2.3. ERMUSR 10-8-2019 N/i
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Jennie Nelson —Customer Service Manager
MEETING DATE: AGENDA ITEM NUMBER:
October 8, 2019 2.3
SUBJECT:
City of Dayton Electric Franchise Ordinance and Electric Service Franchise Fee Ordinance
ACTION REQUESTED:
Accept the City of Dayton Electric Franchise Ordinance and Electric Service Franchise Fee
Ordinance
BACKGROUND:
The City of Dayton proposed an Electric Service Franchise Fee Ordinance, similar to the City of
Elk River, which would require ERMU to bill franchise fees on behalf of the city to its customers
in Dayton. In that planning process, the City of Dayton learned that there is not an Electric
Franchise Ordinance on file for ERMU, which is needed to implement the Electric Service
Franchise Fee Ordinance.
DISCUSSION:
The City of Dayton City Council approved an Electric Franchise Ordinance and an Electric Service
Franchise Fee Ordinance. Our attorney has reviewed both of the documents and is fine with the
language. ERMU will start billing City of Dayton customers franchise fees on the City of Dayton's
behalf starting in January 2020.
ATTACHMENTS:
• City of Dayton Electric Franchise Ordinance
• City of Dayton Electric Service Franchise Fee Ordinance
Page 1 of 1
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ELECTRIC FRANCHISE ORDINANCE
ORDINANCE NO.2019-14
CITY OF DAYTON,HENNEPIN AND WRIGHT COUNTIES,MINNESOTA
AN ORDINANCE GRANTING TO ELK RIVER MUNICIPAL UTILITIES, A
MINNESOTA MUNICIPAL UTILITY,ITS SUCCESSORS AND ASSIGNS, PERMISSION
AND A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND
MAINTAIN IN THE CITY OF DAYTON,MINNESOTA,AN ELECTRIC DISTRIBUTION
SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES,
FIXTURES AND APPURTENANCES,FOR THE FURNISHING OF ELECTRIC ENERGY
TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC
GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES.
THE CITY COUNCIL OF THE CITY OF DAYTON, HENNEPIN AND WRIGHT
COUNTIES,MINNESOTA,ORDAINS:
SECTION 1. DEFINITIONS.
For purposes of this Ordinance, the following capitalized terms listed in alphabetical order
shall have the following meanings:
1.1 City. The City of Dayton,Counties of Hennepin and Wright, State of Minnesota.
1.2 City Utility System. Facilities used for providing non-energy related public utility
service owned or operated by City or agency thereof, including sewer and water service, street
lighting, and traffic control systems, but excluding facilities for providing heating, lighting or other
forms of energy.
1.3 Commission. The Elk River Municipal Utilities Commission, or any successor
agency or agencies, including an agency of the state or federal government, which preempts all or
part of the authority to regulate electric retail rates now vested in the Elk River Municipal Utilities
Commission.
1.4 Company. Elk River Municipal Utilities (ERMU), a Minnesota municipal utility,
its successors and assigns,including all successors or assignees that own or operate any part or parts
of the Electric Facilities subject to this franchise.
1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines,
guylines or guy-wires, anchors, conduits, fixtures, and necessary appurtenances owned or operated
by Company for the purpose of providing electric energy for public or private use.
1.6 Notice. A written notice served by one party on the other party, which may
reference one or more provisions of this Ordinance. Notice to Company shall be mailed to the
Elk River Municipal Utilities at 13069 Orono Parkway, P.O. Box, 430, Elk River, MN 55330.
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Notice to the City shall be mailed to the City Hall, 12260 South Diamond Lake Road, Dayton,
MN 55327. Either party may change its respective address for the purpose of this Ordinance by
written notice to the other party.
1.7 Public Ground. Land owned or otherwise controlled by the City for a park, open
space,or similar purpose,which is held for use in common by the public.
1.8 Public Way. Any street,alley,walkway or other public right-of-way; as defined in
Minnesota Statutes,Section 237.162,subdivision 3;within the City.
SECTION 2. ADOPTION OF FRANCHISE.
2.1 Grant of Franchise. City hereby grants Company,for a period of 20 years from the
date this Ordinance is passed and approved by the City, the right and nonexclusive franchise to
transmit and furnish electric energy for light, heat, power and other purposes for public and private
use within and through the limits of the City as its boundaries now exist or as they may be extended
in the future. For these purposes, Company may construct, operate, repair and maintain Electric
Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the
provisions of this Ordinance. Company may do all reasonable things necessary or customary to
accomplish these purposes, subject, however, to state and federal law, such reasonable regulations
as may be imposed by the City pursuant to ordinance or permit requirements, and to the provisions
of this franchise agreement.
