ORD 2022-08 An Ordinance Implementing an Electric Service Franchise Fee on Elk River Municipal Utilities, a MN Municipal Utility Operating Pursuant to MN Statues,, Its Successors and Assigns, for Providing Electric Service within Otsego, MNORDINANCE 1,40.2022-08
CITY OF OTSEGO
WRiGHT COUNTY, NIINNESOTA
ELECTRIC FRANCHISE ORDINANCE
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE
ON ELK RIVER MUNICIPAL UTILITIES, A MINNESOTA MUNICIPAL UTILITY
OPERATING PURSUANT TO MINNESOTA STATUTES, SECTIONS 412.321 TO
412.391, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC
SERVICE WITHIN THE CITY OF OTSEGO, MINNESOTA
THE CITY COUNCIL OF THE CITY OF OTSEGO ORDAINS:
SECTION 1. The City of Otsego City Code is hereby amended to include reference to the
following Special Ordinance.
Subdivision 1. Purpose. The Otsego 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 Otsego. Pursuant to City Ordinance 2021-21, (adopted
October 25, 2021), a Franchise Agreement between the City of Otsego and Elk River Municipal
Utility ("ERMU"), a Minnesota municipal utility, its successors and assigns, the City has the
right to impose a franchise fee on Elk River Municipal Utility, its successors and assigns, in an
amount and fee design as set forth in the fee schedule attached hereto as Schedule A.
Subdivision 2. Terms. A franchise fee is hereby imposed on Elk River Municipal
Utility, a Minnesota municipal utility, 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 ERMU's October 2022 billing month.
The fee shall be in lieu of any permit or other fees being imposed on ERMU under the
City Code. This fee is an account -based fee on each premise and not ameter-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 ERMU 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 ERMU 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 ERMU's
manner of billing for energy used at all similar premises in the city will control.
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Subdivision 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.
Subdivision 4. Surcharge. The City recognizes that ERMU may add a surcharge to
customer rates for the cost of the fee.
Subdivision 5. Equivalent Fee Requirement. This ordinance shall not be effective
against ERMU unless it lawfully imposes and the City monthly or more often collects a fee or tax of
the same or greater equivalent amount on the receipts from sales of energy within the City by any
other energy supplier, provided that, as to such a supplier, the City has the authority to require a
franchise fee or to impose a tax pursuant to Minnesota Statutes, Section 21613.36. The "same or
greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a
franchise fee from each similar customer, or by comparing, as to similar customers the percentage
of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee
or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting,
or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing
fuel for vehicles. If the ERMU specifically consents in writing to a franchise or separate ordinance
collecting or failing to collect a fee from another energy supplier in contravention of this section, the
foregoing conditions will be waived to the extent of such written consent.
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 ERMU by certified mail. Collection of the fee shall
commence as provided above.
ADOPTED this 23rd day of May, 2022 by the City Council of the City of Otsego,
Minnesota.
Attest:
Bethany Ben g, Depu Jerk
Date Published:
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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
Residential
in C & I — Non-Dem
Sm C & I —Demand
Large C & I
Public Street Ltg
Muni Pumping N/D
Muni Pumping — Dem
Amount per month
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 Apri130.
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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SUMMARY ORDINANCE 1140.2022-08
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
AN ORDINANCE ESTABLISHING A FRANCHISE FEE FOR
ELK RIVER MUNICIPAL UTILITY
Ordinance Number 2022-08 was recently adopted by the City Council. Because of the lengthy
nature of the ordinance, the following summary of the ordinance has been prepared for publication
as authorized by law.
The Ordinance imposes a franchise fee on Elk River Municipal Utility, a Minnesota municipal
utility, its successors and assigns as part of the franchise previously granted the ERMU by ordinance
number 2021-21.
Ordinance 2022-08 provides for the imposition, collection, quarterly payment, and periodic auditing
of a franchise fee at the following rates:
Class
Residential
Sm C & I — Non -Derr
Sm C & I — Demand
Large C & I
Amount per month
$ 5.00
$ 40.00
$ 95.00
Printed copies of both ordinances are available for inspection by any person during the City
Hall regular office hours.
Approved for publication by the City Council of the City of Otsego, Minnesota this 23rd
day of May, 2022.
ATTEST:
Bethany Beritf�ig, Dep�i�'y Clerk
0
:I OF OTSEGO
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA ) ss
COUNTY OF SHERBURNE
Karen Nelson being duly sworn on an oath,
states or affirms that he/she is the Publisher's
Designated Agent of the newspaper(s) known
as:
Star News
with the known office of issue being located
in the county of: 1.
SHERBURNE
with additional circulation in the counties of:
WRIGHT
and has full knowledge of the facts stated
below:
(A) The newspaper has complied with all of
the requirements constituting qualifica-
tion as a qualified newspaper as, provided
by Minn. Stat. §331A.02.
(B) This Public Notice was printed and pub-
lished in said newspaper(s) once each
week, for 1 successive week(s); the first
insertion being on 05/28/2022 and the last
insertion being on 05/28/2022,
MORTGAGE FORECLOSURE NOTICES
Pursuant to Minnesota Stat. §580.033
relating to the publication of mortgage
foreclosure notices: The newspaper complies
with the conditions described in §580.033,
subd. 1, clause (1) or (2). If the newspaper's
known office of issue is located in a county
adjoining the county where the mortgaged
premises or some part of the mortgaged
premises described in the notice are located,
a substantial portion of the newspaper's
circulation is in the latter county.
IA`.
By:
Designated Agent
Subscribed and sworn to or affirmed before
me on OS/28/2022 by Karen Nelson.
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Notary Public
Rate Information:
(1) Lowest classified rate paid by commercial users
for comparable space:
$23.00 per column inch
Ad ID 1232721
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
SUMMARY ORDINANCE NO, 2022-,06
AN ORDINANCE ESTABLISHING A FRANCHISE
FEE FOR ELK RIVER MUNICIPAL UTILITY
Ordinance Number 2022-08 was recently adopted by the City Coun-
cil. Because of the lengthy nature of the ordinance, the following sum-
mary of the ordinance has been prepared for publication as authorized
by law.
The Ordinance Imposes a franchise fee on Elk River Municipal Utility,
a Minnesota municipal utility, its successors and assigns as part of the
franchise previously granted the ERMU by ordinance number 2021-21.
Ordinance 2022-08 provides for the imposition, collection, quarterly
payment, and periodic auditing of a franchise fee at the following rates:
class Amount per month
Residential $ 4.00
Sm C & I — Non-Dem $ 5.00
Sm C & I — Demand $ 40,00
Large C & 1 $ 95.00
Printed copies of both ordinances are available for inspection by any
person during the City Hall regular office hours.
Approved for publication by the City Council of the City of Otsego,
Minnesota this 23rd day of May, 2022.
CITY OF OTSEGO
Tom Darkenwald, Acting Mayor
ATTEST:
Bethany Benting, Deputy Clerk
Published in the
Star News
May 28, 2022
1232721