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