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HomeMy WebLinkAboutOrdinance 850ORDINANCE NO. 850 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") befinreen 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 eighty-seven one hundredths of a percent (3.87%) of Xcel Energy's gross revenues, as defined in Section 4.2 of the Franchise Agreements, commencing with Xcel Energy's January 2011 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 monfih. 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 encfosing a copy of this adopted ordinance upon Xcef Energy by certified maif. Subd. 8. Sunset Clause. This ordinance shall automatically sunset on December 31, 2011. SECTION 2. This ordinance takes effect as provided herein. Read by the City Council of the City of Mounds View this 9t" day of August, 2010. Read and passed by the City Council of the city of Mounds View this 23~d day of August, 2010. Publication Date: September 2, 2010 oe Flaherty, ATTEST: i ` `~J ~- ~-~~ Jim Ericson, City Administrator (SEAL) ORDINANCE SUMMARY ORDINANCE NO. 850 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 On August 23, 2010, the Mounds View City Council adopted an ordinance which implements a franchise fee on Xcel Energy electric and natural gas operations within the City of Mounds View for the year 2011. A copy of Ordinance 850 is on file and available for public viewing at the office of the Clerk-Administrator. The ordinance is also posted in its entirety on the City's website, located at www.ci.mounds-view.mn.us. ~ ~l.~i'~ ~~ Jim Ericson, City Administrator