2.3. ERMUSR 10-8-2019 - Laserfiche WebLink

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ELECTRIC SERVICE FRANCHISE FEE ORDINANCE ORDINANCE NO.2019-19 CITY OF DAYTON,HENNEPIN AND WRIGHT COUNTIES,MINNESOTA AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON ELK RIVER MUNICIPAL UTILITIES, A MINNESOTA MUNICIPAL POWER AGENCY,ITS SUCCESSORS AND ASSIGNS,FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF DAYTON. THE CITY COUNCIL OF THE CITY OF DAYTON,MINNESOTA, ORDAINS: Section 1. Purpose. The Dayton 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 Dayton. Pursuant to City Ordinance No. 2019-14 a Franchise Agreement between the City of Dayton and Elk River Municipal Utilities, a Minnesota municipal power agency, and its successor and assigns ("Company"), the City has the right to impose a franchise fee on the Company. Section 2. Terms. A franchise fee is hereby imposed on Company under its electric franchise in accordance with the amount and fee design set forth in the fee schedule attached as Exhibit A to this Ordinance. This franchise fee will commence with Company's January 2020 billing month. The franchise 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 3. Payment and Fee Modification. 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. The payment shall be due the last business day of the month following the period for which the payment is made. Such fee shall not exceed any amount that the Company may legally charge to its customers prior to payment to the City by imposing a surcharge equivalent to such fee in its rates for electric service. The franchise fee may be increased or decreased by ordinance from time to time,however any such change may not occur more often than annually. No franchise fee shall be payable by Company if Company is 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 1 51