2003-25
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BILL NO. 2003-25
CITY OF RICHFIELD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
AN ORDINANCE IMPLEMENTING AN 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 to include
reference to the following Special Ordinance.
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 and in the fee schedule attached hereto as
Exhibit A.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Xcel
Energy under its Electric Franchise in accordance with the schedule attached hereto and made
a part of this ordinance, commencing with the Xcel Energy's February, 2004 billing month.
Subd. 3. Payment and Fee Desicm. 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. Surcharqe. 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 I
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, 200~ 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 of
Xcel to any proposed increase in the fee but may unilaterally decrease or terminate the fee.
SECTION 2. This ordinance takes effect as provided herein.
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Read by the City Council of the City of Richfield this 12th day of November, 2003.
Passed by the City Council of the City of Richfield, Minnesota this 16th day of December,
2003.
?!Ldi0~W
Martin J. Kir:sc ,Mayor
ATTEST:
)~~
ity Clerk
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EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class
Fee Per Meter
Residential
Sm C & I - Non-Oem
Sm C & I - Demand
Large C & I
$1.45
$4.50
$10.00
$65.00
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.
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newspapers
AFFIDA vir OF PUBLICA rlON
STATE OF MINNESOTA)
ss.
COUNTY OF HENNEPIN)
Richard Hendrickson, being duly sworn on an oath states or affirms, that he is the Chief
Financial 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. s331A.02, s331A.07, and other applicable
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 ~ day of
December ,2003, and was thereafter printed and published on every Thursday to and
including Thursday, the _ day of
, 2004; and printed below is a copy of the
~
lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the
size and kind of type used in the composition and publicatIon-on
abCdefgblJklmnopqr
BY:
CFO
.r:--
rn)
RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
s
2.85 per line
(2) Maximum rate allowed by law
s
6.20 per line
(3) Rate actually charged
$
1.40 per line
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City of Richfield
(Official Publication)
SUMMARY PUBLICATION
BILL NO. 2003-25
AN ORDINANCE IMPLEMENTING AN
ELECTRIC FRANCHISE FEE ON NORTHERN
STATESPOWERDffi~XCELENERGYFOR
PROVIDING ELECTRIC SERVICE WITHIN
THE CITY OF RICHFIELD
The purpose of this ordinance amendment is to impose a
franchise fee on Northern States Power d/b/a Xcel Enel'gy
under its Electric Franchise Agreement commencing with
the Xcel Energy's February, 2004 billing month.
FEE SCHEDULE
Class
Residential
Fee Per Meter
$1.45Sm C & 1 - Non-Dem
$4.50Sm C & I - Demand
$1O.00Large C & 1
$65.00 . :
Franchise fees are to be collected by the utility and
submitted to the City on a quarterly basis. The utility may
surcharge the fees to its customers as permitted by law.
The City will review the ordinance by June 20, 2008 to
determine whether to continue, terminate or modify the
fee.
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Copies of the ordinance are available for public inspection I
in the Public Works Department during normal business ,
hours or upon request by calling Mike EasUing, Director of i
Public Works at 612-861-9792. I
Adopted by the City Council of the City of Richfield,
Minnesota this 16th day of December, 2003.
Martin J. Kirsch
Mayor
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ATTEST: Nancv Gibbs
City Clerk
(December 25, 20031 D-2 2003-25