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Regular City Council Meeting Monday, Apri126, 2010 Page 9 the fall of 2010, at which time the City would be notified by Xcel of CRFS im- plementation and the surcharge implemented 60-90 days after construction was completed and based on actual construction costs. Collette Jurek, Xcel Energy Manager -Community & Local Government Relations, SE Metro Area -Newport Service Center Ms. Jurek was present and assisted in presenting more detailed information from the perspective of Xcel Energy for this type of request. Councilmember Ihlan sought any other source of financing for this project, ex- pressed concern with requiring residential property owners to be surcharged across the entire City for this $15 - 16 total over the next three years, questioning if the entire city benefited from the undergrounding of lines in a specific area of the City. Councilmember Ihlan suggested it may be more appropriate to use re- serves, or other options, prior to considering acity-wide surcharge without the public being fully aware of it until applied to their utility bill. Finance Director Miller advised that there was nothing in place at this time for something of this magnitude; noting that many cities have used such a surcharge, equating the improvement to a service enhancement benefitting the entire com- munity; and recommended this financing as the easiest and best way to accom- plish the undergrounding and aesthetic improvement to the community and the Rice Street corridor at this time. Councilmember Roe noted that the City currently spreads a significant portion of its street projects through the City - 75%, establishing a precedent in spreading the benefit of such an overall community improvements throughout the City, similar to undergrounding of electric lines. Councilmember Roe noted that, if the City of Roseville had a franchise fee similar to that of Little Canada, the costs would be passed on by Xcel to rate payers for such an improvement and all residents would be paying for the improvement through that method. Discussion included approval of such a surcharge by the PUC and not requiring a public hearing for this type of action, based on recent case law (City of Oakdale v. Xcel Energy) and Xcel Energy's right to recover incremental costs for improve- ments; and the inclusion of installation of empty conduit for additional street lighting and fiber by both cities during this undergrounding of electric lines. Mayor Klausing recognized the additional cost being imposed on property own- ers, in addition to him and individual Councilmembers; however, he spoke in support of the minimal cost of $15 - 16 over a three year period to make such an aesthetic improvement to one of the main thoroughfares into through the commu- nity, and opined that the benefit far outweighed the cost, and would open up other beautification and environmental options. Mayor Klausing expressed his lack of