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Home My WebLink AboutOrdinance - 3-2018 - MN Valley Franchise Fee - 01/11/2018 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 3-2018 ELECTRIC FRANCHISE FEE ORDINANCE 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 April, 2018 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 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. Subdivision 8. Repeal of Franchise Fee Ordinance No. 23-2012. Ordinance 23-2012 is repealed effective as of the date of commencement of the franchise fee provided for herein in April, 2018 as specified in Subdivision 2. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 12'h day of December, 2017, 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 2"d day of January, 2018. N cy Ka-I.Ae �, �Ior ATTEST: Ka Teen Porta, City Clerk 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 $4.00 Sm C & I—Non-Dem $5.00 Sm C & I—Demand $12.50 Large C & I $55.00 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. CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA SUMMARY OF ORDINANCE 3-2018 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 Summary: The Ordinance implements,commencing in April, 2018,an electric service franchise fee on the Company for providing electric energy within the City.The Franchise Fee schedule is: Affidavit of Publication 9mcai-pmmd $ 52-5 Southwest Newspapers 5mC�I—D�mmd Slz-51! IarC&I $55.01) Effective Date:The effective date of the Ordinance shall be after f Minnesota ) its publication and ninety(90)days after the sending of written notice enclosing a copy of the adopted Ordinance to the Company by )SS. certified mail. of Hennepin ) 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,January 11,2018;lartmann being duly sworn, on oath says that she is the authorized agent of the No.3287)_ _-- is f the newspapers known as the Eden Prairie News and Lakeshore Weekly News and has full knowledge of the facts herein stated as follows: (A) This newspaper has complied with the requirements constituting qualification as a legal newspaper,as provided by Minnesota Statute 331A.02,331A.07,and other applicable laws,as amended. (B)The printed public notice that is attached to this Affidavit and identified as No. ' was published on the date or dates and in the newspaper stated in the attached Notice and sai7 Notice is hereby incorporated as part of this Affidavit.Said notice was cut from the columns of the newspaper specified.Printed below is a copy of the lower case alphabet from A to Z,both inclusive,and is hereby acknowledged as being the kind and size of type used in the composition and publication of the Notice: abcdefghWmnopgrstuvwxyz Laurie A.Hartmann Subscribed and sworn before me on this day of 018 ru. JYMME JEANNETTE BARK NOTARY PUBLIC•MINNESOTA MY COMMISSION EXPIRES 01131123 Public RATE INFORMATION Lowest classified rate paid by commercial users for comparable space...$31.20 per column inch Maximum rate allowed by law for the above matter...................................$31.20 per column inch Rate actually charged for the above matter...............................................$12.97 per column inch