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Mounds View City Council August 23, 2010 <br />Regular Meeting Page 4 <br /> <br /> 1 <br />Council Member Mueller stated the average family of four would incur a $3.00 fee over the next 2 <br />year. If the increase were not instituted the City would need to tax the public to gain an additional 3 <br />$10,000. 4 <br /> 5 <br />AMENDMENT VOTE: 6 <br /> 7 <br /> Ayes – 2 Nays – 3 (Stigney, Gunn, Mueller) Motion failed. 8 <br /> 9 <br />Council Member Stigney stated he would be in favor of raising the franchise fee from 3.79% to 10 <br />3.95%. He felt this would save money to the residents 11 <br /> 12 <br />SECOND MOTION AMENDMENT: Stigney/Mueller. To Increase the Franchise Fee from 13 <br />3.79% to 3.95%. 14 <br /> 15 <br />Council Member Stigney stated the increase would aid with the budget crisis while assisting to 16 <br />keep the levy increase manageable. 17 <br /> 18 <br />SECOND AMENDMENT VOTE: 19 <br /> 20 <br /> Ayes – 2 Nays – 3 (Hull, Flaherty, Gunn) Motion failed. 21 <br /> 22 <br />MOTION ROLL CALL: Stigney/Hull/Mueller/Gunn/Flaherty. 23 <br /> 24 <br /> Ayes – 3 Nays – 2 (Hull, Flaherty) Motion carried. 25 <br /> 26 <br />C. 7:15 p.m. Public Hearing Second Reading and Adoption of Ordinance 850 27 <br />Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas 28 <br />Operations within the City of Mounds View. 29 <br /> 30 <br />Finance Director Beer stated this ordinance continues the agreement with Xcel Energy under 31 <br />which Xcel Energy will collect a franchise fee in the amount of 3.87% of Xcel’s electric and 32 <br />natural gas gross operating revenues for services within the City of Mounds View during the year 33 <br />2011. This is a 2% increase over 2010’s rate of 3.79%. The Bureau of Labor Statistics released 34 <br />inflation numbers on were released by the Bureau of Labor Statistics on August 13th for the 35 <br />Minneapolis/Saint Paul area and the 12-month rate was a 2.32% increase. The charter limits the 36 <br />fee increase to 2% plus inflation or 5% whichever is less. 37 <br /> 38 <br />Finance Director Beer commented it has been the practice to include a sunset provision in the 39 <br />ordinance that requires it to be re-enacted each year. Staff recommended approval and requested 40 <br />that a summary ordinance be published. 41 <br /> 42 <br />Mayor Flaherty opened the public hearing at 7:39 p.m. 43 <br /> 44 <br />Dan Mueller, 8343 Groveland Road, again encouraged the Council to proceed with the franchise 45