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Franchise Fee Ordinance Centerville—NSP (gas) version 12152015 ORDINANCE NO. AN ORDINANCE IMPLEMENTING 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 CENTERVILLE. THE CITY COUNCIL OF THE CITY OF CENTERVILLE DOES ORDAIN: SECTION 1. The City of Centerville Municipal Code is hereby amended to include reference to the following Special Ordinance. Subd. 1. Purpose. The Centerville 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 services within the City of Centerville. (a) Pursuant to City Ordinance a Franchise Agreement between the City of Centerville 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 corporation,its successors and assigns,in an amount and fee design as set forth in Section 9 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 gas franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the NSPM ,20 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 gas 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. )moment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 9 of the Franchise. Subd. 4. Surcharge. The 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. 1 22