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• October 28, 2024 — City Council Franchise Fees Ordinance & Agreement <br />• November 2024 — January 2025 — Public Utilities Commission (PUC) review of Franchise <br />Fees <br />• February 2025 —Implementation of Franchise Fees (aligns one year in advance of debt <br />service payment) <br />• Tentative May 15, 2025 — Cities Issuance of Bonds for LJFD Headquarters <br />• February 2026 — Debt Service Payment <br />Existing Franchise Agreement Ordinances <br />Despite one ordinance being for electrical service and the other for natural gas service, the provisions <br />of the two ordinances are nearly identical, with the exception of that the proposed new franchise fee <br />rates are included in the electric franchise agreement ordinance under Section 9. Both ordinances are <br />proposed to have twenty year terms which is the same term as the existing agreements. <br />The City's existing gas ordinance is set to expire in 2029 and is being brought forward for renewal to <br />align with the two electric franchise agreements. There are no changes to the gas ordinance as the <br />City will not be imposing a franchise fee on gas utilities. <br />New Franchise Fee Ordinance <br />The City will need to adopt a new and separate ordinance for implementing an electric franchise fee. <br />The City has not imposed a franchise fee on gas or electric services in the past. The franchise fee <br />structure will be a monthly flat fee on each premise. The fee structure can be amended anytime <br />throughout the twenty-year agreement. <br />These ordinances/agreements have been reviewed by the City Attorney and will need to be fully <br />approved and executed prior to Xcel Energy's implementation of franchise fees on customers' bills. <br />Council Requested Action <br />Staff requests that the City Council consider the proposed Ordinances and authorize publication of a <br />Summary Ordinances. <br />1) Motion to Approve Ordinances 2024-012 and 2024-013 with Northern States Power for <br />implementing an Electric Franchise Fee Ordinance and renewal of Electric Franchise <br />Agreement Ordinance for permission to construct, operate, repair and maintain an electric <br />distribution system and transmission lines in the City of Arden Hills, Minnesota and authorize <br />publication of summary ordinances. <br />2) Motion to Approve Ordinance 2024-014 with Northern States Power for renewal of Gas <br />Franchise Agreement granting to Northern States Power Company permission to construct, <br />operate, repair and maintain a gas distribution system and the necessary gas pipes, mains, and <br />appurtenances for the transmission or distribution of gas to the city and inhabitants in the City <br />of Arden Hills, Minnesota and authorize publication of a summary ordinance. <br />Attachments <br />A. Draft Ordinance 2024-012 Northern States Power Company New Electric Franchise Fee <br />Ordinance and Summary Ordinance <br />B. Draft Ordinance 2024-013 Northern States Power Company Electric Franchise Ordinance with <br />Fee and Summary Ordinance <br />C. Draft Ordinance 2024-014 Northern States Power Company Gas Franchise Ordinance without fee <br />and Summary Ordinance <br />D. PowerPoint Presentation <br />Page 2 of 2 <br />