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ARDEN HILLS CITY COUNCIL—OCTOBER 28, 2024 9 Department station. Ehler's provided preliminary debt service schedules, to align with the construction of the new facility, with debt service payments expected to occur in February 2026. Staff recommends adoption of the franchise fee options no later than November 2024, to allow Xcel to meet the Public Utilities Commission's requirements. Finance Director Yang commented despite one ordinance being for electrical service and the other for natural gas service, the provisions of the two ordinances are nearly identical, with the exception of that the proposed new franchise fee rates are included in the electric franchise agreement ordinance under Section 9. Both ordinances are proposed to have twenty-year terms which is the same term as the existing agreements. The City's existing gas ordinance is set to expire in 2029 and is being brought forward for renewal to align with the two electric franchise agreements. There are no changes to the gas ordinance as the City will not be imposing a franchise fee on gas utilities. Finance Director Yang reported the City will need to adopt a new and separate ordinance for implementing an electric franchise fee. The City has not imposed a franchise fee on gas or electric services in the past. The franchise fee structure will be a monthly flat fee on each premise. The fee structure can be amended anytime throughout the twenty-year agreement. These ordinances/agreements have been reviewed by the City Attorney and will need to be fully approved and executed prior to Xcel Energy's implementation of franchise fees on customers' bills. Staff reviewed a potential timeline for the franchise fee ordinance and recommended approval. Councilmember Fabel noted the proposed ordinance establishes the residential rate at $3.25 and staff presented a franchise fee of$3.00. Mayor Grant commented the final document will reflect the rate the Council approves. Councilmember Rousseau explained her interest in the proposed franchise fee was to distribute the public safety expense amongst all residents and businesses in the community. She reported she was interested in the franchise fee within Schedule A because it would have commercial properties paying an additional $10 or $20 per month versus residents. Councilmember Holden asked how many people completed the survey. Finance Director Yang reported 73 residents responded to the survey. Councilmember Holden commented one of the speakers asked that the City delay building the fire station. She explained the City has a contractual Joint Powers Agreement between Arden Hills, Shoreview and North Oaks, requires the fire station to be built in 2025. She asked how many non-profits were located in Arden Hills. Mayor Grant estimated there were close to 80 non-profits in Arden Hills. Councilmember Monson stated she supports the franchise fees. She understood it was an imperfect process, but the franchise fees would provide the right outcome. She indicated the City has held public hearings and has written about the franchise fee within the Arden Hills Notes. She indicated the City was not trying to hide the fees from the public, but rather was trying to mitigate the concerns. She reported if the City were to levy for this, the City would have an additional 8%