2.2 Effective Date;Written Acceptance. This franchise agreement shall be in force and
effect from and after passage of this Ordinance, its acceptance by Company, and its publication as
required by law. The City shall provide written Notice by certified mail to Company of the
adoption of this Ordinance and any proposed amendment. Company shall, within thirty (30) days
after adoption of this Ordinance or any amendment thereto, file with the City Clerk in writing its
acceptance or, as provided in section 2.3, its rejection. If such acceptance or rejection is not filed
within said period, Company will be deemed to have accepted the terms and conditions of this
franchise and, if necessary, City may seek its enforcement in a competent jurisdiction or pursue
other remedies available in law or equity. If Company rejects this franchise or any amendment
hereto,it shall proceed in accordance with section 2.3.
2.3 Rejection Procedures. A rejection of this franchise or any amendment hereto may
be made by Company only upon grounds that the terms and conditions of the franchise or
amendment exceed the lawful authority of the City under the laws and constitutions of the United
States or Minnesota or are otherwise unlawful. Company shall submit any rejection in writing to
the City, stating with particularity the points and authorities of law upon which the Company relies.
If the City fails to amend this franchise or otherwise satisfy the Company's objections, as stated in
writing, within thirty (30) days of its receipt of Company's rejection, Company will have the right
thereafter to seek appropriate judicial or administrative relief. If Company fails to initiate such legal
action within thirty (30) days from the expiration of the aforementioned thirty (30) day period
provided for the City's amendment or cure, the Company shall be deemed to have waived its
objections and to have accepted the terms and conditions of this franchise.
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2.4 Service and Rates. The service to be provided and the rates to be charged by
Company for electric service in City are subject to the jurisdiction of the Commission. The area
within the City in which Company may provide electric service is subject to the provisions of
Minnesota Statutes,Sections 216B.37-.40.
2.5 Publication Expense. The expense of publishing this Ordinance will be paid by the
City.
2.6 Dispute Resolution. If either party asserts that the other party is in default in the
performance of any obligation hereunder, the complaining party shall give written Notice to the
other party of the default and the desired remedy. Representatives of the parties must promptly
meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved
within 30 days of the written Notice, the parties may jointly select a mediator to facilitate further
discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is
not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the
selected mediator, either party may commence an action in District Court to interpret and enforce
this franchise or for such other relief as may be permitted by law or equity, or either party may take
any other action permitted by law.
2.7 Continuation of Franchise. If the City and the Company are unable to agree on
the terms of a new franchise by the time this franchise expires, this franchise will remain in
effect until a new franchise is agreed upon, or until 90 days after the City or the Company serves
written Notice to the other party of its intention to allow the franchise to expire. In no event,
however, shall this franchise agreement continue for more than one year after expiration of the
20-year term set forth in Section 2.1.
SECTION 3. LOCATION, OTHER REGULATIONS.
3.1 Location of Facilities. Electric Facilities shall be located, constructed and
maintained so as not to interfere with the safety and convenience of ordinary travel along and over
Public Ways and so as not to disrupt or interfere with the normal operation of any City Utility
System. Electric Facilities may be located on Public Grounds as determined by the City.
Company's construction, reconstruction, operation, repair, maintenance location, and relocation of
Electric Facilities shall be subject to permits if required by separate ordinance and to other
reasonable regulations of the City to the extent not inconsistent with the terms of this franchise
agreement.
3.2 Mapping and Field Locations. Company shall provide, at no cost to the City,
mapping and field locations for its underground Electric Facilities within the City consistent with
the requirements of Minnesota Statutes, Chapter 216D; Minnesota Rules, parts 7819.4000 and
7819.4100;and the City's Right-of-Way Maintenance Ordinance.
3.3 Street Openings. Company shall not open or disturb any Public Ground or Public
Way for any purpose without first having obtained a permit from the City, if required by a separate
ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on
Company shall not be more burdensome than those imposed on other utilities for similar facilities or
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work. Company may, however, open and disturb any Public Ground or Public Way without a
permit or permission from the City where an emergency exists requiring the immediate repair of
Electric Facilities. In such event, Company shall notify the City by telephone to the office
designated by the City as soon as practicable and shall, within two business days of commencing
the repair,obtain any required permits and pay any required fees.
