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M:\MasterFiles\1999 thru 2010\2000\City Council\Council Packets\09-25-00\Item 10I--Ord 669, NSP Franchise Fee--Bruce Kessel.docSJR-186450v2 MU125-63 ORDINANCE NO. 669 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 (“NSP”), a franchise fee of not more than four (4.0) percent of NSP’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 Ordinance Nos. 517 and 518. 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 of NSP’s gross revenues, as defined in Section 4.2 of the Franchise Agreements, commencing with NSP’s January 2001 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 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. NSP shall make each payment when due and shall quarterly furnish a complete and correct statement of gross revenues for said quarter. NSP shall permit the City and its designated representative free access to the company’s records for the purpose of verifying such statements.