09-21-10 CC Agenda PacketAGENDA
Regular Meeting
of the
City Council
Golden Valley City Hall
7800 Golden Valley Road
Council Chamber
September 21, 2010
6:30 pm
The Council may consider item numbers 1, 2, 3, 5 and 6
prior to the public hearings scheduled at 7 pm
1. CALL TO ORDER
A. Roll Call
B. Presentation of Envision Award -Marion Helland -Human Rights Commission Essay
Contest
C. Board/Commission Oath of Office and Presentation of Certificate of Appointment
2. ADDITIONS AND CORRECTIONS TO AGENDA
3. CONSENT AGENDA
Approval of Consent Agenda -All items listed under this heading are considered to be
routine by the City Council and will be enacted by one motion. There will be no
discussion of these items unless a Council Member or citizen so requests in which
event the item will be removed from the general order of business and considered in its
normal sequence on the agenda.
A. Approval of Minutes -City Council Meeting -September 7, 2010 and
Council/Manager Meeting -September 14, 2010
B. Approval of Check Register
C. Licenses:
1. Gambling License Exemption and Waiver of Notice Requirement -Edina
Realty Foundation
D. Minutes of Boards and Commissions:
1. Human Rights Commission -May 13, 2010
E. Request Hennepin County Board Provide Interim Public Safety Dispatch Services
10-49
F. Approval of Plat -Hendrickson Commons 10-50
4. PUBLIC HEARINGS 7 PM
A. Continued Public Hearing -First Consideration -Ordinance #447- Electric Franchise
Fee from Northern States Power d/b/a Xcel Energy
5. OLD BUSINESS
6. NEW BUSINESS
A. Announcements of Meetings
B. Mayor and Council Communications
7. ADJOURNMENT
`Golden Valley
City Administration/Council
763-593-8014 / 763-593-8109 (fax)
Executive Summary for Action
Golden Valley City Council Meeting
September 21, 2010
Agenda Item
1. B. Presentation of Envision Award -Marion Helland -Human Rights Commission Essay
Contest
Prepared By
Jeanne Andre, Assistant City Manager
Summary
Marion Helland has been recommended to the City Council to receive an Envision Award.
As chair of the Human Rights Commission Essay Contest, Marion Helland worked with
Golden Valley educators and youth to promote thoughtful consideration of human rights
issues. Starting in 1998, an essay topic was selected each year until 2009 to encourage
Golden Valley youth to share their thoughts and insights on topics centered on human rights.
The approach asked youth to recommend solutions on resolving concerns and working out
potential conflicts without violence. This model, initiated at Sandburg Middle School in Golden
Valley, was taken on by other Human Rights Commissions to bring the essay contest to the
Plymouth and Wayzata Middle Schools. Essays from these contests then became a part of
the statewide Human Rights Essay contest. Her work touched Golden Valley and other
communities.
Recommended Action
Award the Envision Award to Marion Helland for the Human Rights Commission Essay
Contest.
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Valley
Finance
763-593-8013 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley City Council Meeting
September 21, 2010
Agenda Item
3. B. Approval of City Check Register
Prepared By
Sue Virnig, Finance Director
Summary
Approval of check register for various vendor claims against the City.
Attachments
Loose in agenda packet.
Recommended Action
Motion to authorize the payment of the bills as submitted.
rGolden galley
City Administration/Council
763-593-8006 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley City Council Meeting
September 21, 2010
Agenda Item
3. C. 1. Gambling License Exemption and Waiver of Notice Requirement -Edina Realty
Foundation
Prepared By
Judy Nally, Administrative Assistant
Summary
As per State Statute organizations that conduct gambling within the City limits have to submit
an application for a lawful gambling permit to the State after the permit has been approved or
denied by the City. Depending upon the timing of the permit the applicants may request the
City to waive the 30-day waiting period.
Attachments
Application for Exempt Permit (2 pages)
Letter from Edina Realty Foundation requesting waiver of 30 day waiting period (1 page)
Recommended Action
Motion to receive and file the gambling license exemption and approve the waiver of notice
requirement for Edina Realty Foundation.
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Page 1 of 2 7/10
nruuwvco r-awrur va..uv....y Application fee for each event
LG220 Application for Exempt Permit Ifa lication o tmarkedorreceived:
An exempt permit may be issued to a nonprofit organization that: less than 30 days
before the event more than 30 days
before the event
- conducts lawful gambling on five or fewer days, and $100 $50
-awards less than $50,000 in prizes during a calendar year.
ORGANIZATION INFORMATION Check # $
Organization name Previous gambling permit number
Edina Realty Foundation X-05309-09-001
Type of nonprofit organization. Check one.
Fraternal ~ Religious ~ Veterans OX Other nonprofit organization
Mailing address City State Zip Code County
6800 France Ave. S., Ste. 600 Edina MN 55435 Hennepin
Name of chief executive officer (CEO) Daytime phone number Email address
Robert S. Peltier 952-928-5715
Attach acopy-ofd of the following for proof of nonprofit status. Check one.
Do not attach a sales tax exempt status or federal ID employer numbers as they are not proof of nonprofit status.
Nonprofit Articles of Incorporation OR a current Certificate of Good Standing.
Don't have a copy? This certificate must be obtained each year from:
Secretary of State, Business Services Div., 180 State Office Building, St. Paul, MN 55155 Phone: 651-296-2803
IRS income tax exemption [601(c)] letter in your organization's name.
Don't have a copy? To obtain a copy of your federal income tax exempt letter, have an organization officer
contact the IRS at 877-829-5500.
IRS -Affiliate of national, statewide, or international parent nonprofit organization (charter)
If your organization falls under a parent organization, attach copies of both of the following:
a. IRS letter showing your parent organization is a nonprofit 501(c) organization with a group ruling, and
b. the charter or letter from your parent organization recognizing your organization as a subordinate.
IRS -proof previously submitted to Gambling Control Board
If you previously submitted proof of nonprofit status from the IRS, no attachment is required.
GAMBLING PREMISES INFORMATION '
Name of premises where gambling activity will be conducted (for raffles, list the site where the drawing will take place)
Edina Realty Title, Inc.
Address (do not use PO box) City Zip Code County
4800 Olson Memorial Hwy. Golden Valley 55422 Hennepin
Date(s) of activity (for raffles, indicate the date of the drawing)
Wednesday, November 10, 2010
heck the box or boxes that indicate the type of gambling activity your organization will conduct:
Bingo* . ®Raffies ~ Paddlewheels* ~ Pull-Tabs* ~Tipboards*
* Gambling equipment for pull-tabs, bingo paper, tfpboards, and Also complete
paddlewheels must be obtained from a distributor licensed by the page 2 of this form
.
Gambling Control Board. IXCEPTION: Bingo hard cards and bingo
number selection devices may be borrowed from another organization
authorized to conduct bingo, Print Form
To find a licensed distributor, go to www.gcbstate.mn.us and click on Ust Reset Form
of Ucensed DisMbutors, or III 651-639-4000.
LG220 Application for Exempt Permit
Page 2 of 2 1/10
LOCAL UNIT OF GOVERNMENT ACKNOW LEDGMENT
If the gambling premises is within city limits, If the gambling premises Is located In a township, a
a city official must check the action that the city is county official must check the action that the county is taking
taking on this application and sign the application. on this application and sign the application.
A township official is not required to sign the application.
The application is acknowledged with no waiting period li
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The application is acknowledged with a 30 day waiting The application is acknowledged with a 30 day waiting
period, and allows the Board to issue a permit after 30 period, and allows the Board to issue a permit after 30
days (60 days fora 1st class city). days.
