HomeMy WebLinkAbout2423-12 - ADMIN Ordinance - City Council - 2012/11/05•
ORDINANCE NO. 2423-12
CITY OF ST. LOUIS PARK, HENNEPIN COUNTY, MINNESOTA
AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE
ON CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY")
FOR PROVIDING GAS ENERGY SERVICE WITHIN
THE CITY OF ST. LOUIS PARK, MINNESOTA
THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK, HENNEPIN COUNTY,
MINNESOTA, ORDAINS:
SECTION 1. DEFINITIONS.
For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall
have the following meanings:
1.1 City. The City of St. Louis Park, County of Hennepin, State of Minnesota.
1.2 Company. CenterPoint Energy Minnesota Gas ("CenterPoint Energy"), its successors and
assigns.
1.3 Franchise Ordinance. The franchise ordinance adopted by the City - City Ordinance 2422-
12.
1.4 Notice. "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
III President, 800 LaSalle Avenue, Minneapolis, MN 55402. Notice to City shall be mailed to the
City Manager, City of St. Louis Park, 5005 Minnetonka Boulevard, St. Louis Park, MN 55416.
SECTION 2. GAS FRANCHISE FEE.
2.1 Purpose. The St. Louis Park 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 Ordinance, the City has the right to
impose a franchise fee on Company.
2.2 Franchise Fee Statement and Schedule. A franchise fee is hereby imposed on Company
commencing with the March 2013 billing month, and in accordance with the following fee
schedule:
Customer Classification Amount per Account per Month ($)
Residential - $2.50 per month
Firm A $2.50 per month
Firm B $4.50 per month
Firm C $13.75 per month
Small Volume, Dual Fuel A ("SVDF A") $13.75 per month
Small Volume, Dual Fuel B ("SVDF B") $13.75 per month
Large Volume, Dual Fuel ("LVDF") $77.00 per month
2.3 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 appropnate fee In the
Ordinance No. 2423-12 -2-
event a question arises as to the proper fee amount for any account, the highest possible fee
amount shall apply
2.4 Payment. Franchise fees are to be collected by the Company and submitted to the City as
follows:
January — March collections due by Apnl 30.
April — June collections due by July 31.
July — September collections due by October 31.
October — December collections due by January 31.
2.5 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.
2.6 Payment Adjustments. Payment to the City will be adjusted where the Company is unable
to collect the franchise fee. This includes non -collectible accounts.
2.7 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.
2.8 Relation to Franchise Ordinance. This ordinance is enacted in compliance with the
Franchise Ordinance and shall be interpreted as such.
2.9 Periodic Review. The City Council shall review this ordinance every two years in
whatever manner the City Manager then determines to be appropriate. Failure to review this
ordinance shall not in any way invalidate or limit it.
SECTION 3. PREVIOUS FRANCHISE FEE ORDINANCE SUPERSEDED.
This Gas Franchise Fee Ordinance supersedes Ordinance No. 2395-10.
CTION 4: EFFECTIVE DATE. This ordinance shall take effect ninety (90) days after its
pas . ge and publication.
ADO ; TED this 5th day of November, 2012, by the City Council of the City of St. Louis Park.
Revi - d ' s r Administration
-�1111�
City 71. !:er
Attest:
Adopt9€ ' • se City Council November 5, 2012
Mayor
Appro - d as to Form and Execution:
Date Published: November 15, 2012
Cit Attorney