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Mounds View City Council August 10, 2009 <br />Regular Meeting Page 5 <br /> <br />franchise fee, it impacts all equally. The difference is that a homeowner cannot deduct fees yet a <br />business owner can do so. Council Member Mueller stated the City may need a fu114% franchise <br />fee to complete the road and utility projects that have been planned. <br />Mayor Flaherty stated the impact to the street funding mechanism was discussed last year and it <br />was determined the franchise fee would have no impact because of the low percentage. He noted <br />Area A came in $700,000 less than funded so that amount went into the bank. He explained that <br />when considered as a percentage of the bill, the franchise fee may be a higher burden on a <br />resident than a large sized business like Medtronic. <br />Ayes - 3 Nays - 2 (Hull, Flaherty) Motion carried. <br />D. First Reading and Introduction of Ordinance 826, an Ordinance <br />Implementing a Franchise Fee on Xcel Electric and Natural Gas Operations <br />within the City of Mounds View. <br />L <br />Finance Director Beer explained the draft ordinance would continue the agreement with Xcel <br />Electric and Natural Gas Operations to collect a franchise fee in the amount of 3.75% of its <br />natural gas gross operating revenue for services within Mounds View during the year 2010. <br />Finance Director Beer advised that the current franchise agreement expires in 2012 so <br />negotiations will probably start in a year or two. It was noted the public hearing and second <br />reading has been scheduled for August 24, 2009. <br />MOTION/SECOND: Gunn/Stigney. To Waive the First Reading and Introduce Ordinance 826, <br />An Ordinance Implementing a Franchise Fee on Xcel Electric and Natural Gas Operations within <br />the City of Mounds View, as amended to charge a 3.85% of its natural gas gross operating <br />revenue for services in Mounds View during 2010. <br />Council Member Stigney stated the taxpayer will find they pay less if the businesses also have to <br />share the costs by paying a franchise fee. <br />Ayes - 3 Nays - 2 (Hull, Flaherty) Motion carried. <br />E. Resolution 7482, Authorizing Severance for Don Burda, Temporary Building <br />Inspector. <br />Assistant Clerk-Administrator Crane presented a recommendation to approve severance payment <br />in the amount of $249.91 to Don Burda, who resigned as Mounds View's Temporary Building <br />Inspector effective July 23, 2009, in accordance with the AFSCME Union Contract. <br />MOTION/SECOND: Mueller/Stigney. To Waive the Reading and Adopt Resolution 7482, <br />Approving Severance for Don Burda, Temporary Building Inspector. <br />Mayor Flaherty thanked Mr. Burda for his years of service to Mounds View and wished him well <br />in his retirement. <br />