Ordinance 641 - Laserfiche WebLink

Home Browse Search

.. - . . ORDINANCE NO. 641 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE IMPLEMENTING A FRANCHISE FEE ON NORTHERN STATES POWER COMPANY ELECTRIC AND NATURAL GAS OPERATIONS WITHIN THE CITY OF MOUNDS VIEW THE CITY OF MOUNDS VIEW ORDAINS: SECTION 1. The City of Mounds View Municipal Code Appendix D is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. 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 electric services within the City of Mounds View. a. Pursuant to City Ordinance No. 517 and Ordinance No. 518, which are the Franchise Agreements ("Franchise Agreements") between the City of Mounds View (the "City") and Northern States Power Company (the "Company"), a franchise fee of not more than four (4.0) percent of the Northern States Power Company's ("NSP") 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, illuminating and other purposes as outlined in Section 2 of Ordinance Nos. 517 and 518. b. Pursuant to Ordinance No. 622 effective January 16, 1999, the City imposed a franchise fee under NSP's electric and natural gas Franchise Agreements in the amount of two and one-half (2.5) percent ofNSP's gross revenues, as defined in Section 4.2 of the Franchise Agreements, subject to a sunset on December 31, 1999. Subd.2. Franchise Fee Statement. A franchise fee is hereby imposed on NSP under its electric and natural gas Franchise Agreements in the amount of four (4.0) percent ofNSP' s gross revenues, as defined in Section 4.2 of the Franchise Agreements, commencing with NSP's January 2000 billing month. Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 4 of the Franchise Agreements. Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission requires each said utility company to add to its effect 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. SJR-169975v975 MUl25-63