2010-06ORDINANCE N0.2010-6
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 2009-13, 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 2009-13, 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 August 2010 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.
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 27th day of April, 2010.
Read and passed by the City Cou
May, 2010.
APPROVED AS TO FORM:
Nancy Gibbs ity Clerk
of Richfield this 25th day of
EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class Fee Per Meter
Residential 4~ 2.05
Sm C & I -Non-Dem 5~ 6.33
Sm C & I -Demand 4L?9-~ 14.08
Large C & I X96 91.51
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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ne~spape~rs
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 3 day of June ,
2010, and was thereafter printed and
published on every Thursday to and in-
cluding Thursday, the ____ day of
2010; and printed
below is a copy of the lower case alpha-
bet from 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:
City of Richfield
(Official Publication)
SUMMARY PUBLICATION
BILL N0.2010-6
AN ORDINANCE MODIFYING THE GAS FRANCHISE
FEE ON CENTERPOINT ENERGY FOR PROVIDING
GAS SERVICE WITHIN THE CITY OF RICHFIELD
The purpose of this ordinance amendment is to modify the
franchise fee on CenterPoint Energy under its Gas Fran-
chise Agreement commencing with the CenterPoint Ener-
gy's August 2010 billing month. The franchise fee is in lieu
of all permit fees otherwise paid by CenterPoint Energy for
its use of Public Ways and Public Grounds in the City.
Fee Schedule
Class Fee Per Meter
Residential 2.05
Comm-A 2.05
Comm/Ind-B 6.33
Comm/Ind-C 14.08
SVDF-A 14.08
SVDF-B 14.08
LVDF 14.08
Franchise fees are to be collected by the utility and sub-
mitted to the City on a quarterly basis. The utility may sur-
chargethe fees to its customers as permitted by law. The
City will review the ordinance by June 30, tot 1 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 Link, Op-
erations Manager Streets/FOrestry at 612-861-9174.
Adopted by the City Council of the City of Richfield, Min-
nesota this 25th day of May 2010.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
(June 3, 2010) D2 Bill No. 2010-6
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BY:
CFO
Subscribed and sworn to or affirmed
before me on this 3 day of
June , 2010.
Notary Public
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•'q1,..' DIANE L ELIASON
NOTARY PIIRLIC - f~,tINNE50TA
ffy Comm. Fzpirrs Jan. 31. 2015