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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION— SEPTEMBER 23, 2024 9 choice since they worked so hard to bring that preliminary levy amount down. She thought maybe it's a false public hearing if the prelim levy doesn't include it. Councilmember Holden disagrees. She said there has been an open house, it's been discussed, it was in the newsletter. The public hearing is the opportunity to explain that we are going to charge them the equivalent of a cup of coffee a month vs. $100 annually. Mayor Grant said it would be the opportunity to explain to residents what has transpired since the open house, share the information from Xcel and outline the plans,moving forward. He wants residents to know Council wants to hear from them. He said it's not a yes or no public hearing. Councilmember Monson said she is comfortable tailoring the public hearing that way. Councilmember Rousseau said it makes more sense to have a presentation that outlines why Council made the decision. Mayor Grant said any decision on a course of action should be included in Arden Hills Notes. Public engagement is important. He pointed out that residents will be getting a top-notch fire station in our community. Councilmember Holden said it can lower their ISO for home insurance because the response time will be significantly better. Councilmember Monson said Xcel Energy has to find ways to decarbonize their natural gas business. One of the ways they are doing that is pilot projects. One of the proposed projects is a district geo-thermal system estimated to be around $10 million. Rice Creek Commons is a fantastic opportunity. You have to win an RFP to get that investment into the community. She would like the Council to approve writing a letter of support to the Public Utilities Commission so they can get approval of that plan. That would allow the City to apply for that $10 million investment. Mayor Grant asked if that would decarbonize the natural gas. He asked if TCAAP has natural gas. Councilmember Monson said they are still focusing on all electric. This geo-thermal system would heat and cool a commercial or industrial building and around 100 residents. There is a score card for what that pilot project is looking for. Rice Creek Commons would be a great fit for that program. Discussion ensued regarding the geo-thermal system, if it would be allowed and whether it's a good fit for TCAAP or not. Councilmember Rousseau summarized that there is no commitment from the City. She said customers are already being charged to implement the pilot program. She stated Xcel is asking for a letter of support from different entities that they can take to the PUC to show support for the project. Mike Wilhelmi confirmed. Councilmember Rousseau said she supports it. Even if it doesn't end up in Arden Hills she thinks it's a good pilot program.