3.4 Restoration. After undertaking any work requiring the opening of any Public
Ground or Public Way,Company shall restore the same,including any paving and its foundation,to
as good a condition as formerly existed. The work shall be completed in accordance with
Minnesota Rules,part 7819.1100,and any applicable state laws or City ordinances,and as promptly
as weather permits. If Company does not promptly perform and complete the work;remove all dirt,
rubbish,equipment and material;and put the Public Ground or Public Way in the said condition,the
City shall have, after demand to Company to cure and the passage of five days from the date of the
demand, the right to make the restoration at the expense of Company. Company shall pay to the
City the cost of such work done for or performed by the City. This remedy shall be in addition to
any other remedy available to the City for noncompliance with this Section. If requested by the
City, Company shall post a construction performance bond consistent with the provisions of
Minnesota Rules,parts 7819.3000 and 7819.0100,subpart 6.
3.5 Avoid Damage by and to Electric Facilities. Company must take reasonable
measures to prevent the Electric Facilities from causing damage to persons or property, and
reasonable measures to protect the Electric Facilities from damage that could be inflicted on the
Electric Facilities by persons, property, or the elements. The Company must take protective
measures when the City performs work near the Electric Facilities,if given reasonable notice by the
City of such work prior to its commencement. Nothing in this Ordinance relieves any person from
liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities
while performing any activity.
3.6 Notice of Improvements. The City must give Company reasonable Notice of plans
for improvements to Public Grounds or Public Ways where the City has reason to believe that
Electric Facilities may affect or be affected by the improvement. The Notice must contain: (i) the
nature and character of the improvements, (ii)the Public Grounds and Public Ways upon which the
improvements are to be made, (iii)the extent of the improvements, (iv)the time when the City will
start the work, and (v) if more than one Public Ground or Public Way is involved, the order in
which the work is to proceed. The Notice must be given to Company a sufficient length of time in
advance of the actual commencement of the work to permit Company to make any necessary
additions,alterations or repairs to its Electric Facilities.
3.7 Shared Use of Poles. Company shall make space available on its poles and towers
for City fire, water utility, police and other City facilities subject to the terms and conditions of a
pole attachment agreement acceptable to Company and whenever such use will not interfere with
the use of such poles or towers by Company,by another electric utility,by a telephone utility,or by
any cable television company or other form of communication company. In addition,the City shall
pay for any added cost incurred by Company because of such use by City.
SECTION 4. RELOCATIONS.
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4.1 ReIocation of Electric Facilities in Public Ways. If the City determines to vacate a
Public Way for a present or future public project; for public health or safety reasons; for safe and
convenient travel by the public over the right-of-way; to grade, regrade, or change the line of any
Public Way; or to construct or reconstruct the Public Way or any City Utility System the City may
order Company to temporarily or permanently relocate its Electric Facilities located in the Public
Way if relocation is reasonably necessary to accomplish the City's purpose for vacating the Public
Way. Except as provided in Section 4.3, Company shall remove,relocate,and, if necessary,replace
or reconstruct its Electric Facilities at its own expense. The City shall give Company written Notice
of plans to vacate as provided in section 7 of this Ordinance. Nothing in this Ordinance requires
Company to relocate,remove,replace or reconstruct at its own expense its Electric Facilities where
such relocation,removal,replacement or reconstruction is solely for the convenience of the City and
is not reasonably necessary to accomplish one or more of the purposes provided in this Section.
4.2 Relocation of Electric Facilities in Public Ground. City may require Company at
Company's expense to relocate or remove its Electric Facilities from Public Ground upon a finding
by City that the Electric Facilities have become or will become a substantial impairment to the
existing or proposed public use of the Public Ground.
4.3 Projects with Federal Funding. Relocation, removal, or rearrangement of any
Electric Facilities made necessary because of the extension into or through City of a federally-
aided highway project shall be governed by the provisions of Minnesota Statutes, Section
161.46, as supplemented or amended.
SECTION 5. TREE TRIMMING.
Unless otherwise provided in any permit or other reasonable regulation required by the City
under separate ordinance, Company may trim all trees and shrubs in the Public Grounds and Public
Ways of City to the extent Company finds necessary to avoid interference with the proper
construction, operation, repair and maintenance of any Electric Facilities installed hereunder,
provided that Company shall hold the City harmless from any liability arising therefrom.
SECTION 6. INSURANCE AND INDEMNIFICATION.
6.1 Insurance. The Company is required to maintain Commercial General Liability
Insurance (CGLI) on a claims-made basis protecting it from claims for damages for bodily injury,
including death, and for claims for property damage,which may arise from activities and operations
under this Ordinance. The CGLI policy must have limits equal to or greater than the following:
• $2,000,000—per occurrence
• $3,000,000—annual aggregate for products and failure to supply utilities
The CGLI policy must include the following coverages:Premises and Operations Bodily Injury and
Property Damage,Personal and Advertising Injury,Blanket Contractual Liability, and Products and
Completed Operations Liability. The City must be endorsed as an Additional Insured on the CGLI
policy. With the City's consent, Company shall have the option of providing a program of self-
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insurance to meet its obligation under this Ordinance. In such event, the Company shall submit to
the city a Certificate of Self-Insurance or other documents showing proof of its financial
responsibility.
