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Home My WebLink About2018-04-09 City Council Workshop Packet PLEASENOTESTARTTIME PLEASENOTESTARTTIME AGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:30P.M. Monday,April 9,2018 City Hall, Council Chambers A.CALL TO ORDER B.ROLL CALL C.APPROVAL OF AGENDA D.UNFINISHED BUSINESS None E.NEW BUSINESS 1.Closed Session Pursuant to Minn. Stat., section 13D.05, subd. 3(b) for Attorney- Client Privileged Discussion Regarding Pending Litigation, City v. Maplewood Fire Relief Association 2.Gas and Electric Franchise FeesPresentation F.ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens -unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK E1 MEMORANDUM TO:City Council FROM:Melinda Coleman, City Manager Mike Funk, Assistant City Manager/HR Director DATE:April 9, 2018 SUBJECT:Closed Session Pursuant to Minn. Stat., section 13D.05, subd. 3(b) for Attorney- Client Privileged Discussion Regarding Pending Litigation, City v. Maplewood Fire Relief Association. Introduction The purpose of this discussion is to considerlegal updates and strategies in the current lawsuit with the Maplewood Fire Relief Association. Background The City of Maplewood made the decision to transition to a full-time Fire/EMS Department on January 25, 2018. As part of the transition to a full-time department, discussions took place with the casual, part-time fire fighter staff. Some of the part-time staff were members of the Maplewood Fire Relief Association. One of management staff’s recommendations was to offer the part-time staff a one-year severance package for their service which was to end on March th 9.This was in addition to the retirement benefits they are entitled to receive based on years of service. The members of the Relief Association voted not to accept our offer. And instead, they held two meetings to change their operational by-laws and to change their retirement plan from a Defined Benefit Plan to a Defined Contribution Plan. These changes have severe consequences for the City of Maplewood’s Fire/EMS Services. This maneuver to change the plan is attempting to allow the remaining16 members of the Fire Relief Association to receive the additional $1.6 million dollars(estimated)in excess fund balance. During threediscussions with the Relief Association Board, their position did not changeand they remained adamant that they were entitled to the total assets in the fund. TheCity has a fundamental and ethical obligation to protect the tax payers of Maplewood from unjust enrichment. Out of necessity, the City has been forced to legally defend our position. The actions of the Fire Relief Association arelegally flawed andwerenot done as permitted by law. The City Attorney, by way of Attorney-Client privilege, will review the status of the lawsuit with the City Council inclosed session. Recommendation Before the meeting is closed, the council must state on the record the specific grounds permitting the meeting to be closed and describe the subject to be discussed. Therefore, it is recommended the City Council introduce the following motion: Workshop Packet Page Number 1 of 41 E1 Pursuant to Minnesota Statutes Section 13D.05 subd. 3(b), I hereby move to close the regular meeting and go into closed session to discuss strategiesandreview the status of the law suit with the Maplewood Fire Relief Association;and to provide direction to staff ona negotiationposition. Attachments 1.No attachments, however information will be provided at the closed session. Workshop Packet Page Number 2 of 41 MEMORANDUM TO: Melinda Coleman, City Manager FROM: Ellen Paulseth, Finance Director Steve Love, Public Works Director/City Engineer DATE: April 9, 2018 SUBJECT: Introduction One of the top strategic priorities of the Maplewood City Council is Financial Sustainability. To maintain this goal, the