[0:00] uh okay here we go it is um Wednesday April 16th 2025 the day after tax day [0:08] 5:30 p.m this is a city council work session uh and we have a two-part agenda [0:13] this evening uh one part dealing with franchise fees and another part dealing with our legislative update from Katie [0:20] Senate Measelian Kramer who's doing a great job for us over there at the state capital uh but let's first call the [0:26] meeting to order and ask our clerk Sharon Allison to call the role council member Agnu here council member Jackson [0:32] is absent council member Pierce is absent also council member Risser here mayor Hublin here all right um so I [0:41] think we're going to take things in sequence as they are in the published agenda and we're going to deal with the franchise fee or continuation of the [0:47] franchise fee discussion that we started at the work session that Saturday so you want to go [0:55] to set it up or you that was all the setup I was going to give it so we've got you know it's up to 350 and Chad and [1:02] Marissa and uh if we need to we need to So yeah we'll continue that discussion [1:08] from the council retreat about a month ago so little background uh this state statute allows cities to do the [1:15] franchise fee and franchise agreements how we collect that revenue and then the history in Edina we started in 2012 by [1:23] establishing the pedestrian and cyclist safety fund the PAX fund then in 2016 we [1:28] added the conservation and sustainability or the CASS fund 23 I was before the council and we updated the [1:35] rates we increased the rates and added street lights as an eligible use and updated those fees and those took effect [1:40] in early 2024 and as part of that report in August 23 we said we'd be back in 25 [1:46] and 27 to consider uh additional increases and then we also had some [1:51] comments about whether we're doing the flat rate or the percentage based uh fees at that time [1:57] so again we're at that point where we said we'd be back so at the council retreat directed staff to proceed with [2:03] with a couple options to generate an additional million dollars for street reconstruction and we again noted the [2:09] importance of the PAX fund the cast fund and street lighting so tonight and in the packet you'll see option one was is [2:16] for discussion to adopt an updated flat fee model effective January of 26 with a [2:22] larger increase for commercial and industrial sector and I'll show you the tables and the rates on those and the [2:28] option two that we provided you was to adopt a new percent fee model effective [2:33] that same January 2026 establishing a 4% fee for all customers and in both options results in [2:40] approximately a $4 million annual franchise revenue which is about $1.3 [2:46] million additional than what we collect today cuz today we collect $2.7 million [2:55] [Music] there was something that was [3:00] okay so today we estimate we generated uh [3:06] $2.7 million of reve…