Agenda Packets - 2018/09/10 - Laserfiche WebLink

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Item No: 8.D. Meeting Date: September 10, 2018 M6L-TND-MS VIEW Type of Business: Council Business Administrator Review: City of Mounds View ,Staff Re opt To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Introduction, and First Reading of Ordinance 949, an Ordinance Continuing a Franchise Fee on Xcel Energy Electric and Natural Gas Operations within the City of Mounds View Attached is an ordinance to receive an introduction and first reading. The public hearing, second reading, and adoption will be on Monday, September 24, 2018. Notice of the public hearing was published in the September 7, 2018 Sun Focus. This ordinance continues the agreement with Xcel Energy under which Xcel Energy will collect a franchise fee in the amount of 4% of Xcel's electric and natural gas gross operating revenues for services within the City of Mounds View during the year 2019. The proceeds are split between the General Fund and the Street Improvement Fund. Ordinances 875 and 876 passed on January 28, 2013 extended the original 20 year franchise agreement for another 20 years. It provides that the City may impose a franchise fee of not more than 4% of Xcel's gross operating revenues at any time during the 20 -year term of the franchise. The 20 -year term runs from January 2013 through January 28, 2034. The franchise fee was first collected in 1993. It has been the practice to include a sunset provision in the ordinance that requires it to be re-enacted each year. The ordinance will be brought back to the City Council for public hearing, second reading, and adoption at the September 24, 2018 meeting. It will then be published in the Sun Focus and take effect as provided in the ordinance. Staff would request that a summary ordinance be published with the complete ordinance available on-line and at City Hall. Respectfully Submitted, Mark Beer