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Item No. 7D <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: Public Hearing for the Second Reading and <br />Adoption of Ordinance 688 Implementing a <br />Franchise Fee on Reliant Energy Natural Gas <br />Operations within the City of Mounds View for the <br />Year 2002 <br />Date of Report: November 5, 2001 <br /> <br />Attached is an ordinance to receive its second reading on Tuesday, November <br />13, 2001. First reading of the ordinance was on October 22, 2001 and a notice <br />of the public hearing for the second reading was published in the November 1, <br />2001 issue 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 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Ordinance 625 passed on June 28, 1999 originally enacted the franchise 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 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 />If approved by the City Council, the ordinance will be published in the Focus <br />News and will be take effect 30 days after publication. <br /> <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Charles Hansen