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HomeMy WebLinkAboutCity Council Ordinance 2014-03CITY OF PLYMOUTH HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 2014-03 AN ORDINANCE IMPLEMENTING A FRANCHISE FEE FOR WRIGHT- HENNEPIN COOPERATIVE ELECTRIC ASSOCIATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF PLYMOUTH, MINNESTOTA THE CITY COUNCIL OF THE CITY OF PLYMOUTH, HENNEPIN COUNTY, MINNESOTA, ORDAINS: The City of Plymouth Municipal Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Plymouth 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 Plymouth. Pursuant to City Ordinance 2010-08, (adopted July 13, 2010), a Franchise Agreement between the City of Plymouth and Wright -Hennepin Cooperative Electric Association, its successors and assigns, the City has the right to impose a franchise fee on Wright -Hennepin Cooperative Electric Association, 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 Wright -Hennepin Cooperative Electric Association, its successors and assigns, (hereafter "Company") under its electric franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the Wright -Hennepin May 1, 2014 billing month. The fee shall be in addition to any permit or other fees being imposed on the Company under Section 800 of 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. 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 make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to 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. Subdivision 4. Surcharge. The City recognizes that . Wright -Hennepin will surcharge its customers in the City 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. 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 compliance with the Franchise Ordinance 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 ordinance 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 of written notice enclosing a copy of this adopted Ordinance to Wright -Hennepin by certified mail. Collection of the fee shall commence as provided above. ADOPTED by the City Council of the City of Plymouth, Minnesota this.14th day of January, 2014. CITY OF PLYMOUTH Kelli Slavik, Mayor ATTEST: 4K1k_?1&0&j Sandra R. Engda ity Clerk 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 $2.00 $3.00 $10.00 $40.00 Franchise fees are to be collected by the Utility at the rate listed above, and 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.