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HomeMy WebLinkAbout2012-15 Franchise Ordinance- Electric- Xcel Energy ORDINANCE NO. 2012-15 AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY") FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF EDINA. THE CITY COUNCIL OF THE CITY EDINA, 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 Edina, County of Hennepin, State of Minnesota. (2) Company means CenterPoint Energy Minnesota Gas ("CenterPoint Energy'), its successors and assigns. (3) Franchise Ordinance means Ordinance No. 2003-2. (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 4801 W. 501h Street, Edina, MN 55424. SECTION 2. PURPOSE. The Edina 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 February, 2013 billing month, and in accordance with the following fee schedule: Customer Classification Amount per Account per Month ($) Residential $ 1.45 Firm A $ 2.90 Firm B $ 9.00 Firm C $40.00 Sm Vol, Dual Fuel A (SVDF A) $40.00 Sm Vol, Dual Fuel B (SVDF B) $40.00 Lg Vol, Dual Fuel (LVDF) $40.00 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 of Edina recognizes that the Minnesota Public Utilities Commission may allow the Company to add a surcharge to customer rates of city residents 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. 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 ORDINANCE. This ordinance is enacted in compliance with the Franchise Ordinance and shall be interpreted as such. SECTION 12. 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 Edina on the 6 day of August, 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 16th day of October, 2012. First Reading: A August 6, 2012 Second Reading: October 16, 2012 Published: October 25, 2012 Attest: L% Debra A. Mangen, Cit Clerk James B. Hovland, Magor Please publish in the Edina Sun Current on: October 25, 2012 Send two Affidavits of Publication. Bill to Edina City Clerk City of Edina The Company shall permit the City,and www MInnLOCc' I.COm its representatives,access to the Com- (Official Publication) pany's records for the purpose of verify- ORDINANCE NO.2012-15 ing such statements. AN ORDINANCE IMPLEMENTING A SECTION 7. PAYMENT ADJUST- GAS ENERGY FRANCHISE FEE ON MENTS. Payment to the City will be ad- CENTERPOINT ENERGY justed where the Company is unable to MINNESOTA GAS("CENTERPOINT collect the franchise fee. This includes ENERGY")FOR PROVIDING GAS non-collectible accounts. ME D A ENERGY SERVICEOF EDINAA. THE CITY SECTION 8. SURCHARGE.The City of AFFIDAVIT OF PUBLICATION THE CITY COUNCIL OF THE CITY Edina recognizes that the Minnesota EDINA, HENNEPIN COUNTY, MIN- Public Utilities Commission may allow STATE OF M I N N ESOTA NESOTA ORDAINS: the Company to add a surcharge to cus- tomer rates of city residents to reimburse )ss. SECTION 1. DEFINITIONS. the Company for the cost of the fee. COUNTY OF HENNEPIN ) (a)Definitions. For the purposes of this SECTION 9. DISPUTE RESOLUTION. Ordinance,the following terms shall have If either party asserts that the other party Richard Hendrickson, being duly sworn on the following meanings: is in default in the performance of any an oath,states or affirms that he is the Chief (1)City means the Ci of Edina,County obligation hereunder, the complaining ry ry party shall notify the other parry of the de- of Hennepin,State of Minnesota. fault and the desired remedy.The notifi- aS (2)Company means CenterPoint Energy Financial Officer of the newspaper(s)known cation shall be written. Repesentatives Edina Sun-Current Minnesota Gas("CenterPoint Energy"), of the parties must promptly meet and at- its successors and assigns. tempt in good faith to negotiate a resolu- tion of the dispute.If the dispute is not re- (3) Franchise Ordinance means Ordi- solved within 30 days of the written no- nance No.2003-2. tice,the parties may jointly select a me- and has full knowledge of the facts stated (4)Notice means a writing served by any diator to facilitate further discussion.The party or parties on any other party or par- parties will equally share the fees and ex below: ties. Notice to Company shall be mailed penses of this mediator. If a mediator is (A)The newspaper has complied with all of to CenterPoint Energy, Minnesota Divi- not used or if the parties are unable to re- sion Vice President,800 LaSalle Avenue, solve the dispute within 30 days after first the requirements constituting