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Home My WebLink About[06] Ordinance Implementing CenterPoint Franchise Fee Council Agenda Item 6 MEETING DATE: March 16, 2020 AGENDA ITEM: Ordinance Implementing CenterPoint Franchise Fee SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: NA PREVIOUS COUNCIL ACTION: Council previously approved Ordinance 2020-03 Adopting the CenterPoint Franchise Agreement. BACKGROUND INFORMATION: As part of the Franchise Agreement, a second ordinance needs to be approved to implement the fees that will be charged. CenterPoint will be able to begin collecting fees 90 days after this Ordinance is adopted. A July 1, 2020 start date is stated in the agreement. BUDGET/FISCAL IMPACT: NA ATTACHMENTS: Ordinance 2020-04 Implementing CenterPoint Energy Franchise Fees Ordinance 2020-04 Summary Ordinance REQUESTED COUNCIL ACTION: Motion 1: Approve Ordinance 2020-04 Implementing CenterPoint Energy Franchise Fees Motion 2: Approve Ordinance 2020-04 Summary Ordinance (Supermajority Required) CITY OF ST. JOSEPH ORDINANCE NO. 2020-04 AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT ENERGY MINNESOTA GAS (“CENTERPOINT ENERGY”), ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF ST. JOSEPH THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA, ORDAINS: SECTION 1. The City of St. Joseph Municipal Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The St. Joseph 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 St. Joseph. a. Pursuant to City Ordinance 2020-03, a Franchise Agreement between the City of St. Joseph and CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Minnesota Gas (“CenterPoint Energy”), its successors and assigns, the City has the right to impose a franchise fee on CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Minnesota Gas (“CenterPoint Energy”), its successors and assigns, in an amount and fee design as set forth in Section 9, Subd. 1 of the CenterPoint Energy Resources Corp. Franchise and in the fee schedule attached hereto as Schedule A. Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on CenterPoint Energy Resources Corp., d/b/a CenterPoint Energy Minnesota Gas (“CenterPoint Energy”), its successors and assigns, under its gas franchise in accordance with the schedule attached hereto and made a part of this Ordinance, commencing with the July 1, 2020, billing month. Subdivision 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 9, Subd. 4 of the Franchise, consistent with the Minnesota Public Utility Commission’s March 23, 2011 Order establishing, franchise fee filing requirements in Docket No. E,G999/CI-09-970, and submitted to the City as provided in Schedule A attached hereto. Subdivision 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission may allow the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee, consistent with the Minnesota Public Utility Commission’s March 23, 2011 Order establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970. Subdivision 5. Record Support for Payment. CenterPoint Energy shall make each payment when due and, if required 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. Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 11, Subd. 2 of the Franchise Agreement. Subdivision 7. Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its publication and ninety (90) days after the sending of written notice enclosing a copy of this adopted Ordinance to CenterPoint Energy by certified mail. Collection of the fee shall commence as provided in Section 9, Subd. 4 of the Franchise Agreement. Passed and approved: , . CITY OF ST. JOSEPH By Rick Schultz, Mayor By Kris Ambuehl, Administrator SCHEDULE A Franchise fees are to be collected by the utility at the rate listed below, and are 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 Franchise Fee Rates: Gas Utility The franchise fee shall be in an amount determined by applying the following schedule per customer premise/per month based on metered service to retail customers within the City: Customer Classification Amount per Account per Month ($) Residential $1.00 per month Firm A (Commercial – uses < 1500 therms/year $1.75 per month Firm B (Commercial – uses >= 1500 therms/year $10.00 per month Small Volume, Dual Fuel A (“SVDF A”) $10.00 per month Small Volume, Dual Fuel B (“SVDF B”) $10.00 per month Large Volume, Firm and Dual Fuel $10.00 per month ORDINANCE NO. 2020-04 AN ORDINACE ADOPTING ORDINANCE 2020-04 GAS FRANCHISE FOR CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT ENERGY MINNESOTA GAS SUMMARY PUBLICATION The following official summary of the ordinance referred to has been approved by the City Council of St. Joseph as clearly informing the public of the intent and effect of the ordinance. AN ORDINANCE IMPLEMENTING A GAS FRANCHISE FEE ON CENTERPOINT ENERGY RESOURCES CORP., d/b/a CENTERPOINT ENERGY MINNESOTA GAS (“CENTERPOINT ENERGY”), ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF ST. JOSEPH The ordinance establishes the purpose of the franchise fee, provides for the payment schedule, the incurrence of a surcharge and the recording of payment procedures, and prescribes the enforcement of the ordinance. A printed copy of the entire ordinance is available for inspection by any person at the office of City Clerk, Monday through Friday between the hours of 8:00 a.m. and 4:30 p.m. or on the City’s website at www.cityofstjoseph.com. This document hereby is made a part of this ordinance and is attached hereto. Rick Schultz, Mayor ATTEST: Kris Ambuehl, Administrator PUBLISHED IN THE ST. CLOUD TIMES ON , 2019.