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CITY OF LITTLE CANADA ORDINANCE No. AN ORDNANCE ESTABLISHING A FRANCHISE FEE TO BE PAID BY NORTHERN STATES POWER, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, ON NATURAL GAS SERVICE WITHIN THE CITY OF LITTLE CANADA, MINNESOTA. THE CITY COUNCIL OF LITTLE CANADA, MINNESOTA, DOES ORDAIN: Section 1. Subdivision 1. Purpose. The Little Canada City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide natural gas and electric services within the City of Little Canada. (a) Pursuant to Minn. Stat. Section 216B.36, and pursuant to Little Canada Ordinance No. 304, a Franchise Agreement between the City and Xcel Energy, the City has the right to impose a franchise fee on Xcel Energy for the distribution and sale of natural gas within the City of Little Canada. Subd. 2. Franchise fee Statement. A franchise fee is hereby imposed on Xcel Energy under its gas Franchise in the amount of ( %) percent of Xcel's gross revenues, commencing with Xcel's October, 2003, billing month. Subd. 3. Payment. The said franchise fee shall be payable to the City in a matter that is mutually agreeable to the City and Xcel Energy. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission requires each said utility company to add to its effective rates for the utility service on which the public utility gross earnings fee is imposed, a surcharge to reimburse such utility company for the cost of the fee. Subd. 5. Proof of Company Gross Revenues. Xcel shall make each payment when due and shall quarterly furnish a complete and correct statement of gross revenues for said quarter. Xcel shall permit the City and its designated representatives free access to the company's records for the purpose of verifying such statements. Subd. 6. Enforcement. Any dispute, including enforcement of a default regarding this Ordinance, will be resolved in accordance with the Franchise Agreement. Subd. 7. Effective Date of Franchise Fee. This Ordinance shall take effect and be enforced from and after its passage and publication. The effective date of the fee collected under Subd. 2 of this Ordinance shall be the date of the commencement of Xcel's October, 2003, billing month. 6