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Home My WebLink About2023-09 CCOCITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the I1th day of September, 2023, at 7:00 p.m. or as soon thereafter as the matter may be heard during the regular City Council meeting at City Hall, 6301 Shingle Creels Parkway to consider an electric franchise fee ordinance. Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please notify the City Cleric at 763-569-3306 to make arrangements. ORDINANCE NO. 2023-09 AN ORDINANCE IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF BROOKLYN CENTER THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: SECTION 1. The City Code of the City of Brooklyn Center is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Brooklyn Center 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 electric services within the City of Brooklyn Center. (a) Pursuant to City Ordinance , a Franchise Agreement ("Franchise") between the City of Brooklyn Center ("City") and Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy ("Company"), its successors and assigns, the City has the right to impose a franchise fee on the Company, its successors and assigns, in an amount and fee design as set forth in Section 9 of the Northern States Power Company Franchise and in Subdivision 9 of this Ordinance. Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on the Company, its successors and assigns, under its electric franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the Xcel Energy's , 20_ billing month. 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 fianchise 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 1 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. Subdivision 3. Payment. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Ordinance. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. Subdivision 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may allow Company to add a surcharge to customer rates of city residents to reimburse Company for the cost of the fee. Subdivision 5. Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Subdivision 5, the foregoing conditions will be waived to the extent of such written consent. Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement. Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its publication and ninety (90) days after the sending of written notice enclosing a copy of this adopted Ordinance to the Company by certified mail. Collection of the fee shall commence as provided above. Upon the effective date of this Ordinance, Ordinance No.'s 2003-22 and 2016-09 shall be repealed and replaced by this Ordinance. Subdivision 8. Fee Review. The City Council may review this Ordinance from time to time to determine whether to continue, terminate or modify the fee. If the Council deems it to be in the City's 2 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 Company at least ninety (90) days written notice prior to the proposed change. Subject to the City's rights under Minnesota law, the City shall obtain the consent of Company to any proposed increase in the fee but may unilaterally decrease or terminate the fee. Subdivision 9. Fee Schedule. The franchise fee shall be in an amount determined by applying the following schedule per customer premise/per month based on service to retail customers within the City: Class Residential Small C & I — Non -Demand Small C & I — Demand Large C & I Public Street Lighting Municipal Pumping — Non -Demand Municipal Pumping — Demand Amount per month per premises $1.60 per month $4.00 per month $22.00 per month $100.00 per month $13.00 per month $13.00 per month $13.00 per month Franchise fees are 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. Adopted this 28th day of August, 2023. ATTEST: kl,` Barb Suciu, City Clerk April G aves, Mayor 3