HomeMy WebLinkAboutOrdinance 826ORDINANCE NO. 826
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE IMPLEMENTING A FRANCHISE FEE ON XCEL
ENERGY 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 Xcel Energy (formerly Northern States Power Company), a
franchise fee of not more than four (4.0) percent of Xcel Energy'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 Xcel
Energy under its electric and natural gas Franchise Agreements in the amount of three
and seventy-nine hundredths (3.79) percent of Xcel Energy's gross revenues, as
defined in Section 4.2 of the Franchise Agreements, commencing with Xcel Energy's
January 2010 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. Xcel Energy shall make each
payment when due and shall monthly furnish a complete and correct statement of gross
revenues for said month. Xcel Energy shall permit the City and its designated
representative free access to the company's records for the purpose of verifying such
statements.
Subd. 6. Enforcement. Any dispute, including enforcement of a default
regarding this ordinance will be resolved in accordance with the Franchise Agreements.
Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of
this ordinance and notwithstanding any contrary provisions in Section 4 of the Franchise
Agreements, the effective date of the fee collected under Subdivision 2 of this ordinance
is the later of ten (10) days after the publication and after the sending of written notice
enclosing a copy of this adopted ordinance upon Xcel Energy by certified mail.
Subd. 8. Sunset Clause. This ordinance shall automatically sunset on
December 31, 2010.
SECTION 2. This ordinance takes effect as provided herein.
Read by the City Council of the City of Mounds View this 10t" day of August, 2009.
Read and passed by the City Council of the city of Mounds View this 24t" day of August,
2009.
Publication Date: September 3, 2009.
ATTEST::
(SEAL)
Jim Ericson, City Clerk-Administrator