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Councilmember Riley aye <br />Councilmember Johns aye <br />Councilmember LeTourneau aye <br />Councilmember Backous aye <br />Mayor Strommen aye <br />Motion carried. <br />7. COUNCIL BUSINESS <br />7.01: Continuation of Introduction of Franchise Ordinances with Anoka Municipal <br />Utility and Connexus Energy <br />City Administrator Ulrich explained these franchise ordinances were currently expired and <br />consideration is to reinstitute the same ordinances. <br />City Engineer Westby reviewed the staff report and described the corrections made to the <br />ordinance language. He presented staff's recommendation to introduce tonight and consider <br />Second Reading of Franchise Ordinance #13 -19 and #13 -20 on November 12, 2013, with or <br />without modifications. <br />Councilmember Tossey stated since the language within the ordinances still allow for a franchise <br />fee by separate ordinance, he will not support introduction. <br />The Council acknowledged the franchise ordnances under consideration will allow utility <br />companies to operate within the City's rights -of -way. <br />Motion by Councilmember LeTourneau, seconded by Councilmember Riley, to introduce <br />revised Ordinances #13-19 and #13-20, with a second reading on November 12, 2013. <br />Motion carried. Voting Yes: Mayor Strommen, Councilmembers LeTourneau, Riley, Backous, <br />Johns, and Kuzma. Voting No: Councilmember Tossey. <br />7.02: Introduction of Franchise Fee Ordinances with Anoka Municipal Utility, <br />CenterPoint Energy and Connexus Energy <br />City Administrator Ulrich stated during the October 8, 2013, meeting a public hearing was held <br />and 20 questions posed. Staff drafted responses to each and that information was contained <br />within the meeting packet and is also posted to the City's website. City Administrator Ulrich <br />clarified that based on current law, utility companies cannot charge an administrative fee. He <br />stated opponents of the franchise fee have promoted that franchise fees will result in a 30% tax <br />increase. This figure had been derived by taking the difference between this year's and last <br />year's levy and adding the franchise fee, referring to it as a tax, and saying it was a 30% tax <br />increase. However, due to the TIF decertification that will offset the debt service on the <br />Municipal Center, the tax capacity rate is projected to go down. As a result, in most cases, there <br />will be a slight decrease in tax. City Administrator Ulrich stated the proposal is to institute a <br />City Council / October 22, 2013 <br />Page 5 of 11 <br />