2013-26 ORDINANCE NO. 2013-26
CITY OF RICHFIELD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
AN ORDINANCE MODIFYING THE GAS FRANCHISE FEE ON
CENTERPOINT ENERGY FOR PROVIDING GAS SERVICE WITHIN
THE CITY OF RICHFIELD
THE CITY OF RICHFIELD ORDAINS:
SECTION 1. The City of Richfield Municipal Code Appendix E is hereby amended as
follows:
Subdivision 1. Purpose. The Richfield 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 of Richfield.
(a) Pursuant to City Ordinance No. 2003-10, a Franchise Agreement between the
City and CenterPoint Energy ("CenterPoint"), the City has the right to impose
a franchise fee on CenterPoint in an agreed upon amount and fee design, as
set forth in Section 6.1 of the CenterPoint Franchise.
(b) Pursuant to City Ordinance 2010-7, the City exercised its right to impose a
franchise fee on CenterPoint. This includes the right to modify the fee amount
with the consent of CenterPoint as to amount and notice period, to which
CenterPoint has consented.
Subd. 2. Franchise Fee Statement. Pursuant to Ordinance 2010-7, the
franchise fee imposed on CenterPoint under its Gas Franchise is hereby amended. The
amended fee schedule is attached hereto as Exhibit A and made a part of this
ordinance, commencing with CenterPoint's April 2014 billing month. The franchise fee
income shall be used for right-of-way improvements.
Subd. 3. Payment. The said franchise fee shall be payable to the City in
accordance with the terms set forth as follows. The franchise fee shall be payable
quarterly and shall be based on the complete billing months during the period for which
payment is to be made. The payment shall be due the last business day of the month
following the period for which the payment is made. The fee may be changed by
ordinance from time to time; however each change shall meet the same notice
requirements and may not occur more often than annually. Such fee shall not exceed
any amount, which the Company may legally charge to its customers prior to payment to
the City by imposing a surcharge equivalent to such fee in its rates for Gas service. The
Company may pay the City the fee based upon the surcharge billed subject to
subsequent reductions to account for uncollectibles or customer refunds. The time and
manner of collecting the franchise fee is subject to approval of the Public Utilities
Commission, which the Company agrees to use best efforts to obtain. The Company
agrees to make its records available for inspection by the City at reasonable times,
provided that the City and its designated representative agree in writing not to disclose
any information that is not public data which would indicate the amount paid by any
identifiable customer or any other information regarding specific customers.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities
Commission allows the utility company to add a surcharge to customer rates to
reimburse such utility company for the cost of the fee and that CenterPoint will
surcharge its customers in the City the amount of the fee.
Subd. 5. Record Support for Payment. CenterPoint shall make each payment
when due and, if requested by the City, shall provide at the time of each payment a
statement summarizing how the franchise fee payment was determined, including
information showing any adjustments to the total surcharge billed in the period for which
the payment is being made to account for any uncollectibles, refunds or error
corrections.
Subd. 6. Enforcement. Any dispute, including enforcement of a default
regarding this ordinance will be resolved in accordance with Section 2.5 the Franchise
Agreement.
Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date
of this ordinance and notwithstanding any contrary provisions in the Franchise, the
effective date of the fee collected under Subdivision 2 of this ordinance is the later of ten
(10) days after the publication or after the sending of written notice enclosing a copy of
this adopted ordinance upon CenterPoint by certified mail. It has been agreed to in
advance by CenterPoint's representatives that CenterPoint will abide by the provisions
of this Subdivision 7, provided fee collection will not commence before the later of the
Company billing month set forth in subdivision 2 or the first billing month commencing
20 days after the foregoing effective date of the franchise fee.
SECTION 2. This Ordinance will be effective in accordance with Section 3.09 of the
City Charter.
Adopted by the City Council of the City of Richfield, Minnesota this 10th day of
December, 2013
Debbie Goettel, Mayor
ATTEST:
_,k1(-64-3
Nancy Gibb , ( ity Clerk
EXHIBIT A
CENTERPOINT GAS FRANCHISE
FEE SCHEDULE
Class Fee Per Account
Residential 2,05 4.10
Comm-A 2.05 4.10
Comm/Ind-B 6,33 12.50
Comm/Ind-C 14.08 30.00
SVDF-A 44.08 30.00
SVDF-B 14.08 30.00
LVDF 14.08 185.00
FRANCHISE FEES ARE TO BE COLLECTED BY THE UTILITY IN THE AMOUNTS
SET FORTH IN THE ABOVE SCHEDULE, AND SUBMITTED TO THE CITY ON A
QUARTERLY BASIS 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.
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA ) ss
COUNTY OF HENNEPIN )
Charlene Vold being duly sworn on an oath,
states or affirms that they arc the Authorized
Agent of the newspaper(s) Known as: City of R chfie d
(Official Publication)
SC Richfield SUMMARY PUBLICATION
BILL NO.2013-26
AN ORDINANCE MODIFYING THE GAS FRANCHISE FEE ON CENTERPOINT
and has full knowledge of the facts stated ENERGY FOR PROVIDING GAS SERVICE WITHIN THE CITY OF RICHFIELD
below: The purpose of this ordinance amendment is to modify the franchise fee on
CenterPoint Energy under its Gas Franchise Aareement commencing with the
(A)The newspaper has complied with all of CenterPoint Energy's April 2014 billing month. I
the requirements constituting qualifica- Fee Schedule
lion as a qualified newspaper as provided Class Fee-Per Account
by Minn. Stat. §331 A.02, §331 A.07, and Residential 2,05 4.10
y §331A.02, Comm-A 2,95 4.10
other applicable laws as amended. Comm/Ind-B 639 12.50
(B)This Public Notice was printed and pub- comet/Ind-C 9 es 30.00
SVDF-A 9-4.98 30.00
fished in said newspaper(s) for I succes- SVDF-B 44-08 30.00
sive issues; the first insertion being on LVDF #4.98 185.00
12/19/2013 and the last insertion being on Franchise fees are to be collected by the utility and submitted to the City on a
1�/19/201 quarterly basis. The utility may surcharge the fees to its customers as permit-
ted by law.
Copies of the ordinance are available for public inspection in the Administrative
Services Department during normal business hours or upon request by calling
Chris Link,Operations Superintendent at 612-861-9174.
/�"`-,_ e n,, Adopted by the City Council of the City of Richfield,Minnesota this 10th day
/ i s ,.. r,.t l� 7:1--- of December 2013.
By: � � � / /s/Nancy Gibbs,City Clerk
Authorized ent
12/19/13,Bill No.2013-26
Subscribed and sworn to or affirmed before
me on 12/19/2013.
tf 1*
Notary Public
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