HomeMy WebLinkAbout2024-012 and Summary ARpENfHILLS
ORDINANCE NO. 2024-012
CITY OF ARDEN HILLS
RAMSEY COUNTY, MINNESOTA
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
NORTHERN STATES POWER COMPANY,A MINNESOTA CORPORATION,ITS
SUCCESSORS AND ASSIGNS,FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY
OF ARDEN HILLS
THE CITY COUNCIL OF THE CITY OF ARDEN HILLS DOES ORDAIN:
SECTION 1. The City of Arden Hills Municipal Code is hereby amended to include reference to
the following Special Ordinance.
Subd. 1. Purpose. The Arden Hills 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 Arden Hills.
(a) Pursuant to City Ordinances#Aq'b/Ja Franchise Agreement between the City of Arden Hills
and Northern States Power Company, a Minnesota corporation, its successors and assigns,the
City has the right to impose a franchise fee on Northern States Power Company, a Minnesota
corpo ation, its successors and assigns, in an amount and fee design as set forth in Section
of the Northern States Power Company Franchise and in the fee schedule attached
hereto as Schedule A.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power
Company, a Minnesota Corporation, its successors and assigns, under its electric franchise in accordance
wit he schedule attached here to and made a part of this Ordinance, commencing with the NSPM
2026"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.
Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms
set forth in Section 9 of the Franchise Agreement.
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Subd. 4. Th Surchar e. it� e City recognizes that the Minnesota Public Utilities Commission may
allow Company to add a surcharge to customer rates of city residents to reimburse Company for the cost
of the fee.
Subd. 5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance
will be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subd. 6. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its
publication and ninety (90) days after the sending of written notice enclosing a copy of this adopted
Ordinance to NSPM by certified mail. Collection of the fee shall commence as provided above.
SECTION 2. SUMMARY PUBLICATION
Pursuant to Minn. Stat. §412.191,in the case of a lengthy ordinance,a summary may be published.
While a copy of the entire ordinance is available without cost at the office of the City Clerk,the following
summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance:
The ordinance establishes a franchise fee on Northern States Power Company resulting
from the Franchise Agreement, adopted as ordinance 2024-012, granting Northern States
Power Company a 20-year electric service franchise, in the amounts of-
Class Amount per month
Residential $3.00
Small C&I—Non-Demand $4.00
Small C &I—Demand $22.00
Large C &I $ 329.00
Public Street Lighting $-
Municipal Pumping—Non-Demand $ -
Municipal Pumping—Demand $-
PASSED and ADOPTED thi�day of 106401 Gar ,2024,by the City Council of the City
of Arden Hills,Minnesota.
CITY OF ARDEN HILLS
L.4 J A4t�
David Grant, Mayor
Attest:
nlip
- L
Julie 0 nson,City Clerk
SEAL
Published in the Pioneer Press on DL ,• l , 2024
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SCHEDULE A
Franchise Fee Rates:
Electric Utility
The franchise fee shall be in an amount determined by applying the following schedule per customer
premise/per month based on metered service to retail customers within the City:
Class Amount per month
Residential $ 3.00
Small C&I—Non-Demand $4.00
Small C &I—Demand $22.00
Large C &1 $ 329.00
Public Street Lighting $ -
Municipal Pumping—Non-Demand $ -
Municipal Pumping—Demand $ -
Franchise fees are 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.
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