HomeMy WebLinkAboutNo 879 An Ordinance Implementing an Electric Service Franchise Fee on the City of North St. Paul for Providing Electric Service within the City of Maplewood
ORDINANCE NO. 879
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON THE CITY
OF NORTH SAINT PAUL, A MINNESOTA MUNICIPAL CORPORATION, ITS SUCCESSORS
AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF
MAPLEWOOD.
THE CITY COUNCIL OF THE CITY OF MAPLEWOOD DOES ORDAIN:
AND THE FOLLOWING ADOPTED:
SECTION 1. The City of Maplewood Municipal Code is hereby amended to include reference to
the following Special Ordinance.
Subdivision 1. Purpose. The Maplewood 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 Maplewood.
(a) Pursuant to City Ordinance 877, a Franchise Agreement between the City of
Maplewood and The City of North Saint Paul, a Minnesota corporation, its
successors and assigns, the City has the right to impose a franchise fee on The City
of North Saint Paul, its successors and assigns, in an amount and fee design as set
forth in Section 9 of The City of North Saint Paul Franchise and in the fee schedule
attached hereto as Schedule A.
Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on The
City of North Saint Paul, 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
City of North Saint Paul, January 2007 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 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.
Subdivision 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.
Subdivision 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 The City of North Saint Paul will surcharge its
customers in the City the amount of the fee.
Subdivision 5. Record Support for Payment. The City of North Saint Paul shall make
each payment when due and, if required 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.
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 after the sending of written notice enclosing a copy of this
adopted Ordinance to The City of North Saint Paul by certified mail. Collection of the fee shall
commence as provided in Subdivision 2.
Subdivision 8. Sunset Clause
. This ordinance shall automatically sunset on
December 31, 2011, unless the City Council acts to renew or extend the fee at least six (6)
months prior to the sunset date. The City Council may unilaterally renew or extend the fee on
the same terms and conditions. Without waiver of any rights under Minnesota law, the City
Council shall seek agreement from Company if the City intends to change the fee rate or fee
design.
SCHEDULE A
Franchise Fee Rates:
Electric Utility
The franchise fee for the following purposes right-of-way maintenance, street lighting, burial of
power lines, energy conservation, alternative energy sources and other city energy-related
expenses shall be in an amount determined by applying the following schedule per customer
premise/per month based on metered service to customers within the City:
Customer Class Fee Per Premise Per Month
Residential customers $0.50
Small C&I – Non/Demand $1.00
Small C&I – Demand $6.00
Large Commercial & Industrial $45.00
Franchise fees are to be collected by the Utility at the rate listed below, 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.
This was passed by the City Council of City of Maplewood, Minnesota on January 8, 2007.