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Item No. 9D <br />Meeting Date: September 8, 2003 <br />Type of Business: Council Business <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Charles Hansen, Finance Director <br />Item Title/Subject: Public Hearing, First Reading, and Consideration <br />of Ordinance 719 Implementing a Franchise Fee <br />on Reliant Energy Natural Gas Operations within <br />the City of Mounds View for the Year 2004 <br /> <br />Attached is an ordinance to receive a first reading at a Public Hearing on <br />Monday, September 8, 2003. A notice of the Public Hearing was published in the <br />August 20, 2003 edition of the New Brighton-Mounds View Bulletin. <br /> <br />This ordinance continues the agreement with Reliant Energy under which Reliant <br />Energy will collect a franchise fee in the amount of 4% of Reliant’s natural gas <br />gross operating revenues for services within the City of Mounds View during the <br />year 2004. <br /> <br />Ordinance 625 passed on June 28, 1999 originally enacted the franchise <br />agreement. It provides that the City may impose a franchise fee of not more than <br />4% of Reliant’s gross operating revenues at any time through July 1, 2019. The <br />franchise fee was first collected in 2001. A sunset provision in the ordinance <br />requires it to be re-enacted each year. <br /> <br />Franchise fees collected under this agreement are minimal due to Reliant <br />Energy’s small customer base within the City of Mounds View. Enactment of the <br />ordinance is important to maintain equity in relation to the City’s treatment Xcel <br />Energy. <br /> <br />The ordinance will be brought back to the City Council for second reading and <br />adoption at the September 22, 2003 meeting. It will then be published in the <br />Bulletin and take effect 30 days after publication. <br /> <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Charles Hansen <br />Reviewed by City Administrator:______