Finance Department has adopted several action initiatives, including the development of financing plans that result in lowering the amount of outstanding debt. The Key Outcome Indicator (KOI)) of this initiative is to maintain the City’s excellent bond rating. In an effort to reduce new bonded debt by approximately $1MM annually, staff proposes to increase gas and electric franchise fees to provide alternative revenue sources to finance capital projects. The increase in franchise fees would result in additional franchise fee revenue of $650K per year. The remaining $350K has already been incorporated into the annual budget through a combination of levy increases and cuts in other areas. Background Bonding for Capital Costs - Historically the City has borrowed for both the capital and overhead costs related to capital projects. It is not a good practice to borrow for operational costs. While these expenses are related to capital projects, a portion of the bond proceeds is providing a revenue stream for the General Fund through internal charges to the capital projects funds. Local Government Aid - As an interim solution for 2018, the City is utilizing Local Government Aid (LGA) to cover approximately $650K in overhead costs related to capital projects. However, this revenue source is not guaranteed and can be highly sensitive in a State budget shortfall environment. We recommend utilizing LGA for one-time capital expenditures or to finance facilities replacement. Effective Financing Plan for Street Improvements - Currently the City finances local street improvements through special assessments, utility fund contributions, and the issuance of debt. In our view, the most effective foundation for financing street improvements includes: SpecialAssessments, Municipal Contributions (property taxes and utility contributions), Franchise Fees, and Municipal State Aid. Workshop Packet Page Number 3 of 41 Budget Impact New Revenue Stream- The franchise fee proposal being recommended by staff will provide approximately $620K in new revenues, which will eliminate the need to finance overhead costs through debt. Franchise fees represent a sustainable revenue source that is not influenced by tax rate fluctuations or changes in the economy. Impact on Utility Consumers – Residential gas consumers will see an increase of $0.50 per month, or $6.00 per year on their gas bill. Residential electric consumers will notice an increase of $1.75 per month, or $21 per year on their electric bills. The total impact on residential customers is $27 per year. Commercial customers will realize monthly increases in varying amounts from 10%-50%, based on customer class. Information for the analysis below was provided by Xcel Energy: Gas Utility Franchise Fee Analysis Electric Utility Franchise Fee Analysis Total New Franchise Fee Revenue Proposed$619,251 Workshop Packet Page Number 4 of 41 Recommendation he City Council consider the amendment of the electric and gas franchise It is recommended that t fee ordinances after a public hearing in April or May. Attachments 1.PowerPoint Xcel Energy Electric Franchise Fees in Minnesota 2. 3.Xcel Energy Gas Franchise Fees in Minnesota Workshop Packet Page Number 5 of 41 E2, Attachment 1 April 9, 2018 Franchise Fee Analysis Workshop Packet Page Number 6 of 41 E2, Attachment 1 Workshop Packet Page Number 7 of 41 E2, Attachment 1 7070 >< PCIPCI Conditions 60% 79.07 Road 40% 53.67 Existing Workshop Packet Page Number 8 of 41 E2, Attachment 1 100907050 30 907050300 PCIPCIPCIPCIPCI Roads 41% of 54.16 Miles 19% 24.91 8% 11.11 PCI 18% 14% 24.35 18.20 Workshop Packet Page Number 9 of 41 E2, Attachment 1 Aid Contributions State Municipal Municipal Fees Assessments Special Franchise Workshop Packet Page Number 10 of 41 E2, Attachment 1 Workshop Packet Page Number 11 of 41 E2, Attachment 1 Workshop Packet