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ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 21, 2013 4 taxes, a franchise fee would be charged to a broader base within the City as it would apply to all utility users and not just non-exempt property owners. He indicated that the Council has since discussed this topic at three different work sessions. Information from Xcel Energy has been provided at these work sessions. He reported that if the Council wants to continue consideration of a franchise fee,the following issues should be discussed: • Uses for franchise fee revenues. • Amount to be collected. • When a program should be formally considered, and, if approved, when it should be started. • How to obtain public input. City Administrator Klaers stated that he has spoken with representatives from Boston Scientific and Bethel University regarding their concerns with a proposed franchise fee. Councilmember Holden requested the definition of a franchise fee. Collette Jurek, Xcel Energy, indicated that there was a State Statute that required Xcel Energy to work in conjunction with municipalities to negotiate a fee and these monies were then collected and passed through to the customers. She explained that a right-of-way permit fee is currently paid to the City for excavation or ground breaking work. She explained that if Arden Hills were to establish a franchise fee, Xcel would no longer be paying right-of-way or ground breaking fees. Once a franchise agreement is established with a City, a fair rate can be charged to customers and these funds can then be remitted back to the City by Xcel. Mayor Grant commented that this State Statute has been in place for the past 20 years. Councilmember McClung indicated that, according to Ms. Jurek, the fee was not being charged to Xcel for doing business in the City, but rather is just a fee being charged to the end user. Ms. Jurek stated that Xcel Energy acts as a collection or administrative provider for the fee. I Mayor Grant questioned if staff had evaluated this loss in income. Public Works Director Maurer reported that this varied year-by-year depending on the construction work taking place in the City. He estimated that the City collected anywhere between $2,000 to $3,000 during a busy year. Mayor Grant questioned how franchise fees differed from cable fees. I City Administrator Klaers stated that there was no real difference as both fees are charged to the company and then passed along to the end user. This revenue is then made available to the City. Councilmember Werner questioned how the franchise fee would appear on the utility bills. Ms. Jurek noted the franchise fee would be a line item and would be defined as a City Fee.