The application is denied. The application is denied.
Print city name ~ ~ t Print county name
On behalf of the county, 1 acknowledge Phis application.
On behalf of the city, 1 acknowledge this pplicatlon. Signature of county official receiving application
Sig a of ity offcial receiving application
Title Date / !
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/ (Optional) TOWNSHIP: On behalf of the township, I
acknowledge that the organization is applying for exempted gambling
Title Date ! / /
activity within township limits. [A township has no statutory authority
to approve or deny an application [Minnesota Statute 349.166)]
Print township name
Signature of township official acknowledging application
Title Date / /
CHIEF EXECUTIbE OFFICER'S. SIGNATURE
The information provided in this application is complete and accurafe to the best of my knowledge. I acknowledge that fhe
financial report will be completed and returned to the Board within ays of the date of our gambling activity.
Chief executive officer's signature Date ~.®
Complete a separate application for each gambing act' Financial report and recordkeeping required
- one day of gambling activity, A financial report form and instructions will be sent with
-two or more consecutive days of gambling activity, your permit, or use the online fill-in form available at
-each day a raffle drawing is held www.gcb.state.mn.us. Within 30 days of the activity date,
Send application with: complete and return the financial report form to the
- a copy of your proof of nonprofit status, and Gambling Control Board.
-application fee for each event.
Make check payable to "State of Minnesota."
To: Gambling Control Board
1711 West County Road B, Suite 300 South
Roseville
MN 55113 Print Form Reset Form
,
This form will be made available in alternative
format (i.e. large print, Braille) upon request.
Data privacy notice:The information requested
on this form (and any attachments) will be used
by the Gambling Control Board (Board) to
determine your organization's qualifications to
be involved in lawful gambling activities in
Minnesota. Your organization has the right to
refuse to supply the information requested;
however, if your organization refuses to supply
this information, the Board may not be able to
determine your organization's qualifications
end, as a consequence, may refuse to issue a
permit If you supply the information requested,
the Board will be able to process your
organization's application. Your organization's
name and address will be public information
when received by the Board. All other
information provided will be private data until
the Board issues the permit. When the Board
issues the permit, all information provided will
become public. If the Board does not issue a
permft, all information provided remains private,
with the exception of your organization's name
and address which will remain public. Private
data ere available to: Board members, Board
staff whose work requires access to the
information; Minnesota's Department of
Public Safety; Attorney General;
Commissioners of Administration, Minnesota
Management & Budget, and Revenue;
Legislative Auditor, national and international
gambling regulatory agencies; anyone pursuant
to court order, other individuals and agencies
specifically authorized by state or federal law to
have access to the information; individuals end
agencies for which law or legal order authorizes
a new use or sharing of information after this
Notice was given; and anyone with your written
consent
September 2, 2010
Judy Nally
City of Golden Valley
7800 Golden Valley Road
Golden Valley, MN 55427
Re: Permission to Hold Raffle Event
Deaz Ms. Nally:
I am writing to request permission for our non-profit organization to hold a raffle in
Golden Valley on November 10, 2010.
Each year we host a raffle fundraiser for the Edina Realty Foundation to raise money for
local homeless and homeless prevention charities. Last yeaz we held our raffle event at
our Edina Realty Title office located at 4800 Olson Memorial Highway, Golden Valley,
MN 55422. We aze respectfully asking your permission again this year for this
worthwhile event.
I have enclosed an Application for Exempt Permit, along with aself-addressed return
envelope.
If you have any questions, please feel free to contact me at 952-928-5492.
Thank you for your consideration.
Sincerely,
'~ Q. ,~.ecJr~
Kim A. Lewis
Edina Realty Foundation Representative
952-928-5492
BUILDING A BETTER TOMORROW FOR HOMELESS FAMILIES 6800 France Ave S, Suite 670 Edina, MN 55435
telephone: (952) 928-5356 fax: (952) 928-5299
GOLDEN VALLEY HUMAN RIGHTS COMMISSION MEETING
Minutes from the Meeting of May 13, 2010
Members Present: Christopher Jordan, Marion Helland, Roger McConico, Debra Yahle
and Bob Hoyt. Commissioner Anne Dykstra participated via conference call.
Members Absent: None.
Staff Present: Chief Stacy Altonen.
The meeting was called to order by Chair Jordan at 7:00 pm.
APPROVAL OF AGENDA
There were no revisions to the agenda.
OPEN FORUM
There was no one present requesting to address the Commission.
CHAIRPERSON'S REPORT
APPROVAL OF MINUTES
Chair Jordan moved to approve the minutes of the March 11, 2010 meeting; seconded by
Commissioner Helland. The minutes were approved by consensus.
NEW BUSINESS
Presentation on Minnesota Open Meeting Law
Attorney Jana O'Leary Sullivan from the League of Minnesota Cities gave an overview of
the open meeting law. O'Leary Sullivan discussed electronic communication and advised
e-mails that are sent or forwarded to several commissioners (even if sent individually)
violates the open meeting law if city business is discussed and they are sent to a number of
commissioners that would satisfy a quorum. Liability for violating the open meeting law
falls on individual commissioners.
O'Leary Sullivan advised open meetings can be closed if protected data is going to be
discussed.
OLD BUSINESS:
iNeiphbor Setup and Calendaring option for GVHRC
Commissioner Yahle recommended this topic be tabled considering the information
presented by O'Leary Sullivan concerning the open meeting law. Chief Altonen advised
she will obtain more information about iNeighbor and will present it at the next meeting.
Human Rights Commission
May 13, 2010
Page 2
COMMITTEE REPORTS
I. Executive Committee
Chair Jordan advised the executive meeting discussed creating a Human Rights
Commission logo. Mayor Loomis sent a response indicating the city would not
support a distinct logo for HRC. Chair Jordan stated the executive committee
inquired if a juvenile could join the commission as a member and Mayor Loomis
indicated she would support waiving the residential requirement if a juvenile were
interested that did not reside in the city. Chief Altonen recommended the executive
committee make a written proposal of this change to the commission by-laws.
Commissioner Dykstra recommended partnering with the Hopkins Human Rights
Commission to seek student members who reside in each city for their respective
commissions.
II. Nomination and Governance Committee
There was nothing new to report from this committee. Commissioner McConico
advised he has contacted a potential new member who is still considering an
application.
III. League of Minnesota Human Rights Commission
Commissioner Dykstra advised the commission will be partnering with the Human
Rights Department of Minnesota to sponsor the statewide human rights meeting
again in December. Various speakers and workshops are planned. During the
second half of the year the commission intends to reach out to local commissions
and offer specialized services in case they are needed.
IV. Program Committees
Human Rights Community Issues
Chief Altonen advised there is nothing to report.
Share the Dream
There was nothing to report.
45t" Anniversary of Golden Valley HRC
Commissioner Helland distributed materials from the 40t" anniversary celebration as
a reference for planning the 45t" anniversary celebration. The subcommittee
continues work to plan this event.
Human Rights Commission
May 13, 2010
Page 3
NEW BUSINESS
Commissioner Dykstra stated she wished to discuss sponsoring community meeting on
civility in political discourse concerning the upcoming elections at the next HRC meeting.
Chief Altonen advised the a-mail group for HRC is only routed to her or Amanda Johnson
for inclusion on the next meeting agenda for discussion. Due to the open meeting law e-
mails cannot be routed to all commissioners.
Commissioner McConico advised juvenile n'~embers should be added as a topic to the next
agenda.
Chief Altonen will research the legality of juvenile members and voting rights prior to the
next meeting.
NEXT MEETING
The next meeting is scheduled for Thursday, July 8t", beginning at 7PM.