Page Number 12 of 41 E2, Attachment 1 Workshop Packet Page Number 13 of 41 E2, Attachment 1 Values Market improvement of TypeHousingProperty Workshop Packet Page Number 14 of 41 E2, Attachment 1 Workshop Packet Page Number 15 of 41 E2, Attachment 1 Workshop Packet Page Number 16 of 41 E2, Attachment 1 Workshop Packet Page Number 17 of 41 E2, Attachment 1 Increase in $0.50$6.00 Annual revenue increase Rate$IncreaseAnnual RateNew $1.00$2.50$1.50$18.00 $1.00$2.50$1.50$18.00 $75.00$100.00$25.00$300.00$50.00$75.00$25.00$300.00 9ƓĻƩŭǤ ĭĻƌ ĬǤ Revenue$461,196$612,372$151,176 Demand$6.00$12.00$6.00$72.00Interruptible$100.00$110.00$10.00$120.00 Month Transportation NonDemand Large per Annual ClassCurrent ƦƩƚǝźķĻķ & Interruptible Transportation Utility GasCustomer Residential$2.50$3.00CommercialCommercialSmallMediumFirmInterruptible Estimated 9ƭƷźƒğƷĻƭ Workshop Packet Page Number 18 of 41 E2, Attachment 1 Increase in $1.75$21.00 Annual revenue increase Rate$IncreaseAnnual RateNew $1.25$3.00$2.50$4.75$2.25$27.00$1.25$4.00$2.75$33.00$1.25$4.00$2.75$33.00 $15.00$30.00$15.00$180.00 $112.00$180.00$68.00$816.00 9ƓĻƩŭǤ Demand$1.25$4.00$2.75$33.00 ĭĻƌ NonDemand ĬǤ Month Revenue$496,695$964,770$468,075 Demand per Lighting Annual Pumping ClassCurrent ƦƩƚǝźķĻķ NonDemand Utility Street C&I C&IC&I ElectricCustomer ResidentialSmallSmallLargePublicMunicipalPumpingMunicipal Estimated 9ƭƷźƒğƷĻƭ Workshop Packet Page Number 19 of 41 E2, Attachment 1 Increase $2.25$27.00 Rate$IncreaseAnnual RateNew $8.50$16.75$8.25$99.00 $90.00$130.00$40.00$480.00 Month per Utility 9ƓĻƩŭǤ ĭĻƌ Electric ĬǤ and Demand Gas ClassCurrent NonDemand ƦƩƚǝźķĻķ C&IC&I Impact Customer Residential$3.75$6.00SmallSmall Total 9ƭƷźƒğƷĻƭ Workshop Packet Page Number 20 of 41 E2, Attachment 1 Workshop Packet Page Number 21 of 41 E2, Attachment 1 BondsRevenue Fees Obligation Assessments Funds GeneralSpecialIntergovernmentalUtilityFranchise 15% 27% 6% 34% 18% Workshop Packet Page Number 22 of 41 E2, Attachment 1 BondsRevenue Fees Obligation Assessments Funds GeneralSpecialIntergovernmentalUtilityFranchise 15% 16% 34% 17% 18% Workshop Packet Page Number 23 of 41 E2, Attachment 1 15% Revenue 16% 34% 17% Intergovernmental 18% Assessments Special Fees 15% 27% Bonds Franchise 6% 34% Obligation 18% Funds GeneralUtility Workshop Packet Page Number 24 of 41 E2, Attachment 1 $0.00$0.00 $0.00 Increase in $0.00$0.00 Annual revenue increase Rate$IncreaseAnnual RateNew $1.00$1.00$.00 $1.00$1.00$0.00 $75.00$90.00$15.00$180.00$50.00$65.00$15.00$180.00 9ƓĻƩŭǤ ĭĻƌ ĬǤ Revenue$461,196$499,284$38,088 Demand$6.00$9.00$3.00$36.00Interruptible$100.00$100.00$0.00 Month Transportation NonDemand Large per Annual ClassCurrent ƦƩƚǝźķĻķ & Interruptible Transportation Utility GasCustomer Residential$2.50$2.50CommercialCommercialSmallMediumFirmInterruptible Estimated 9ƭƷźƒğƷĻƭ Workshop Packet Page Number 25 of 41 E2, Attachment 1 Increase in $1.25$15.00 Annual revenue increase Rate$IncreaseAnnual RateNew $1.25$2.50$2.50$3.50$1.00$12.00$1.25$2.50$1.25$15.00$1.25$2.50$1.25$15.00 $15.00$20.00$5.00$60.00 $112.00$135.00$23.00$276.00 9ƓĻƩŭǤ Demand$1.25$2.50$1.25$15.00 ĭĻƌ NonDemand ĬǤ Month Revenue$496,695$785,610$288,915 Demand per Lighting Annual Pumping ClassCurrent ƦƩƚǝźķĻķ NonDemand Utility Street C&I C&IC&I ElectricCustomer ResidentialSmallSmallLargePublicMunicipalPumpingMunicipal Estimated 9ƭƷźƒğƷĻƭ Workshop Packet Page Number 26 of 41 E2, Attachment 1 Increase $1.25$15.00 Rate$IncreaseAnnual RateNew $8.50$12.50$4.00$48.00 $90.00$110.00$20.00$240.00 Month per Utility 9ƓĻƩŭǤ ĭĻƌ Electric ĬǤ and Demand Gas ClassCurrent ƦƩƚǝźķĻķ NonDemand C&IC&I Impact TotalCustomer Residential$3.75$5.00SmallSmall 9ƭƷźƒğƷĻƭ Workshop Packet Page Number 27 of 41 E2, Attachment 1 Workshop Packet Page Number 28 of 41 E2, Attachment 1 ••••• Workshop Packet Page Number 29 of 41 E2, Attachment 1 Workshop Packet Page Number 30 