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Item No. 7D <br />Type of Business: PH <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business 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 704 Implementing a Franchise Fee <br />on Reliant Energy Natural Gas Operations within <br />the City of Mounds View for the Year 2003 <br />Date of Report: September 5, 2002 <br /> <br />Attached is an ordinance to receive a first reading at a Public Hearing on <br />Monday, September 9, 2002. A notice of the Public Hearing was published in the <br />August 29, 2002 edition of the Focus News. <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 2003. <br /> <br />Ordinance 625 passed on June 28, 1999 originally enacted the franchise <br />agreement. It provides that the City may impose a franchise fess of not more <br />than 4% of Reliant’s gross operating revenues at any time through July 1, 2019. <br />The 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 23, 2002 meeting. It will then be published in the <br />Focus News and take effect 30 days after publication. <br /> <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Charles Hansen