ADJOURNMENT
Moved by Commissioner McConico, seconded by Commissioner Yahle to adjourn the
meeting at 8:20 pm.
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Public Safety
Police Department
763-593-8079 / 763-593-8098 (fax)
Executive Summary For Action
Golden Valley City Council Meeting
September 21, 2010
Agenda Item
3. E. Request Hennepin County Board Provide Interim Public Safety Dispatch Services
Prepared By
Stacy A. Altonen, Chief of Police
Summary
At its August 17, 2010 meeting, City Council authorized the Mayor and City Manager to sign
a letter requesting temporary dispatch services from Hennepin County Sheriff's OfFce for a
period of 1 to 8 weeks beginning January 1, 2011, should it become necessary. To address
this request Hennepin County is requiring a resolution giving approval to move ahead with
the request for these services.
The resolution acknowledges that Hennepin County will need to complete technology
changes that will allow dispatch service with a CAD configuration, so that officers will be able
to receive calls both over the radio and on the squad computer. The resolution includes a
formal request for the dispatch services, and acknowledgement that the City may be charged
costs associated with the configuration, including related staff time, estimated to be as high
as $27,000.
At the September CounciVManager meeting the Council discussed the costs involved and the
amount of work required for Hennepin County to provide the interim service and requested
the resolution be placed on the agenda for approval.
Attachments
Resolution Requesting the Hennepin County Board Provide Interim Public Safety Dispatching
Services to the City of Golden Valley (1 page)
Recommended Action
Motion to adopt Resolution Requesting the Hennepin County Board Provide Interim Public
Safety Dispatching Services to the City of Golden Valley.
Resolution 10-49 September 21, 2010
Member introduced the following resolution and moved its adoption:
RESOLUTION REQUESTING THE HENNEPIN COUNTY BOARD
PROVIDE INTERIM PUBLIC SAFETY DISPATCHING SERVICES
TO THE CITY OF GOLDEN VALLEY
WHEREAS, the City of Golden Valley on August 17, 2010 formally requested the
Hennepin County Sheriff s Office and County Administrator to provide temporary public
safety dispatching services for the City of Golden Valley beginning January 1, 2011; and
WHEREAS, Hennepin County currently dispatches for 23 law enforcement agencies
and 19 fire departments at no cost to those agencies; and
WHEREAS, Golden Valley is the only City in Hennepin County without its own
Public Safety Answering Point that is not dispatched by the Hennepin County Sheriff; and
WHEREAS, the City of Golden Valley has entered into a three year contract with the
City of Edina to provide permanent dispatch services beginning on or about January 1,
2011; and
WHEREAS, technology components are necessary to allow the City of Edina to
have interoperability capacity to dispatch for the City of Golden Valley, which may not be in
place by January 1, 2011; and
WHEREAS, the City of Golden Valley will need to ensure continued 911 service to
residents and the community, and
WHEREAS, the Hennepin County Sheriffs Office has indicated County staff could
complete work to allow configuration for 911 and CAD dispatch services for the City of
Golden Valley to be operable by January 1, 2011; and
WHEREAS, the City of Golden Valley understands Hennepin County may charge for
the cost of staff time necessary to configure for 911 and CAD dispatch services;
NOW, THEREFORE, BE IT RESOLVED that the City Council of Golden Valley
formally requests that Hennepin County provide temporary public safety dispatching for the
City of Golden Valley, starting on January 1, 2011, if necessary, and authorizes payment
reflective of Hennepin County staff time to configure 911 radio and CAD dispatch
technology.
Linda R. Loomis, Mayor
ATTEST:
Susan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.
Golden Valley
Planning
763-593-8095 / 763-593-8109 (fax)
Executive Summary For Action
Golden Valley City Council Meeting
September 21, 2010
"60 Days" Deadline: September 26, 2010
Agenda Item
3. F. Approval of Plat -Hendrickson Commons
Prepared By
Joe Hogeboom, City Planner
Summary
At the September 7, 2010 City Council meeting, the Council held a public hearing on the
preliminary plan for the minor subdivision of Hendrickson Commons (Walgreens). After the
hearing the Council approved the preliminary plat. The final plat of Hendrickson Commons
has now been prepared by Cornerstone Land Surveying, Inc. City staff has reviewed the final
plat and finds it consistent with the approved preliminary plan and the requirements of City
Code.
In review, John Kohler, Semper Development, has proposed to consolidate three lots in order
to construct a Walgreens store at 2530 Winnetka Avenue North. The lots that are proposed
to be consolidated include Block 1, Lots 1-3 of Terra Linda Plaza. The three lots of record
make up the existing parcel on which the current building is located.
Attachment
Resolution for Approval of Plat -Hendrickson Commons (1 page)
Final Plat of Hendrickson Commons (1 oversized page, loose in agenda packet)
Recommended Action
Motion to adopt Resolution for Approval of Plat -Hendrickson Commons.
Resolution 10-50 September 21, 2010
Member introduced the following resolution and moved its adoption:
RESOLUTION FOR APPROVAL OF PLAT - HENDRICKSON COMMONS
WHEREAS, the City Council for the City of Golden Valley, pursuant to due notice,
has heretofore conducted a public hearing on the proposed plat to be known as
Hendrickson Commons, covering the following described tracts of land:
Lot 1, Block 1, Terra Linda Plaza.
And
That part of Lot 2, which lies East of a line draw parallel with and 40 feet East of the
West Line of Section 29, Township 118, Range 21; and Lot 3, except that part of
said lot which lies West of a line drawn parallel with and distant 40 feet East of the
West line of Section 29, Township 118, Range 21, and North of a line drawn East at
right angles to said West line from a point thereon distant 416.48 feet South of the
Northwest corner of said Section; all in Block 1, Terra Linda Plaza.
WHEREAS, all persons present were given the opportunity to be heard;
NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Golden
Valley, that said proposed plat be, and the same hereby is, accepted and approved, and
the proper ofFcers of the City are hereby authorized and instructed to sign the original of
said plat and to do all other things necessary and proper in the premises.
Linda R. Loomis, Mayor
ATTEST:
Susan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and her signature attested by the City Clerk.
`'Golden ~al(ey
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Public Works
763-593-8030 / 763-593-3988 (fax)
Executive Summary For Action
Golden Valley Council Meeting
September 21, 2010
Agenda-Item
4. A. Continued Public Hearing -Ordinance Requiring a Franchise Fee With Xcel Energy,
First Consideration
Prepared By
Jeannine Clancy, Director of Public Works
Ron Nims, Public Works Project Coordinator
Summary
At the May 11, 2010 and July 13, 2010 Council/Manager meetings, the Council directed staff
to develop a franchise agreement with Xcel Energy for Council consideration. After receiving
feedback from Xcel and legal counsel from Suburban Rate Authority, staff has developed the
rate schedule as follows:
AVERAGE ESTIMATED EQUIVALENT % OF % OF
CUSTOMER MONTHLY ANNUAL MONTHLY TOTAL TOTAL
CLASS CUSTOMER REVENUE FLAT FEE ELECTRIC REVENU
COUNT SHARE USAGE E SHARE
RESIDENTIAL 8,963 $215,120 $2.00 21% 34%
SMALL C&I - 597 $14
320 $2.00 2% 2%
NON-DEMAND ,
SMALL C&I - 396 $106
943 $22.50 17% 17%
DEMAND ,
LARGE C&I 119 $293
962 $206.00 60% 47%
> 1 Mw ,
The table shows the total percentage of electric usage by class along with the percentage of
revenue that each class contributes. The revised monthly flat fee franchise rates could be
added to electric user billings to generate approximately $630,000 per year as partial funding
for the proposed Douglas Drive project. The proposed residential rate of $2.00/month is less
than the Boone Avenue surcharge, which was $3.65/month and expired in 2009. Staff has
also attached a copy of current franchise rates used by other communities in the area with
Xcel Energy.
