HomeMy WebLinkAbout2604-21 - ADMIN Ordinance - City Council - 2021/02/01Ordinance No. 2604-21
Ordinance implementing a natural gas franchise fee
on CenterPoint Energy Resources Corporation
d/b/a CenterPoint Energy Minnesota Gas (“CenterPoint Energy”),
its successors and assigns, for providing gas service
within the City of St. Louis Park
The City of St. Louis Park does ordain:
Section 1. The City of St. Louis Park Municipal Code is hereby amended to include
reference to the following Special Ordinance.
Subd. 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 gas
services within the City of St. Louis Park.
(a) Pursuant to City Ordinance 2507-16, a Franchise Agreement between the City of St.
Louis Park and CenterPoint Energy Resources Corporation d/b/a CenterPoint Energy
Minnesota Gas, its successors and assigns, the City has the right to impose a
franchise fee on CenterPoint Energy in an amount and fee design as set forth in
Section 8 of the CenterPoint Energy Resources Franchise and in the fee schedule
attached hereto as Schedule A.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on CenterPoint
Energy, its successors and assigns, under its natural gas franchise in accordance with the
schedule attached here to and made a part of this Ordinance, commencing with the
CenterPoint Energy June, 2021 billing month.
This fee is an account-based fee on each premise and not a meter-based fee. In the
event that an entity covered by this ordinance has more than one meter at a single premise,
but only one account, only one fee shall be assessed to that account. If a premise has two or
more meters being billed at different rates, the Company may have an account for each rate
classification, which will result in more than one franchise fee assessment for natural gas
service to that premise. If the Company combines the rate classifications into a single account,
the franchise fee assessed to the account will be the largest franchise fee applicable to a single
rate classification for energy delivered to that premise. In the event any entities covered by this
ordinance have more than one premise, each premise (address) shall be subject to the
appropriate fee. In the event a question arises as to the proper fee amount for any premise,
the Company’s manner of billing for energy used at all similar premises in the city will control.
Subd. 3. Payment. The said franchise fee shall be payable to the City in accordance with
the terms set forth in Section 9 of the Franchise.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission
may allow Company to add a surcharge to customer rates of city residents to reimburse
Company for the cost of the fee, consistent with the Minnesota Public Utility Commission’s
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Ordinance No. 2604-21 2
March 23, 2011 Order establishing franchise fee filing requirements in Docket No. E,G999/CI -
09-970.
Subd. 5. Enforcement. Any dispute, including enforcement of a default regarding this
ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement.
Subd. 6. 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 above.
First Reading of Ordinance 01/19/2021
Second Reading of Ordinance 02/01/2021
Date of Publication 02/11/2021
Utilities begin collection 06/01/2021
Reviewed for Administration Adopted by the City Council February 1, 2021
Thomas K. Harmening, city manager Jake Spano, mayor
Attest: Approved as to Form and Execution:
Melissa Kennedy, city clerk Soren Mattick, city attorney
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Ordinance No. 2604-21 3
SCHEDULE A
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:
Class Amount per month
Residential $6.75
Commercial A $6.75
Commercial B $12.00
Commercial C $48.50
SVDF A& B $48.50
LVDF $148.50
Franchise fees 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.
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