuptible Lake Elmo Est. Annual Collection: $159,534 Impact to the Community Higher cost of energy for all customers vs lower levy This will result in an instance where the franchise fee revenues are used to pay for expenditures otherwise levied. Example: Pavement management program/plan. New or improving services Since the funds can be used for anything the city can use the revenues to pay for new services or improve existing services. Example: Develop and implement a communications plan, including image-improvement. New or improved facilities Since the funds can be used for anything the city can use the revenues to pay for new services or improve existing facilities. Example:Build/update parks. The park dedication fund is mainly funded with park dedication fees from developers. Implementation Steps Needed Draft and adopt a fee ordinance for electricity and gas. The fee is calculated as a flat fee, per premise and is applied equally for all customers in a given rate class. Draft and adopt franchise agreements with the city electricity and gas providers. An equivalent fee must be placed on all energy suppliers serving the city. Timeline Discussion and Questions? INFORMATION SHEET MINNESOTA Some cities have imposed franchise fees on their energy providers as part of utility franchise agreements. As allowed by the Minnesota Public Utilities Commission, franchise fees levied on us are passed on directly to our customers within a city. This fee is itemized on our customer bills as a City Fee. A franchise fee can only be implemented if it is allowed by the city’s existing franchise agreement with us. If a community determines that a franchise fee is appropriate, there are several guiding principles that we follow in discussing fee options. •Franchise fees are set forth in a fee ordinance authorized by, but separate from, the franchise agreement. •An equivalent fee must be placed on all energy suppliers serving the city. •We will not be subject to permit fees while franchise fees are in effect. •We will prepare fee schedule options for the amount of revenue sought by the city. •The fee is calculated as a flat fee, per premise and is applied equally for all customers in a given rate class. •Fees are paid to the city on a quarterly basis. Franchise Fee Considerations As in any case where a city is considering a new revenue source, we urge careful consideration of the possible negative impacts of a franchise fee since they increase the cost of energy for all customers in that city. Timeline Implementing franchise fees is a complex process that requires adequate time for system programming and testing. Here’s a typical sequence of events: •City provides us with written notice of intent to enact a fee prior to formal consideration. •City and Xcel Energy negotiate the fee. •In order to meet the PUC’s requirements, the approved fee ordinance must be received by us at least 90 days before the anticipated start of fee collection. •We collect the fee from our customers monthly and transfer it to the city on a quarterly basis. Sample Timeline Utility Franchise Fees Day 1 Day 90 Day 120 Day 210 Day 240 City adopts ordinance Xcel Energy implements fee on customers’ bills Fee collection (Xcel Energy pays the city quarterly) Xcel Energy pays the city at the end of the month after the quarter’s fees have been collected Xcel Energy receives proposed ordinance xcelenergy.com | © 2016 Xcel Energy Inc. | Xcel Energy is a registered trademark of Xcel Energy Inc. Northern States Power Company-Minnesota | 16-01-638 INFORMATION SHEET MINNESOTA The Basics of Utility Service Electric and natural gas utility companies provide essential services to the public. Minnesota has designated electric utility service providers for each part of the state. These utilities have the exclusive authority and obligation to provide service to all customers in their designated service territories. State law allows utilities to use public rights of way to locate poles, wires and natural gas pipes. Public rights of way typically include public roads, highways, streets, bike lanes and sidewalks. Local governments have the responsibility to manage the rights of way and have an interest in where the utilities locate their facilities. Utility Franchise Agreements A franchise agreement sets expectations between a city and Xcel Energy, including how we construct, operate and maintain our equipment located in the public rights of way. Franchise agreements can also address things like roadway restoration when a utility project has been completed. In addition to the conditions in franchise agreements, cities may require utilities to obtain permits for work within the right of way. Franchise agreements do not set energy goals, determine the mix of energy resources used by a utility, set energy prices or service standards. Those policy decisions are made by the Minnesota legislature and regulated by the Minnesota Public Utilities Commission and cannot be included in franchise agreements. Xcel Energy Franchise Agreements We have more than 350 franchise agreements in Minnesota. These shared agreements enhance strong working relationships with the communities we serve by providing clear expectations while supporting consistent and efficient operations and service. In some cases, a city may choose to establish a franchise fee as part of the franchise agreement. This is done in cooperation with Xcel Energy and is executed through a separate ordinance, which can be implemented at any time during the life of the franchise agreement. In those cases, we collect the fee from our customers and transfer it to the city on a quarterly basis. Utility Franchise Agreements xcelenergy.com | © 2016 Xcel Energy Inc. | Xcel Energy is a registered trademark of Xcel Energy Inc. Northern States Power Company-Minnesota | 16-01-639 3000 Maxwell Avenue Newport, MN 55055 City of Lake Elmo, MN Franchise Fee Estimate – Gas and Electric March 2022 The following information is being provided to assist your community in discussions regarding franchise fees. Given market sensitivity to electric and gas rates, we strongly encourage the city to reach out to residents and businesses regarding franchise fees.  