2009-13ORDINANCE N0.2009-13
CITY OF RICHFIELD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
AN ORDINANCE MODIFYING THE ELECTRIC FRANCHISE FEE ON
NORTHERN STATES POWER DB/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 2007-5, 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 2007-5, 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 November 2009 billing month.
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 ameter-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.
JMS-240033v2
RC145-516
Subd. 4. Surcharge. 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, 2011 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.
Read by the City Council of the City of Richfield this 28th day of July 2009.
Read and passed by the City Council o~the City of Richfi~,eld this 11th day of
August, 2009. ~'''~ , r , l/_ ~ ~~ Ci' ~, ~ ~~
~~~
City
APPROVED AS TO FORM:
ti
Nancy Gibb , ity Clerk
JMS-240033v2
RC145-516
EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class
Residential
Sm C & I -Non-Dem
Sm C & I -Demand
Large C & I
Fee Per Meter
$~-5 _1.88
$~8 _5.81
$~3-3-_ _12.92
$~~ 83.96
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 Apri130.
April -June collections due by July 31.
July -September collections due by October 31.
October -December collections due by January 31.
JMS-240033v2
RC145-516
:x:
ne~spape~s
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
Financial Officer of the newspaper(s) known
as
Richfield Sun-Current
and has full knowledge of the facts stated
below:
(A) The newspaper has complied with all of
the requirements constituting qualifica-
tion as a qualified newspaper as provid-
ed by Minn. Stat. §331A.02, §331A.07,
and other applicable laws as amended.
(B) The printed public notice that is attached
was published in said newspaper(s)
once each week, for one successive
week(s); it was first published on Thurs-
day,the 20 day of Auqust
2009, and was thereafter printed and
published on every Thursday to and in-
cluding Thursday, the _____ day of
2009; and printed
below is a copy of the lower case alpha-
betfrom A to Z, both inclusive, which is
hereby acknowledged as being the size
and kind of type used in the composition
and publication of the notice:
abcdefg hijklmnopgrstuvwxyz
e
BY: C ~.
CFO
Subscribed and sworn to or affirmed
before me on this 20 day of
Auqust , 2009.
Notary Public
MARY ANN CARLSON
NOTARY PUBLIC -MINNESOTA
MY COMMISSION EXPIRES 1.31-14
City of Richfield
(Official Publication)
SUMMARY PUBLICATION
BILL NO. 2009-13
AN ORDINANCE MODIFYING THE ELECTRIC
FRANCHISE FEE ON NORTHERN STATES POWER
D/B/A XCEL ENERGY FOR PROVIDING ELECTRIC
SERVICE WITHINTHE CITY OF RICHFIELD
The purpose of this ordinance amendment is to modify the
franchise fee on Northern States Power d/b/a Xcel Ener-
gy under its Electric Franchise Agreement commencing
with the Xcel Energy's November 2009 billing month.
FEE SCHEDULE
Class Fee Per Meter
Residential $1.88
Sm C & I -Non-Dem $5.81
Sm C & I -Demand $12.92
Large C & I $83.96
Franchise fees are to be collected by the utility and sub-
mitted to the City on a quarterly basis. The utility may sur-
charge the fees to its customers as permitted by law. The
City will review the ordinance by June 30, 2011 to deter-
mine whether to continue, terminate or modify the fee.
Copies of the ordinance are available for public inspection
in the Administrative Services Department during normal
business hours or upon request by calling Chris Regis, Fi-
nance Manager at 612-861-9723.
Adopted by the City Council of the City of Richfield, Min-
nesota this 11th day of August 2009.
/s/ Nancy Gibbs City Clerk
(Aug. 20, 2009) d2-bill 2009-13