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEESSectionNo.5 21st Revised Sheet No. 93.1 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied Franchise Fees City Residential Small C&I Non-demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand Effective Date Expiration Date Afton$2.00$2.00$5.00$5.00$1.00 $1.00 $1.00 01/2005 08/16/2024 Albertville $2.50 $5.00 $10.00 $50.00 $2.00 — — 03/2011 09/07/2029 Bayport $1.50 $3.00 $25.00 $50.00 $3.00 $3.00 $25.00 01/2014 05/04/2028 Big Lake$4.00$8.00$8.00$8.00———10/2014 07/04/2034 Bloomington $3.75 $7.50$40.00 $115.00———04/2016 12/20/2035 Brooklyn $1.60 $4.00 $22.00 $100.00 $13.00 $13.00 $13.00 01/2017 12/08/2023 Center Brooklyn Park $7.00 $7.50$45.00 $160.00———03/2016 12/31/2028 Burnsville $1.00 $3.00$10.00 $45.00———07/2016 02/15/2036 Centerville $4.00$8.00$8.00$8.00———05/2016 01/26/2036 Champlin $3.54 $9.60 $40.40 $141.40 $17.17 $17.17 $17.17 01/2018 11/23/2028 R Chisago City $1.30 $5.00 $15.00 $55.00 $5.00 $5.00 $15.00 06/2009 02/28/2029 Circle Pines $2.75 $3.00 $35.00 — $3.00 — —10/2009 08/24/2029 Clara City $2.00 $2.00 $15.00 $68.00 $2.00 $2.00 $15.00 01/2014 10/07/2033 Clements $1.00$1.00$1.00$1.00———07/2012 06/09/2024 1 Coon Rapids 4.0% 4.0%4.0%4.0%———01/2012 01/13/2032 Cottage Grove $1.65$1.65$8.25$33.00$3.30 $0.75 $8.25 03/2016 11/04/2023 1 Coon Rapids: The franchise fee excludes rate schedules for highway lighting, municipal street lighting, municipal water pumping, municipal fire sirens, and municipal sewage disposal service. (Continued on Sheet No. 5-93.1a) Date Filed: 10-16-17 By: Christopher B. ClarkEffective Date: 01-01-18 President, Northern States Power Company, a Minnesota corporation Docket No. E,G999/CI-09-970 Order Date: 03-23-11 Workshop Packet Page Number 31 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEES Section No. 5 1st Revised Sheet No. 93.1a Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied Franchise Fees City Residential Small C&I Non-demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand Effective Date Expiration Date Deephaven $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 04/2002 11/02/2030 Dilworth $2.60 $6.00 $21.00 $136.50 — $6.00 $21.00 01/2011 05/10/2018 Eagle Lake $0.50 $0.50 $0.50 $0.50 — — — 10/2012 05/06/2032 Eden Prairie $2.50 $3.00 $10.00 $45.00 — — — 10/2012 06/18/2032 Edina $1.95 $3.40 $9.50 $40.50 — — — 03/2016 11/03/2035 Excelsior $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 11/2012 08/02/2032 (Continued on Sheet No. 5-93.2) Date Filed: 11-02-15 By: Christopher B. ClarkEffective Date: 10-01-17 President, Northern States Power Company, a Minnesota corporation Docket No. E002/GR-15-826 Order Date: 06-12-17 Workshop Packet Page Number 32 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEES (Continued) Section No. 5 17th Revised Sheet No. 93.2 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied Franchise Fees City Residential Small C&I Non-demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand Effective Date Expiration Date 1 Faribault $1.35 $1.60 $32.00 $280.00 — ——01/2006 11/08/2024 Forest Lake $4.00 $2.50 $18.50 $75.00 $7.50 $2.50 $18.50 05/2013 01/27/2033 Golden Valley $2.00 $2.00 $22.50 $206.00 — — — 01/2013 12/17/2027 Goodview $2.75 $3.00 $25.00 $110.00 $25.00 $2.50 $10.00 07/2006 04/30/2026 Grant $2.35 $2.00 $14.00 $75.00 $2.00 $2.00 $2.00 01/2015 12/01/2023 Hayfield $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 01/2015 04/17/2031 Henderson $3.00 $3.00 $3.00 $3.00 — — — 04/2012 08/16/2031 Hopkins $2.20 $3.85 $15.50 $105.50 — — — 01/2014 12/31/2018 Inver Grove N $2.75 $3.00 $25.00 $95.00 — — — 01/2018 06/30/2029 Heights Landfall Village $2.25 $4.75 $14.00 $65.00 $15.50 — — 04/2014 12/10/2033 Lexington $4.00 $6.50 $40.00 $170.00 — — — 03/2017 10/05/2031 Lindstrom $2.50 $5.00 $24.00 $70.00 $7.00 $7.00 $7.00 04/2016 12/17/2028 Little Canada $2.75 $5.25 $40.00 $230.00 $15.50 $2.00 $3.00 07/2010 08/26/2023 Madison Lake $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 05/2013 02/03/2033 Mahtomedi $1.30 $1.38 $14.40 $110.28 $12.71 $0.63 $14.84 01/2005 10/18/2024 Mankato $1.00 $1.55 $16.50 $223.00 $1.00 $0.25 $1.00 02/2015 09/21/2034 Mantorville $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 $2.00 11/2012 08/12/2032 Maplewood $1.25 $2.50 $15.00 $112.50 $1.25 $1.25 $1.25 12/2013 09/26/2024 1 Faribault: The franchise fee excludes invoices to the city for street lighting and municipal pumping. (Continued on Sheet No. 5-93.3) Date Filed: 10-16-17 By: Christopher B. ClarkEffective Date: 01-01-18 President, Northern States Power Company, a Minnesota corporation Docket No. E,G999/CI-09-970 Order Date: 03-23-11 Workshop Packet Page Number 33 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEES (Continued) Section No. 5 16th Revised Sheet No. 93.3 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied Franchise Fees City Residential Small C&I Non-demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand Effective Date Expiration Date 3.5% R >100 kW at primary or higher voltage Minneapolis 5.0% 5.5%5.5%5.5% 5.5% 5.5% 03/2018 10/16/2024 R 5.5% <100 kW<100 kW R >100 kW at secondary voltage Minnetonka $2.50 $4.50 $4.50 $4.50 — $4.50 $4.50 11/2007 08/09/2018 Monticello $1.95 $5.50 $31.00 $190.00 $12.00 $12.00 $31.00 06/2007 05/31/2027 Mound $2.75 $2.75 $2.75 $2.75 $2.75 $2.75 $2.75 01/2017 12/31/2020 Mounds View 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 01/2018 12/31/2018 $0.0047 $0.0043 $0.0033 $0.0017 $0.0054$0.0046$0.0033 New Brighton 03/2016 11/25/2022 per kWh per kWh per kWh per kWh per kWh per kWh per kWh New Hope $3.00 $6.00 $26.00 $115.00 — — — 01/2017 06/26/2031 New Richland $1.00 $1.00 $1.00 $1.00 — — — 02/2013 07/11/2024 Newport $1.00 $1.50 $14.00 $70.00 $5.00 $1.00 $10.00 01/2011 10/18/2026 (Continued on Sheet No. 5-93.4) Date Filed: 12-21-17 By: Christopher B. ClarkEffective Date: 03-01-18 President, Northern States Power Company, a Minnesota corporation Docket No. E,G999/CI-09-970 Order Date: 03-23-11 Workshop Packet Page Number 34 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEES (Continued) Section No. 5 19th Revised Sheet No. 93.4 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied Franchise Fees City Residential Small C&I Non-demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand Effective Date Expiration Date North Mankato $1.00 $1.55 $16.50 $223.00 $17.62 $1.46 $12.30 04/2015 10/05/2034 Oakdale $1.50 $3.00 $10.00 $8.00 $6.00 $2.00 $8.00 11/2013 10/27/2023 Osseo $1.28 $2.07 $17.57 $102.65 $6.20 $0.45 $2.55 03/2012 10/26/2023 $0.0016 per kWh Customer peak demand less than 100 kW in calendar year Owatonna 01/2003 04/01/2022 $0.0014 per kWh Customer peak demand greater than 100 kW in calendar year Plymouth $2.06 $3.09 $10.30 $41.20 — — — 06/2017 07/09/2027 Prior Lake $1.50 $5.00 $10.00 $50.00 — — — 07/2006 03/19/2026 Richmond $1.00 $1.00 $1.00 $1.00 — — — 05/2013 05/03/2031 Richfield $4.10 $12.50 $30.00 $185.00 — — — 04/2014 03/12/2027 Robbinsdale 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 06/2017 07/01/2019 Rogers $5.00 $7.00 $45.00 $210.00 $17.00 $12.00 $65.00 01/2016 11/22/2024 Sartell $4.00 $6.75 $15.00 $109.00 — — — 01/2017 09/11/2036 4.0% Customers who purchase $50,000 or less in calendar year Sauk Rapids 02/2016 06/15/2023 1.5% That part which exceeds $50,000 in calendar year 1 Shakopee 3.0% 3.0% 3.0% 3.0% — — — 01/2017 08/06/2021 Shoreview $2.50 $3.00 $30.00 $310.00 — — — 10/2013 07/17/2031 1 Shakopee: The fee collected shall total three percent (3%) of the Company's gross revenues from its operations within the City collected from each customer of each class. For customers in the Large C&I class, the three percent franchise fee is applicable to the first $950,000 of calendar