Agenda Packets - 2014/09/08 - Laserfiche WebLink

Home Browse Search

Item No: 7.D. Meeting Date: September 8, 2014 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Public Hearing, Second Reading and Adoption of Ordinance 893, an Ordinance Continuing a Franchise Fee on Center Point Energy Natural Gas Operations within the City of Mounds View Attached is an ordinance to receive a public hearing, second reading and adoption. The public hearing notice was published in the Sun Focus on August 29, 2014. Proceeds of this fee are split between the General Fund and the Street Improvement Fund. This fee is paid by all utility users which includes those that would not normally pay property taxes. This ordinance continues the agreement with Center Point Energy under which Center Point Energy will collect a franchise fee in the amount of 4% of Center Point’s natural gas gross operating revenues for services within the City of Mounds View during the year 2015. Ordinance 625 passed on June 28, 1999 originally enacted the franchise agreement. It provides that the City may impose a franchise fee of not more than 4% of Center Point’s gross operating revenues at any time through July 1, 2019. The franchise fee was first collected in 2001. It has been the practice to include a sunset provision in the ordinance requiring it to be re-enacted each year. Franchise fees collected under this agreement are minimal due to Center Point Energy’s small customer base within the City of Mounds View. Once adopted, it will be published in the Sun Focus and take effect as provided in the ordinance after publication. Staff would request that a summary ordinance be published with the complete ordinance available on-line and at City Hall. Respectfully Submitted, Mark Beer