At the August 17, 2010 Council meeting, the City Council held a public hearing to consider an
ordinance establishing a franchise fee. After taking testimony from meeting attendees,
including representatives of Xcel Energy, Council continued the public hearing to the
September 21, 2010 Council meeting and directed staff to revise the proposed ordinance as
follows:
1. Remove all references to Centerpoint Energy;
2. Add language to more clearly define that the proceeds from the franchise agreement
are to be used for reconstruction of Douglas Drive; and
3. Determine if sales tax will be applied to the franchise fee amount. Xcel Energy has
informed staff that sales tax will be added to the franchise fee amount.
In response to the comments above, staff has revised the ordinance. Attached is the
ordinance revision, including an underline/strikeout version. Further, staff has learned from
Xcel Energy that sales tax will be applied to the fee.
Xcel has objected to the proposed franchise fee because the City is not proposing a franchise
fee for CenterPoint Energy. A letter staff received from Briggs and Morgan, Xcel Energy's
legal counsel, dated August 12, 2010 is attached. The letter expresses Xcel's objections
regarding this issue. The City and Xcel are participating in a mediation to discuss the
ordinance on September 20, 2010. Staff will be prepared to report on the mediation process
at the Council meeting.
To authorize the franchise fee with Xcel Energy, the Council must adopt an ordinance
requiring an electric franchise fee for providing electric service within the City of Golden
Valley. A revised draft franchise ordinance is attached for Council consideration. The
following schedule outlines the steps necessary should the Council decide to pursue the
ordinance:
• Ordinance is presented at a Council meeting for the first
consideration
• Ordinance and a summary ordinance presented at a
Council meeting for the second consideration and adoption
• Ordinance publication in the official City publication
• Xcel has 60 days to formally accept the franchise fee
• Xcel begins collecting the franchise fee from rate payers
September 21, 2010
October 5, 2010
October 14, 2010
December 13, 2010
February 1, 2011
Attachments
Minnesota City Surcharges -Electric (6 pages)
Draft Ordinance No. 447, 2"d Series, Electric Franchise Ordinance (3 pages)
Draft Ordinance No. 447, 2"d Series, Electric Franchise Ordinance (underline/strikeout
version, 4 pages)
Correspondence from Briggs and Morgan dated August 12, 2010 (2 pages)
Recommended Action
Motion to adopt Ordinance No. 447, 2"d series, An Ordinance Requiring an Electric Franchise
Fee From Northern States Power, dba Xcel Energy, for Providing Electric Service Within the
City of Golden Valley on its first consideration.
Northam States Power Company, a Minnesota corporation
Minneapolis, Minnesota 55401 Updated: 08/01/2010
MINNESOTA CITY SURCHARGES -ELECTRIC
Page 1 of 6
FRANCHISE FEES
A franchise fee as designated below will be included in the customers' monthly bills computed under the indicated rate classes and effective in
the following Minnesota communities:
- Indicates fee is not applied
(U) Indicates unincorporated community
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Baker (U) a $3.25 $3.25 - - - - - 0311994 --
Brooklyn Center $1.52 $3.10 $20.60 $99.00 $12.40 $12.40 $12.40 04!2009 12:'08%2023
Champlin $2.50 $8.00 $35.00 $125.00 $15.00 $15.00 $15.00 01/2009 11J23J2Q28
Chisago City $1.30 $5.00 $15.00 $55.00 $5.00 $5.00 $15.00 06(2009 02128/2029
Circle Pines $2.75 $3.00 $35.00 - $3.00 - - 1032009 08/24/2029
Coon Rapids n 4.0% 4.0% 4.0% 4.0% - - - 07/1992 01/13/2012
Cottage Grove $1.65 $1.65 $8.25 $33.00 $3.30 $0.83 $8.25 0112010 11!0412023
Deephaven $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 0432002 o5r31i2o12
Dilworth $1.75 $4.00 $14.00 $91.00 $4.00 $14.00 01!1999 05%10/2018
Excelsior $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 1212005 10,-18!2012
Faribault° $1.35 $1.60 $32.00 $280.00 - - - 01/2006 11/08-2024
Goodview $2.75 $3.00 $25.00 $110.00 $25.00 $2.50 $10.00 07f20o6 08;'30!2026
Grant $2.35 $2.00 $14.00 $75.00 $2.00 $2.00 $2.00 0112010 12131; 2014
Hopkins $1.00 $2.00 $9.00 $63.00 - - - 02,'2008 1231!2011
Undstrom $1.30 $5.00 $15.00 $55.00 $5.00 $5.00 $15.00 0~-2009 02%28!2029
LJttleCanada $2.75 $5.25 $40.00 $230.00 $15.50 $2.00 $3.00 0712010 08/26;2023
Mahtomedi $1.30 $1.38 $14.40 $110.28 $12.71 $0.63 $14.84 01;2005 10;18!2024
Mankato $0.50 $1.00 $10.00 $130.00 $1.00 $0.25 $1.00 10; 2008 o4,''10i2Q14
Maplewood $0.75 $1.50 $9.00 $67.50 $0.75 $0.75 $0.75 03;2010 .02/2812015
e
Minneapolis
5.0%
effective
01/1994
5.0%
<100 kW at
secondary
voltage
5.0%
<100 kW at
secondary
voltage 3.0%
X100 kW at
Primary or
higher voltage
5.0%
>100 kW at
secondary
voltage
°
5.0%
°
5.0%
°
5.0%
1i2o05
2i31~'2014
Minnetonka $2.50 $4.50 $4.50 $4.50 - $4.50 $4.50 11;2007 08!09.2018
Monticello $1.95 $5.50 $31.00 $190.00 $12.00 $12.00 $31.00 06 2007 05%312027
Mound $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 01.2010 1231%2010
Mounds View 3.79% 3.79% 3.79% 3.79% 3.79% 3.79% 3.79% 01; 2010 12.31 %2010
Northern States Power Company, a Minnesota corporation
Minneapolis, Minnesota 55401 Updated: 08/01/2010
MINNESOTA CITY SURCHARGES -ELECTRIC
Page2of6
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New Brighton $0.0023 $0.0023 $0.0016 $0.0009 $0.0023 $0.0023 $0.0016 01/2003 11(2512022
per kWh per kWh per kWh per kWh per kWh per kWh per kWh
New Hope $1.50 $4.50 $9.00 $36.00 $4.50 $4.50 $4.50 01 2DOa 12'08!2011
Newport $0.50 $1.00 $6.00 $50.00 $4.00 $1.00 $5.00 01;200' 10;'18 2026
North Mankato $0.75 $1.10 $9.25 $125.00 $13.25 $1.10 $9.25 06%2008 03-31;'2074
Oakdale $1.00 $2.00 $9.00 $7.50 $6.00 $1.50 $7.50 09;2008 10'27!2023
Owatonna $0.0016 per kWh Customer peak demand less than 100 kW In calendar year o 1;`2003 oa~D1 12022
$0.0014 per kWh Customer peak demand greater than 100 kW in calendar year
Prior Lake $1.50 $5.00 $10.00 $50.00 - - - 07;2o0s 03/18/2026
Richfield $2.05 $6.33 $14.08 $91.51 - - - 08!2010 03/12!2027
Robbinsdale 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 0612009 07/01t2071
Bartell a See the fee schedule in the Notes section. 01:2007 12/3112023
Sauk Rapids 3.0% Customers who purchase $50,000 or less in calendar year 0gr2003 OB±15'2023
1.5% That part which exceeds $50,000 in calendar year
South St. Paul ~ 3.0% 3.0% 3.0% 3.0% - - - 07;2000 06%3012015
St.ClOUde 3.0% 3.0% 3.0% 3.0% - - - 09-2007 08/31/2027
2%
purchase
x$100,000 in
calendar year
St. Joseph $1.00 $1.75 $10.00 $8.00 $1.00 $10.00 0212004 11119!2023
1.5%
that part
>$100,000 in
calendar year
St. Louis Park $1.25 $4.00 $10.00 $65.00 - $4.00 $10.00 01;2004 02!18;'2013
St. Michael $2.50 $2.50 $2.50 $10.00 $10.00 $2.50 $10.00 02;`200a 11;`242023
St. Paut" See the fee schedule in the Notes section. 11!2006 08-31.2026
St. Paul Park $1.50 $2.00 $25.00 $335.00 $10.00 $1.00 $5.00 0812005 05:15-2025
Stillwater $2.00 $2.50 $18.00 $125.00 $4.00 $2.00 $18.00 12-2oD3 06130!2015
Watertown $3.00 $4.50 $16.00 $51.00 - $13.50 $21.00 oa-2010 04/10%2D27
Wayzata $2.00 $4.50 $4.50 $15.00 $1.00 $1.00 $1.00 03;2010 1 v30i202fi
West St. Paul ~ 5.26% 5.26% 5.26% 5.26% - - - 1211966 --
White Bear Lake 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 05;1998 05101:2018
Winona 4.0% Customers who purchase $100,000 or less in calendar year 06!2003 os 15!2023
1.5% That part which exceeds $100,000 in calendar year
Northam States Power Company, a Minnesota corporation
Minneapolis, Minnesota 55401 Updated: 08/01/2010
MINNESOTA CITY SURCHARGES -ELECTRIC
Page 3 of 6
NOTES
a Baker: (Not a franchise fee.) Represents a city fee collected to cover energy usage and maintenance on community street lighting.
