2016-01-27 CC Packet - **REPLACEMENT**

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Franchise Ordinance Centerville-NSP(electric)version kg 01222016 sent to Council for ap rp oval customer classification in all customer billings for electric 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 electric 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 electric 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. 9.5 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. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. 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. 9.6 City Use and Reporting of Franchise Fee Revenue. The City shall deposit said franchise fee revenue into a City fund titled "Street Use Revitalization Fund (SURF)" of which all franchise fee proceeds shall be used for the specific use of preserving and repairing city streets including,but not limited to,methods such as crack seal, fog seal,mill and overlay,hot in place recycle, cold in place recycle, and full depth reclamation. Unless otherwise included in the City's annual audit, each year the City shall prepare and publish a report detailing the additional preservation and repair projects able to be completed with said franchise revenue. SECTION 10. PROVISIONS OF ORDINANCE. 10.1 Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance or state law conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. Unless specifically exempted by the language of this agreement, Minnesota Statutes Chapter 216D, and Minnesota Administrative Rules Chapter 7819 shall still govern the relationship between the parties. 7 54