2005-04
ORDINANCE NO. 2005-4
CITY OF RICHFIELD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
AN ORDINANCE MODIFYING THE ELECTRIC FRANCHISE FEE ON
NORTHERN STATES POWER D/B/A XCEL ENERGY FOR PROVIDING
ELECTRIC SERVICE WITHIN THE CITY OF RICHFIELD
THE CITY OF RICHFIELD ORDAINS:
SECTION 1. The City of Richfield Municipal Code Appendix E is hereby amended as follows:
Subdivision 1. Purpose. The Richfield 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 Richfield.
(a) Pursuant to City Ordinance No. 1987-27, a Franchise Agreement between the City
and Northern States Power Company, d/b/a Xcel Energy, the City has the right to
impose a franchise fee on Xcel Energy in amount and fee design as authorized in
Section 9.1 of the Xcel Energy Franchise.
(b) Pursuant to City Ordinance 2003-25, the City exercised its right t0impose a franchise
fee on Xcel Energy. This includes the right to modify the fee amount with the consent
of Xcel Energy as to amount and notice period, to which Xcel Energy has consented.
Subd. 2. Franchise Fee Statement. Pursuant to Ordinance 2003-25, the franchise fee
imposed on Xcel Energy under its Electric Franchise is hereby amended. The amended fee
schedule is attached hereto and made a part of this ordinance, commencing with the Xcel
Energy's January 2005 billing month. J
Subd. 3. Payment and Fee Desi2n. The franchise fee shall be payable to the City in
accordance with the terms set forth in Section 9.3 of the Franchise. This fee is an account-based
fee on each premise and not a meter-based fee. In the event that an entity covered by this
ordinance has more than one meter at a single premise, but only one account, only one fee shall
be assessed to that account. If a premise has two or more meters being billed at different rates,
the Company may have an account for each rate classification, which will result in more than
one franchise fee assessment for electric service to that premise. If the Company combines the
rate classifications into a single account, the franchise fee assessed to the account will be the
largest franchise fee applicable to a single rate classification for energy delivered to that premise.
In the event any entities covered by this ordinance have more than one premise, each premise
(address) shall be subject to the appropriate fee. In the event a question arises as to the proper
fee amount for any premise, the Company's manner of billing for energy used at all similar
premises in the city will control.
Subd. 4. Surchar2e. The City recognizes that the Minnesota Public Utilities
Commission allows the utility company to add a surcharge to customer rates to reimburse such
utility company for the cost of the fee and that Xcel Energy will surcharge its customers in the
City the amount of the fee.
Subd. 5. Record Support for Payment. Xcel Energy shall make each payment when
due and, if requested by the City, shall provide at the time of each payment a statement
summarizing how the franchise fee payment was determined, including information showing any
adjustments to the total surcharge billed in the period for which the payment is being made to
account for any uncollectibles, refunds or error corrections.
Subd. 6. Enforcement. Any dispute, including enforcement of a default regarding this
ordinance will be resolved in accordance with Section 2.5 the Franchise Agreement.
Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of this
ordinance and notwithstanding any contrary provisions in the Franchise, the effective date of the
fee collected under Subdivision 2 of this ordinance is the later of ten (10) days after the
publication or after the sending of written notice enclosing a copy of this adopted ordinance upon
Xcel Energy by certified mail. It has been agreed to in advance by Xcel Energy's representatives
that Xcel Energy will abide by the provisions of this Subdivision 7, provided fee collection will
not commence before the later of the Company billing month set forth in subdivision 2 or the
first billing month commencing 20 days after the foregoing effective date of the franchise fee.
Subd.8. Fee Review. The City Council shall begin a review of this Ordinance by June
30, 2008 to determine whether to continue, terminate or modify the fee. If the Council deems it
to be in the City's best interest to continue the fee in its current form, no Council action is
necessary. If the Council deems it to be in the City's best interest to terminate or modify the fee,
the Council shall give Xcel at least sixty (60) days written notice prior to the proposed change.
Subject to the City's rights under Minnesota law, the City shall obtain the consent ofXcel to any
proposed increase in the fee but may unilaterally decrease or terminate the fee. .
SECTION 2. This ordinance takes effect a~ provided herein.
. Read by the City Council of the City of Richfield this 11 th day of January 2005.
APPROVED AS TO FORM:
Read and passed by the City Council ofthe Cit
February, 2005.
EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class
Residential
Sm C & 1- Non-Dem
Sm C & I-Demand
Large C & I
Fee Per Meter
$ 1.60
$4.95
$11.00
$71.50
Franchise fees are to be collected by the Utility in the amounts set forth in the above schedule,
and submitted to the City on a quarterly basis as follows:
January - March collections due by April 30.
April- June collections due by July 31.
July - September collections due by October 31.
October - December collections due by January 31.
CI
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newspapers
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
ss.
COUNTY OF HENNEPIN)
Richard Hendrickson, being duly sworn on an oath states or affirms, that he is the Chief Fi-
nancial Officer of the newspaper known as Sun-Current , and
has full knowledge of the facts stated below:
(A) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minn. Stat. ~331A.02, ~331A.07, and other applic-
able laws, as amended.
(B) The printed. public notice that is attached was published in the newspaper once each
week, for ~ successive week(s); it was first published on Thursday, the --1L day
of Februarv , 2005, and was thereafter printed and published on every Thursday
to and including Thursday, the _ day of , 2005; and printed below is
a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowl-
edged as being the size and kind of type used in the composition and publication of the
notice:
.~:~
Subscribed and sworn to or affirmed before me
on this 17th day of February ,2005.
f:In~
Notary Pu c
.
MARY ANN CARLSON
NOTARY PUBLIC - MINNESOTA
MY COMMISSION EXPIRES 1-31-09
RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
$
2.85 per line
(2) Maximum rate allowed by law
$
6.20 per line
(3) Rate actually charged
$
1.30 oer line
City of Richfield . \
. (Official Publication) ..'
SUMMARY PUBLICATION
BILLNO. 2005.4
AN ORDINANCE MODIFYING TilE ELECTRIC
'. FRANCmSE FEE ON NORTIlERNSTATES
POWER DIBIAXCE;LEJIIERGYFOR I'ROVIDn\lq
.ELECTRICSERVICEWI1'HINTIIE CITY OF
. RIqlFIELD ,. .
The pu.rpose ofthisordiIlance amemhnent;~tb.niodifY the
franch~se fee on:r:<orth~r~States PowenlJlJla :xcel Energy
under Its ElectrIC FranchIse Agrl'ement ci>mmen~ingwith'
the Xc~l Energy'sf~n~a1J'~?O?billin,~!l1onth. .. .
"'fF;E S~:trED~ , .
~."
R<!sidentiaL..<:' .
Sin C & I~ 'Non-Dem
. 8m C & t ~'Demand .
'. LargeC& I .
Fe1Pf.l~le~
';~li:gg,J, ,'y....
, $.71;5(1' .
Fr,anchise fres ~r.e .~.be. coll~ttedby.th~ pijIitla~~ s~~. i
nllttedto the ~ltYOn.~. quarw,lybasis.. ,TflEf'Ut;IiW" ma
surch~rge ~e fees to Its custonlersas. .0 . 'hI y
,The r;ltywtll review the ;ordirl,mce!'$(.Ju td!:
tel"1lllIle",h~t~ertoco~til1ue'tllrrmnate ...... n:... ifytli~fee.
Cojlie~ "fth,! orinniince';ri,avaiiiiMf()rp~~I"' :/::,'eCt.'. "'
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