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Item No. 7E <br />Type of Business: CB <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: Introduction and First Reading of an Ordinance <br />Implementing a Franchise Fee on Reliant Energy <br />Natural Gas Operations within the City of Mounds <br />View for the Year 2002 <br />Date of Report: October 16, 2001 <br /> <br />Attached is an ordinance to receive a first reading on Monday, October 22, 2001. <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 2002. <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Ordinance 625 passed on June 28, 1999 originally enacted the franchise 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 published in the November 1, 2001 edition of the Focus <br />News and will be brought back to the City Council for second reading and <br />adoption at the first meeting in November. <br /> <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Charles Hansen <br />