HomeMy WebLinkAboutOrdinance 622
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ORDINANCE NO. 622
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
electric 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)
percent 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 Ordinance Nos. 517 and 518.
Subdivision 3.
Pursuant to Ordinance No. 605 effective December 13, 1997, the City imposed a
franchise fee under the electric and natural gas Franchise Agreements in the amount of
two and one-half (2.5) percent of Northern States Power Company's gross revenues, as
defined in Section 4.2 of the Franchise Agreements, subject to a sunset on December 31,
1998.
SECTION II. STATEMENT
Subdivision 1.
A franchise fee is hereby imposed in the amount of two and one-half (2.5) percent of
gross revenues which franchise fee was being collected under Ordinance No. 605, and
said franchise fee shall continue to be collected hereunder as though the sunset provision
in Ordinance No. 605 were suspended until the effective date of collection of the
franchise fee being imposed by Subdivision 2 below.
Subdivision 2.
A franchise fee is hereby imposed on Northern States Power Company, under its electric
and natural gas Franchise Agreements in the amount of two and one-half (2.5) percent of
the Company's gross revenues, as defined in Section 4.2 of the Franchise Agreements,
commencing with the Company's March, 1999, billing month. On said commencement
date, collection of the franchise fee being collected under Subdivision 1 terminates.
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Ordinance 622
Page 2
SECTION III. PAYMENT
Said franchise fee shall be payable to the City in accordance with the tenns set forth in Section 4
of the Franchise Agreements.
SECTION IV. SURCHARGE
The City recognizes that the Minnesota Public Utilities Commission requires each said utility
company to add to its effective rates for the utility services on which the public utility gross
earnings fee is imposed, a surcharge to reimburse such utility company for the cost of the fee.
SECTION V. PROOF OF COMPANY GROSS REVENUES
Each said utility company shall make each payment when due and shall quarterly furnish a
complete and correct statement of gross revenues for said quarter. Such utility company shall
pennit the City and its designated 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 OF FRANCmSE FEE
Notwithstanding the effective date of this ordinance and notwithstanding any contrary provisions
in Section 4 of the present Electric Energy Franchise Agreement and Gas Energy Franchise
Agreement, Ordinance Nos. 517 and 518, respectively, the effective date of the fee being
collected under Subdivision 1 of Section II of this ordinance is the later of ten (10) days after its
publication and after the sending of written notice enclosing a copy of this adopted ordinance
upon Northern States Power Company by certified mail. The requirements of Section 4.1 of both
Ordinance Nos. 517 and 518 shall control franchise fee collections between the City and
Northern States Power Company in all other respects.
SECTION VIII. SUNSET CLAUSE
This ordinance shall automatically sunset on December 3 1, 1999.
Ordinance Introduction:
Date of Publication:
Effective Date:
October J 3, J 998
December /6, /998
January J 6, J 999
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