HomeMy WebLinkAboutCity Council Ordinance 2014-02CITY OF PLYMOUTH,
HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 2014-02
AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON
CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY") FOR
PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF PLYMOUTH,
MINNESOTA.
THE CITY COUNCIL OF THE CITY OF PLYMOUTH, 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 Plymouth, 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 No.
2014-02, adopted January 14, 2014.
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
President, 800 LaSalle Avenue, Minneapolis, MN 55402. Notice to City shall be mailed to the
City Manager, City of Plymouth, 3400 Plymouth Boulevard, Plymouth, MN 55447.
SECTION 2. GAS FRANCHISE FEE.
2.1 Purpose. The Plymouth 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 May 1, 2014 billing month, and in accordance with the following fee
schedule:
Customer Classification Amount per Account per Month ($)
Residential
$2.00 per month
Firm A
$3.00 per month
Firm B
$10.00 per month
Firm C
$40.00 per month
Small Volume, Dual Fuel A ("SVDF A")
$40.00 per month
Small Volume, Dual Fuel B ("SVDF B")
$40.00 per month
Large Volume, Dual Fuel ("LVDF")
$40.00 per month
2.3 Account Fee. The fee shall be in addition to any permit or other fees being imposed on
the Company under Section 800 of the City Code. 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.
2.4 Pa ent. 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.
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.
SECTION 3: EFFECTIVE DATE. This ordinance shall take effect ninety (90) days after its
passage and publication.
ADOPTED by the City Council of the City of Plymouth, Minnesota this 14th day of January,
2014.
CITY OF PLYMOUTH
Kelli Slavik, Mayor
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andra R. Engdahl, (0ty Clerk