2013-25 ORDINANCE NO. 2013-25
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. 2007-5, 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 2010-6, the City exercised its right to impose 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 2010-6, 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 April 2014 billing month. The franchise fee income shall be used for right-of-way
improvements.
Subd. 3. Payment and Fee Design. 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. Surcharge. The City recognizes that the Minnesota Public Utilities
Commission may allow 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.
SECTION 2. This Ordinance will be effective in accordance with Section 3.09 of the City
Charter.
Adopted by the City Council of the City of Richfield, Minnesota this 10th day of December,
2013
\./ ?
L 1 C' LC
Debbie Goettel, Mayor
ATTEST:
Q
Nancy Gibbs ity Clerk
EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class Fee Per Premise
Residential 245 4.10
Sm C & I — Non-Dem 6,33 12.50
Sm C & I - Demand 14.08 30.00
Large C & I 91.51 185.00
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.
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA )ss
COUNTY OF HENNEPIN
Charlene Vold being duly sworn on an oath,
states or affirms that they are the Authorized City of Richfield
Agent of the newspaper(s) known as: (Official Publication)
SUMMARY PUBLICATION
SC Richfield BILL NO.2013-25
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 •
and has full knowledge of the facts stated The purpose of this ordinance amendment is to modify the franchise fee on
below: Northern States Power d/b/a Xcel Energy under its Electric Franchise Agree-
(A)The newspaper has complied with all of meat commencing with the Xcel Energy's April 2014 billing month.
the requirements constituting qualifica- Fee Schedule
lion as a qualified newspaper as provided Class Fee Per Premise
by Minn. Stat. §331A.02, §331A.07, and Residential 2:05 4.10
other applicable)licable laws as amended. Sm C&i—eman m 433 30.00
1 1 Sn.C&I-DE,nar.d #4:08 30.00
(B)This Public Notice was printed and pub- Large C&I 01.51 35.00
lisped in said newspaper(s) for 1 succes- Franchise fees are to be collected by the utility and submitted to the City on a
sive issues; the first insertion being on quarterly basis. The utility may surcharge the fees to its customers as permit-
Y
1,/19/2013 and the last insertion being on Copies of the ordinance are available for public inspection in the Administrative
12/19/2013. Services Department during normal business hours or upon request by calling
Chris Link,Operations Superintendent at 612-861-9174.
Adopted by the City Council of the City of Richfield,Minnesota this 10th day
of December 2013.
i /s!Nancy Gibbs,City Clerk .
/ ( 12/19/13,Bill No.2013-25
By: Authorized Agent
Subscribed and sworn to or affirmed before
me on 12/19/2013.
Y1 UaJ t"c t-f 1 /72/2... `%
Notary Public
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