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Mounds View City Council August 8, 2011 <br />Regular Meeting Page 3 <br /> <br />7. COUNCIL BUSINESS 1 <br />A. Introduction and First Reading of Ordinance 862, an Ordinance 2 <br />Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas 3 <br />Operation within the City of Mounds View. 4 <br /> 5 <br />Finance Director Beer indicated the City must adopt an Ordinance authorizing the franchise fee 6 <br />on a yearly basis. This was part of the long term agreement with Xcel Energy. He explained the 7 <br />franchise percentage was 3.87% and no changes were being proposed. The annual revenues were 8 <br />discussed in detail with the Council and he explained the franchise fees were split evenly 9 <br />between the general fund and street improvement fund. The Second Reading and approval of 10 <br />this Ordinance would be held on August 22nd. 11 <br /> 12 <br />MOTION/SECOND: Gunn/Hull. To Waive the First Reading and Introduce Ordinance 862, an 13 <br />Ordinance Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operation 14 <br />within the City of Mounds View. 15 <br /> 16 <br />Council Member Stigney was surprised the rate was not being increased to 4%. He felt the 17 <br />residents would benefit from this minimal increase and requested Staff consider this increase 18 <br />with the Second Reading. 19 <br /> 20 <br />Mayor Flaherty was in favor of keeping the rate as is. 21 <br /> 22 <br />Council Member Gunn noted the residents were in favor of the franchise fee as it was a tax write 23 <br />off. 24 <br /> 25 <br /> Ayes – 3 Nays – 1 (Stigney) Motion carried. 26 <br /> 27 <br />B. Introduction and First Reading of Ordinance 863, an Ordinance 28 <br />Implementing a Franchise Fee on Center Point Energy Natural Gas 29 <br />Operations within the City of Mounds View. 30 <br /> 31 <br />Finance Director Beer indicated the City must adopt an Ordinance authorizing the franchise fee 32 <br />on a yearly basis. This was part of the long term agreement with Center Point Energy. He 33 <br />explained the franchise percentage was 3.87% and no changes were being proposed. This would 34 <br />allow the contract to remain consistent with Xcel’s franchise fee. The Second Reading and 35 <br />approval of this Ordinance would be held on August 22nd. 36 <br /> 37 <br />MOTION/SECOND: Flaherty/Gunn. To Waive the First Reading and Introduce Ordinance 863, 38 <br />an Ordinance Implementing a Franchise Fee on Center Point Energy Natural Gas Operations 39 <br />within the City of Mounds View. 40 <br /> 41 <br />Council Member Stigney stated he would not support the franchise fee. 42 <br /> 43 <br /> Ayes – 3 Nays – 1 (Stigney) Motion carried. 44 <br /> 45