Ordinance 646ORDINANCE NO. 646
AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON
MINNESOTA VALLEY ELECTRIC COOPERATIVE, A MINNESOTA COOPERATIVE
ASSOCIATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC
SERVICE WITHIN THE CITY OF CHANHASSEN
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, CARVER AND HENNEPIN
COUNTY, MINNESOTA, ORDAINS:
SECTION 1. The City of Chanhassen Municipal Code is hereby amended to include reference to
the following Special Ordinance.
Subd.1. Purpose. The Chanhassen 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 Chanhassen.
(a) Pursuant to City Ordinance 645, a Franchise Agreement between the City of Chanhassen
and Minnesota Valley Electric Cooperative, a Minnesota cooperative association, its
successors and assigns, the City has the right to impose a franchise fee on Minnesota
Valley Electric Cooperative, a Minnesota cooperative association, its successors and
assigns, in an amount and fee design as allowed in Section 10 of the Minnesota Valley
Electric Cooperative Franchise and in the fee schedule attached hereto as Schedule A.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on Minnesota Valley
Electric Cooperative, a Minnesota cooperative association, its successors and assigns ("Company"),
under its electric franchise in accordance with the schedule attached here to and made a part of this
Ordinance, commencing with the Company's February 2020 billing month.
Subd. 3. Account -Based Fee. 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.
Subd. 4. Payment. The franchise fee shall be payable to the City in accordance with the
terms set forth in Section 10 of the Franchise.
Subd. 5. Surcharge. The City recognizes that the Minnesota Public Utilities Commission
may allow Company to add a surcharge to customer rates of city residents to reimburse Company for
the cost of the fee.
Subd. 6. Permit Fees. Franchise fees collected under this Ordinance shall be in lieu of
permit fees otherwise payable by the Company under Section 10.1 of the Franchise ordinance,
provided, however, that the Company shall continue to be required to obtain and comply with all
right-of-way or other permits required by the City during the period a franchise fee is collected.
Subd. 7. Documentation of Franchise Fee Payments. The Company shall annually
provide the City with documentation supporting its determination of the franchise fee owed to the
City. In the event there is a dispute concerning the franchise fee determination, then the Company
and the City shall proceed under section 2.5 "Dispute Resolution" of the Electric Franchise
Ordinance. Any verified underpayment or overpayment of franchise fees shall be paid by the party
owing the underpayment or overpayment to the other within thirty (30) days of verification, plus
interest at the rate of 6% per annum.
Subd. 8. Enforcement. Any dispute, including enforcement of a default regarding this
ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subd. 9. 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 the Company by certified mail. Collection of the fee shall commence as
provided above.
Passed and approved: October 28, 2019.
Attest:
v�
Manager, Chanhassen, Minnesota
Mayor of the CitAofanhassen, Minnesota
2
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
Public Street Ltg
Muni Pumping —N/D
Muni Pumping — Dem
Amount per month
$ 5.00
$ 14.00
$ 40.00
$ 290.00
$0
$0
$0
Franchise fees are 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.
ORDINANCE NO. 646
AN ORDINANCE
IMPLEMENTING AN ELECTRIC
SERVICE FRANCHISE FEE
ON MINNESOTA VALLEY
ELECTRIC COOPERATIVE, A
MINNESOTA COOPERATIVE
ASSOCIATION, ITS
SUCCESSORS AND ASSIGNS,
FOR PROVIDING ELECTRIC
SERVICE WITHIN THE CITY OF
CHANHASSEN
THE CITY COUNCIL OF
THE CITY OF CHANHASSEN,
CARVER AND HENNEPIN
COUNTY, MINNESOTA,
ORDAINS:
SECTION 1. The City of
Chanhassen Municipal Code
is hereby amended to include
reference to the following Special
Ordinance.
Subd. 1. Purpose. The
Chanhassen 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 Chanhassen.
(a) Pursuant to City
Ordinance 645, a Franchise
Agreement between the City of
Chanhassen and Minnesota Valley
Electric Cooperative, a Minnesota
cooperative association, its
successors and assigns, the
City has the right to impose a
franchise fee on Minnesota Valley
Electric Cooperative, a Minnesota
cooperative association, its
successors and assigns, in an
amount and fee design as allowed
in Section 10 of the Minnesota
Valley Electric Cooperative
Franchise and in the fee schedule
attached hereto as Schedule A.
Subd. 2. Franchise Fee
Statement. A franchise fee is
hereby imposed on Minnesota
Valley Electric Cooperative,
a Minnesota cooperative
association, its successors and
assigns ("Company"), under its
electric franchise in accordance
with the schedule attached
here to and made a part of this
Ordinance, commencing with the
Company's February 2020 billing
month.
Subd. 3. Account -Based Fee.
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
Dremises in the city will control.
Affidavit of Publication
Southwest Newspapers
State of Minnesota)
)SS.
County of Carver )
Laurie A. Hartmann, being duly sworn, on oath says that she is the publisher or the authorized
agent of the publisher of the newspapers known as the Chaska Herald and the Chanhassen Vil-
lager and has full knowledge of the facts herein stated as follows:
(A) These newspapers have 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. p
(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 said
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:
abcdefghij khnnopgrstuvwxyz
4`
By.
Laurie A. Hartmann
Subscribed and sworn before me on
this '_day of 2019
JYMME JEANNE17E BARK
q '' � f �'ti' ?JOTARY PUBLIC MINNESOTA
NAY CONINISSION EXPIRES 01/31/23
No " j P blic
r%
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 ............................................... $13.62 per column inch
Subd.4• Payment Tne
franchise to shall ' G payable to
the City in acci:cjance with the
terms set forth in Section 10 of
the Franchise.
Subd.,�. Surcharge. The City
recognizes that the Minnesota
Public Utilities Commission may
allow Company to add a surcharge
to customer rates of city residents
to reimburse Company for the
cost of the fee.
Subd. 6. Permit Fees.
Franchise fees collected under
this Ordinance shall be in lieu
Of permit fees otherwise payable
by the Company under Section
10.1 of the Franchise ordinance,
provided, however, that the
Company shall continue to be
required to obtain and comply
with all right-of-way or other
Permits required by the City
during the period a franchise fee
is collected.
Subd. 7. Documentation of
Franchise Fee Payments. The
Company shall annually provide
the City with documentation
its determination of
the f anchortins e fee wed to the City.
In the event there is a dispute
concerning the franchise fee
determination, then the Company
and the City shall proceed under
section 2.5 "Dispute Resolution"
of the Electric Franchise
Ordinance. Any verified
underpayment or overpayment of
franchise fees shall be paid by the
Party owing the underpayment or
overpayment to the other within
thirty (30) days of verification,
Plus interest at the rate of 6%
Per annum.
Subd.8. Enforcement. Any
dispute, including enforcement of
a default regarding this ordinance
will be resolved in accordance
with Section 2.5 of the Franchise
Agreement,
Subd. 9. 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 the Company by
certified mail. Collection of the
fee shall commence as provided
above.
Passed and approved: October
28, 2019.
Mayor of the City of
Attest: Chanhassen, Minnesota
City Manager, Chanhassen,
Nfln--f�
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 Amo mt tier month
Residential $ 5.00
Sin C & I - Non-Dem $14.00
Sin C & I - Demand $ 40.00
Large C & I $ 290.00
Public Street Ltg $ 0
Muni Pumping -N/D $ 0
Muni Pumping - Dem $ 0
Franchise fees are 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.
(Published in the Chanhassen
Villager on Thursday, November
7, 2019; No. 4803)