Coon Rapids: The franchise fee excludes rate schedules for highway IigMing, municipal street lighting, municipal water pumping, municipal fire
sirens, and municipal sewage disposal service.
° Faribault: The franchise fee excludes invoices to the city for street lighting and municipal pumping.
Minneapolis: The franchise fee for the residential customer class will change to 4.5% effective January 1, 2013.
• Sartell: Effective with January of the respectlve years, the monthly franchise fee will be as follows:
• 2007 and 2008 $2.50 • 2013 and 2014 $3.25 • 2019 and 2020 $4.00
• 2009 and 2010 $2.75 • 2015 and 2016 $3.50 • 2021 and 2022 $4.25
• 2011 and 2012 $3.00 • 2017 and 2018 $3.75 • 2023 $4.50
i South St. Paul: The franchise fee excludes rate schedules for highway lighting, municipal street lighting, municipal water pumping, municipal
traffic signals, municipal fire sirens, and municipal sewage disposal service.
e St. Cloud: The franchise fee for residential heating customers will be 1.5% during the months of November -April.
Northern States Power Company, a Minnesota corporation
Minneapolis, Minnesota 55401 Updated: 08/01/2010
MINNESOTA CITY SURCHARGES -ELECTRIC Page 4 of 6
" St Paul: The monthly franchise fee will be as stated below. The residential service franchise fee will be as stated except during the months of
November -April when there will be no fee. The fee shall not exceed $620,000 during any calendar year from any large commercial and
industrial customer qualifying for service on the CompetRfve Market Rider. The schedule below shows the meter, energy, and demand factor for
each year of the St. Paul franchise and for each of the customer classifications.
Customer C{aas Meter Factor -Monthly Charge per Account
Start Date 1-Nov-2006 1-Nov-2008 1-Nov-2010 1-Nov-2012 1-Nov-2014
End Dat® 31-Oct-2008 31-Oct-2010 31-Oct-2012 31-0ct-2014 31-Oct-2016
Residential (May -October) $2.63 32.70 $2.77 $2.84 $2.91
Small Commercial & Industrial
Non-Demand $2.96 33.09 $3.22 $3.35 $3.48
Firm Secondary $2.96 33.09 $3.22 $3.35 $3.48
Firm Primary $2.96 $8A9 $3.22 $3.35 $3.48
Interruptible Secondary $2.96 $3.09 $3.22 $3.35 $3.48
Interruptible Primary $2.96 $3.09 $3.22 $3.35 $3.48
Large Commercial & Industrial
Special $5.04 $5.11 $5.18 $5.25 $5.32
Firm Secondary $5.04 $5.11 $5.18 $5.25 $5.32
Firm Primary $5.04 $5.11 $5.18 $5.25 $5.32
Firm Trans. Transf. $5.04 $5.11 $5.18 $5.25 $5.32
Interruptible Secondary $5.04 $5.1 t $5.18 $5.25 $5.32
Interruptible Primary $5.04 $~.1 i $5.18 $5.25 $5.32
Interruptible TT $5.04 $v:11 $5.18 $5.25 $5.32
Standby Service None None None None None
Public Street & Highway Lighting $6.74 $6.81 $6.88 $6.95 $7.02
Small Municipal Pumping
Non-Demand $2.96 $9.09 $3.22 $3.35 $3.48
Demand Secondary $2.96 $8.09 $3.22 $3.35 $3.48
Demand Primary $2.96 $3.09 $3.22 $3.35 $3.48
Large Municipal Pumping
Demand Primary (Sec cust) $2.96 $3.09 $3.22 $3.35 $3.48
Fire and Civil Defense Siren Service $2.96 $3.09 .22 $3.35 $3.48
Start Date 1-Nov-2016 1-Nov-2018 1-Nov-2020 1-Nov-2022 1-Nov-2024
End Date 31-0ct-2018 31-Oct-2020 31-Oct-2022 31-0ct-2024 31-Au -2026
Residential (May -October) $3.03 $3.15 $3.27 $3.40 $3.54
Small Commercial & Industrial
Non-Demand $3.62 $3.76 $3.91 $4.07 $4.23
Firm Secondary $3.62 $3.76 $3.91 $4.07 $4.23
Firm Primary $3.62 $3.76 $3.91 $4.07 $4.23
Interruptible Secondary $3.62 $3.76 $3.91 $4.07 $4.23
Interruptible Primary $3.62 $3.76 $3.91 $4.07 $4.23
Large Commercial & Industrial
Special $5.53 $5.75 $5.98 $6.22 $6.47
Firm Secondary $5.53 $5.75 $5.98 $6.22 $6.47
Firm Primary $5.53 $5.75 $5.98 $6.22 $6.47
Firm Trans. Transf. $5.53 $5.75 $5.98 $6.22 $6.47
Interruptible Secondary $5.53 $5.75 $5.98 $6.22 $6.47
Interruptible Primary $5.53 $5.75 $5.98 $6.22 $6.47
Interruptible TT $5.53 $5.75 $5.98 $6.22 $6.47
Standby Service None None None None None
Public Street & Highway Ughting $7.30 $7.59 $7.90 $8.21 $8.54
Small Municipal Pumping
Non-Demand $3.62 $3.76 $3.91 $4.07 $4.23
Demand Secondary $3.62 $3.76 $3.91 $4.07 $4.23
Demand Primary $3.62 $3.76 $3.91 $4.07 $4.23
Large Municipal Pumping
Demand Primary (Sec cust) $3.62 $3.76 $3.91 $4.07 $4.23
Fire and Civil Defense Siren Service $3.62 $3.76 $3.91 $4.07 $4.23
Northam States Power Company, a Minnesota corporation
Minneapolis, Minnesota 55401 Updated: 08/01/2010
MINNESOTA CITY SURCHARGES -ELECTRIC
St. Paul: (continued)
Page 5 of 6
CustUrner Class Eriergy Factor -Monthly Charge per Account
Start Date 1-Nov-2006 1•Nov-20D6 1-Nov-2010 1-Nov-2012 1-Nov-2014
End Date 31-0ct-2008 31-Oct-2010 31-Oct-2012 31-Oct-2014 31-Oct-2016
Residential (May -October) $0.0094 $0.0095 $0.0096 $0.0097 $0.0098
Small Commercial & IndusMal
Non-Demand $0.0040 $0.W40 $0.0040 $0.0040 $0.0040
Firm Secondary $0.0018 $t1.0018 $0.0018 $0.0018 $0.0018
Firm Primary $0.0018 $0A018 $0.0018 $0.0018 $0.0018
Interruptible Secondary $0.0018 $G.O018 $0.0018 $0.0018 $0.0018
Interruptible Primary $0.0018 $0.0018 $0.0018 $0.0018 $0.0018
Large Commercial & Industilal
Special $0.0028 5a oo2s $0.0028 $0.0028 $0.0028
F(rm Secondary $0.0013 So.oo ~ 3 $0.0013 $0.0013 $0.0013
Flnn Primary $0.0013 50.0013 $0.0013 $0.0013 $0.0013