year gross revenues. The franchise fee is reduced to one-half percent (0.5%) for the remaining amount of annual gross revenues exceeding $950,000. (Continued on Sheet No. 5-93.5) Date Filed: 11-02-15 By: Christopher B. ClarkEffective Date: 10-01-17 President, Northern States Power Company, a Minnesota corporation Docket No. E002/GR-15-826 Order Date: 06-12-17 Workshop Packet Page Number 35 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEES (Continued) Section No. 5 15th Revised Sheet No. 93.5 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied Franchise Fees City Residential Small C&I Non-demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand Effective Date Expiration Date 1 South St. Paul 4.0% 4.0% 4.0% 4.0% — — — 07/2015 04/05/2030 Spicer $1.00 $1.00 $8.00 $8.00 — — — 02/2013 10/01/2032 Spring Lake $0.80 $1.20 $8.50 $50.00 — — — 04/2015 01/04/2035 Park 2 St. Cloud 4.0% 4.0% 4.0% 4.0% — — — 12/2017 12/31/2024 R 2% purchase <$100,000 in calendar year St. Joseph $1.00 $1.75 $10.00 $8.00 $1.00 $10.00 02/2004 11/19/2023 1.5% that part >$100,000 in calendar year St. Louis Park $4.00 $8.50 $45.00 $145.00 — $8.50 $45.00 02/2017 09/18/2036 St. Michael $3.50 $2.50 $2.50 $10.00 $10.00 $2.50 $10.00 05/2011 11/24/2023 3 St. Paul See fee schedule in the Notes section on the following sheets. 11/2006 08/31/2026 St. Paul Park $1.50 $2.00 $25.00 $335.00 $10.00 $1.00 $5.00 08/2005 05/15/2025 Stillwater $2.00 $2.50 $18.00 $125.00 $4.00 $2.00 $18.00 06/2015 02/16/2035 1 South St. Paul: The franchise fee excludes rate schedules for highway lighting, municipal street lighting, municipal water pumping, municipal traffic signals, municipal fire sirens, and municipal sewage disposal service. 2 St. Cloud: The franchise fee for residential heating customers will be 1.5% during the months of November – April. 3 St. Paul: The monthly franchise fee will be as stated on the following sheets. The residential service franchise fee will be as stated except during the months of November - April when there will be no fee. The fee shall not exceed $620,000 during any calendar year from any large commercial and industrial customer qualifying for service on the Competitive Market Rider. The schedule on the following sheets show the meter, energy, and demand factor for each year of the St. Paul franchise and for each of the customer classifications. (Continued on Sheet No. 5-93.6) Date Filed: 08-29-17 By: Christopher B. ClarkEffective Date: 12-01-17 President, Northern States Power Company, a Minnesota corporation Docket No. E,G999/CI-09-970 Order Date: 03-23-11 Workshop Packet Page Number 36 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEES (Continued) Section No. 5 8th Revised Sheet No. 93.12 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local governmental unit. — Indicates fee is not applied Franchise Fees City Residential Small C&I Non-demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-demand Municipal Pumping Demand Effective Date Expiration Date Victoria $3.00 $10.00 $10.00 $10.00 — — — 02/2017 10/09/2036 Watertown $3.00 $4.50 $16.00 $51.00 — $13.50 $21.00 04/2010 04/10/2027 $2.06 $4.64 $4.64 $15.45 $1.03 $1.03 $1.03 03/2011 11/30/2026 Wayzata White Bear Lake 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 05/1998 05/01/2018 4.0% Customers who purchase $100,000 or less in calendar year Winona06/2003 06/15/2023 1.5% That part which exceeds $100,000 in calendar year Winsted $2.00 $2.00 $2.00 $2.00 — — — 05/2012 12/19/2031 (Continued on Sheet No. 5-93.13) Date Filed: 11-02-15 By: Christopher B. ClarkEffective Date: 10-01-17 President, Northern States Power Company, a Minnesota corporation Docket No. E002/GR-15-826 Order Date: 06-12-17 Workshop Packet Page Number 37 of 41 E2, Attachment 2 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA ELECTRIC RATE BOOK – MPUC NO. 2 FRANCHISE AND OTHER CITY FEES Section No. 5 3rd Revised Sheet No. 93.13 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit.