Agenda Packets - 1999/09/27 - Laserfiche WebLink

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Mounds View City Council August 23, 1999 Regular Meeting Page 30 when the ordinance was originally adopted, it was for a five-year term, and in the last two years it has been one-year terms. He advised if some of the money was to be earmarked towards a street reconstruction fund, he would recommend that the term be a minimum of three to five years. Finance Director Kessel stated the ordinance has not been reviewed by the City Attorney, Reliant Energy/Minnegasco, or Northern States Power, however, staff will submit a copy to them if the Council is in favor of moving forward. He stated it was preferable to adopt the ordinance in October to provide the notice that is required under the Franchise Agreements to both Reliant Energy/Minnegasco and Northern States Power to provide they have it on their books prior to January 1, 2000. Council Member Marty stated he had discussed this matter with City Administrator Whiting, that date. He noted the ordinance indicates Northern States Power (the Company) under Subdivision 2, and only contains mentions of Minnegasco. He inquired if this was sufficient to identify the parties to the Franchise Agreement. Finance Director Kessel explained that in Subdivision 2, Northern States Power Company is defined as (the Company), and Reliant Energy Minnegasco is defined as (Minnegasco). City Attorney Long explained they could insert Northern States Power wherever (the Company) is indicated. Finance Director Kessel stated if the Council so desired, the ordinance could be amended to reflect that. He reiterated that the language had not been reviewed in detail by the City Attorney, and that prior to its adoption, this would be done. Council Member Marty noted they were in the process of implementing a new street policy to reduce the burden of assessment to the residents by 50 percent. He commented that through the Franchise Fee, they might be able to earmark monies to the Streets Policies Committee, to build a fund. He suggested the ordinance be adopted for a three-year term, after which they can revisit the issue in 2002. Council Member Stigney commented that there has been discussion regarding setting up a fund and utilizing a franchise fee, or increasing a franchise fee, to offset the burden of street reconstruction of properties. He stated he was opposed to increasing any franchise fee. He explained that the money was there, and he felt they should be allocating some of the money that is there on the present percentage for the streets, and begin to reduce the amount they are collecting from the taxpayers in the General Fund, which is $240,00 to $260,000. Finance Director Kessel stated at 2.5 percent of this is approximately $200,000. Council Member Stigney stated this was an additional flow of money that is coming into the City, which in his opinion, should be utilized to directly offset what is being taxed from the residents to the General Fund. He explained that they should reduce what they were asking the residents to pay out of the General Fund, rather than increasing a franchise fee. He reiterated he was opposed to increasing the franchise fee, and that he would like to see it reduced, or reduced off of the General Fund. Council Member Stigney stated the sunset clause was previously indicated as a two-year term, and Council Member Marty requested three years. He stated he would like to see the franchise