6.2 Indemnity of City. Company shall indemnify, keep and hold the City free and
harmless from any and all liability on account of injury to persons or damage to property occasioned
by the construction,maintenance,repair,inspection,issuance of permits, or operation of the Electric
Facilities located in the Public Grounds and Public Ways. The City shall not be indemnified for
losses or claims occasioned through its own negligence except for losses or claims arising out of or
alleging the City's negligence as to the issuance of permits for,or inspection of, Company's plans or
work.
6.3 Defense of City. In the event a suit is brought against the City under circumstances
where this agreement to indemnify applies, Company at its sole cost and expense shall defend the
City in such suit if written notice thereof is promptly given to Company within a period wherein
Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend,
it will thereafter have control of such litigation,but Company may not settle such litigation without
the consent of the City,which consent shall not be unreasonably withheld. This section is not,as to
third parties,a waiver of any defense or immunity otherwise available to the City,and Company, in
defending any action on behalf of the City, shall be entitled to assert in any action every defense or
immunity that the City could assert in its own behalf. This franchise agreement shall not be
interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on
liability under Minnesota Statutes,Chapter 466.
SECTION 7. VACATION OF PUBLIC WAYS.
The City shall give Company at least four (4) weeks prior written notice of a proposed
vacation of a Public Way. Except when ordered pursuant to section 4.1 of this Ordinance, the
vacation of any Public Way after the installation of Electric Facilities shall not operate to deprive
Company of its rights to operate and maintain such Electric Facilities until the reasonable cost of
relocating the same and the loss and expense resulting from such relocation are first paid to
Company. In no case, however, shall the City be liable to Company for failure to specifically
preserve a Public Way in the exercise of its authority under Minnesota Statutes,Section 160.29.
SECTION 8. ABANDONED FACILITIES.
The Company shall comply with City ordinances; Minnesota Statutes, Sections 216D.01 et
seq.; and Minnesota Rules, part 7819.3300, as they may be amended from time to time. The
Company shall maintain records describing the exact location of all abandoned and retired Electric
Facilities within the City,produce such records at the City's request,and comply with the location
requirements of Section 216D.04 with respect to all Electric Facilities, including abandoned and
retired Electric Facilities.
SECTION 9. CHANGE IN FORM OF GOVERNMENT.
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Any change in the form of government of the City shall not affect the validity of this
Ordinance. Any governmental unit succeeding the City shall, without the consent of Company,
succeed to all of the rights and obligations of the City provided in this Ordinance.
SECTION 10. FRANCHISE FEE.
10.1 Separate Franchise Fee Ordinance. The City reserves all rights under state law to
require a franchise fee, in addition to any permit fees, at any time during the term of this
franchise. If the City elects to require a franchise fee, it shall notify Company and negotiate in
good faith to reach a mutually acceptable fee agreement, which shall be set forth in a separate
ordinance and not adopted until at least 30 days after Notice enclosing such proposed ordinance
has been served upon the Company by certified mail. The effective date of any franchise fee and
commencement of collecting the fee will be set forth in the separate ordinance. If the City and
Company are unable to agree on a franchise fee or on any terms related thereto, each hereby
consents to the jurisdiction of State District Court,Hennepin County,to construe their respective
rights under the law, subject to all rights of appeal.
10.2 Form. The fee may be (i) a percentage of gross revenues received by the
Company for its operations within the City, (ii) a flat fee per customer based on metered service
to retail customers within the City or on some other similar basis, or (iii) a fee based on units of
energy delivered to any class of retail customers within the corporate limits of the City. The
formula for a franchise fee based on units of energy delivered may incorporate both commodity
and demand units. The method of imposing the franchise fee, the percentage of revenue rate, or
the flat rate based on metered service may differ for each customer class or may combine the
methods described in (i)to (iii) above in assessing the fee. The City shall seek to use a formula
that provides a stable and predictable amount of fees, without placing the Company at a
competitive disadvantage. If the Company claims that the City-required fee formula is
discriminatory or otherwise places the Company at a competitive disadvantage, the Company
shall provide a formula that will produce a substantially similar fee amount to the City and
reimburse the City's reasonable fees and costs in reviewing the formula. The City will attempt
to accommodate the Company but is under no franchise obligation to adopt the Company-
proposed franchise fee formula and such review will not delay the implementation of the City-
imposed fee.
