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ARDEN HILLS CITY COUNCIL WORK SESSION— SEPTEMBER 16, 2013 5 Mayor Grant suggested that White Bear Lake, Fridley, Blaine, Shoreview and Roseville be removed from the list of consideration, based on their size. Councilmember Holmes recommended Maplewood be removed from the list. Councilmember Holden was in favor of removing Shoreview, Blaine, Fridley, Roseville, Circle Pines and Maplewood. Councilmember Werner agreed with this suggestion. Councilmember Holmes recommended that Circle Pines, Blaine, and Maplewood be removed. She was in favor of keeping Shoreview and Roseville for comparison purposes. Councilmember Holden supported this recommendation. The Council was in agreement with the recommendation from Councilmember Holmes. Ms. Antonsen stated that these communities will continue to be in the pool of comparable organizations for the gathering of data, but that they would be identified as outliers when information is presented to the Council. Mayor Grant asked if the Council was ready to decide how to position the City employees' salaries. The Council was not prepared to make a decision and will discuss this matter at a future meeting. C. Franchise Fees City Administrator Klaers explained that he has been in contact with Colette Jurek with Xcel Energy regarding a potential franchise fee. He noted that Arden Hills is quite unique given the number of businesses and colleges located in the City. He reported that Ms. Jurek was again present this evening to review the matter in more detail with the Council. Colette Jurek, Xcel Energy, indicated that based on the July Council discussion, she understands that the Council is interested in collecting $650,000-700,000 in franchise fees. She commented that Arden Hills has three large energy customers: Bethel College, Land O'Lakes, and Boston Scientific and all have multiple premise situations. For this reason, the City may have to consider charging an annual rate to these large businesses, instead of a basic rate per address. Mayor Grant questioned how Xcel Energy determined how franchise fees in the three scenarios were"reasonable". Ms. Jurek discussed how fees are determined and evaluated by Xcel Energy. She indicated that there is a unique customer base in Arden Hills. Councilmember Holden asked if Presbyterian Homes would be significantly impacted by a potential franchise fee.