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Item No. 9E <br />Meeting Date: September 22, 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: Second Reading and Adoption of Ordinance 719 <br />Implementing a Franchise Fee on Reliant Energy <br />Natural Gas Operations within the City of Mounds <br />View for the Year 2004 <br /> <br />Attached is an ordinance to receive its second reading on Monday, September <br />22, 2003. The Public Hearing and first reading of the ordinance was on <br />September 8, 2003. <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Ordinance 625 passed on June 28, 1999 originally enacted the franchise 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. It has been the practice to include a <br />sunset provision in the ordinance 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 />If approved by the City Council, the ordinance will then be published in the New <br />Brighton-Mounds View 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:______