qualifica- Minneapolis,MN 55402. Notice to City meeting with the selected mediator,ei- tion as a qualified newspaper as provid- shall be mailed to the City Clerk at 4801 ther parry may commence an action in W.50th Street,Edina,MN 55424. District Court to interpret and enforce this ed by Minn. Stat. §331A.02, §331A.07, ordinance or for such other relief permit- and other applicable laws as amended. SECTION 2.PURPOSE.The Edina City ted by law. Council has determined that it is in the (B)The printed public notice that is attached best interest of the City to impose a fran- FRANCHISE FEE. The effective date SECTION 10. EFFECTIVE DATE OF F was published in said newspaper(s) chest fee those public utility comps- this Ordinance shall be after its ublica- of nies that provide natural gas and electric p once each week,for One successive services within the City. Pursuant to the tion and ninety(90)days after sending Franchise Agreement the City has the written notice enclosing a copy of this week(s);it was first published on Thurs- adoptedordinancetocompanybycerti- right to impose a franchise fee on Com- day,the 25 day of October , pany fied mail.Collection of the fee shall com- 2012, and was thereafter printed and SECTION 3. FRANCHISE FEE STATE- mence as provided above. published On every Thursday to and In- MENTAND SCHEDULE.Afranchisefee SECTION 11. RELATION TO FRAN- is hereby imposed on Company com- CHISE ORDINANCE. This ordinance is cluding Thursday, the day of mencing with the February,2013 billing enacted in compliance with the Franchise ,2012;and printed month,and in accordance with the fol- Ordinance and shall be interpreted as below IS a copy Of the lower Case alpha- lowing fee schedule: such. bet 12.PERMIT FEES.TheCom- bet from A to Z, both inclusive, which is Customer Amount per Account Classificationper Month($1 pany will administer the collection and hereby acknowledged as being the size Residential......$ 1.45 payment of franchise fees to the City in and kind of type used in the composition Firm A.........$ 2.90 lieu of permit fees,or other fees that may Firm B.........$ 9.00 otherwise be imposed on the Company and publication of the notice: Firm C.........$40.00 in relation to its operations as a public util- Sm Vol, ity in the City so long as the following re- abc ijklmnopgrstuvwxyz Dual Fuel A quirements are met: (SVDF A) .....$40.00 (1)The Company applies for any and all Sm Vol, permits,licenses and similar documenta- Dual Fuel B tion as though this provision did not exist. (SVDF B) .....$40.00 Lg Vol, (2)The Company requests the fee to be " Dual Fuel waived at the time of application. BY: (LVDF) .......$40.00 FIRST READ at a regular meeting of the CFO SECTION 4. ACCOUNT FEE. This fee City Council of the City of Edina on the 6 is an account based fee and not a meter- day of August,2012,and finally read and based fee.In the event that an entity cov- adopted and ordered published in sum- ered by this Ordinance has more than mary form as attached hereto at a regu- one meter, but only one account, only lar meeting of the City Council of said City Subscribed and sworn to or affirmed one fee shall be assessed to that ac- on the 16th day of October,2012. before me on this 25 count. In the event any entities covered da Of First Reading: A August 6,2012 October y by this Ordinance have more than one Second Reaing: October 16,2012 2012. account,each account shall be subject to Published: October 25,2012 the appropriate fee. In the event a ques- tion arises as to the proper fee amount for Attest: any account, the highest possible fee Debra A.Man en,Ci Clerk amount shall apply. g ry SECTION 5. PAYMENT. Franchise fees James B.Hovland,Mayor Notary Public are to be collected by the Company and (Oct.25,2012)D1-Ord2012-15 submitted to the City as follows: January—March collections due by April VWWW 30. JULIA I. HELKENN April—June collections due by July 31. NOTARY PUBLIC-MINNESOTA July—September collections due by Oc- My Comm.Exp.Jan.31,201tober 31. 5 October—December collections due by January 31. SECTION 6. RECORD SUPPORT FOR PAYMENT. The Company shall make each payment when due and,if request- ed by the City,shall provide a statement summarizing how the franchise fee pay- ment was determined,including informa- tion showing any adjustments to the total made to account for any non-collectible accounts, refunds or error corrections.