Agenda Packets - 2012/08/13 - Laserfiche WebLink

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Item No: 7.A. Meeting Date: August 9, 2012 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: Introduction, and First Reading of Ordinance 873, 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 an introduction and first reading. The second reading and adoption will be held at a Public Hearing on Monday, August 27, 2012. A notice of the Public Hearing will be published in the August 9, 2012 edition of the Sun Focus. 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 2013. Ordinances 517 and 518 passed on October 13, 1992 originally enacted the franchise agreement.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 runs from 1993 through December 21, 2012 and 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 brought back to the City Council for second reading and adoption at the August 27, 2012 meeting. It will then 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