(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CITY. The City of Wells, County of Faribault, State of Minnesota, and the corporate limits thereof on the effective date and as they may be adjusted, decreased, or increased from time to time hereafter.
ELECTRIC SERVICE PROVIDER. An electric utility, and a person who performs any 1 or more of the activities described in division (C) below, and, may, as contemplated therein, be the ultimate user or consumer of the electric energy.
ELECTRIC UTILITY. A person now or hereafter operating, maintaining or controlling equipment or facilities for furnishing electric service at retail within city, regardless of the nature of the ownership of the person, and also includes but not by way of limitation, a cooperative electric association, an investor-owned utility, a municipally owned utility and any joint venture, partnership or other combination of the foregoing.
FRANCHISE FEE. The consideration paid or provided to city as described in division (E) below.
PERSON. A natural person, any partnership, joint venture, corporation, cooperative, limited liability company, or any public corporation, political subdivision, or agency of the state or any other legal entity that may be created or recognized by law.
(B) Findings of the City Council.
(1) The laws of the State of Minnesota permit the city to require an electric utility to obtain from the city a license, permit, right, or franchise in order for the electric utility to provide electric utility services within the city.
(2) As a condition of the license, permit, right, or franchise, the city may require that the utility pay fees to the city to raise revenue or defray costs accruing as a result of utility operations, or both.
(3) Electric utilities and other electric service providers use, occupy, or otherwise benefit from the use of the city's streets or highways or other public property.
(4) The city has operated its municipal electric system for many years, all to the benefit of the city, its taxpayers, residents, and electric customers.
(5) The municipal electric system of the city contributes to the general welfare of the city by providing goods and services of substantial value, and by paying financial consideration which benefits the general fund of the city and its residents.
(6) It is lawful and fair for the city to require any electric service provider which provides electric services within the city to contribute to the general fund of the city in a manner similar to the contributions made by the municipal electric system.
(7) The application of uniform standards and requirements to all existing and future electric service providers within and throughout the city, including the imposition of franchise and franchise fee requirements, will promote the public welfare and safety, will afford all city electric utility customers and taxpayers reasonably comparable and equitable treatment by the city, and will remove 1 measure of unfairness which may affect the ability of the city's electric utility to fairly compete with other electric service providers.
(C) Franchise required.
(1) A written franchise agreement with the city shall be required of every person and entity, to the full extent permitted by M.S. § 216B.36, as it may be amended from time to time, in order for that person or entity to do any of the following:
(a) Operate an electric utility or perform any 1 or more of the traditional functions of an electric utility, including, but not by way of limitation, producing, transmitting, furnishing, or delivering electric energy or causing to be produced, transmitted, furnished, or delivered electric energy for light, power, heat, or other purposes, at retail to or for the public or to or for any other person within the corporate limits of the city;
(b) Use, place, or maintain any permanent or semi-permanent lines, wires, or fixtures in over, upon, or under any street or public place within the corporate limits of the city for the purpose of distributing, furnishing, or delivering or causing to be distributed, furnished, or delivered electric power or energy for use at retail by persons within the city;
(c) Interconnect or cause an interconnection between any electric transmission or distribution system, wherever located, and any building, structure, or facility of any kind within the city for the purpose of distributing, furnishing, or delivering or causing to be distributed, furnished, or delivered electric power or energy for use at retail by persons within the city;
(d) Interconnect or cause an interconnection between any electric transmission or distribution system, wherever located, and any building, structure, or facility of any kind within the city for the purpose of distributing, furnishing, or delivering or causing to be distributed, furnished, or delivered electric power or energy for use at retail by persons within the city; or
(e) Receive for consumption electric energy within the city from any person not franchised by the city except upon payment to the city of a franchise fee, as provided in division (E) below.
(2) Notwithstanding the foregoing, no person or entity shall be required to obtain a franchise under this section if it furnishes its services solely to tenants or cooperative or condominium owners in building owned, leased, or operated by the person or entity; solely to occupants of a manufactured home or trailer park owned, leased, or operated by the person or entity; or produces or furnishes services to less than 25 persons worldwide.
(3) A franchise shall be granted only by ordinance. Every ordinance granting a franchise shall contain all the terms and conditions of the franchise, except to the extent reserved to the Council, by this section, any other city ordinance, or by law for the public health and safety. The grantee shall bear the costs of publication of the franchise ordinance and shall make a sufficient deposit with the city to guarantee publication before the ordinance is passed.
(D) Term. No exclusive or perpetual franchise or privilege shall ever be granted or created nor shall any franchise or privilege be granted for a term of more than 20 years.
(E) Required consideration.
(1) (a) As a part of any franchise ordinance adopted, the city shall impose upon the grantee a franchise fee. The franchise fee may be expressed as a specified charge per kilowatt hour of electric energy transmitted, furnished, delivered, or received, which fees shall be calculated by the City Council, and imposed upon each kilowatt hour of electric energy transmitted, furnished, delivered, or received within the city; as a percentage of the gross revenues or other consideration billed, charged, and payable for the production, transmission, furnishing, delivery, or receipt of electric energy and power within the city; or in the other manner or fashion as allowed by law.
(b) The franchise fee may be changed by ordinance from time to time; however, no change shall be adopted until at least 30 days after written notice enclosing the proposed ordinance has been served upon the grantee of a franchise by certified mail. The franchise fee may not be changed more often than once in each calendar year.
(2) If, for whatever reason, a franchise ordinance, as required by division (C) above, is not in force, a franchise fee shall nonetheless be due and payable to the city. The franchise fee, in the circumstances, shall be calculated by the City Council to provide to the city the financial or other consideration as would be payable to city under the terms of other franchise ordinances governing other electric service providers or, if there be none, an amount reasonably comparable to the city's electric utility payments to the city general fund plus the fair market value of the city's electric utility provision of goods and services to and for the benefit of the city as may be in effect from time to time.
(F) Effective date. This section shall be effective upon adoption and publication as provided by law. No electric service provider currently providing retail electric service within the city shall be subject to divisions (C) or (E) above until 90 days from the effective date of this section.
(Ord. 243, passed 11-19-2001) Penalty, see § 10.99