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Mounds View City Council August 23, 2010 <br />Regular Meeting Page 4 <br />Council Member Mueller stated the average family of four would incur a$3.00 fee over the next <br />year. If the increase were not instituted the City would need to tax the public to gain an additional <br />$10,000. <br />AMENDMENT VOTE: <br />Ayes — 2 Nays — 3(Stigney, Gunn, Mueller) Motion failed. <br />Council Member Stigney stated he would be in favor of raising the franchise fee from 3.79% to <br />3.95%. He felt this would save money to the residents <br />SECOND MOTION AMENDMENT: Stigney/Mueller. To Increase the Franchise Fee from <br />3.79% to 3.95%. <br />Council Member Stigney stated the increase would aid with the budget crisis while assisting to <br />keep the levy increase manageable. <br />SECOND AMENDMENT VOTE: <br />Ayes — 2 Nays — 3(Hull, Flaherly, Gunn) <br />MOTION ROLL CALL: Stigney/Hull/Mueller/Gunn/Flaherty. <br />Ayes — 3 Nays — 2(Hull, Flaherty) <br />Motion failed. <br />Motion carried. <br />C. 7:15 p.m. Public Hearing Second Reading and Adoption of Ordinance 850 <br />Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas <br />Operations within the City of Mounds View. <br />Finance Director Beer stated this ordinance continues the agreement with Xcel Energy under <br />which Xcel Energy will collect a franchise fee in the amount of 3.87% of Xcel's electric and <br />natural gas gross operating revenues for services within the City of Mounds View during the year <br />2011. This is a 2% increase over 2010's rate of 3.79%. The Bureau of Labor Statistics released <br />inflation numbers on were released by the Bureau of Labor Statistics on August 13�` for the <br />Minneapolis/Saint Paul area and the 12-month rate was a 2.32% increase. The charter limits the <br />fee increase to 2% plus inflation or 5% whichever is less. <br />Finance Director Beer commented it has been the practice to include a sunset provision in the <br />ordinance that requires it to be re-enacted each yeax. Staff recommended approval and requested <br />that a summary ordinance be published. <br />Mayor Flaherty opened the public hearing at 7:39 p.m. <br />Dan Mueller, 8343 Groveland Road, again encouraged the Council to proceed with the franchise <br />