Information based on a one-year average ending January February 28, 2022.  Fee amounts are rounded to the nearest $0.25 and applied as a flat fee.  The table below shows the fee that would be reflected on a customer’s monthly bill.  Franchise fees must be applied equally to all energy providers.  Franchise Fees are collected in lieu of any other permit fees.  Xcel Energy retains no portion of a franchise fee. Franchise Fee: Gas Customer class Monthly Fee Residential $2.25 Commercial Non-Demand $11.25 Commercial Demand $20.00 Small Interruptible $35.00 Medium and Large Interruptible $35.00 Firm Transportation n/a Est. Annual Collection $159,534 Franchise Fee: Electric Customer class Monthly Fee Residential $4.00 Small C&I – Non-Demand $4.00 Small C&I – Demand $20.00 Large C&I $35.00 Street Lighting $10.00 Municipal Pumping n/a Est. Annual Collection $296,544 Combined Est. Fee Collection $456,078 STAFF REPORT DATE: April 12, 2022 DISCUSSION AGENDA ITEM: Remote Meeting Capabilities in New City Center TO: Mayor and City Council SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: At the last work session, Council Member McGinn asked that we talk about remote meeting capabilities in the new city center. PROPOSAL DETAILS/ANALYSIS: An email attached from City Attorney Sarah Sonsalla, lays out the statutory requirements for having remote meetings outside of the emergency declaration we operated under during COVID. I have also reached out to our consultant on the audio/visual/IT components of the new city center to ensure we have a system that allows folks to participate remotely and still allow everyone to see and hear everything without the feedback problems we currently have. They responded, “Yes – we have the ability to do for remote participants to join the meeting. Currently we have accommodated for an owner furnished PC to be in the control room to host/join the meeting. The audio system has been designed with remote meeting capability in mind to eliminate feedback and provide the far end users with clean audio and a video feed from the chambers. The operators can switch between providing the remote users a camera or presentation content. And we can show the remote meeting participants on the monitors in the chambers.” FISCAL IMPACT: The items noted by FinePoint to allow for remote meetings has already been included in the city center budget. OPTIONS: Provide direction to staff on how to proceed. ATTACHMENT: • Sonsalla Email From:Sonsalla, Sarah J. To:Kristina Handt Cc:Sonsalla, Sarah J. Subject:Open Meeting Law Information Date:Tuesday, March 15, 2022 9:01:09 AM Caution: This email originated outside our organization; please use caution. Hi Kristina, You had asked for some information regarding council members being able to attend city council meetings remotely under the Open Meeting Law. Under the Open Meeting Law, city council members must generally attend meetings in-person unless the City is operating under the “pandemic” exception to the Open Meeting Law (Minnesota Statutes Section 13D.021). However, if the City is not operating under the “pandemic exception,” a council member may still attend a meeting remotely if certain requirements are met (see Minnesota Statutes Section 13D.02). The requirements are as follows: 1. The council member must participate remotely by “interactive technology.” “Interactive technology” is defined as a device, software program, or other application that allows individuals in different physical locations to see and hear one another. Zoom, WebEx, Teams, Skype, GoToMeeting, and similar programs with an audio and video connection satisfy this definition. All members of the body participating in the meeting, wherever their physical location, must be able to see and hear one another and must be able to hear and see all discussion and testimony presented at any location at which at least one member is present. Members of the public present at the meeting site must also be able to see and hear the member participating at the remote location. 2. The council member who is participating remotely must be in a location that is open and accessible to the public The council member’s location must be included in the meeting notice. There are some exceptions to this requirement, but they only apply to when a state of emergency is declared by the governor or the council member is deployed by the military. “Open and accessible to the public” means that the public is able to enter the location which the council member is located to observe the meeting (i.e. a hotel lobby would be “open and accessible” to the public but a hotel room would not be). 3. The minutes of the meeting in which the council member participates remotely must state the name of the council member appearing via interactive technology and the reason for such appearance. 4. All votes must be conducted by roll call so each member's vote on each issue can be identified and recorded. Let me know if you have any questions or if you need any other information. Thanks! Sarah Sarah J. Sonsalla | Attorney | Kennedy & Graven, Chartered | 150 South Fifth Street, Suite 700 | Minneapolis, MN 55402 |direct: 612.337.9284 | fax: 612.337.9310 | e-mail: ssonsalla@kennedy-graven.com