City Council Ordinance 499ORDINANCE NO. 499 .
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
ELECTRIC FRANCHISE FEE ORDINANCE
AN ORDINANCE AMENDING TITLE 8, CHAPTER 7 OF THE CITY CODE,
IMPOSING AN ELECTRIC SERVICE FRANCHISE FEE ON WRIGHT -HENNEPIN
COOPERATIVE ELECTRIC ASSOCIATION, ITS SUCCESSORS AND ASSIGNS,
FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY PURSUANT TO ITS
FRANCHISE
THE CITY COUNCIL OF THE CITY OF MONTICELLO, WRIGHT COUNTY,
MINNESOTA, ORDAINS:
TITLE 8, CHAPTER 7 OF THE CITY CODE IS AMENDED BY ADDING THE
FOLLOWING SECTIONS:
SECTION 8-7-13. Franchise Fee. During the term of the franchise granted by Ordinance
No 498 to WRIGHT_HENNEPIN COOPERATIVE ELECTRIC
ASSOCIATION, its successors and assigns (Company), and subject to the terms and
conditions specified in that Ordinance, in particular Section 8-7-9, the City hereby imposes on
Company a franchise fee determined by collecting the amounts indicated in the following Fee
Schedule from each customer in the designated Company Customer Class as defined in tariffs
approved by the Company Board of Directors.
Franchise Fee
WH Rate
Monthly
Description
Code/Component
Service Type
Fee
01 Residential
Residential
10 16 20
02 Residential - Seasonal
$1.95
03 Irrigation
Small C&I no-
04 Comm - Indust 1000
demand
10 16 13 30 40 N
KVA or less
$5.50
30, 40, 50, 51, 55, 60, 61
04 Comm - Indust 1000
C&I Demand
KVA or less
$31.00
40, 50, 51, 55, 60, 61
05 Comm - Indust over 1001
C&I Demand
KVA
$190.00
-Large
Public Street
component type = light
06 Public Street & Hwy
Liqhting
description
Lighting
$12.00
03 Irrigation
04 Comm - Indust 1000
KVA or less
05 Comm - Indust over 1001
Municipal pumping 1
10, 13, 50, 55, 60 1
KVA
$31.00
WH rates have riders that are applicable per customers' site service options
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HENNEPIN_ELECTRIC_FRANCHISE_AND_FRANCHIS E_FEE_ORDINANCES
SECTION 8-7-14. Collection of the Fee. The 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.
SECTION 8-7-15. Payment of the Fee. The franchise fee shall be payable by the Company
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. 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.
The Company 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. Company shall make its records available for
inspection by the City at reasonable times.
SECTION 8-7-16. Surcharge. The City recognizes that the Company will add a surcharge
to customer rates to reimburse Company for the cost of the fee and that Company will
surcharge its customers in the City for the amount of the fee.
SECTION 8-7-17. Enforcement. Any dispute, including enforcement of a default regarding
this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement.
SECTION 8-7-18. Effective Date. The franchise fee shall be become effective after
publication and sixty (60) days after written notice to the Company as provided in the
Franchise, and thereupon collection of the fee for all Customer Classes shall commence at the
beginning of the Company's 2009 billing month.
SECTION 8-7-19. Sunset Clause. This ordinance shall automatically terminate upon the
termination of any franchise granted to the Company.
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HENNEPIN ELECTRIC FRANCHISE AND FRANCHISE FEE ORDINANCES
Passed and approved: June 8 , 2009.
(21-za
Clint Herbst, Mayor
Attest: 0-�-Y-N
Dawn Grossinger, City Clerk �—
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HENNEPIN ELECTRIC FRANCHISE AND FRANCHISE FEE ORDINANCES