Agenda Packets - 2006/01/23 - Laserfiche WebLink

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Mounds View City Council January 9, 2006 Regular Meeting Page 3 asked what happens if the franchise fee comes in higher or lower than expected. He noted the 1 temperature is warmer than usual so the franchise fee income may be lower. 2 3 Finance Director Beer explained the City would rely on the contingency fund to make up 4 shortfalls and other sources would be looked at to make up the difference, if needed. 5 6 City Administrator Ulrich reported that a resident called about gas rates being higher so their bill 7 is still higher even though usage is lower. He noted that if there is an overage, one-half of the 8 monies will go to the street replacement fund and the other one-half will go to the general fund 9 reserve. 10 11 Finance Director Beer reported that the natural gas rates peaked on December 13, 2005 and are 12 now down 39% from that high level. 13 14 MOTION/SECOND: Stigney/Gunn. To approve First Reading of Ordinance 767 an Ordinance 15 Implementing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations within the 16 City of Mounds View for the Year 2006. 17 18 Ayes – 4 Nays – 0 Motion carried. 19 20 C. First Reading of Ordinance 768 an Ordinance Implementing a Franchise Fee 21 on Center Point Energy Natural Gas Operations within the City of Mounds 22 View for the Year 2006 23 24 Finance Director Beer stated that this item also involves a franchise fee that sunsets annually. He 25 explained that Center Point Energy does not have many customers in Mounds View but is wiling 26 to waive the time requirements for notice to continue collecting the franchise fee. Center Point 27 Energy is not requesting the insertion of any language to extend their agreement. Finance 28 Director Beer noted that second reading will occur on January 23, 2006 when the public hearing 29 is held. 30 31 MOTION/SECOND: Flaherty/Gunn. To approve First Reading of Ordinance 768 an Ordinance 32 Implementing a Franchise Fee on Center Point Energy Natural Gas Operations within the City of 33 Mounds View for the Year 2006. 34 35 Councilmember Stigney noted that both of the franchise fees have been factored into the 2006 36 budget. 37 38 Ayes – 4 Nays – 0 Motion carried. 39 40 D. Resolution 6715 Authorizing the Re-Advertisement for Bids and Setting a 41 Bid Date for the Groveland Park Building Replacement Project 42 43 Public Works Director Lee stated that this item was discussed at an October work session and 44 staff was directed to look at other options including the use of colleges to do the construction and 45