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ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 6 opportunity to negotiate and charge a franchise fee, which is discussed in further detail in the below section. It is important to note that the franchise agreements only apply to the use of public rights-of-way and public property, which includes public roads, parks, and trails. Electric or gas lines that cross private property are subject to the regulations in the underlying private easement. Lastly, the City Council directed city staff to bring forward at the October 28th City Council regular meeting, the necessary ordinances for implementation of electric franchise fees and associated agreements. A public hearing is not required for ordinance adoption, the Council elected as part of the process to allow an opportunity for public comment as part of this meeting. Mayor Grant made a statement of clarification noting the City had not relied on building permit revenues as an additional funding source in the past. He explained building permit revenues were designed to cover the expense of the building inspections department and were not a revenue source for infrastructure. Councilmember Holden reported State law regulates the City should not bill permit fees more than is being used for inspection time. She commented on Slide 18, noting the fire department made a decision very quickly to purchase this property, when it became available in Arden Hills. She indicated the City paid cash for its portion of the land and did not have to bond. Mayor Grant commented the bonds that will be issued for the fire station will be less than the total value of the building. He stated this was because Arden Hills, Shoreview and North Oaks received $6.2 million from the State in funding for the fire station. He thanked the City of Shoreview for their efforts to receive this funding. Councilmember Fabel explained he has been the lone voice of opposition to the franchise fee. He commented on Page 2 it states the Council's consensus was to move forward with the franchise fee. He commented consensus was defined as group solidarity in sentiment and belief. He stated there was not solidarity in this group regarding franchise fees. He provided further discussion on the language within the memorandum noting the public service commission has authorized cities to impose a franchise fee on energy providers for utilization of public rights of way through a utility franchise agreement. He reported the agreement has nothing to do with the receipt of electrical services for citizens. He explained the authority the utility has to use rights of way is not predicated on the imposition of a franchise fee. Rather, an additional tax would be placed on property owners that was unrelated to electrical services. He understood franchise fees were a way to raise funds for infrastructure needs, but he objected to the imposition of franchise fees because it was not equitable. Mayor Grant stated 30%, or $800 million, of the value of development in Arden Hills is non- profit. Finance Director Yang reported this was correct. Mayor Grant commented if a property tax increase were approved by the Council instead of a franchise fee, there would be $800 million worth of property not contributing. Councilmember Holden indicated police and fire responded to all properties in Arden Hills. She believed paying an additional $3 per month was a good deal for these services.