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Council approves Ordinance 2026-2 to renew Ottertail Power franchise agreement
Summary
Council adopted Ordinance 2026-2 to update the Ottertail Power franchise, including a new section allowing municipalities to request a franchise fee; the ordinance passed on a unanimous vote following a presentation by Ottertail Power representatives.
The Mahnomen City Council approved Ordinance 2026-2, authorizing a new franchise agreement with Ottertail Power Company. Representatives Jacob Ellefson and Darren Matetich presented the agreement and highlighted two notable changes from the prior agreement: revised indemnification language (Section 6) and an explicit mechanism allowing the municipal government to request a franchise fee collected through customer bills.
Councilmembers discussed the potential for a franchise fee, which would be collected through Ottertail Power bills and provided to the city, typically calculated as a percentage of bills or meter use; the city would later decide whether to impose such a fee. The council moved to approve the ordinance; the motion carried 5-0.
The packet states the agreement has been updated with League of Minnesota Cities oversight and will be filed consistent with municipal procedures.
