HomeMy WebLinkAboutOrdinance 949ORDINANCE NO. 949
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE CONTINUING 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. 875 and Ordinance No. 876, which are the
Franchise Agreements ("Franchise Agreements") between the City of Mounds
View (the "City") and Northern States Power Company D/B/A Xcel Energy, its
successors and assigns, 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 2.1 of Ordinance Nos. 875 and 876.
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 four
percent (4%) of Xcel Energy's gross revenues, as defined in Section 9 of the Franchise
Agreements, commencing with Xcel Energy's January 2019 billing month.
Subd. 3. Payment. The said franchise fee shall be payable to the City in
accordance with the terms set forth in Section 9 of the Franchise Agreements.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities
Commission may allow 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
Ordinance 949
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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 9 of the Franchise
Agreements, the effective date of the fee collected under Subdivision 9 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, 2021.
SECTION 2. This ordinance takes effect as provided herein.
Read by the City Council of the City of Mounds View this 10th day of September, 2018.
Read and passed by the City Council of the City of Mounds View this 24th day of
September, 2018.
Publication Date: October 5, 2018
Carol A. Mueller, Mayor
ATTEST: 1 ,
Nyle ikmu , City Administrator
(SEAL)