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Item No: TD. —i7 ---T------ Meeting Date: August 26, 2013 MOUNDSvi ,YV Type of Business: Council Busine s -- -- Administrator Review: City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Second Reading and Adoption of Ordinance 881, an Ordinance Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations within the City of Mounds View Attached is an ordinance to receive a second reading and adoption. The public hearing, first reading, and introduction occurred at the August 12, City Council meeting. This ordinance continues the agreement with Xcel Energy under which Xcel Energy will collect a franchise fee in the amount of 4% of Xcel's electric and natural gas gross operating revenues for services within the City of Mounds View during the year 2014. Ordinances 875 and 876 passed on January 28, 2013 extended the original 20 year franchise agreement for another 20 years. It provides that the City may impose a franchise fee of not more than 4% of Xcel's gross operating revenues at any time during the 20 -year term of the franchise. The 20 -year term runs from January 2013 through January 28, 2034. The franchise fee was first collected in 1993. It has been the practice to include a sunset provision in the ordinance that requires it to be re-enacted each year. The ordinance will be published in the Sun Focus and take effect as provided in the ordinance. Staff would request that a summary ordinance be published with the complete ordinance available on-line and at City Hall. Respectfully Submitted, Mark Beer