Agenda Packets - 2010/08/09 - Laserfiche WebLink

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Item No: 7E Meeting Date: August 9, 2010 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: First Reading and Introduction of Ordinance 849, an Ordinance Implementing a Franchise Fee on Center Point Energy 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 23, 2010. A notice of the Public Hearing was published in the August 12, 2010 edition of the Sun Focus. This ordinance continues the agreement with Center Point Energy under which Center Point Energy will collect a franchise fee in the amount of 3.87% of Center Point’s natural gas gross operating revenues for services within the City of Mounds View during the year 2011. This is a 2% increase over 2010’s rate of 3.79% Ordinance 625 passed on June 28, 1999 originally enacted the franchise agreement.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. The ordinance will be brought back to the City Council for second reading and adoption at the August 23, 2010 meeting. It will be published in the Sun Focus and take effect 30 days 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