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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 DOCS-# 145403-v4-WRIGHT- 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. DOCS-# 145403-v4-WRIGHT- 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 �— DOCS-# 145403-v4-WRIGHT- HENNEPIN ELECTRIC FRANCHISE AND FRANCHISE FEE ORDINANCES