AN ORDINANCE GRANTING TO MINNESOTA POWER A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF SILVER BAY, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC WAYS AND PUBLIC GROUNDS OF THE CITY FOR SUCH PURPOSES; AND PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF.
THE CITY COUNCIL OF THE CITY OF SILVER BAY, MINNESOTA, DOES FIND AND ORDAIN, AND THE TABLE OF SPECIAL ORDINANCES OF THE CITY CODE OF ORDINANCES IS HEREBY REVISED TO INCLUDE THE FOLLOWING:
As authorized by Minnesota Statutes, Section 412.191, Subdivision 4, the City Council of the City of Silver Bay has approved the publication of Ordinance No.13-01U, in Chapter 13 of the Silver Bay City Code, in summary form. The full text of the Ordinance is available for inspection at City Hall, 7 Davis Drive, Silver Bay, Minnesota, 55614.
The purpose of this ordinance is to grant Minnesota Power a twenty (20) year nonexclusive franchise to operate, repair, and maintain an electric distribution system within the City limits of the City of Silver Bay. The terms and conditions of service and the rates to be charged by Minnesota Power for electric energy are subject to the exclusive jurisdiction of the Minnesota Public Utilities Commission. This ordinance provides for a method of dispute resolution if either the City of Silver Bay or Minnesota Power asserts that the other party has defaulted in the terms of the electric franchise ordinance. The ordinance provides that all electric facilities shall be located, constructed, and maintained so as not to interfere with the safety and convenience of ordinary travel along and over public ways.
This ordinance also provides that Minnesota Power shall indemnify and hold the City of Silver Bay harmless from liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operations of the electric facilities located in the public rights-of-way and public grounds within the City of Silver Bay.
This Franchise shall be in force and effect from and after the passage of this Ordinance and publication as required by law and upon the Company’s duly authorized acceptance below as executed within thirty (30) days after passage and publication of this Ordinance or any amendment thereto.
The City reserves all rights under Minnesota Statutes, Sections 216B.36 and 301B.01 or other law to require a franchise fee at any time during the term of, and in consideration for, this Franchise. The initial franchise fee, to be effective September 1, 2025, shall be $5.00 per month for each residential, commercial, industrial or other electric service meter. Customers with both standard electric service meters and dual fuel meters will only be assessed one franchise fee.
Ordinance #13-01U was adopted by the City Council of Silver Bay, Minnesota, via Resolution 2025-#22, on the 18th day of February, 2025.
Resolution 2025-#22A authorizes the summary publication of Ordinance #13-01U to be published July 25th, 2025 in the legal paper of the City of Silver Bay.
Adopted by the City Council of the City of Silver Bay, Minnesota, this 21st day of July, 2025, by the following vote:
Voting in favor: Member FitzGerald, Member DeRosier, Member Hoff, Mayor LeBlanc
Absent: Member Bautch
Approved this 21st day of July 2025.
Wade LeBlanc, Mayor
Lana Fralich, City Administrator
