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ORDiNANCE NO. 605 CiTY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE IMPLEMENTING A FRANCHISE FEE ON ELECTRIC AND NATURAL GAS UTILITY COMPANIES FOR TI:IE OPERATION OF THE UTILITY WITHIN ; , THE CITY OF MOUNDS VIEW THE CITY OF MOUNDS VIEW ORDAINS: SECTION I. PURPOSE Subdivision 1 : The Mounds View 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 eiectrical services within the City of Mounds View. . . Subdivision 2: Pursuant to City OrdinancE!' No.. 517 and Ordinance No. 518, which are;;.j th s"FranchisElA9 rseiT\ents,(.Franchls~ Agreements") between the City of Mounds VieW (the City) and Northern States Power Company (the Company), a franchise fee of not more than four (4%) of the Company's gross operating revenues may be imposed by the City at any time during the 20 year term of the Franchise. The franchise fee is paid as full .compensation for the rights to transmit and furnish electric energy for light, heat, power and import, transport, sell and distribute natural gas for heating, i1iuminating and other purposes as outlined In Section 2 .! of Ordinances 517 and 518. SECTION II. STATEMENT A franchise fee is hereby Imposed on Northern States Power ~ompany, a Minnesota Corporation, for its electrical and gas franchises granted by the City in the amount of 2.5% of Northern States Power Company's gross revenues as defined by Section 4.2 of the Franchise Agreements. SECTION III. PAYMENT Said franchise fee shall be payable to the City in accordance with the terms set forth In Section 4 of the Franchise Agreements. SECTION IV. SURCHARGE Any ,such supplier may add to its effective rates for the utility' services on which the public utility gross earnings tax is imposed, a surcharge to reimburse suoh supplier for .the cost of the tax. SECTION V. PROOF OF COMPANY FINANCIAL STATUS Each said company shall make' each payment when due anlj shall furnish therewith a complete and correct statement , of revenues for !.he period. Such company shall permit the City and its representative free access to the company's records for the purpose of verifying such statements. SECTION VI. ENFORCEMENT Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreements. SECTION VII; ''EFFECTIVE DATE Notwithstanding any contrary provisions in ,Section 4 of the present ElectrlcEnergy Franchise Agreement and Gas Energy Franchise, Ordinance Nos. 517 and 518 respectively, the effective date of this ordinance is thirty (30) days- after its publication and thirty (30) days after the sending of written notice enclosing this proposed ordinance upon Northern States Power Company by certified mail. The City and Northern States Power Company acknowledge' that the effective date of this ordinance upon thirty (30) days after the sending of written notice enclosing this proposed ordinance to Northern States Power Company by certified mail is a deviation from the requirement of Section 4.1 of both Ordinance Nos. 517 and 518, and that the requirements of SeCtion 4.1 of both Ordinance Nos. 517 and 518 shall control future franchise fee agreements between the .City and Northem States Power Company. SECTION VI!1. SUNSET CLAUSE This ordinance shall automatically sunset on December 3'1, 1998. Ordinance Introduction: October 27,1997 Ordinance Adoption: November 10, 1997 Date of Publication: November 14,1997 Effective Date: December 13,1997 Isf (SEAL) Chuck Whiting, Clerk.Administrator . ATTEST: ' Isf Roger H. Koopmeiners Acting Mayor . , APPROVED AS TO FORM:', I City Attorney , (Bulletin: Nov. 19, 1997) . .