Ordinance 583 Gas FranchiseCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
GAS FRANCHISE ORDINANCE
ORDINANCE NO.583
FRANCHISE AGREEMENT AMENDMENT
THIS IS AN ORDINANCE OF THE CITY OF MENDOTA HEIGHTS ("CITY ), TO AMEND
ORDINANCE NO, 464, GRANTING TO NORTHERN STATES POWER COMPANY, A
MINNESOTA CORPORATION, DB/A XCEL ENERGY ITS SUCCESSORS AND ASSIGNS,
PERMISSION TO ERECT A GAS DISTRIBUTION SYSTEM FOR THE PURPOSES OF
CONSTRUCTING, OPERATING, REPAIRING AND MAINTAINING IN THE CITY OF
MENDOTA HEIGHTS, MINNESOTA, THE NECESSARY GAS PIPES, MAINS AND
APPURTENANCES FOR THE TRANSMISSION OR DISTRIBUTION OF GAS TO THE CITY
AND ITS INHABITANTS AND OTHERS AND TRANSMITTING GAS INTO AND
THROUGH THE CITY AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF
THE CITY FOR SUCH PURPOSES,
THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY,
MINNESOTA ORDAINS:
WHEREAS, by Ordinance No. 464 the City granted to Northern States Power Company
("Company") a franchise to operate and maintain a gas distribution system in the City (the
"Franchise Ordinance").
WHEREAS, in accordance with Section 9 of the Franchise Ordinance, the City has given
notice to Company that City requires Company to collect franchise fees in accordance with
applicable law.
WHEREAS, Company has agreed to the amendment of the Franchise Ordinance to
implement the franchise fees by separate ordinance.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF MENDOTA
HEIGHTS, MINNESOTA.
1, Section 9 of the Franchise Ordinance is hereby deleted in its entirety and replaced
with the following:
SECTION 9, FRANCHISE FEE,
9.1 Fee Schedule. During the term ofthe franchise hereby granted, and
in lieu of any permit or other fees being imposed on the Company, the City may
impose on the Company a franchise fee by collecting the amounts indicated in a
Fee Schedule set forth in a separate ordinance from each customer in the designated
Company Customer Class. 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:
Class
Residential
Commercial Finn Non -Demand
Commercial Firm Demand
Small Interruptible
Medium and Large Interruptible
Finn Transportation
Interruptible Transportation
Fee Per Premise Per Month
$2.00
$20.00
$20.00
$20.00
$20.00
$ n/a
$ n/a
9.2 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 90 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 90 days
after written notice enclosing such adopted ordinance has been served upon
Company by certified mail. Section 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 the maximum amount set forth in Section 9.1 above shall not be effective
against Company unless the fee imposed on each other customer classification is
reduced proportionately in the same or greater amount per class as the reduction
represented by the lesser fee on the residential class.
9.3 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
aA customer billings for gas 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 gas 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.
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 gas
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.
9.4 Terms Defined.
9.4.1 "Customer Class" shall refer to classes listed in the Fee Schedule and as
defined or determined in Company's gas rate book on file with the Commission.
9.4.2 "Fee Schedule" refers to the Schedule in Section 9.1 setting forth the various
customer classes from which a franchise fee would be collected if a separate
ordinance were implemented immediately after the effective date of this franchise
agreement. The Fee Schedule in the separate ordinance may include new Customer
Classes added by the Company to its gas tariffs after the effective date of this
franchise agreement.
9.4.3 Therm shall be a unit of gas providing 100,000 Btu of heat content adjusted
for billing purposes under the rate schedules of Company on file with the
Commission.
9.5 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 Section 9.5, the foregoing conditions will be waived to the extent of
such written consent.
2. Except as otherwise amended by this Ordinance, the Franchise Ordinance, as
modified herein, remains in full force and effect and is hereby ratified and confirmed by the City
and Company.
[signatures on the next page]
Passed and approved: January 9, 20240
CITY COUNCIL
CITY OF MENDOTA HEIGHTS
St bane B. Levine, Mayor
ATTEST:
�z C `�
Nam Brauer City Clerk
Date Published: ! I L � oz va 7
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA
COUNTY OF RAMSEY
Kayla ng duly sworn on oath, says:
that she is, and during all times herein state has been,
Inside Sales Representative of Northwest Publication,
LLC., Publisher of the newspaper known as the Saint
Paul Pioneer Press, a newspaper of General
circulation within the City of St. Paul and the
surrounding Counties of Minnesota and Wisconsin
including Ramsey and Kanabec.
That the notice hereto attached was cut from the
columns of said newspaper and was printed and
published therein on the following date(s):
Friday, January 12, 2024
Newspaper Ref./AD Number#: 71512921
Client/Advertiser: City of Mendota Heiehts
KaNCw %ccc�iir�z
Kayla Tsucnga (Jan lz,x6
Subscribed and sworn to before me this
12th day of January, 204
True Lee
True Lee (Jan 12, 202410:36 CST)
NOTARY PUBLIC
Ramsey County, MN
My commission expires January 31, 2025
STATE OF MIN42SOTA
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Continues to nextpage....
