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Home My WebLink AboutOrdinance - 21-2012 - CenterPoint Natural Gas Franchise Ordinance - 06/28/2012 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA NATURAL GAS FRANCHISE ORDINANCE ORDINANCE NO. 21-2012 AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY") FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF EDEN PRAIRIE. THE CITY COUNCIL OF THE CITY EDEN PRAIRIE, HENNEPIN COUNTY, MINNESOTA ORDAINS: SECTION 1. DEFINITIONS. (a) Definitions. For the purposes of this Ordinance, the following terms shall have the following meanings: (1) City means the City of Eden Prairie, County of Hennepin, State of Minnesota. (2) Company, means CenterPoint Energy Minnesota Gas ("CenterPoint Energy"), its successors and assigns. (3) Franchise Agreement means the franchise agreement between the City and Company pursuant to City Ordinance No. 20-2012. (4) Notice means a writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to CenterPoint Energy, Minnesota Division Vice President, 800 LaSalle Avenue, Minneapolis, MN 55402. Notice to City shall be mailed to the City Clerk at 8080 Mitchell Road, Eden Prairie, MN 55344. SECTION 2. PURPOSE. The Eden Prairie 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. Pursuant to the Franchise Agreement the City has the right to impose a franchise fee on Company. SECTION 3. FRANCHISE FEE STATEMENT AND SCHEDULE. A franchise fee is hereby imposed on Company commencing with the October, 2012 billing month, and in accordance with the following fee schedule: Customer Classification Amount per Account per Month ($) Residential $ 2.50 per month Firm A $ 3.00 per month Firm B $ 10.00 per month Franchise Fee Ordinance CenterPoint Energy Firm C $ 45.00 per month Small Volume, Dual Fuel A ("SVDF A") $ 45.00 per month Small Volume, Dual Fuel B ("SVDF B") $ 45.00 per month Large Volume, Dual Fuel ("LVDF") $ 45.00 per month SECTION 4. ACCOUNT FEE. This fee is an account based fee and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter, but only one account, only one fee shall be assessed to that account. In the event any entities covered by this ordinance have more than one account, each account shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any account, the highest possible fee amount shall apply. SECTION 5. PAYMENT. Franchise fees are to be collected by the Company and submitted to the City as follows: January—March collections due by April 30. April —June collections due by July 31. July— September collections due by October 31. October—December collections due by January 31. SECTION 6. RECORD SUPPORT FOR PAYMENT. The Company shall make each payment when due and, if requested by the City, shall provide a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total made to account for any non-collectible accounts, refunds or error corrections. The Company shall permit the City, and its representatives, access to the Company's records for the purpose of verifying such statements. SECTION 7. PAYMENT ADJUSTMENTS. Payment to the City will be adjusted where the Company is unable to collect the franchise fee. This includes non-collectible accounts. SECTION 8. SURCHARGE. The City recognizes that the Minnesota Public Utilities Commission may allow the Company to add a surcharge to customer rates to reimburse the Company for the cost of the fee. SECTION 9. DISPUTE RESOLUTION. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this ordinance or for such other relief permitted by law. Franchise Fee Ordinance CenterPoint Energy SECTION 10. EFFECTIVE DATE OF FRANCHISE FEE. The effective date of this Ordinance shall be after its publication and ninety (90) days after sending written notice enclosing a copy of this adopted Ordinance to Company by certified mail. Collection of the fee shall commence as provided above. SECTION 11. RELATION TO FRANCHISE AGREEMENT. This ordinance is enacted in compliance with the Franchise Agreement and shall be interpreted as such. SECTION 13. PERMIT FEES. The Company will administer the collection and payment of franchise fees to the City in lieu of permit fees, or other fees that may otherwise be imposed on the Company in relation to its operations as a public utility in the City so long as the following requirements are met: (1) The Company applies for any and all permits, licenses and similar documentation as though this provision did not exist. (2) The Company requests the fee to be waived at the time of application. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 51h day of June, 2012, and finally read and adopted and ordered published in summary form as attached hereto at a regular meeting of the City Council of said City on the 19`h day of June, 2012. ATTEST: 44/k"')m " —) -'-I i—�� - K hleen Porta, City Clerk N nc yra- or Published in the Eden Prairie News on the 28`h day of June, 2012. Franchise Fee Ordinance CenterPoint Energy CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA SUMMARY OF ORDINANCE 20-2012 (FRANCHISE) AND ORDINANCE 21-2012 (FRANCHISE FEE) AN ORDINANCE (THE FRANCHISE ORDINANCE) GRANTING CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY"), ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC WAYS AND GROUNDS OF THE CITY OF EDEN PRAIRIE, HENNEPIN COUNTY, MINNESOTA, FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF AND AN ORDINACE (FRANCHISE FEE) IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF EDEN PRAIRIE Summaries: The Franchise Ordinance grants CenterPoint Energy Resources Corp., d/b/a/ CenterPoint Energy Minnesota Gas ("CenterPoint Energy") a franchise to construct, operate, repair and maintain facilities and equipment for the transportation, distribution, manufacture and sale of gas energy in the City of Eden Prairie and to use the public grounds and public ways of the City for such purposes. The ordinance regulates among other matters the location of facilities, street openings and restoration obligations. The ordinance further allows the City to impose on the CenterPoint a franchise fee which CenterPoint will collect from users. The Franchise Fee Ordinance implements commencing in August, 2012 a gas energy franchise fee on CenterPoint for providing gas energy within the City. The Franchise Fee schedule is: Customer Classification Amount per Account per Month ($) Residential $ 2.50 per month Firm A $ 3.00 per month Firm B $ 10.00 per month Firm C $ 45.00 per month Small Volume, Dual Fuel A ("SVDF A") $ 45.00 per month Small Volume, Dual Fuel B ("SVDF B") $ 45.00 per month Large Volume, Dual Fuel ("LVDF") $45.00 per month Effective Date: The Franchise Ordinance shall be in force and effect from and after passage of the Franchise Ordinance, its acceptance by CenterPoint and its publication. The Franchise Fee Ordinance is effective after its publication and ninety (90) days after sending written notice enclosing a copy of the Franchise Fee Ordinance to CenterPoint by certified mail. ATTEST: Kat een Porta, City Clerk Nanc a-Luk 0 s, Mayor PUBLISHED in the Eden Prairie .News on June 28, 2012. (A full copy of the text of this Ordinance is available from City Clerk.) Affidavit of Publication CITY OF EDEN PRAIRIE Southwest Newspapers HENNEPIN COUNTY,MINNESOTA ,RY OF ORDINANCE 20-2012(FRANCHISE)AND ORDINANCE 21-2012(FRANCHISE FEE) State of Minnesota ) NANCE (THE FRANCHISE ORDINANCE) GRANTING 3T ENERGY RESOURCES CORP., d/b/a CENTERPOINT )SS. NESOTA GAS("CENTERPOINT ENERGY"),ITS SUCCES- ISIGNS,ANONEXCLUSIVEFRANCHISET(icv,71;'I'vUCT, County of Hennepin ',PAIR ANT)MAINTAIN FACILITIES AN 1 NT 4NSPOR'IATION,DISTRIBUTION,b1ANUTACi LAE AND t ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE WAYS AND GROUNDS OF THE CITY OF EDEN PRAI- )IN COUNTY,MINNESOTA,FOR SUCH PURPOSE;AND, Laurie A. Hartmann, being duly sworn, on oath says that she is the authorized agent of the 3 CERTAIN TERMS AND CONDITIONS THEREOF;ANl publisher of the newspaper known as the Eden Prairie News and has full knowledge of the facts E(FRANCHISE FEE)IMPLEMENTING A GAS ENERGY herein stated as follows: 'EE ON CENTERPOINT ENERGY FOR PROVIDING GAS VICE WITHIN THE CITY OF EDEN PRAIRIE. (A) This newspaper has complied with the requirements constituting qualification as a legal rs: newspaper,as provided by Minnesota Statute 331A.02,331A.07,and other applicable laws,as hise0rdin=e.grants CenterPoint Energy Resources Corp., amended. Point Energy Minnesota Gas("CenterPoint Energy")a fran- •uct,operate,repair and maintain facilities and equipment station,distribution,manufacture and sale of gas energy in (B)The printed public notice that is attached to this Affidavit and identified as No.331y an Prairie and to use the public grounds and public ways of was published on the date or dates and in the newspaper stated in the attached Notice and said _•h purposes.The ordinance regulates among other matters Notice is hereby incorporated as part of this Affidavit.Said notice was cut from the columns of facilities,street openings and restoration obligations. The the newspaper specified.Printed below is a copy of the lower case alphabet from A to Z,both her allows the City to impose on the CenterPoint a franchise inclusive,and is hereby acknowledged as being the kind and size of type used in the composition terPoint will collect from users, and publication of the Notice: :hire Fee Ordinance implements commencing in August, ^gy f-anchise fee on CenterPoint for providing gas energy Y.The Franchise Fee schedule is: abcdefghi klmnopgr it vwxy2 si is 'on Amount per Account ner Month(Si ' $2.50 per month ' S 3.00 per momh By- $10.00 per month Laurie A.Hartmann $45.00 per month Dual Fuel A('SV DP A"1 $45.00 per month Mal Fuel B("SVDF R") $45.00 per month Dual Fuel("LVDF") $45,00 per month Subscribed and sworn before me on late:The Franchise anchise Ordinance shall be in force and effect passage of the Franchise Ordinance,its acceptance by Cen- ;publication.The Franchise Fee Ordinance is effective after thiscW day of 2012 and ninety(90)days after sending written notice enclosing 'ranchise Fee Ordinance to CenterPoint by certified mail. ikens,Mayor ►lees Port,City Clerk JYMME JEANNE7E BARK 1y of the text of this Ordinance is available from City ��- NOTARY PUBLIC-MINNESOTA the Eden Prairie News on Thursday, June 28, 2012; No. Not di blic MY COMMISSION EXPIRES 01/31113 RATE INFORMATION Lowest classified rate paid by commercial users for comparable space...$31.20 per column inch Maximum rate allowed by law for the above matter...................................$31.20 per column inch Rate actually charged for the above matter...............................................$12.59 per column inch