04/02/2012 Council Packet - Laserfiche WebLink

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SECTION 6. CHANGE IN FORM OF GOVERNMENT Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 7. FRANCHISE FEE 7.1. Right and Form. Subject to the terms and conditions of this ordinance, during the term of the Franchise hereby granted, and in addition to permit fees being imposed or that the City has a right to impose, the City may charge the Company a franchise fee. The fee may be (i) a percentage of gross revenues received by the Company for its operations within the City, or (ii) a flat fee per customer based on metered service to retail customers within the City or on some other similar basis, or (iii) a fee based on units of energy delivered to any class of retail customers within the corporate limits of the City, or (iv) a fee based on a customer meter charge or other rate design. The method of imposing the franchise fee, the percentage of revenue rate, or the flat rate based on metered service may differ for each customer class or combine the methods described in (i) -(iii) above in assessing the fee but in no event shall exceed five percent of the Company's gross revenue from the sale of gas within the City.. 7.2. Separate Ordinance. The franchise fee shall be imposed by separate ordinance duly adopted by the City, which ordinance shall not be adopted until at least thirty (30) days after Notice enclosing such proposed ordinance has been served upon the Company. The fee shall become effective ten (10) days after Notice enclosing such adopted ordinance has been served upon the Company by certified mail. 7.3. Collection of Fee. The City acknowledges that the Company may collect the franchise fee from customers in the City. The City reserves the right to establish and modify from time to time, the rate design of the fee collected from customers of different classes. Fees shall be payable not less than quarterly during complete billing months of the period for which payment are to be made. The franchise fee formula may be changed from time to time; however, the change shall meet the same notice requirements and the fee may not be changed more often than annually, and must comply with the terms of this Ordinance. The Company agrees to make available for inspection by the City at reasonable times all records necessary to audit the Company's franchise fee records. 7.4. Conditions on the Fee. The separate ordinance imposing the fee shall not be effective against the Company unless it lawfully imposes and the City quarterly or more often collects a fee or tax of the same or greater percentage on the receipts from sales of energy within the City by any other energy supplier. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling, or lighting, as well as to the supply of energy needed to run machinery and appliances on premises located within or adjacent to the City, but shall not apply to energy sales for the purpose of providing fuel for vehicles. SECTION 8. ABANDONED FACILITIES The Company shall comply with City ordinances, Minnesota Statutes, Sections 216D.01