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S-I-em F 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 THE OPERATION OF THE UTILITY WITHIN THE CITY OF MOUNDS VIEW THE CITY OF MOUNDS VIEW ORDAINS: SECTION 1: 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 electrical services within the City of Mounds View. Subdivision 2: 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%) 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, illuminating 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 Company, 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 such supplier for the cost of the • tax.