08/24/04 - Laserfiche WebLink

Home

INTRODUCTION TO REPEAL ORDINANCES #03-44 and #03-45 IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY, MINNEGASCO, A DIVISION OF CENTERPOINT ENERGY RESOURCES CORP., A DELAWARE CORPORATION, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF RAMSEY, AND IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON CONNEXUS ENERGY, A MINNESOTA COOPERATIVE, AND THE CITY OF ANOKA, A MUNICIPAL ELECTRIC DISTRIBUTOR, FOR PROVIDING ELECTRIC ENERGY SERVICE WITHIN THE CITY OF RAMSEY, MINNESOTA. By: Diana Lurid, Finance Officer Background: On October 28, 2003, the City of Ramsey adopted Ordinances #03-44 and #03-45 implementing a gas franchise fee on Centerpoint Energy, Minnegasco and an electric franchise fee on Connexus Energy and the City of Anoka Electric. The purpose of the franchise fee was to make up for lost LGA and MVHC which totaled $477,900. With a set rate of $3.00 per meter per residential customer and $6.00 per meter per commercial customer, the City proposed to receive $404,000 in franchise fee revenue for year 2004. Per thc franchise fee ordinances, the City Council was to quarterly review the franchise fee revenue collected to date and to determine whether or not the continuance of the franchise fee was warranted. At the City Council meeting of August 10, 2004, City Council was presented with the second quarter review of the franchise fee. It was determined at this meeting that one further quarter was needed for the City to obtain the necessary $404,000, and that at the end of the third quarter period, September 30, 2004, the franchise fee to gas and electric utility customers would end. Connexus Energy, City of Anoka, and Centerpoint Energy have all been contacted regarding the termination of the franchise fee and will cease the billing of the fee effective September 30, 2004. The termination of the franchise fee requires the formal repeal of the ordinances. Recommendation: Staff recommends the repeal of ordinances #03-44 and #03-45.