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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — SEPTEMBER 23, 2024 9 Councilmember Monson said we would need to have the public hearing and vote in October. Mayor Grant said the 90-day period is an Xcel requirement. Mike Wilhelmi said it is required by Xcel and the PUC for processing. Bill notices go out to customers, so they aren't surprised when they see the fee. Interim City Administrator Jagoe said the item could be brought back on the October 14 Work Session for final direction. That would allow time for the 10-day posting, get it on the agenda for October 28. If there is direction for a public hearing that could be noticed as part of the entire agenda item. That would reach that targeted November 1 deadline. Councilmember Rousseau asked what happens if there is a public hearing and the public dissuades Council from moving forward with franchise fees. What would need to be done with the tax levies? Mayor Grant said we would be beyond the point to change it. Councilmember Monson said it's not in the preliminary levy. She said Council would have to set the prelim levy to a point that assumes franchise fees won't be used. This is not a palatable 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