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HomeMy WebLinkAbout314: Franchise Fees 314.100 314.200 314.300 314.400 314.500 314.600 314.700 314.800 314.900 314.100 314.200 314.300 314.400 Business Regulations SECTION 314 FRANCHISE FEES PURPOSE FRANCHISE FEE STATEMENT PAYMENT AND FEE DESIGN SURCHARGE ELECTRIC FEE SCHEDULE GAS FEE SCHEDULE RECORD SUPPORT FOR PAYMENT ENFORCEMENT EFFECTIVE DATE OF FRANCHISE FEE PURPOSE The Prior Lake 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 natural gas and electric services within the City of Prior Lake. (a) Pursuant to City Ordinance Sections 312 and 313, and the City's Standard Franchise Agreements for Gas Franchise and for Electric Franchise, the City has the right to impose a franchise fee in an amount and fee design as authorized therein and in the fee schedule incorporated in 314.500 and 314.600 herein. FRANCHISE FEE STATEMENT A franchise fee is hereby imposed under City Code Section 312 and 313 in accordance with the schedule incorporated under Section 314.500 and 314.600 herein. PAYMENT AND FEE DESIGN Franchise fees shall be paid to the City quarterly, based upon a calendar year, with payment due by the 30th day of the month after the end of each quarter. The franchise fees shall be payable to the City in accordance with the terms set forth in Section 313 of the Franchise Ordinance. This fee is a monthly 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 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. SURCHARGE The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that the Gas and/or Electric Utilities Company will surcharge its customers in the City the amount of the fee. Prior Lake 314/p1 314.500 314.600 314.700 314.800 314.900 Business Regulations ELECTRIC FEE SCHEDULE ( Class Residential Sm C & I - Non-Oem Sm C & I - Oemand Large C & I Monthlv Account Fee $1.50 $5.00 $10.00 $50.00 Franchise fees are to be collected by the utility in the amounts set forth in the above schedule, 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 - Oecember collections due by January 31. GAS FEE SCHEDULE Class Residential Comm-A Commllnd-B Commllnd-C SVOF-A SVOF-B LVOF Monthlv Account Fee $1.50 $1.50 $5.00 $5.00 $10.00 $10.00 $50.00 Franchise fees are to be collected by the utility in the amounts set forth in the above schedule, 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 - Oecember collections due by January 31. RECORD SUPPORT FOR PAYMENT The Gas and/or Electric Utilities Company shall make each payment when due and, if requested by the City, 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. ENFORCEMENT Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 3.5 the Standard Franchise Agreement. EFFECTIVE DATE OF FRANCHISE FEE The effective date of this ordinance shall be after its publication and sixty (60) days after the sending of written notice enclosing a copy of this adopted Ordinance to the Gas and/or Electric Utility Company by certified mail. Collection of the fee shall commence with the bills for the month of July 2006. Prior Lake 314/p2 do. ~,,;~,.~;',f~~'~ ~,,~,_,,;~,,;~ ,.t..J;.~""....,.., ,'o';JI. ._ . , .", ..,,, '~ .. ,,~.;i., _~ ..... ......" ... ~