HomeMy WebLinkAbout314: Franchise Fees
314.100
314.200
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314.500
314.600
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314.900
314.100
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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
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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
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