Roseville city staff presented draft 20‑year franchise ordinances for gas and electric service and discussed a proposed franchise fee that would apply to utility customers and help fund right‑of‑way infrastructure, at the Nov. 10 City Council meeting.

City Manager Pat Trejchen and staff said the previous Xcel franchise ordinance expired in 2018 and the draft renews the regulatory framework for Xcel to construct, maintain and repair facilities in the public right‑of‑way. The ordinance also enables a separate franchise‑fee ordinance; staff presented a sample schedule that would levy $3 per month on residential electric accounts and $3 per month on residential gas accounts under the draft, while commercial and industrial customers would pay scaled amounts.

Staff estimated the fee schedule would produce roughly $2.4 million in annual revenue and noted the fee would replace a variable set of permit‑type fees Xcel previously provided directly to the city (an average of about $50,000 a year). Under the example, tax‑exempt properties such as school buildings would pay the franchise fee (about 84 properties, staff estimated), but the city would not charge itself for internal utility use. Trejchen said staff discussed the timing and statutory steps needed to adopt ordinances, and counsel confirmed initial fees could be adopted with the draft franchise in the current process.

Council members asked how the revenue burden would be distributed between residential and nonresidential customers, and how franchise fees compare with raising the same amount through property taxes. Trejchen said the draft schedule would shift roughly 40% of revenue burden to residential accounts and 60% to nonresidential accounts. He offered budget scenarios showing that franchise fees could be used to reduce levy pressure while enabling additional capital investments in right‑of‑way infrastructure.

Public comment and a council member urged transparency: a resident asked whether the city would show the fee as a recurring revenue line in future budget materials so residents can see total cost changes rather than only property‑tax changes. Trejchen and the mayor agreed to make the fee a visible line in future budgets if adopted.

No final action was taken; staff signaled a possible public ordinance introduction on Nov. 24 and final adoption after required publication steps.

Quote: "This is a fee that's charged to residents...it's not something that comes for free," City Manager Pat Trejchen said, describing the tradeoffs between fees and levy increases.

What happens next: Staff intends to bring drafts back for formal introduction and to publish required notices; council members asked for continued analysis of distributional effects and transparency in budget materials.