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<br />Item No: 7.B. <br />Meeting Date: August 27, 2012 <br />Type of Business: Council Business <br />Administrator Review: ____ <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Public Hearing, Second Reading and Adoption of <br />Ordinance 874, an Ordinance Implementing a Franchise <br />Fee on Center Point Energy Natural Gas Operations <br />within the City of Mounds View <br /> <br />Attached is an ordinance to receive a second reading and adoption. The first reading <br />and introduction occurred at the August 13, 2012 City Council meeting. A notice of the <br />Public Hearing was published in the August 9, 2012 edition of the Sun Focus. <br /> <br />This ordinance continues the agreement with Center Point Energy under which Center <br />Point Energy will collect a franchise fee in the amount of 4% of Center Point’s natural <br />gas gross operating revenues for services within the City of Mounds View during the <br />year 2013. <br /> <br />Ordinance 625 passed on June 28, 1999 originally enacted the franchise agreement. It <br />provides that the City may impose a franchise fee of not more than 4% of Center Point’s <br />gross operating revenues at any time through July 1, 2019. The franchise fee was first <br />collected in 2001. <br /> <br />It has been the practice to include a sunset provision in the ordinance requiring it to be <br />re-enacted each year. Franchise fees collected under this agreement are minimal due <br />to Center Point Energy’s small customer base within the City of Mounds View. <br /> <br />It will be published in the Sun Focus and take effect as provided in the ordinance after <br />publication. Staff would request that a summary ordinance be published with the <br />complete ordinance available on-line and at City Hall. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Mark Beer <br /> <br /> <br />