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Ordinance No. 1130 08-09-1999 ORDINANCE NO. 1130 AN ORDINANCE OF THE CITY OF FRIDLEY,MINNESOTA,AMENDING THE CITY CODE TO INCLUDE A NEW CHAPTER 409,ENTITLED"FRANCHISE FEES" THE CITY COUNCIL OF THE CITY OF FRIDLEY ORDAINS: SECTION 409.01. PURPOSE The Fridley City Council has determined that it is in the best interest of the City to impose an equivalent franchise fee on all entities providing electric and gas service pursuant to franchise within the City in accordance with the franchise agreement entered between the City and each such energy supplier. The franchise fee is paid as full compensation for the rights to transmit and distribute electric or gas energy for public or private use within and through the limits of the City as permitted by the respective franchise of each energy supplier. The equivalent fee was determined in advance by the City based on each energy supplier's estimated Gross Revenues so that the fee paid by one Customer Classification is in all material respects the equivalent, based on a percentage of the estimated Gross Revenues for the Customer Classification, of the fee paid by each similar Customer Classification(s)of the other energy suppliers. SECTION 409.02. FEE SCHEDULES 1. Minnegasco Company Gas Service Fee Schedule. A franchise fee is hereby imposed on Minnegasco Company for its gas franchise granted by the City in the following amounts and as defined in Section 7 of the parties'Franchise Agreement. Customer Classification Amount per Month Residential 3 %of customer's monthly metered gas bill Firm A $0.87 per month Firm B 2.82 per month Firm C 13.18 per month SVDF A 26.59 per month SVDF B 147.50 per month LVD 150.00 per month 2. Northern States Power Company Electric Service Fee Schedule. A franchise fee is hereby imposed on Northern States Power Company for its electric franchise granted by the City in the following amounts and as defined in Section 9 of the parties'Franchise Agreement: Customer Classification Amount per Month Residential 3%of customer's monthly metered electric bill Small C/I&Municipal,no demand charge $1.90 per month Small C/I &Municipal,w/demand charge 12.50 per month Large C/I Secondary 93.00 per month Large C/I Primary 150.00 per month Ordinance No. 1 130 Page 2 3. Definition of Customer Classifications. The classifications on which these fees are based shall be those established by Reliant Energy Minnegasco and Northern States Power and approved by the Minnesota Public Utilities Commission. A copy of these customer classifications shall be made available upon request by the City at City Hall during normal business hours and posted on the City's Internet site. SECTION 409.03. PAYMENT Said franchise fee shall be payable to the City quarterly. The payment shall be due the last business day of the month following the preceding quarter of the calendar year and shall be based on the electric or gas set-vice provided for the preceding quarter of the calendar year. Each energy supplier shall furnish with each payment a statement of the amounts collected by customer classification for the period on which the payment was based. Each energy supplier shall permit the City and its representative free access to supplier records for the purpose of verifying such statements. SECTION 409.04. REDUCED OR REBATED RESIDENTIAL FEE FOR ECONOMIC HARDSHIP A whole or partial rebate for citizens with an economic hardship is available from the City. A hardship shall be determined by examining the relationship between the previous year's income and the Federal Poverty Guidelines as annually established and published in The Federal Register by the United States Department of Health and Human Services. A hardship shall be deemed to exist when the annual gross income of the household for the previous year is less than the Federal Poverty Guidelines of the current year. If an economic hardship exists, the amount paid by the household shall be rebated by the City to the household within a reasonable time after the end of the year within which the fee was paid. SECTION 409.05. PARTIAL REBATE FOR CERTAIN INDUSTRIAL/COMMERCIAL CUSTOMERS A partial rebate for all commercial or industrial customers is available to those customers who in any calendar year have paid electric or gas franchise fees in excess of 5 percent of the total gas or electric charges, excluding sales taxes, in that calendar year. The amount of the rebate shall be equal to the difference between the franchise fees paid in the calendar year and 5 percent of the total charges for electric or gas services, excluding sales taxes, during that same calendar year. Those eligible for the rebate can make application for the rebate at the City on any business day of the year following the year in which the rebate is applicable. The City shall either affirm or deny the rebate within a reasonable time. For purposes of this section customer shall mean each separately metered use of the service provided under the franchise. Ordinance No. 1130 Page 3 SECTION 409.06 PARTIAL REBATE FOR CERTAIN PUBLIC USERS Any school district paying for one or more customers in the City of Fridley may receive a rebate of franchise fees paid in excess of $2,000 in any given calendar year. Those eligible for the rebate can make application for the rebate at the City on any business day of the year following the year in which the rebate is applicable. The City shall either affirm or deny the rebate within a reasonable time. For purposes of this section customer shall mean each separately metered use of the service provided under the franchise. SECTION 409.07. ENFORCEMENT Any dispute, including enforcement of a default regarding this Ordinance, shall be resolved in accordance with dispute resolution provisions of each energy supplier's Franchise Agreement. SECTION 409.08. EFFECTIVE DATE This ordinance shall become effective 60 days after notice enclosing the adopted ordinance has been served on each energy supplier by certified mail. Collection of said fees from customers shall commence with the beginning cycle of supplier's next full billing month following the expiration of the 60-day period. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 9'H DAY OF AUGUST 1999. j.o—__ •r.,y. _. • .4_4 Mr ,'J U.GENSON-MAYOR ATTEST: / . ..1. -. ..I�Li,.J._ DEBRA A. SKOGEN- iv TY CLERK Public Hearing: July 12, 1999 First Reading: July 26, 1999 Second Reading: August 9, 1999 Publication: September 9, 1999 Reaffirmed October 25, 1999 Special Election December 14, 1999 - 2795 Votes No 577 Votes Yes Ordinance Does Not Becme Effective due to results of election.