ORD 2022-09 An Ordianace Implementing an Electric Service Franchise Fee on Wright-Henneping Coop Electric Assoc, a MN Coop Formed Under MN Statue Chapter 308A, Its Successors and Assigns, for Providing Electric Service within Otsego, MNORDINANCE N0.2022-09
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
WRIGHT-HENNEPIN COOPERATIVE ELECTRIC ASSOCIATION, A MINNESOTA
COOPERATIVE FORMED UNDER MINNESOTA STATUTE CHAPTER 308A, ITS
SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY
OF OTSEGO9 MINNESOTA
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES ORDAIN:
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 2021-22, (adopted October 25, 2021), a Franchise
Agreement between the City of Otsego and Wright -Hennepin Cooperative Electric Association, a
Minnesota Cooperative, its successors and assigns (the "Company"), the City has the right to impose a
Franchise fee on the Company 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 the Company, its successors and
assigns, under its electric franchise in accordance with the schedule attached hereto and made a part of
this Ordinance, commencing with the Company's October 2022 billing month.
The fee shall be in addition to any permit or other fees being imposed on Company under the City
Code. 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 franchise fee shall be payable quarterly and shall be based on the
amount collected by Company during complete billing months during the period for which payment is to be
made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification
in all customer billings for electric service in each class. The payment shall be due the last business day of
the month following the period for which the payment is made. The franchise fee may be changed by
ordinance from time to time; however, each change shall meet the same notice requirements and not occur
more often than annually and no change shall require a collection from any customer for electric service in
excess of the amounts specifically permitted by the attached fee schedule. The time and manner of collecting
209423v8 1
the franchise fee may be subject to the approval of the Commission. No franchise fee shall be payable by
Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers
in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric
service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions
to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to disclose to the
City (1) the total number of members in the City limits; (2) the rate classification totals; and (3) the total
amount collected. The Company shall not be required to disclose identifiable customer or customer
information or any other information regarding identified customers.
Subdivision 4. Surcharge. The City recognizes that the Company will surcharge its members
located in the City and subject to this Ordinance the amount of the fee.
Subdivision 5. Equivalent Fee Requirement. This ordinance shall not be effective against
Company 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 216B.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 Company 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. This ordinance is enacted in accordance with the Franchise
Agreement and shall be interpreted as such. Any dispute, including enforcement of a default regarding
this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement. Provisions of
the Franchise Agreement, including notice of future proposed ordinance amendments, requests for
amendments, and other provisions shall apply to this ordinance.
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 %J written notice enclosing a copy of this
adopted Ordinance to the Company by certified mail. Collection of the fee shall commence as provided
above.
ADOPTED by the City Council of the City of Otsego, Minnesota this 23rd day of May, 2022.
SEAL
209423v8
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
Sm C & I — Non-Dem
Sm C & I — Demand
Large C & I
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.
209423v8 3
PUBLICATION SUMMARY OF
ORDINANCE NO.2022-09
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
OFFICIAL SUMMMARY FOR PUBLICATION
ORDINANCE ESTABLISHING A FRANCHISE FEE FOR
WRIGHT-HENNEPIN COOPERATIVE ELECTRIC ASSOCIATION
Ordinance Number 2022-09 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 Wright -Hennepin Cooperative Electric Association, its
successors and assigns as part of the franchise previously granted the company by ordinance number 2021-
22.
Ordinance 2022-09 provides for the imposition, collection, quarterly payment, and periodic auditing of a
Franchise fee at the following rates:
Class
Residential
Sm C & I — Non-Dem
in C & I — Demand
Large C & I
Amount per month
$ 4.00
$ 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.
SEAL
ATTEST:
Bethany
Date Published
209423v8 4
CIT�1�F 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:
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.
Designated Agent
Subscribed and sworn to or affirmed before
me on OS/28/2022 by Karen Nelson.
Notary Public
Rate Information:
(1) Lowest classified rate paid by commercial users
for comparable space:
$23.00 per column inch
Ad ID 1232725
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
PUBLICATION SUMMARY OF ORDINANCE N0.2022-09
OFFICIAL SUMMMARY FOR PUBLICATION
ORDINANCE ESTABLISHING
A FRANCHISE FEE FOR WRIGHT HENNEPIN
COOPERATIVE ELECTRIC ASSOCIATION
Ordinance Number 2D22-09 was recently adopted by the Ciry 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 Wright -Hennepin Coop-
erative Electric Association, its successors and assigns as part of the
franchise previously granted the company by ordinance number 2021-
22.
Ordinance 2022-09 provides for the imposition, collection, quarterly
payment, and poriodic auditing of a franchise fee at the following rates:
Class
Residential
Sm
C & I — Non-Dem
Sm C & I — Demand
LargeC&I
Amount per month
$ 5.00
Soo
95400
$
$
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 20224
CITY OF OTSEGO
Tom Darkenwald, Acting Mayor
ATTEST:
Bethany Benting, Deputy Clerk
Published
in the
Star News
May 28, 2022
1232726