Firm Trans. Transf. $0.0013 50.00 ~ 3 $0.0013 $0.0013 $0.0013
Interruptible Secondary $0.0013 ; 0.0013 $0.0013 $0.0013 $0.0013
Interruptible Primary $0.0013 50.0013 $0.0013 $0.0013 $0.0013
Interruptible TT $0.0013 yU.t}U13 $0.0013 $0.0013 $0.0013
Standby Service None None None None None
Public Street & Highway Ughting $0.0040 $0:0{l40 $0.0040 $0.0040 $0.0040
Small Municipal Pumping
Non-Demand $0.0040 $0.0040 $0.0040 $0.0040 $0.0040
Demand Secondary $0.0018 $0.0018 $0.0018 $0.0018 $0.0018
Demand Primary $0.0018 $0.0018 $0.0018 $0.0018 $0.0018
Large Municipal Pumping
Demand Primary (Sec cust) $0.0018 $0.0018 $0.0018 $0.0018 $0.0018
Fire and Civil Defense Siren Service $0.0018 $0.0018 $0.0018 $0.0018 $0.0018
Start Date 1-Nov-2016 1-Nov-2018 1-Nov-2020 1-Nov-2022 1-Nov-2024
End Date 31-Oct-2018 31-0Ct-2020 31-0Ct-2022 31-Oct-2024 31-Au -2026
Residential (May -October) $0.0102 $0.0106 $0.0110 $0.0115 $0.0119
Small Commercial & Industrial
Non-Demand $0.0042 $0.0043 $0.0045 $0.0047 $0.0049
Firm Secondary $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Firm Primary $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Interruptible Secondary $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Interruptible Primary $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Large Commercial & Industrial
Special $0.0029 $0.0030 $0.0031 $0.0033 $0.0034
Firm Secondary $0.0014 $0.0014 $0.0015 $0.0015 $0.0016
Flan Primary $0.0014 $0.0014 $0.0015 $0.0015 $0.0016
Flnn Trans. Transf. $0.0014 $0.0014 $0.0015 $0.0015 $0.0016
Interruptible Secondary $0.0014 $0.0014 $0.0015 $0.0015 $0.0016
Interruptible Primary $0.0014 $0.0014 $0.0015 $0.0015 $0.0016
Interruptible TT $0.0014 $0.0014 $0.0015 $0.0015 $0.0016
Standby Service None None None None None
Public Street & Highway Lighting $0.0042 $0.0043 $0.0045 $0.0047 $0.0049
Small Municipal Pumping
Non-Demand $0.0042 $0.0043 $0.0045 $0.0047 $0.0049
Demand Secondary $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Demand Primary $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Large Municipal Pumping
Demand Primary (Sec cust) $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Flre and Civil Defense Siren Service $0.0019 $0.0019 $0.0020 $0.0021 $0.0022
Northam States Power Company, a Minnesota corporation
Minneapolis, Minnesota 55401 Updated: 08/01!2010
MINNESOTA CITY SURCHARGES -ELECTRIC
Page 6 of 6
St. Paul: (continued)
Customer Class Demand~Factor-MonthlyChargB per Account
Start Dete 1-Nov-2006 1»Nov-2008 1-Nov-2010 1-Nov-2012 1-Nov-2014
End Date 31-Oct-2008 31-Oct-2010 31-Oct-2012 31-0ct-2014 31-Oct-2016
Residental (May -October) None None None None None
Small Commercial & Industrial
Non-Demand None None None None None
Firm Secondary $1.10 S 1. i 0 $1.10 $1.10 $1.10
Firm Primary $1.06 51.06 $1.06 $1.06 $1.06
Interruptible Secondary $1.10 57.10 $1.10 $1.10 $1.10
Interruptible Primary $1.06 S1.o6 $1.06 $1.06 $1.06
Large Commercial & Industrial
Special None None None None None
Finn Secondary $1.10 s~ . ~ o $1.10 $1.10 $1.10
Firm Primary $1.06 ~1.os $1.06 $1.06 $1.06
Firm Trans.Transf. $1.06 S1.o6 $1.06 $1.06 $1.06
Interruptible Secondary $0.81 80.81 $0.81 $0.81 $0.81
Interruptible Primary $0.71 X0.71 $0.71 $0.71 $0.71
Interruptible TT $0.51 So.5a $0.57 $0.60 $0.63
Standby Service $0.30 X0.33 $0.36 $0.39 $0.42
Public Street & Highway UgMing None None None None None
Small Municipal Pumping
Non-Demand None None None None None
Demand Secondary $1.10 S 1.10 $1.10 $1.10 $1.10
Demand Primary $1.06 $1.06 $1.06 $1.06 $1.06
Large Municipal Pumping
Demand Primary (Sec Gust) $1.06 $1.06 $1.06 $1.06 $1.06
Fire and Civil Defense Siren Service $1.06 $1.06 $1.06 $1.06 $1.06
Start Date 1-Nov-2016 1-Nov-2018 1-Nov-2020 1-Nov-2022 1-Nov-2024
End Date 31-0ct-2018 31-0ct-2020 31-Oct-2022 31-Oct-2024 31-Au -2026
Residential (May -October) None None None None None
Small Commercial & Industrial
Non-Demand None None None None None
Firm Secondary $1.14 $1.19 $1.24 $1.29 $1.34
Finn Primary $1.10 $1.15 $1.19 $1.24 $1.29
Interruptible Secondary $1.14 $1.19 $1.24 $1.29 $1.34
Interruptible Primary $1.10 $1.15 $1.19 $1.24 $1.29
Large Commercial & Industrial
Special None None None None None
Firm Secondary $1.14 $1.19 $1.24 $1.29 $1.34
Firm Primary $1.10 $1.15 $1.19 $1.24 $1.29
Firm Trans. Transf. $1.10 $1.15 $1.19 $1.24 $1.29
Interruptible Secondary $0.84 $0.88 $0.91 $0.95 $0.99
Interruptible Primary $0.74 $0.77 $0.80 $0.83 $0.86
Interruptible TT $0.66 $0.68 $0.71 $0.74 $0.77
Standby Service $0.44 $0.45 $0.47 $0.49 $0.51
Public Street & Highway Lighting None None None None None
Small Municipal Pumping
Non-Demand None None None None None
Demand Secondary $1.14 $1.19 $1.24 $1.29 $1.34
Demand Primary $1.10 $1.15 $1.19 $1.24 $1.29
Large Municipal Pumping
Demand Primary (Sec Gust) $1.10 $1.15 $1.19 $1.24 $1.29
Fire and Civil Defense Siren Service $1.10 $1.15 $1.19 $1.24 $1.29
West St. Paul: (Not a franchise fee.) Represents a city fee on gross earnings derived from the sale of electricity within the city pursuant to city
code (approved in 1966). The gross earnings sum excludes electric energy supplied to the city for municipal services.
