HomeMy WebLinkAboutOrdinance - 23-2012 - MN Valley Electric Franchise Fee Ordinance - 06/28/2012 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
ELECTRIC FRANCHISE FEE ORDINANCE
ORDINANCE NO. 23-2012
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
MINNESOTA VALLEY ELECTRIC COOPERATIVE, A MINNESOTA CORPORATION,
ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN
THE CITY OF EDEN PRAIRIE
THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE DOES ORDAIN:
SECTION 1. The City of Eden Prairie Municipal Code is hereby amended to include
reference to the following Special Ordinance.
Subdivision 1. Purpose. The Eden Prairie 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 Eden Prairie.
(a) Pursuant to City Ordinance 22-2012, a Franchise Agreement between the City of
Eden Prairie and Minnesota Valley Electric Cooperative, a Minnesota corporation,
its successors and assigns, the City has the right to impose a franchise fee on,
Minnesota Valley Electric Cooperative, a Minnesota corporation, its successors
and assigns, in an amount and fee design as set forth in Section 9.1 of the
Minnesota Valley Electric Cooperative Franchise and in the fee schedule attached
hereto as Schedule A.
Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on
Minnesota Valley Electric Cooperative, 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 Minnesota Valley Electric Cooperative September, 2012
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 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
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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 9.4 of the Franchise.
Subdivision 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 Minnesota Valley Electric Cooperative will
surcharge its customers in the City the amount of the fee.
Subdivision 5. Record Support for Payment. Minnesota Valley Electric Cooperative
shall make each payment when due and, if required 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.
Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding
this 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 Minnesota Valley Electric Cooperative by certified mail.
Collection of the fee shall commence as provided above.
FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the
5`h day of June, 2012, and finally read and adopted and ordered published in summary form as
attached hereto at a regular meeting of the City Council of said City on the 19`h day of June,
2012.
ATTEST:
Ka leen Porta, City Clerk Na c ra-Lu s, or
Published in the Eden Prairie News on the 28`h day of June, 2012.
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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 Amount per month
Residential $2.50
Sm C & I—Non-Dem $3.00
Sm C & I—Demand $10.00
Large C & I $45.00
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 April 30.
April —June collections due by July 31.
July—September collections due by October 31.
October—December collections due by January 31.
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CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
SUMMARY OF ORDINANCE 22-2012 (FRANCHISE)
AND
ORDINANCE 23-2012 (FRANCHISE FEE)
AN ORDINANCE (FRANCHISE ORDINANCE) GRANTING TO THE MINNESOTA
VALLEY ELECTRIC COOPERATIVE (MVEC), ITS SUCCESSORS AND ASSIGNS,
PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY
OF EDEN PRAIRIE, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND
TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND
APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE
CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROUNDS
AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES.
AND
AN ORDINANCE (FRANCHISE FEE ORDINANCE) IMPLEMENTING AN ELECTRIC
SERVICE FRANCHISE FEE ON MINNESOTA VALLEY ELECTRIC COOPERATIVE, A
MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING
ELECTRIC SERVICE WITHIN THE CITY OF EDEN PRAIRIE
Summaries:
The Franchise Ordinance grants Minnesota Valley Electric Cooperative ("MVEC") a franchise
to construct, operate, repair and maintain an electric distribution system and transmission lines
for the famishing of electric energy in the City of Eden Prairie and to use the public grounds and
public ways of the City for such purposes. The ordinance regulates among other matters the
location of facilities, street openings and restoration obligations. The ordinance further allows
the City to impose on the MVEC a franchise fee which MVEC will collect from users.
The Franchise Fee Ordinance implements commencing in September, 2012 an electric service
franchise fee on the Company for providing electric energy within the City. The Franchise Fee
schedule is:
Class Amount per month
Residential $2.50
Sm C & I—Non-Dem $3.00
Sm C &I—Demand $10.00
Large C & I $45.00
Effective Date: The Franchise Ordinance shall be in force and effect from and after passage of
this Ordinance, its acceptance by MVEC and its publication. The Franchise Fee Ordinance is
effective after its publication and ninety (90) days after the sending of written notice enclosing a
copy of the adopted Franchise Fee Ordinance to MVEC by certified mail.
ATTEST:
Ka een Porta, City Clerk cy -Lu s, ayo
PUBLISHED in the Eden Prairie News on June 28, 2012..
(A full copy of the text of this Ordinance is available from City Clerk.)
CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,
MINNESOTA
SUMMARY OF ORDINANCE22-
2012(FRANCHISE)AND
ORDINANCE23-2012 Affidavit of Publication
(FRANCHISE FEE)
AN ORDINANCE)
GRANTING
Southwest Newspapers
ORDINANCE)GRANTING TO THE
MINNESOTA VALLEY ELECTRIC
COOPERATIVE(MVEC),ITS SUC-
CESSORS AND ASSIGNS,PERMIS-
SION TO CONSTRUCT,OPERATE, State of Minnesota
REPAIR AND MAINTAIN IN THE
CITY OF EDEN PRAIRIE,MINNE- )SS.
SOTA,AN ELECTRIC DISTRIBU-
TION SYSTEM AND TRANSMIS- Y Hennepin
SION LINES,INCLUDING NECES-
SARY POLES, LINES, FIXTURES
AND APPURTENANCES,FOR THE
FURNISHING OF ELECTRIC EN- Laurie A. Hartmann, being duly sworn, on oath says that she is the authorized agent of the
ERGY TO THE CITY,ITS INHABIT- publisher of the newspaper known as the Eden Prairie News and has full knowledge of the facts
ANTS,AND OTHERS,AND TO USE
THE PUBLIC GROUNDS AND PUB- herein stated as follows:
LIC WAYS OF THE CITY FOR SUCH
PURPOSES AND AN ORDINANCE (A)This newspaper has complied with the requirements constituting qualification as a legal
(FRANCHISE FEE ORDINANCE) newspaper,as provided by Minnesota Statute 331A.02,331A.07,and other applicable laws,as
IMPLEMENTING AN ELECTRIC amended.
SERVICE FRANCHISE FEE ON
MINNESOTA VALLEY ELECTRIC (B)The printed public notice that is attached to this Affidavit and identified as No,yilo—
COOPERATIVE, A SUCCESSORS
MINNESOTAwas published on the date or dates and in the newspaper stated in the attached Notice and said
CORPORATION,ITS SUCC AND ASSIGNS, FOR PROVIDING Notice is hereby incorporated as part of this Affidavit.Said notice was cut from the columns of
ELECTRIC SERVICE WITHIN THE the newspaper specified. Printed below is a copy of the lower case alphabet from A to Z,both
CITY OF EDEN PRAIRIE inclusive,and is hereby acknowledged as being the kind and size of type used in the composition
Summaries: and publication of the Notice:
The Fr_ailc}lise O�_rfir�arlcF
grants Minnesota Valley Electric abcdefghijklmnopgrstuvwxyz
Cooperative("MVEC")a franchise
to construct, operate, repair and J h
maintain an electric distribution
system and transmission lines for $y;
thefurnishingof electricenergyin
the City of Eden Prairie and to use Laurie A. Hartmann
the public grounds and public ways
of the City for such purposes.The
ordinance regulates among other Subscribed and sworn before me on
matters the local „ of facilities,
street openings + nrl restoration
obligations. The. ,nance further y
allows the City r iinpose on the
this day of 2012
MVEC a franchi,; 'Xhirh NIVE,C
will collect front
The Franchi
implements commencing in Sep-
tember, 2012 an electric service
franchise fee on the Company for ,`y NOTARY PUBLIC-MINNESOTA
providing electric energy within Trot ypblic MY COMMISSION EXPIRES01/31/13
the City.The Franchise Fee sched-
ule is:
clas-s AJllo-W11ver month
Residential $2.50
Sm C&1-Non-Dem $:1.00
Sin C&I-Demand $1.0.00
Large C&I $45an RATE INFORMATION
Effective Date: The F�s�nrhis?
Q_rdjnanee shall be in force and ef- Lowest classified rate paid by commercial users for cornparable space...$31.20 per column inch
feet from and after passage of this Maximum rate allowed by law for the above matter...................................$31.20 per column inch
Ordinance,its acceptance by MVEC
and its publication.The Fxmid ise Rate actually charged for the above matter...............................................$12.59 per column inch
F e Qrdilllr.ttc�is effective after its
publication and ninety (90) days
after the sending of written notice
enclosing it copy of the adopted
Franchise Fee OrtUanoe to MVEC
by certified mail.
Nancy Tyra-Lukens,Mayor
ATTEST: Kathleen Porta,City
Clerk
(A full copy of the text of this
Ordinance is available from City
Clerk.)
(Published in the Eden Prairie
News on Thursday, June 28, 2012;
No.3355)