HomeMy WebLinkAbout2553-19 - ADMIN Ordinance - City Council - 2019/02/04Ordinance No. 2553-19
Ordinance implementing an electric service franchise fee
on Northern States Power Company, a Minnesota corporation,
its successors and assigns, for providing electric service
within the city of St. Louis Park
The City of St. Louis Park does ordain:
Section 1. The City of St. Louis Park Municipal Code is hereby amended to include
reference to the following Special Ordinance.
Subd. 1. Purpose. The St. Louis Park 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 St. Louis Park.
(a) Pursuant to City Ordinance 2505-16, a Franchise Agreement between the City of St
Louis Park 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 Section 9 of the Northern States Power
Company Franchise and in the fee schedule attached hereto as Schedule A.
Subd. 2. Franchise Fee Statement. 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 NSPM June, 2019 billing month.
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 accou nt 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.
Subd. 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.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission
may allow Company to add a surcharge to customer rates of city residents to reimburse
Company for the cost of the fee.
DocuSign Envelope ID: 2269EC71-7C8B-4DF2-BBEF-F6FD2B4D836B
Ordinance No. 2553-19 2
Subd. 5. Enforcement. Any dispute, including enforcement of a default regarding this
ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subd. 6. 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 NSPM by certified mail. Collection of the fee shall commence as
provided above.
First Reading of Ordinance 01/22/19
Second Reading of Ordinance 02/04/19
Date of Publication 02/14/19
Utilities begin collection 06/01/19
Reviewed for Administration Adopted by the City Council Feb. 4, 2019
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest: Approved as to Form and Execution:
Melissa Kennedy, City Clerk Soren Mattick, City Attorney
DocuSign Envelope ID: 2269EC71-7C8B-4DF2-BBEF-F6FD2B4D836B