Agenda Packets - 2009/09/14 - Laserfiche WebLink

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Mounds View City Council August 10, 2009 Regular Meeting Page 5 franchise fee, it impacts all equally. The difference is that a homeowner cannot deduct fees yet a 1 business owner can do so. Council Member Mueller stated the City may need a full 4% franchise 2 fee to complete the road and utility projects that have been planned. 3 4 Mayor Flaherty stated the impact to the street funding mechanism was discussed last year and it 5 was determined the franchise fee would have no impact because of the low percentage. He noted 6 Area A came in $700,000 less than funded so that amount went into the bank. He explained that 7 when considered as a percentage of the bill, the franchise fee may be a higher burden on a 8 resident than a large sized business like Medtronic. 9 10 Ayes – 3 Nays – 2 (Hull, Flaherty) Motion carried. 11 12 D. First Reading and Introduction of Ordinance 826, an Ordinance 13 Implementing a Franchise Fee on Xcel Electric and Natural Gas Operations 14 within the City of Mounds View. 15 16 Finance Director Beer explained the draft ordinance would continue the agreement with Xcel 17 Electric and Natural Gas Operations to collect a franchise fee in the amount of 3.75% of its 18 natural gas gross operating revenue for services within Mounds View during the year 2010. 19 Finance Director Beer advised that the current franchise agreement expires in 2012 so 20 negotiations will probably start in a year or two. It was noted the public hearing and second 21 reading has been scheduled for August 24, 2009. 22 23 MOTION/SECOND: Gunn/Stigney. To Waive the First Reading and Introduce Ordinance 826, 24 An Ordinance Implementing a Franchise Fee on Xcel Electric and Natural Gas Operations within 25 the City of Mounds View, as amended to charge a 3.85% of its natural gas gross operating 26 revenue for services in Mounds View during 2010. 27 28 Council Member Stigney stated the taxpayer will find they pay less if the businesses also have to 29 share the costs by paying a franchise fee. 30 31 Ayes – 3 Nays – 2 (Hull, Flaherty) Motion carried. 32 33 E. Resolution 7482, Authorizing Severance for Don Burda, Temporary Building 34 Inspector. 35 36 Assistant Clerk-Administrator Crane presented a recommendation to approve severance payment 37 in the amount of $249.91 to Don Burda, who resigned as Mounds View’s Temporary Building 38 Inspector effective July 23, 2009, in accordance with the AFSCME Union Contract. 39 40 MOTION/SECOND: Mueller/Stigney. To Waive the Reading and Adopt Resolution 7482, 41 Approving Severance for Don Burda, Temporary Building Inspector. 42 43 Mayor Flaherty thanked Mr. Burda for his years of service to Mounds View and wished him well 44 in his retirement. 45