Agenda Packets - 2009/08/24 - Laserfiche WebLink

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Item No: 7.A. Meeting Date: August 24, 2009 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 825, 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 a second reading and adoption by roll call vote. A notice of the Public Hearing was published in the Sun Focus. On August 10th, the City Council voted 3 to 2 to increase the franchise fee by the amount allowed under the City charter. Inflation numbers were released by the Bureau of Labor Statistics on August 14th for the Minneapolis/Saint Paul area and the 12 month rate was a 1% decline. The charter limits the fee increase to 2% plus inflation or 5% whichever is less. The franchise fee could increase by 1%. (2% -1% = 1%) (3.75% x 1.01 = 3.79%) (This incremental increase would add $.96 per year per household based on $200 per month gas/electric bill) This ordinance continues the agreement with Center Point Energy under which Center Point Energy will collect a franchise fee in the amount of 3.79% of Center Point’s natural gas gross operating revenues for services within the City of Mounds View during the year 2010. 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. This is a roll call vote. Staff would request that a summary ordinance be published in the Sun Focus as allowed by City Charter. The ordinance would be effective 30 days after publication. Respectfully Submitted, Mark Beer