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ADOPT ORDINANCE #04-XX AND ORDINANCE #04-XX REPEALING <br />ORDINANCES #03-44 and #03-45 IMPLEMENTING A GAS FRANCHISE FEE <br />ON CENTERPOINT ENERGY, MINNEGASCO, A DIVISION OF <br />CENTERPOINT ENERGY RESOURCES CORP., A DELAWARE <br />CORPORATION, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE <br />CITY OF RAMSEY, AND IMPLEMENTING AN ELECTRIC FRANCHISE FEE <br />ON CONNEXUS ENERGY, A MINNESOTA COOPERATIVE, AND THE CITY <br />OF ANOKA, A MUNICIPAL ELECTRIC DISTRIBUTOR, FOR PROVIDING <br />ELECTRIC ENERGY SERVICE WITHIN THE CITY OF RAMSEY, <br />MINNESOTA. <br /> By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />On October 28, 2003, the City of Ramsey adopted Ordinances #03-44 and #03-45 <br />implementing a gas franchise fee on Centerpoint Energy, Minnegasco and an electric <br />franchise fee on Connexus Energy and the City of Anoka Electric. The purpose of the <br />franchise fee was to make up for lost LGA and MVHC which totaled $477,900. With a <br />set rate of $3.00 per meter per residential customer and $6.00 per meter per commercial <br />customer, the City proposed to receive $404,000 in franchise fee revenue for year 2004. <br /> <br />Per the franchise fee ordinances, the City Council was to quarterly review the franchise <br />fee revenue collected to date and to determine whether or not the continuance of the <br />franchise fee was warranted. <br /> <br />At the City Council meeting of August 10, 2004, City Council was presented with the <br />second quarter review of the franchise fee. It was determined at this meeting that one <br />further quarter was needed for the City to obtain the necessary $404,000, and that at the <br />end of the third quarter period, September 30, 2004, the franchise fee to gas and electric <br />utility customers would end. <br /> <br />At the August 24, 2004, City Council Meeting, two ordinances were introduced to repeal <br />the current franchise fee on gas (Centerpoint Energy, Minnegasco) and electric <br />(Connexus Energy and City of Anoka) utilities beginning fourth quarter 2004. <br /> <br />Recommendation: <br /> <br />Staff recommends the repeal of ordinances #03-44 and #03-45. <br /> <br />Council Action: <br /> <br />Motion to adopt ordinances #04-XX and #04-XX repealing Ordinances #03-44 and <br />Ordinance #03-45 implementing a gas franchise fee on Centerpoint Energy, Minnegasco, <br />and an electric franchise fee on Connexus Energy and City of Anoka Electric. <br /> <br /> <br />