* (U) Indicates unincorporated community Other City Fees City Description Effective Date Expiration Date Pursuant to city code, the Company collects a 5.26% of gross earnings tax derived from the sale of electricity within the City of West St. Paul excluding electric energy supplied to the City West St. Paul 12/1996 -- for municipal services. The amount collected is remitted to the City of West St. Paul. FEES NOT REMITTED DIRECTLY TO CITY The Company collects a fee of $3.25 per residential and small commercial and industrial customer in the community of Baker for energy usage and maintenance on community street Baker (U) 03/1994 -- lighting. The amount collected is applied to Baker’s street lighting bill. *Except Baker. See above. Date Filed: 11-02-15 By: Christopher B. ClarkEffective Date: 10-01-17 President, Northern States Power Company, a Minnesota corporation Docket No. E002/GR-15-826 Order Date: 06-12-17 Workshop Packet Page Number 38 of 41 Northern States Power Company, a Minnesota corporation E2, Attachment 3 Minneapolis, Minnesota 55401 MINNESOTA GAS RATE BOOK - MPUC NO. 2 FRANCHISE AND OTHER CITY FEES Section No. 5 15th Revised Sheet No. 44.1 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied *May include Negotiated Transportation Service. Any future NTS customer in a franchise city without a specific NTS franchise rate will be billed the Firm Transportation franchise fee. Franchise Fees City Residential Commercial Firm – Non-demand Commercial Firm – Demand SmallInterruptible Medium & LargeInterruptible FirmTransportation* Interruptible Transportation Effective Date Expiration Date Afton $2.00 $4.00 $5.00 $5.00 $5.00 $5.00 $5.00 01/2005 08/16/2024 Barnesville 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 02/2015 10/13/2034 Baxter $2.00 $7.00 $65.00 $65.00 $65.00 $65.00 $65.00 09/2016 06/20/2019 Bayport $1.25 $10.00 $25.00 $10.00 $50.00 $10.00 $10.00 01/2014 05/04/2028 Big Lake $4.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 10/2014 07/23/2020 Centerville $4.00 $8.00 $8.00 $8.00 $8.00 $8.00 $8.00 05/2016 01/26/2036 Chisago City $1.00 $3.00 $35.00 $30.00 $30.00 $30.00 $30.00 06/2009 12/31/2029 Cottage Grove $1.65 $4.95 $8.25 $16.50 $24.75 $24.75 $24.75 01/2010 11/04/2023 $0.0391 $0.0391$0.0391$0.0391$0.0391$0.0391$0.0391 Delano 01/2003 -- per therm per therm per therm per therm per therm per therm per therm East Grand Forks 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 12/2005 12/19/2025 1 Faribault $1.62 $3.78 $32.40 $91.80 $270.00 — — 01/2006 11/08/2024 Forest Lake $3.00 $7.50 $15.00 $75.00 $15.00 $15.00 $15.00 05/2013 01/27/2033 Goodview $2.35 $3.50 $55.00 $30.00 — — — 07/2006 04/30/2026 Inver Grove $2.00 $10.50 $50.00 $90.00 $100.00 $15.00 $15.00 01/2018 06/30/2029 N Heights Kandiyohi $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 04/2014 12/01/2033 $0.005$0.005$0.005$0.005$0.005 Lake City 2.0% 2.0% 05/2017 04/30/2019 per therm per therm per therm per therm per therm Lindstrom$2.00 $8.00 —$65.00 ———04/2016 02/18/2029 Maplewood $2.50 $6.00 $75.00 $50.00 $100.00 — — 10/2015 12/31/2035 Moorhead 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 06/2015 02/08/2035 1 Faribault: The franchise fee excludes the city, invoices to the city, or meters on city facilities or property. (Continued on Sheet No. 5-44.2) Date Filed: 10-16-17 By: Christopher B. Clark Effective Date: 01-01-18 President, Northern States Power Company, a Minnesota corporation Docket No. E,G999/CI-09-970 Order Date: 03-23-11 Workshop Packet Page Number 39 of 41 E2, Attachment 3 Northern States Power Company, a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA GAS RATE BOOK - MPUC NO. 2 FRANCHISE AND OTHER CITY FEES (Continued) Section No. 5 13th Revised Sheet No. 44.2 Franchise