CITY OF h1ENt?OTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
SUMMARY RJ CAPON
For Ordinances 583,584,595, and 586
Amending the Oily of Mendota Heights Cade TAP
13, Chapters 2 and 3
NOTICE IS HEREBY GIYEN that an January 4, 2024,
the City Council of the City of Mendota Heights
adapted ordinances amending City Cade Fife 13
Franchises, Chapter 2 Electric Franchise and
Chapter 3 Gas Franchise:
ORDINANCE ND. 583
AN ORDINANCE OF THE CITY OF MENDOTA
HEIGHTS FCTTY"), TO AMEND ORDINANCE NO.
464, GRANTING TO NORTHERN STATES POWER
COMPANY, A MINNESOTA CORPORATION,
A ACEL ENERGY ITS SUCCESSORS AND
ASSIGNS, PERMISSION TO ERECT A GAS
DISTRIBUTION SYSTEM FOR THE PURPOSES OF
CONSTRUCTING, OPERATING, REPAIRING AND
MAINTAINING IN THE CITY OF MENDOTA
HEIGHTS, MINNESOTA, THE NECESSARY GAS
f4PES, MAINS AND APPURTENANCES FOR THE
TRANSMISSIONOR DISTRIBUTION OF GAS TO
TH€ CITY AND ITS INHABITANTS AND OTHERS
AND TRANSMITTING GAS INTO AND THROUGH
THE CITY AND TO USE THE PUBUC GROUNDS
AND PUBLIC WAYS OF THE CITY FOR SUCH
PURPOSES.
ORDINANCE NO. 584
AN ORDINANCE IMPI:'EMENTING A GAS SERVICE
FRANCHISE FEE ON NORTHERN STATES POWER
COMPANY, A MINNESOTA CORPORATION, ITS
SUCCESSORS AND ASSIGNS, FOR PROVIDING
GAS SERVICE WITHIN THE CITY OF MENDOTA
HEIGHTS, DAKOTA COUNTY
ORDINANCE
NO.585
AN ORDINANCE DF THE CITY OF MENDOTA
HEIGHTS rCn ), TO AMEND ORDINANCE NO.
d63, GRANTING TO NORTHERN STATES POWER
COMPANY, A MINNESOTA CORPORATION,
DfB/A XCEL ENERGY ITS SUCCESSORS AND
ASSIGNS, PERMISSION TO CONSTRUCT,
OPERATE, REPAIR AND MAINTAIN IN THE CRY OF
1�Page
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA
COUNTY OF RAMSEY
MENDOTA HNGHTS, MINNESOTAI AN ELECTRIC
DISTRIBUTION SYSTEM AND TRANSMISS#ON
ONES, INCLUDING NECESSARY POLES, idNES,
FIXNRES AND APFURT:ANANCES, FOR THE
FURNISHING OF ELECTRIC ENERGY TO THE CITY,
ITS INHABITANTS AND OTHERS, AND TO USE THE
PUBLIC GROUNDS AND PUBLIC WAYS OF THE
CITY FOR SUCH PURPOSES.
ORDINANCE NO, 586
AN ORDINANCE IMPLEMENTING AN!
N ELECTRIC
SERVICE FRANCHISE FEE ON NORTHERN STATES
POWER COMPANY, A MINNESOTA
CORPDRATIw TTs SUCCESSORS AND ASSIGNS,
FOR PROVIDING ELECTRIC SERVICE WITHIN THE
CITY OF MEDOTA HEIGHTS, DAKOTA COUNTY.
NOTICE IS FURTHER GIVEN that, because of the
lengthy nature of each ordinance, the city council
determined that pubficotion of the ordirance titles
and a summary of the ordinances would dearly
inform the public of Ike intent and effect of the
ordinances,
NOTICE 15 FURTHER GIVEN that the Ordinances
amid coy eerie to allow for Ike collection of gas
and electric utility franchise fees and creates a 01ty
f anchise fee NAich is o charge that is paid to the
oily from an ei'actree and gas diliy company for the
use of city-or,qed, public right-of-way. Tke gos and
ele tric utility fron Wse fee 'ss then possed along to
utility customers.
NOTICE I5 FURTHER GIVEN ghat a printed copy of
�e comp9ete ordinances is available for inspccsion
by any person during the CiVs regular office IIOU5
at AMndoia Heights City Hall Located of 1101
Victoria Curve, Mendota Noighis, Minnesota or an
tie city`s websins at www.mendaEtsheigbtsmn.gov
PASSED, ADOPTED AND APPROVED FOR
PUBLICATION by the Gy council of the City of
Mendota Heights, Minnesota, ih,is 9th day of
Tanunry, 2024.
CITY COUNCIL OF MENDOTA HEIGHTS
f s f Stephanie B. LeAms, Mayor
Affest:
rrs f Nancy Bauer, City Clerk
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