Otsego council adopts ordinance to correct duplicate electric franchise fees, approves rebate program

The Otsego City Council on Monday adopted Ordinance 2024-12 to amend the city—s electric service franchise-fee rules for Wright-Hennepin Cooperative Electric Association and approved a publication summary authorizing staff to publish notice.

City Administrator Adam told the council that the city—s 2022 ordinance (Ordinance 2022-09) has resulted in some parcels being charged multiple franchise fees because of how Wright-Hennepin structures meters and accounts. Adam said staff, the city attorney and legal counsel for Wright-Hennepin prepared a redline amendment to correct the implementation and proposed a rebate program to reimburse customers who were charged multiple fees.

The amendment is designed to allow staff to correct fee assignments going forward and to offer a time-limited rebate process for affected customers. Adam said the rebate application would be made available both online (PDF) and in person at city hall to make the process accessible for residents without internet access. He said staff would request a list of accounts from Wright-Hennepin to help identify likely candidates for the rebate and would use the city newsletter, website and direct mail to notify customers. "Since that time, it's come to our attention that certain parcels, within the city are paying multiple franchise fees," Adam said, describing the problem and the proposed remedy.

Councilmembers discussed the rebate window and outreach. Staff proposed initiating the program in January 2025 with an initial six-month intake period but indicated willingness to extend to a year. Adam also said rebate eligibility could allow claims for one to two years after implementation to ensure corrections are possible. Councilmembers emphasized broad outreach, including newsletters and direct mail, particularly because not all residents use social media or online services.

Councilmember Tina moved to adopt Ordinance 2024-12, to approve the publication summary and to authorize staff to publish it. Councilmember Britney seconded the motion. The council approved the motion on a voice vote with all members saying "aye." The ordinance will take effect according to standard publication and ordinance-implementation rules and staff will begin implementing the rebate outreach and application process.

Anne Van Steenhaus, who spoke during the open forum before the ordinance discussion, commended the mayor and council for approachability and reliable help from city staff when residents call city hall.