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COUNCIL MINUTES OCTOBER 23, 2000 Council Member O'Donnell clarified with the City Attorney that a Council Member can vote against his own motion. Council Member O'Donnell moved to approve FIRST READING, Ordinance No. 15 — 00, as presented. Council Member Carlson seconded the motion. Council Member Carlson advised the City Administrator did give Council Members a report with information about Mr. Bening's questions before she went on medical leave. However, she stated she is opposed to the franchise fee for other reasons. She stated that her decision is based on an additional tax to citizens. She stated there would have to be a very good reason to be in favor of another tax. She stated one reason to be in favor of the tax is if the Charter Commission supported the franchise fee. The Charter Commission did not give the Council a letter of support or have a representative present for the public hearing. She stated she believes there should be a united front between the City Council and Charter Commission to come up with a solution. Council Member Reinert stated he has an issue with fairness regarding the fee. The City has two (2) suppliers of services. There is a fee for the customers of Circle Pines Utilities. In fairness, the City should impose a tax on the rest of the citizens. He noted he is not in favor of the fee. However, in fairness, there will be a competitive advantage for Reliant if they do not have the fee. He stated he has gone back and forth on this issue relating to fairness and competitiveness. He stated he does not agree with the fee and does not support it. He stated there is still an issue of fairness. He requested the Council have discussions about helping out the Circle Pines Utilities customers. He stated it would be fair if all fees were erased and then the City collection from everyone. He noted Reliant Energy only has a franchise fee in four (4) cities. There has been an outcry about the fee. The City needs to find dollars in another way for road reconstruction. Council Member O'Donnell stated he agrees with the points made by Council Member Carlson and Council Member Reinert. He noted that Reliant Energy pays taxes to the City and Circle Pines Utilities does not. Council Member Reinert stated Circle Pines Utilities is charging its customers 7% for the franchise fee. Four (4) percent of that is for property tax; 3% is for the franchise fee. They do not pay taxes because they are a municipality. He stated the City should go after the removal of the 3% charged to customer's bills. That would level out the playing field. He stated it was a struggle for him to decide how to vote. Acting Mayor Dahl stated she is a member of the Charter Commission. She stated she listened to input at the Charter Commission's last meeting. She stated she believes the City Charter does work for reconstruction. The fee will only amount to $60,000 per year. She stated she will not support the franchise fee. She noted that a city that borders Lino Lakes had a franchise fee and eliminated it. Council Member Carlson voted no. Council Member O'Donnell voted no. Council Member Reinert voted no. Acting Mayor Dahl voted no. Motion failed unanimously. 5