ORDINANCE N0.447, 2ND SERIES
ELECTRIC FRANCHISE ORDINANCE
CITY OF GOLDEN VALLEY, HENNEPIN COUNTY, MINNESOTA
AN ORDINANCE REQUIRING AN ELECTRIC FRANCHISE FEE FROM
NORTHERN STATES POWER D/B/A XCEL ENERGY FOR PROVIDING
ELECTRIC SERVICE WITHIN THE CITY OF GOLDEN VALLEY
THE CITY OF GOLDEN VALLEY ORDAINS:
SECTION 1. The City Code is hereby amended as follows:
Subd. 1. Purpose. In order to defray infrastructure and related costs of the Douglas
Drive Reconstruction Project ("Project"), the 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 Golden Valley pursuant to City Ordinance No.
394, 2nd Series, a Franchise Agreement between the City and Northern States Power
Company, d/b/a Xcel Energy ("Company").
Subd. 2. Franchise Fee Statement. This ordinance sets forth the terms and
conditions under which Xcel shall collect an electric franchise fee from customers located
within the City. The fee and payment schedule is attached hereto and made a part of this
ordinance. The Company will begin collection of the fee, after notice to customers, within
sixty (60) days after the City Council adopts this ordinance. Except as modified in this
Ordinance, the City reaffirms the provisions of Ordinance 394, 2nd Series, including its right
to modify this franchise fee.
Subd. 3. Payment and Fee Design. The franchise fee shall be payable to the City in
accordance with the schedule attached as Exhibit A. This is an account-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.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities
Commission allows the utility company to add a surcharge to customer rates to reimburse
such utility company for the cost of the fee and that Company will surcharge its customers
in the City the amount of the fee.
Subd. 5. Right of Way Permit Fees Waiver. Beginning the date the Company begins
collecting franchise fees from customers in the City until the City gives notice to Company
of City's desire to impose both franchise fees and require permit fees pursuant to chapter 7
of the City Code ("Permit Fees"), City waives any and all Permit Fees the City would
otherwise have the right to impose on Company. If the City intends to require both Permit
Fees and franchise fees from the Company, the City shall give the Company thirty (30)
days written notice of such intent before charging Permit Fees. Company does not hereby
waive its right to object to a City withdrawal of this waiver of Permit Fees, and reserves all
rights under law. Notwithstanding the above Permit Fee waiver, Company shall remain
subject to all other requirements of chapter 7 of the City Code not superseded by the
specific terms of Ordinance 394, 2nd Series.
Subd. 6. Record Support for Payment. Company shall make each payment when
due and, if requested by the City, shall provide at the time of each payment a statement
summarizing how the franchise fee payment was determined, including information
showing any adjustments to the total surcharge billed in the period for which the payment is
being made to account for any uncollectibles, refunds or error corrections.
Subd. 7. Enforcement. Any dispute, including enforcement of a default regarding this
ordinance, will be resolved in accordance with Section 2.5 of Ordinance 394, 2nd Series.
Subd. 8. Effective Date of Franchise Fee. Notwithstanding the effective date of this
ordinance and notwithstanding any contrary provisions in the Franchise, the effective date
of the fee collected under subdivision 2 of this ordinance is the later of ten (10) days after
the publication or after the sending of written notice enclosing a copy of this adopted
ordinance upon Company by certified mail. Fee collection under this ordinance will
commence in accordance with the terms set forth in subdivision 2.
Subd. 9. City Use of Franchise Fees Collected by the Company and Sunset of Fee.
The City shall use the fees collected by Company only for infrastructure costs incurred on
the Project and for no other purpose. For purposes of this ordinance, infrastructure costs on
the Project shall include City expenditures, including those financed by bonds, for any and
all design and construction, including all associated Project administration and related
costs, maintenance, repair, improvement to, relocation of, or replacement of facilities,
including City or privately-owned utility facilities for which customers in the City would
otherwise be required to pay; and acquisition or improvement of rights-of--way or other
public ground for the Project. The City Council shall determine the sunset date for this fee
at the time it is advised of a maturity date certain for bonds issued to finance the Project.
The fee sunset date shall be on or about the latest maturity date of any bonds issued to
finance the Project.
SECTION 2. This ordinance takes effect as provided herein.
Adopted by the City Council this 5th day of October, 2010.
Linda R. Loomis, Mayor
ATTEST:
Susan M. Virnig, City Clerk
(This ordinance will be uncodified and referenced in Chapter 25 of the City Code).
EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class Fee Per Meter. Monthly
Residential $ 2.00
Small Commercial & Industrial -Non-Demand $ 2.00
Small Commercial & Industrial -Demand $ 22.50
Large Commercial & Industrial $206.00
Franchise fees are to be collected by the Company in the amounts set forth in the above
schedule, and submitted to the City on a quarterly basis 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
ORDINANCE N0.447, 2ND SERIES
ELECTRIC FRANCHISE ORDINANCE
CITY OF GOLDEN VALLEY, HENNEPIN COUNTY, MINNESOTA
AN ORDINANCE REQUIRING AN ELECTRIC FRANCHISE FEE FROM
NORTHERN STATES POWER D/B/A XCEL ENERGY FOR PROVIDING
ELECTRIC SERVICE WITHIN THE CITY OF GOLDEN VALLEY
THE CITY OF GOLDEN VALLEY ORDAINS:
SECTION 1. The City Code is hereby amended as follows:
Subd. 1. Purpose. In order to defray infrastructure and related costs of the Douglas
Drive Reconstruction Project ("Project"), tThe ey 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 Golden Valley.- pursuant to City
Ordinance No. 394, 2nd Series, a Franchise Agreement between the City and Northern
States Power Company, d/b/a Xcel Energy ("Company"), +"° ~'~*~~ "~° +"° ~,,,"+ +„ c.,.,.,,,~° ,
• ,
ch.~ll r°nn+i~+° .~ c.°r~.~r~+° ~fr.~ni."ic.° f°° i+~rlin~+nn°
Subd. 2. Franchise Fee Statement. This ordinance sets forth the terms and
conditions under which Xcel shall collect an electric franchise fee from customers located
within the City. The fee and payment schedule is attached hereto and made a part of this
ordinance. The Company will begin collection of the fee, after notice to customers, within
sixty (60) days after the City Council adopts this ordinance. Except as modified in this
Ordinance, the City reaffirms the provisions of Ordinance 394, 2nd Series, including its right
to modify this franchise fee.
Subd. 3. Payment and Fee Design. The franchise fee shall be payable to the City in
accordance with the schedule attached as Exhibit A. This is an account-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.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities
Commission allows the utility company to add a surcharge to customer rates to reimburse
such utility company for the cost of the fee and that Company will surcharge its customers
in the City the amount of the fee.
