Laserfiche WebLink
<br />Item No: 7.C. <br />Meeting Date: August 23, 2010 <br />Type of Business: Council Business <br />Administrator Review: ____ <br />City of Mounds View Staff Report <br /> <br /> <br /> <br /> <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 850, an Ordinance Implementing a Franchise <br />Fee on Xcel Energy Electric and Natural Gas Operations <br />within the City of Mounds View <br /> <br /> <br />Attached is an ordinance 850 to receive a 2nd reading and adoption by roll call vote. <br />Notice was published in the August 12, 2010 edition of the Sun Focus. <br /> <br />This ordinance continues the agreement with Xcel Energy under which Xcel Energy will <br />collect a franchise fee in the amount of 3.87% of Xcel’s electric and natural gas gross <br />operating revenues for services within the City of Mounds View during the year 2011. <br />This is a 2% increase over 2010’s rate of 3.79%. Inflation numbers were released by <br />the Bureau of Labor Statistics on August 13th for the Minneapolis/Saint Paul area and <br />the 12 month rate was a 2.32% increase. The charter limits the fee increase to 2% plus <br />inflation or 5% whichever is less. The franchise fee could increase by 4.32%. (2% + <br />2.32% = 4.32%) (3.79% x 1.0432 = 3.95%) <br /> <br />It has been the practice to include a sunset provision in the ordinance that requires it to <br />be re-enacted each year. Staff would request that a summary ordinance be published <br />with the complete ordinance available on-line and at City Hall. <br /> <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Mark Beer <br /> <br /> <br /> <br /> <br /> <br />