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ORD 2022-07 An Ordinance Implementing an Electric Service Franchise Fee on Northern Sates Power Company, a MN Corp, Its Successors and Assigns, for Providing Electric Service within the City of Otsego, MNORDINANCE N". 2022-07 CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, SUCCESSORS AND ASSIGNS, FOR PROVIDING OF OTSEGO, MINNESOTA A MINNESOTA CORPORATION, ITS ELECTRIC SERVICE WITHIN THE CITY THE CITY COUNCIL OF THE CITY OF OTSEGO DOES ORDAIN: SECTION 1. The City of Otsego City Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Otsego 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 Otsego. Pursuant to City Ordinance 2021-20, (adopted October 25, 2021), a Franchise Agreement between the City of Otsego 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 the fee schedule attached hereto as Schedule A. Subdivision 2. Terms. A franchise fee is hereby imposed on Northern States Power Company, a Minnesota Corporation, 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 Xcel Energy October 2022 billing month. The fee shall be in lieu of any permit or other fees being imposed on Company under the City Code. 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 of the Franchise. Subdivision 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may allow the Company to add a surcharge to customer rates for the cost of the fee. 209422v6 1 Subdivision 5. Equivalent Fee Requirement. This ordinance 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 pursuant to Minnesota Statutes, Section 216B.36. 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, the foregoing conditions will be waived to the extent of such written consent. Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding tNs 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 ninety (90) days after the sending of written notice enclosing a copy of this adopted Ordinance to Xcel Energy by certified mail. Collection of the fee shall commence as provided above. ADOPTED by the City Council of the City of Otsego, Minnesota this 23rd day of May, 2022. OTSEGO SEAL ATTEST: i t. 00) Bethany B g, Depu Jerk 209422v6 2 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 Residential Sm C & I — Non-Dem Sm C & I — Demand Large C & I Amount per month 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 Apri130. April —June collections due by July 31. July — September collections due by October 31. October — December collections due by January 31. 209422v6 3 PUBLICATION SUMMARY OF ORDINANCE NO.2022=07 CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA OFFICIAL SUMMMARY FOR PUBLICATION ORDINANCE ESTABLISHING A FRANCHISE FEE FOR NORTHERN STATES POWER COMPANY Ordinance Number 2022-07 was recently adopted by the City Council. Because of the lengthy nature of the ordinance, the following summary of the ordinance has been prepared for publication as authorized by law. The Ordinance imposes a franchise fee on Northern States Power Company, a Minnesota corporation, its successors and assigns as part of the franchise previously granted the company by ordinance number 2021- 20. Ordinance 2022-07 provides for the imposition, collection, quarterly payment, and periodic auditing of a franchise fee at the following rates: Class Residential Sm C & I — Non-Dem Sm C & I — Demand Large C & I Amount per month Printed copies of both ordinances are available for inspection by any person during the City Hall regular office hours. Approved for publication by the City Council of the City of Otsego, Minnesota this 23rd day of May, 2022. F OTSEGO SEAL kenwa4d, Acting Mayor ATTEST: Bethany B Date Published 209422v6 4 AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) ss COUNTY OF SHERBURNE Karen Nelson being duly sworn on an oath, "states or affirms that he/she is the Publisher's Designated Agent of the newspaper(s) known I s: Star News with the known office of issue being located in the county of: SHERBURNE with additional circulation in the counties of: WRIGHT and has full knowledge of the facts stated below: (A) The newspaper has complied with all of the requirements constituting qualifica- tion as a qualified newspaper as provided by Minn. Stat. §331A.02. (B) This Public Notice was printed and pub. lished in said newspaper(s) once each week, for 1 successive week(s); the first insertion being on 05/28/2022 and the last insertion being on 05/28/2022, MORTGAGE FORECLOSURE NOTICES Pursuant to Minnesota Stat. §580.033 relating to the publication of mortgage foreclosure notices: The newspaper complies with the conditions described in, §580.0333 subd. 1, clause (1) or (2). If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper's circulation is in the latter county. f t t Designated Agent Subscribed and sworn to or affirmed before me on OS/28/2022 by Karen Nelson. Notary Public 1 1 i < �` �` • 1 Rate Information: (1) Lowest classified rate paid by commercial users for comparable space: $23.00 per column inch -Ad ID 1232717 CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA PUBLICATION SUMMARY OF ORDINANCE NO.2022-07 OFFICIAL SUMMMARY FOR PUBLICATION ORDINANCE ESTABLISHING A FRANCHISE FEE FOR NORTHERN STATES POWER COMPANY Ordinance Number 2022-07 was recently adopted by the City Coun- cil. Because of the lengthy nature of the ordinance, the following sum- mary of the ordinance has been prepared for publication as authorized by law. The Ordinance imposes a franchise fee on Northern States Power Company, a Minnesota corporation, its successors and assigns as part of the franchise previously granted the company by ordinance number 2021-20. Ordinance 2022-07 provides for the imposition, collection, quarterly payment, and periodic auditing of a franchise fee at the following rates: class Amount per month Residential $ 4.00 Sm C & I — Non -Derr $ 5.00 Sm C & I — Demand $ 40.00 Large C & 1 $ 95.00 Printed copies of both ordinances are available for Inspection by any person during the City Hall regular office hours. Approved for publication by the City Council of the City of Otsego, Minnesota this 23rd day of May, 2022. CITY OF OTSEGO Tom Darkenwald, Acting Mayor ATTEST: Bethany Benting, Deputy Clerk Published in the Star News May 28, 2022 1232717