HomeMy WebLinkAbout2003-22 12-08 CCONotice is hereby given that a public hearing will be held on the 8th 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 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.
CITY OF BROOKLYN CENTER
ORDINANCE NO. 2003-22
AN ORDINANCE IMPLEMENTING AN ELECTRIC FRANCHISE FEE ON
NORTHERN STATES POWER D/B /A XCEL ENERGY FOR PROVIDING
ELECTRIC SERVICE WITHIN THE CITY OF BROOKLYN CENTER
THE CITY COUNCIL OF BROOKLYN CENTER, HENNEPIN COUNTY, MINNESOTA,
DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Code is hereby amended to include the following Special
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 natural gas and electric services within the City of Brooklyn Center.
(a) Pursuant to City Ordinance No. 2003 -24 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 set forth
in Section 9.1 of the Xcel Energy Franchise and in the fee schedule attached hereto as
Exhibit A.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Xcel Energy
under its Electric Franchise in accordance with the schedule attached hereto and made a part of
this ordinance, commencing with the Xcel Energy's February 2004 billing month for January
2004 useage.
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. 3. Payment. The said franchise fee shall be payable to the City in accordance
with the terms set forth in Section 9.4 of the Franchise.
ORDINANCE NO. 2003-22
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 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 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 shall become effective after adoption and upon
thirty (30) days following its legal publication.
Adopted this 8 day of December, 2003.
ATTEST:
City Clerk
Date of Publication: December 18, 2003
Effective Date: January 17, 2004
ORDINANCE NO. 2003-22
EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class Fee Per Premise
Residential $1.48 per month
Sm C I Non -Dem $3.00 per month
Sm C I Demand $20.00 per month
Large C I $96.00 per month
Public Street Ltg $12.00 per month
Muni Pumping —N/D $12.00 per month
MuniPumping Dem $12.00 per month
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.