T-R PHOTO BY ROBERT MAHARRY From left to right, Councilor Al Hoop, City Clerk Alicia Hunter and Mayor Joel Greer partake in a discussion on the proposed electric and gas franchise fees during Monday night’s meeting. The council voted 4-2 to pass a third and final reading of an ordinance change regarding the fees Monday, but the matter will go to a public vote on Sept. 12 after a petition for a special election was presented.

With a special election on the matter now officially set for Sept. 12, the Marshalltown city council passed the third and final reading of three ordinance changes that would allow for the implementation of a five percent franchise fee on gas and electric bills by a 4-2 vote during Monday night’s regular meeting.

There was less discussion of the issue this time around than during previous readings, but Mark Eaton, who circulated the petition for a special election, thanked everyone who participated in the process to garner the necessary signatures. He also pointed out language in the Iowa Code regarding “exclusive” franchise agreements with certain companies — in this case, Interstate Power and Light (Alliant) for gas and electric and Consumers Energy Cooperative for electric — and urged the council to rethink its policy.

During the discussion on the next item to amend the current franchise agreement with Alliant and implement the five percent fee, Eaton advised all watching and listening to the council meeting to vote no on Sept. 12 if they don’t want their utility costs to increase by five percent and reiterated his concerns about an exclusive franchise fee.

Councilor Gabe Isom responded that because a one percent Local Option Sales Tax is already assessed on utility bills, the net increase would only be four percent.

The third motion to establish a franchise agreement with Consumers Energy Cooperative was then brought forward for approval, and Eaton again presented his concerns as they related to establishing a new agreement with Consumers that would last 25 years. Because the city already has a franchise agreement with Alliant without a fee, that contract would sunset in seven years.

All three motions were carried by a 4-2 vote, with Al Hoop and Gary Thompson opposed. Before the council went into closed session at the tail end of the meeting, City Clerk Alicia Hunter clarified that the fees would not be implemented before the matter is decided at the polls, and even if voters approve them, they would still need to come before the Iowa Utilities Board before they would be officially implemented.

Earlier in the meeting, the council voted unanimously to deny a request for a new Class C retail alcohol license with outdoor service for Ay Caramba at its new location, 1803 S. Center St., to accommodate a proposed margarita machine.

The final item on the agenda was a closed session regarding the city administrator hiring process, and a motion to enter the session carried 6-0.

In other business, the council:

Approved the consent agenda as listed except for an item to accept a Destination Iowa grant amendment of $75,000 for a creative placemaking project at the Martha-Ellen Tye Theater.

Approved the third and final reading of an amendment to the city’s alcoholic beverage ordinance in parks, which will require a public use permit for alcohol at most parks with the exception of the rental buildings at Riverview Park and the campground.

Approved the third and final reading of an ordinance amendment regarding offenses against peace and safety, notably reinstating language on vehicle sirens and tire squealing, removing outdated language on weapons from the 1950s, updating zoning district names and removing the Nicholson Ford Nature Area from the hunting within city boundaries rules.

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Contact Robert Maharry at 641-753-6611 ext. 255 or rmaharry@timesrepublican.com.