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reasonable to have the franchise fee help pay for some of the equipment that does the street and <br />trail maintenance work. <br /> <br />The use of the franchise fees can change at any time depending on Council action, but the idea <br />th <br />discussed on June 17 was to establish a separate fund for the franchise fees and only use the <br />fund for specific activities most of which would be capital in nature and/or infrastructure <br />related. While the use of the fund can be decided later, below is a list for the Council to consider: <br /> <br /> <br />Street Maintenance (seal coat and crack filling) $150,000 per year <br /> <br />Trail Rehabilitation $ 50,000 per year <br /> <br />Equipment Fund Contribution $ 40,000 per year <br /> <br />Park Equipment Replacement $ 60,000 per year <br /> <br />City Hall Reserve Maintenance/Improvements $100,000 per year <br /> <br />Reserve for future CIP expenses $203,075 per year <br /> <br />pathway system to help make the entire community accessible for walkers and bikers and to <br />connect our City to the regional systems that are near our boundaries. It should be noted that a <br />trail between Highways 96 and 51 along old Highway 10/Snelling could cost in excess of $2 <br />million and a trail connection from the CR E bridge to the beach could be in excess of $1.5 <br />million (and to extend the trail/pathway to the eastern or southern City limits would be another <br />$500,000 each). Pathways are important but they are also expensive! <br /> <br />th <br />Additionally, on June 17 there were some comments made regarding dedicating some of the <br />franchise fee revenues toward public safety expenses. <br /> <br />In order to approve a franchise fee program, the City Council will need to <br />amend the existing Electric Franchise ordinance and the existing Gas Franchise ordinance. Both <br />of these ordinances were approved on November 30, 2009, and they granted the company rights <br />for a period of 20 years. No public hearing is required to amend these ordinances. After adoption <br />of the ordinances, Xcel will need at least 90 days to implement the franchise fee. Xcel will <br />collect the franchise fee revenues and make quarterly payment to the City. <br /> <br />While no public hearing is required for adoption of the franchise fee <br />ordinance amendment, the Council may want to consider accepting public comments on the <br />proposal as there are bound to be people for the program (especially if some funds are dedicated <br />to pedestrian pathways) and some people against the program. <br /> <br /> <br /> <br /> <br />Does the Council want to move forward with the franchise fee program? If so, at what <br />amount? <br /> <br />Does the Council like the flat fee method that is recommended by Xcel? <br /> <br />How does the Council want to take public comments on the proposal? <br /> <br />The electric classes of Small C&I Non-Demand and Small C&I Demand and the gas <br />class of Commercial Firm: Non-Demand are big contributors into the franchise fee fund; <br />45 <br />Page of <br /> <br />