Sioux City’s city council has approved paying nearly $6.5 million dollars to settle a lawsuit over the city’s franchise fees.
The council voted 5-0 Monday to approve the settlement of a 2006 class-action lawsuit filed by Kathleen Sweisberger on behalf residents and businesses that paid franchise fees for gas or electricity to MidAmerican Energy or Woodbury County Rural Electric Cooperative from Sept. 5th of 2001, to May 25th of 2009.
The city will sell bonds to cover the settlement.
Mayor Bob Scott said at the meeting that the city may increase the franchise fee from the current 2 percent to the maximum 5 percent allowed under state law:
OC….charge them more. :18
A judge will rule on whether the settlement agreement is fair.
That could take two months, and it could be six more months before refunds will be paid to those eligible.