10.3. Condition of Fee. The separate ordinance imposing the fee shall not be effective
against the Company unless it lawfully imposes a fee of the same or substantially similar amount
on the sale of electric energy within the City by any other electric energy supplier, provided that,
as to such supplier,the City has the authority to require a franchise fee.
10.4. Collection of Fee. The franchise fee shall be payable not less than quarterly
during complete billing months of the period for which payment is to be made. The franchise fee
formula may be changed from time to time, but any change shall meet the same notice
requirements and the fee may not be changed more often than annually. The fee shall not exceed
any amount that the Company may legally charge to its customers prior to payment to the City.
The fee is subject to subsequent reductions to account for uncollectibles and customer refunds
incurred by the Company. The Company agrees to make available for inspection by the City at
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reasonable times all records necessary to audit the Company's determination of the franchise fee
payments.
10.5. Continuation of Franchise Fee. If this franchise expires and the City and the
Company are unable to agree upon terms of a new franchise, the franchise fee, if any being
imposed by the City at the time this franchise expires,will remain in effect until a new franchise
is agreed upon notwithstanding the franchise expiration as provided in section 2.6 above.
SECTION 11. SERVICE.RELIABILITY& REPORTING.
Company shall provide City with its annual reliability report and, if requested by the
City, shall meet annually with the City to review and discuss the reliability report, items of
concern or interest relating to the report, or other matters raised by the City or Company
regarding the Company's service and Electric Facilities in the City.
SECTION 12. PROVISIONS OF ORDINANCE.
12.1 Severability. Every section, provision, or part of this Ordinance is declared
separate from every other section, provision, or part, and if any section, provision, or part shall
be held invalid, it shall not affect any other section, provision, or part. If, for any reason, the
City is unable to enforce the franchise fee provisions of this Ordinance or the separate franchise
fee ordinance, the City may amend this Ordinance or the separate fee ordinance as needed to
impose a franchise fee pursuant to statute. Where a provision of any other City ordinance
conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail.
12.2 Limitation on Applicability. This Ordinance constitutes a franchise agreement
between the City and Company as the only parties, and no provision of this franchise shall in any
way inure to the benefit of any third person(including the public at large) so as to constitute any
such person as a third party beneficiary of the agreement or of any one or more of the terms
hereof,or otherwise give rise to any cause of action in any person not a party hereto.
SECTION 13. AMENDMENT PROCEDURE.
Either party to this franchise agreement may at any time propose that the agreement be
amended to address a subject of concern and the other party will consider whether it agrees that the
amendment is mutually appropriate. If an amendment is agreed upon, this Ordinance may be
amended at any time by the City passing a subsequent ordinance declaring the provisions of the
amendment, which amendatory ordinance shall become effective upon the filing of Company's
written consent thereto with the City Clerk within 30 days after the date of final passage by the
City of the amendatory ordinance. This amendatory procedure is subject, however, to the City's
police power and franchise rights under state law, which rights are not waived by this Ordinance.
SECTION 14. PREVIOUS FRANCHISES SUPERSEDED.
This franchise supersedes any previous electric franchise granted to Company or its
predecessors by City or its predecessors.
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Passed and adopted by the City Council of the City of Dayton, Hennepin and Wright
Counties,Minnesota,this 10th day of September,2019.
CITY OF DAYTON
or
A1TEST:
Deputy Clerk
Date Published: 09/19/2019
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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
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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 that is non-public by law.
Section 4. Surcharge. The City recognizes that state law may allow Company to add a surcharge
to the customer rates of the City's residents to reimburse the Company for the cost of the franchise
fee. The Company agrees that it is prohibited from adding an administrative fee of any kind on to
the franchise fee.
Section 5. 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 6. Effective Date of Franchise Fee. The effective date of this Ordinance and fee
collection shall be January 1,2020,or 10 days after the City sends written notice enclosing a copy
of this adopted Ordinance to the Company by certified mail,whichever date is later.
Passed and adopted by the City Council of the City of Dayton,Hennepin and Wright
Counties,Minnesota,this 26th day of September,2019.
CITY OF DAYTON
or
ATFEST:
City Clerk
Date Published: 10/03/2019
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EXHIBIT A
ELK RIVER MUNICIPAL UTILITIES
ELECTRIC FRANCHISE FEE SCHEDULE
Class Monthly Fee per Customer*
Residential $4.00
Sm C&I--Non-Dem $12.00
Sm C&I—Demand $45.00
Large C&I $200.00
Public $16.00
*Franchise fees are to be collected monthly by the Company in the amounts set forth in the
above schedule, and remitted 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.
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