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HomeMy WebLinkAbout2003-24 12-08 CCOCITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 8 day of December, 2003, at 7:00 p.m. or as soon thereafter as the matter may be heard at City Hall, 6301 Shingle Creek Parkway, to consider an ordinance amendment granting Northern States Power Company an electric franchise fee ordinance. Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance. Please notify the Deputy City Clerk at 763 -569 -3300 to make arrangements. ORDINANCE NO. 2003-24 AN ORDINANCE AMENDING CITY ORDINANCE 97 -09 GRANTING AN ELECTRIC FRANCHISE ON NORTHERN STATES POWER'S OPERATIONS WITHIN THE CITY OF BROOKLYN CENTER THE CITY COUNCIL OF BROOKLYN CENTER, HENNEPIN COUNTY, MINNESOTA, DOES ORDAIN AS FOLLOWS: SECTION 1. City of Brooklyn Center Ordinance No. 97 -09 Section 2. Subdivision 1, Section 9 Subdivisions 1, 2, 4, 5, and 6 and Section 10 are hereby amended as follows: Section 2. FRANCHISE. Subdivision 1. Grant of Franchise. City hereby grants Company, for a period of twenty (20) years terminating on December 8, 2023, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Ways and Public Grounds of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement. Section 9. FRANCHISE FEE. Subdivision 1. Fee Schedule. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company, the City may impose on Company a franchise fee {not to exceed an amount determined} by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Classification, {for metered service at each and every customer location based on a Fee Schedule similar to the following:} The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not exceed the following amounts through January 31, 2007: Customer Classification Amount per month Residential 1.48 Small C I and Municipal with no demand charge 3.00 Small C I and Municipal with demand charge 20.00 Large C I 96.00 ORDINANCE NO. 2003-24 Public Street light $12.00 Municipal Pumping non -demand demand $12.00 {The amount from each customer in the Customer Classification shall be determined so that the total amount collected annually from all customers does not exceed what is estimated by Company to be 2% of total annual revenues from the sale of electric energy delivered through meters owned or read by Company within the City. The separate ordinance must impose a franchise fee on the residential class, which on an annual basis, totals at least 2% of Company's estimated total annual revenues to be collected from all residential customers within the City. Company shall within thirty (30) days of City's request provide City with revenue estimates for establishing a Fee Schedule.} Subdivision 2. Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least sixty (60) days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least sixty (60) days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. Subdivision 2.5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence until this ordinance is effective. {A separate ordinance which imposes a lesser franchise fee on the residential class of customers than an amount which collects 2% of the estimated total annual revenues from the residential class shall not be effective against Company, unless the fee imposed on each other Customer Classification in the Fee Schedule is reduced so that the total annual amount estimated to be collected in any other Customer Classification shall not, as a percentage of the estimated total annual revenues in that Customer Classification, exceed the percentage being collected from the residential class.} The payment of a franchise fee as provided by this Subdivision 9.2 does not relieve Company from paying fees to City unrelated to the installation, ownership, or operation of electric facilities, such as building permit fees. Subdivision 4. Collection of the Fee. 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 {metered} electric service in each class. The payment shall be due the last business day of the month following the period for which 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 {metered} electric service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission, which Company agrees to use its best efforts to obtain. 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 rate 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 corrections of erroneous billings. Company agrees to make its records ORDINANCE NO. 2003-24 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 an identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to 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 payment is being made to account for any uncollectables, refunds, or error corrections. Subdivision 5. Condition of the Fee. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City quarterly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from the sales of energy within the City by any other energy supplier, provided that, as to 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. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling, or lighting, as well as to the supply of energy needed to run machinery and appliances on premises located within or adjacent to the City, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fees from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. Subdivision 6. is reserved for future use. {Subdivision 6. Permitted Adjustments. If following the effective date of a separate ordinance as described in Subdivision 9.2 the Commission by Final Order approves a change in Company's electric rates resulting in a general rate increase for one or more Customer Classifications, Company shall calculate and send to the City a letter setting forth the amount, as a percentage, or authorized increase for each classification of customer within sixty (60) days after Company receives the Final Order. The amount of the franchise fee that may be imposed by the City may be increased from the Fee Schedule in the separate ordinance to an amount not to exceed the percentage for the applicable Customer Classification stated in the Company's letter times each monthly amount set forth in the Fee Schedule and adding the resultant amount to the applicable amount set forth in the Fee Schedule. In this manner the franchise fee collected or permitted to be collected from each class of customer can increase by the same percentage as Company's electric rate increase. During the period where the City has imposed a franchise fee by separate ordinance under Subdivision 9.2 there is no waiver of the right to impose the amendment if the City does not seek an increase in any franchise fee immediately after any such letter from Company, and, if the City so chooses, the City can combine the percentages derived from one or more rate case, to the extent not previously applied by the City, in setting the amount of the franchise fee, so that the City is not prejudiced by delaying any action to impose or increase the franchise fee. ORDINANCE NO. 2003-24 Section 10. FRANCHISE REOPENER. {If at any time after the date hereof, Company is collecting and paying a franchise fee in two or more cities, in the seven county metropolitan area, based on a franchise ordinance adopted by such cities after the date of this franchise agreement, and in which cities Company was not paying a franchise fee in February, 1997, the City may give Company Notice to amend this franchise agreement to authorize collection of a franchise fee substantively identical to the franchise fee being collected in two or more cities identified in the Notice. If Company refuses to do so within ninety (90) days after receiving said Notice from the City, the City may terminate this franchise agreement upon thirty (30) days prior written Notice unless Company gives Notice to the City within said thirty (30) day period that it will immediately agree to accept an amendment of this ordinance authorizing collection of a fee under this franchise agreement on the same terms and conditions and in an amount not exceeding the fee being collected in two or more cities referenced in the City's Notice. In addition, after} After this franchise agreement has been in effect for 10 years,} until January 31, 2014 the City may give Company Notice that it desires to amend the franchise to incorporate specific provisions which Company has agreed to in the franchise for two or more other cities of the second, third, or forth class in the seven county metropolitan area, based on a franchise ordinance adopted by such cities after the date of this franchise agreement, which cities are identified in the Notice. If Company refuses to do so within ninety (90) days after receiving said Notice from the City, the City may terminate this franchise upon thirty (30) days prior written notice unless the Company within that time provides Notice to the City that it will immediately agree to accept an amendment to this ordinance incorporating the desired franchise provisions existing in two or more other cities as referenced in the City's Notice. In regard to the amount of the franchise fees, effective at the beginning of a Company billing month after January 31, 2007, the City may increase the amounts shown in the fee schedule in Section 9.1 by amending the separate ordinance referred to in that Section, provided that no amount in the schedule shall be increased by more than 3% and provided the Company receives Notice of the ordinance amendment setting forth the amended schedule at least 60 days prior to the effective date of such increase. In addition, effective at the beginning of a Company billing month after January 31, 2010, and at three -year intervals thereafter through January 31, 2022, the City may by ordinance increase the amounts then shown in the fee schedule set forth in the separate ordinance as then in effect, provided that no amount in that schedule shall be increased by more than 3% and provided the Company receives Notice of the ordinance amendment setting forth the amended schedule at least 60 days prior to the effective date of such increase. EFFECTIVE DATE. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this 8th day of December, 2003. ATTEST: aof 4 4 41 441AA,CM__ Mayor City Clerk Date of Publication: January 8, 2004 Effective Date: February 7, 2004 (Underline indicates new matter, brackets indicate matter to be deleted.)