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Mounds View City Council August 25, 2008 <br />Regular Meeting Page 7 <br />Richard Sonterre of 5060 Red Oak Drive addressed Council and said that he chairs the public <br />policy committee for the Chamber, and one of there concerns is that the tax is unfair, <br />unwarranted and they would like a phased elimination. <br />Hearing no further public comments, Mayor Marty closed the public hearing at 9:57 p.m. <br />Council Member Flaherty indicated that it is 4% for everyone whether they are a resident or <br />business owner. He then said that he would like the City to look at this annually and review to <br />see what happens if the City drops the franchise fee by .25% year by year. <br />Council Member Mueller said that times are tough all over and she would like to support the <br />businesses, however, there are needs that have to be funded so the City needs to come up with <br />other ideas as to how to make up for the difference in franchise fees. <br />Council Member Hull indicated that Council discussed this topic at a work session. He then <br />said that he would like to go down to 3.5% and slowly wean the City off this tax. He further <br />asked if it would be doable to come up with the $77,000 in the budget somewhere. <br />MOTION/SECOND: Stigney/Mueller. To Waive the Reading and Adopt Ordinance 811 an <br />Ordinance Implementing a Franchise Fee on CenterPoint Energy Natural Gas Operations within <br />the City of Mounds View and Approve the Ordinance Summary for Publication. <br />Council Member Stigney indicated that he would like to wean the City off this tax but it is not <br />going to be resolved at this meeting. <br />Council Member Flaherty would like to see it decrease to 3.75%. <br />Mayor Marty indicated that he had previously asked at the work session several months ago that <br />the business owners and concerned residents work with staff to see what they could come up <br />with to run the City and pay for the street program instead of using a franchise fee. <br />Mayor Marty noted that Staff discussed capping the fee because of increasing energy costs. <br />MOTION/SECOND: Marty/Hull. To Amend the Franchise Fee to 3.75% for the Year 2009. <br />Council Member Mueller said that the City is taking on two very ambitious street and utility <br />projects for 2009, and this may not be the right time to scale back on the Franchise fee. <br />Ayes - 3 Nays - 2(Stigney/Mueller) The Amendment carried. <br />ROLL CALL: Mueller/Flaherty/Hull/Stigney/Marty <br />Ayes - 4 Nays -1(Stigney) Motion as amended carried. <br />• <br />