Subd. 5. Right of Way Permit Fees Waiver. Beginning the date the Company begins
collecting franchise fees from customers in the City until the City gives notice to Company
of City's desire to impose both franchise fees and require permit fees pursuant to chapter 7
of the City Code ("Permit Fees"), City waives any and all Permit Fees the City would
otherwise have the right to impose on Company. If the City intends to require both Permit
Fees and franchise fees from the Company, the City shall give the Company thirty (30)
days written notice of such intent before charging Permit Fees. Company does not hereby
waive its right to object to a City withdrawal of this waiver of Permit Fees, and reserves all
rights under law. Notwithstanding the above Permit Fee waiver, Company shall remain
subject to all other requirements of chapter 7 of the City Code not superseded by the
specific terms of Ordinance 394, 2nd Series.
Subd. 6. Record Support for Payment. Company shall make each payment when
due and, if requested by the City, shall provide at the time of each payment a statement
summarizing how the franchise fee payment was determined, including information
showing any adjustments to the total surcharge billed in the period for which the payment is
being made to account for any uncollectibles, refunds or error corrections.
Subd. 7. Enforcement. Any dispute, including enforcement of a default regarding this
ordinance, will be resolved in accordance with Section 2.5 of Ordinance 394, 2nd Series.
Subd. 8. Effective Date of Franchise Fee. Notwithstanding the effective date of this
ordinance and notwithstanding any contrary provisions in the Franchise, the effective date
of the fee collected under subdivision 2 of this ordinance is the later of ten (10) days after
the publication or after the sending of written notice enclosing a copy of this adopted
ordinance upon Company by certified mail. Fee collection under this ordinance will
commence in accordance with the terms set forth in subdivision 2.
Subd. 9. City Use of Franchise Fees Collected by the Company and Sunset of Fee.
fr.~nnhicc foo nn men+orDnin+ Cnerrni' +The City shall use the fees collected by Company
only for infrastructure costs incurred on the Project and for no other
purpose. For purposes of this ordinance, infrastructure ~ejests costs on the Project shall
include C~ expenditures, including those financed by bonds, for any and all design and
construction, including all associated Proiect administration and related costs,
maintenance, repair, improvement to, relocation of, or replacement of facilities, including
City or privately-owned utility facilities for which customers in the City would otherwise be
required to pay; and acquisition or improvement of rights-of--way or a~ other public ground,
for the Project
taw: The City Council shall determine the sunset date for this fee at the time it is advised of
a maturity date certain for bonds issued to finance the Proiect. The fee sunset date shall be
on or about the latest maturity date of any bonds issued to finance the Project.
SECTION 2. This ordinance takes effect as provided herein.
Adopted by the City Council this ~ 5th day of ~e~ October, 2010.
Linda R. Loomis, Mayor
ATTEST:
Susan M. Virnig, City Clerk
(This ordinance will be uncodified and referenced in Chapter 25 of the City Code).
EXHIBIT A
XCEL ENERGY ELECTRIC FRANCHISE
FEE SCHEDULE
Class Fee Per Meter, Monthly
Residential $ 2.00
Small Commercial & Industrial -Non-Demand $ 2.00
Small Commercial & Industrial -Demand $ 22.50
Large Commercial & Industrial $206.00
Franchise fees are to be collected by the Company in the amounts set forth in the above
schedule, and submitted to the City on a quarterly basis 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
B R I C- +G S ~~'~`~`~
August 12, 2010
>~~~~~~
Minneapolis MN 55402-2157
a ro o, te1612.977.8400
fax 612977.8550
V1tA ~MATL~ ~ ~s~s.M~
James M, Stmmmei~, Esq.
Kennedy & Graven, Chartered
470 U.S.13aunk Plaza
200 South Sixth Sheet ~; i
Minneapolis, MIST SS402'~"'
Thomas J. Basting, Jr.
{612) 977-8405
tbastingQbriggs.com
Re: City of Golden Valley Proposed Franchise Fee Ordinance
Aear Mr. Strommen:
I am writing with regard to the ongoing negotiations between Xcel Energy and Golden
Valley concerning proposed franchise fee terms; specifically those terms set forth in your August
S memorandum to Pat Cline and Michelle Swanson. I want to begin by thanlang you and
Golden Valley city staff for your efforts iri working with Xcel Energy representatives towards
the goal of reaching mutually-acceptable franchise fee terms. For the reasons set forth below,
however, Xcel Energy canno# accept the franchise fee fierms proposed in .your August 5
memorandum.
Xcei Energy's primary objection is that the proposed unilateral franchise fees would
place Xcel Energy at a competitive disadvantage vis-~-vis other energy suppliers within Golden
Valley. 'W'hile all energy markets are competitive, this is particularly true for commercial energy
users who often have resources allowing them to switch between energy sourrces in order to
minimize energy costs. Agreeing to municipal franchise fees imposed on its customers when
equivalent fees are not unposed on customers of other energy suppliers within the City, would
place Xcel Energy at a competitive price disadvantage. For this reason, Xcel Energy's
longstanding policy has been to negotiate equivalent fee provisions with those municipalities
seeking to impose franchise fees. Almost universally, Xcel Energy's munaicipal franchise fee
agreements contain an equivalent fee provision sand are imposed uniformly on all energy
suppliers within a municipality. The rare exception where Xcel Energy has ageeed to collect
franchises fees from its customers when equivalent fees are not imposed on other energy
suppliers is limited to the situation where reasonable Eranchi~ fees are, dedicated exclusively
toward improving Xcel Energy facilities. In such a circtunstance, such as with the Minnetonka
ordinance which we discussed, the competitive disadvantage to Xcel Energy may be offset by
improvement to company facilities.
Briggs and Nbrga», Professional AssadetiDn
Minneapolis t St. Pevl I www.ixk~gscom
Member • Lex Mund6 a U'tobal Assorfaiton ~ tndepeniiQru Law Rrnu
BRIGGS aNO MORGAN
James M. Strommen, Esq.
August l2, 2010
Page 2
The franchise fee terms proposed in your August 5 memorandum do not assuage Xcel
Energy's concerns. Under your August 5 proposal, Xcel Energy would have already lost
multiple customers before the City would even consider imposing equivalent franchise fees on
other energy suppliers within the City. The damage would already be done. And even if Xcel
Energy were to lose multiple customers, your August 5 proposal would leave the decision ti4
impose equivalent fees on other energy suppliers entirely within Golden Valley's discretioa.
Such discretionary 'decision-making would be nearly impossr'ble t4 a+dminis6rate. Finally, ~e
future of energy technplogy is uncertain and difficult to predict. Xcel Energy cannot agree to
place itself at a competitive price disadvantage when the future effects of such action cannot be
known. ~'~~
While this letter fbcu~s on the equivalent fee provision proposed in your August S
memorandum, other issues need to be resolved including, but not limited to, terms concerning
franchise fees in lieu of permit fees.
Because Franchise Section 2.5 requires the parties ~ meet within 30 days after written
notice of a dispute between the parties for good faith negotiation of the dispute, please contact
me at your earliest convenience to schedule a such a meeting. It is my understanding that City
staff have placed their proposed fee ordinance on the Golden Valley City Council agenda for
consideration next Tuesday, August 17. Because the Franchise dispute resolution procedure
requires good faith negotiation of franchise fee terms, I request that consideration of the staff
proposed fee ordinance be postponed to allow the dispute resolution procedure to run its course.
It is Xcel Energy's sincere hope and belief that Xcel Energy and Golden Valley will be
able to reach mutually-agreeable franchise fee terms through the formal dispute resolution
process.
Sincerel
Thom . B g, Jr.
TJBl~nc
cc: Golden Va11ey City Manager
P. Cline
M. Swanson
J. Thulien-Smith
z~aaslo~n