§ 12-20. Electric distribution franchise.

A franchise for electric service from the city to Northern States Power Company is in effect per Ordinance 2011-03 identified as Appendix H of this Code.

(1)

Electricity franchise fee.

Definitions. For the purposes of this section, the following terms shall have the following meanings:

City. The City of New Hope, County of Hennepin, State of Minnesota.

Code. The City of New Hope Municipal Code.

Company. Northern States Power Company, a Minnesota corporation d/b/a Xcel Energy, its successors and assigns.

Franchise agreement. The franchise agreement between the city and company pursuant to city ordinance 2011-03.

Notice. "Notice" means a writing served by any party or parties on any other party or parties. Notice to company shall be mailed to the Regional General Manager thereof at 414 Nicollet Mall, 5th Floor, Minneapolis, Minnesota 55401. Notice to city shall be mailed to the City Clerk at 4401 Xylon Avenue North, New Hope, Minnesota 55428.

(2)

Purpose. The New Hope 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 and electric services within the city. Pursuant to the franchise agreement the city has the right to impose a franchise fee on company.

(3)

Franchise fee statement. A franchise fee is hereby imposed on company commencing with the January 2004 billing month, and in accordance with the fee schedule set forth in the city's fee schedule.

(4)

Account fee. This fee is an account based fee and not a meter-based fee. In the event that an entity covered by this section has more than one meter, but only one account, only one fee shall be assessed to that account. In the event any entities covered by this section have more than one account, each account shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any account, the highest possible fee amount shall apply.

(5)

Payment. Franchise fees as set in the city's fee schedule are to be collected by the company and submitted to the city as follows:

January—March collections due by April 30.

April—June collections due by July 31.

July—September collections due by October 31.

October—December collections due by January 31.

(6)

Record support for payment. The company shall make each payment when due and, if requested by the city, shall provide a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total made to account for any noncollectible accounts, refunds or error corrections. The company shall permit the city, and its representatives, free access to the company's records for the purpose of verifying such statements.

(7)

Payment adjustments. Payment to the city will be adjusted where the company is unable to collect the franchise fee. This includes noncollectible accounts.

(8)

Surcharge. The city recognizes that the Minnesota Public Utilities Commission allows the company to add a surcharge to customer rates to reimburse the company for the cost of implementing and administering the fee.

(9)

Dispute resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in district court to interpret and enforce this section or for such other relief permitted by law.

(10)

Effective date of franchise fee. The effective date of this section shall be after its publication and 60 days after the sending of written notice enclosing a copy of this adopted Ordinance to company by certified mail. Collection of the fee shall commence as provided above.

(11)

Relation to franchise agreement. This section is enacted in compliance with the franchise agreement shall be interpreted as such. If a provision of this section cannot be reasonable interpreted to avoid conflict with the franchise agreement, this section will control.

(12)

Review. The city council shall review this section every two years in whatever manner the city manager then determines to be appropriate, including, but not limited to, review by the city council in either a work session or a regular session. Failure to review this section shall not in any way invalidate or limit it.

(13)

Permit fees. The franchise fee shall be payable to the city by the company in lieu of permit or other fees otherwise imposed on the company in relation to its operations as a public utility in the city so long as the following requirements are met:

a.

The company applies for any and all permits, licenses and similar documentation as though this provision did not exist.

b.

The company requests the fee to be waived at the time of application.

(Code 072684, Ord. No. 91-19; Ord. No. 2011-03, § 1, 6-27-2011; Ord. No. 17-01, § 10, 1-23-2017)