and other city fees, as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied * May include Negotiated Transportation Service. Any future NTS customer in a franchise city without a specific NTS franchise rate will be billed the Firm Transportation franchise fee. Franchise Fees City Residential Commercial Firm – Non-demand Commercial Firm – Demand SmallInterruptible Medium & LargeInterruptible FirmTransportation* Interruptible Transportation Effective Date Expiration Date 4% 4% Mounds View 4% 4% 4% 4% 4% 01/2018 12/31/2018 C $0.030 $0.022 $0.004 $0.010 $0.006 $0.005 $0.005 New Brighton 03/2016 11/25/2022 per therm per therm per therm per therm per therm per therm per therm Newport $1.00 $5.00 $10.00 $15.00 $15.00 $15.00 $15.00 01/2011 10/18/2026 $0.005$0.005$0.005$0.005$0.005 North St. Paul 2.75% 2.75% 12/1998 09/07/2018 per therm per therm per therm per therm per therm Oakdale $1.50 $5.00 $8.00 $17.00 $17.00 $17.00 $17.00 11/2013 10/27/2023 Sauk Rapids $3.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 02/2016 06/15/2023 Shakopee 3.0% 3.0% 3.0% 3.0% 3.0% ––02/2017 10/31/2036 Shoreview $1.30 $8.00 $112.00 $100.00 $100.00 $100.00 $100.00 10/2013 07/17/2031 South St. Paul 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 07/2000 06/30/2015 Spicer $0.50 $1.50 –––––02/2013 10/01/2032 St. Augusta $3.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 06/2010 03/01/2030 (Continued on Sheet No. 5-44.3) Date Filed: 10-16-17 By: Christopher B. Clark Effective Date: 01-01-18 President, Northern States Power Company, a Minnesota corporation Docket No. E,G999/CI-09-970 Order Date: 03-23-11 Workshop Packet Page Number 40 of 41 E2, Attachment 3 Northern States Power Company,a Minnesota corporation Minneapolis, Minnesota 55401 MINNESOTA GAS RATE BOOK -MPUC NO. 2 FRANCHISE AND OTHER CITY FEES (Continued)Section No.5 3rd RevisedSheet No.44.3 Franchise and other city fees,as designated below will be included in the customers’ monthly bills computed under the indicated rate classes and effective in the following Minnesota communities: The Company remits 100% of these fees collected from ratepayers to the local government unit. — Indicates fee is not applied * May include Negotiated Transportation Service. Any future NTS customer in a franchise city without a specific NTS franchise rate will be billed the Firm Transportation franchise fee. Franchise Fees CityResidential Commercial Firm – Non-demandCommercial Firm – DemandSmall InterruptibleMedium & Large InterruptibleFirm Transportation* Interruptible TransportationEffective DateExpiration Date 3.0% 1 St. Cloud3.0%3.0%3.0%3.0%—3.0%09/200708/31/2027 small $0.005$0.005$0.005$0.005 St. Joseph$1.00$1.75$10.0002/200411/19/2023 per thermper thermper thermper therm 2 St. PaulSee fee schedule in the Notes sectionon the following sheets. 11/200708/31/2026 St. Paul Park$1.50$4.00$30.00$15.00$335.00$150.00$15.0008/200505/15/2025 C Stillwater$1.00$5.00$5.00$5.00$5.00$5.00$5.0006/201502/16/2035 1 St. Cloud: The franchise fee for residential heating customers will be 1.5% during the months of November – April. 2 St. Paul: The monthly franchise fee will be as stated below. The residential service franchise fee will be as stated exceptduring the winter months, November - April when there will be no fee. The fee shall not exceed $50,000 during any calendar year from any negotiated transportation service customer. The schedules below show the meter and demand factor for each year of the St. Paul franchise and for each of the customer classifications. (Continued on Sheet No. 5-44.4) Date Filed:03-16-15By: Christopher B. ClarkEffective Date: 06-01-15 President, Northern States Power Company, a Minnesota corporation Docket No. E,G999/CI-09-970Order Date:03-23-11 S:\\General-Offices-GO-01\\PSF\\RA\\Rates\\Current\\Mn_gas\\Mg_5_44-03_r03.doc Workshop Packet Page Number 41 of 41