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" 3 Item No: 7.A Meeting Date: January 28, 2013 MOT Tj�j�s�%I% Type of Business: Council Business V1.—L Administrator Review: of Mounds View Staff To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Introduction, and First Reading of Ordinance 875, an Ordinance Granting Northern States Power Company, a Minnesota Corporation, d/b/a Xcel Energy, its Successors and Assigns, a Franchise to Construct, Operate, Repair and Maintain in the City of Mounds View, Minnesota, the Necessary Gas Pipes, Mains and Appurtenances for the Transmission or Distribution of Gas to the City and its Inhabitants and Others and Transmitting Gas into and Through the City for Such Purposes; and Prescribing Certain Terms and Conditions Thereof Attached is an ordinance to receive an introduction and first reading. The public hearing was opened on December 10th and continued to January 28th, 2013. The City Council should take any additional comment and then close the public hearing. The second reading and adoption will be held on Monday, February 11, 2013. This ordinance continues the franchise agreement with Xcel Energy. Kennedy & Graven has been the lead during the renewal process and this agreement is similar to the previous agreement. The changes from the previous franchise agreement will be summarized and provided prior to the meeting by Kennedy & Graven. Ordinances 517 and 518 passed on October 13, 1992 originally enacted the franchise agreement. 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 ran from 1993 through December 21, 2012 and was mutually extended for 90 days. This agreement will extend the franchise for 20 more years from the date of acceptance. It has been the practice to include a sunset provision in the annual ordinance that requires it to be re-enacted each year and this does not change with a new franchise. Staff would request that a summary ordinance be published with the complete ordinance available on-line and at City Hall. Respectfully Submitted, Mark Beer