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ORDINANCE NO. 19-05 <br /> � <br /> AN ORDINANCE IMPLEMENTING A GAS SERVICE FRANCHISE FEE ON NORTHERN <br /> STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND <br /> ASSIGNS, FOR PROVIDING GAS SERVICE WITHIN THE CITY OF PEQUOT LAKES. <br /> THE CITY COUNCIL OF THE CITY OF PEQUOT LAKES DOES ORDAIN THAT: <br /> SECTION 1. The City of Pequot Lakes Municipal Code is hereby amended to include reference to the <br /> following Special Ordinance. <br /> Subd. 1. P ose. The Pequot Lakes City Council has determined that it is in the best interest of <br /> the City of Pequot Lakes (the"City") to itnpose a franchise fee on those public utility companies that <br /> provide natural gas services within the City. <br /> (a) Pursuant to City Ordinance 19-04, a Franchise Agreement (the "Franchise Agreement") <br /> between the City and Northern States Power Company, a Minnesota corporarion,its successors <br /> and assigns, (the "Company"), the City has the right to impose a franchise fee on the Company, <br /> in an amount and fee design as set forth in Secrion 9 of the above-referenced Franchise <br /> Agreement and in the fee schedule attached hereto as Schedule A. <br /> Subd. 2. Franchise Fee Statement. r, franchise fee is hereby imposed on the Company under its <br /> gas franchise in accordance with the schedule attached hereto and made a part of this Ordinance as <br /> Schedule A, commencing with the Company's July 1, 2019 billing month. <br /> � <br /> This fee is an account-based fee on each premise and not a meter-based fee. In the event that an <br /> enriry covered by this Ordinance has more than one meter at a single premise,but only one account,only one <br /> fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the <br /> Company may have an account for each rate classificarion, which will result in more than one fxanchise fee <br /> assessment for gas service to that premise. If the Company combines the rate classificarions into a single <br /> account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate <br /> classificarion for energy delivered to that premise. In the event any enriries covered by this Ordinance have <br /> more than one premise,each premise (address) shall be subject to the appropriate fee. In the event a quesrion <br /> arises as to the proper fee amount for any premise, the Company's manner of billing for enetgy used at all <br /> similar premises in the City will control. <br /> Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms <br /> set forth in Section 9 of the Franchise Agreement. The Company shall make each payment when due. <br /> Subd. 4. Surchar�e. The City recognizes that the Minnesota Public Utiliries Commission may <br /> allow the Company to add a surcharge to customer rates of City residents to reimburse the Company for the <br /> cost of the fee. <br /> Subd. 5. Enforcement. Any dispute,including enforcement of a default regarding this Ordinance <br /> will be resolved in accordance with Section 2.5 of the Franchise Agreement. <br /> � Subd. 6. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its <br /> publicarion and ninery (90) days after the sending of written norice enclosing a copy of this adopted <br /> Ordinance to the Company by cerrified mail. Collecrion of the fee shall commence as provided above. <br /> 1 <br />