HomeMy WebLinkAbout2015-11 08-10 CCOCITY OF BROOKLYN CENTER
Notice is hereby given that a public hearing will be held on the 10th day of August, 2015, at 7
p.m. or as soon thereafter as the matter may be heard at City Hall, 6301 Shingle Creek Parkway,
to consider an ordinance continuing the CenterPoint Energy Resources natural gas franchise fee.
Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance.
Please notify the City Clerk at 763-569-3300 to make arrangements.
ORDINANCE NO. 2015-11
AN ORDINANCE CONTINUING THE NATURAL GAS FRANCHISE FEES
ON THE OPERATIONS OF CENTERPOINT ENERGY RESOURCES CORP
IN THE CITY OF BROOKLYN CENTER
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. RECITALS.
1.1. By Ordinance No. 2003-06, adopted on July 14, 2003, the City of Brooklyn Center,
Minnesota, approved a franchise for CenterPoint Energy Minnegasco, a division of
CenterPoint Energy Resources Corporation (the “2003 Franchise Ordinance”).
1.2. Pursuant to the 2003 Franchise Ordinance, the City Council imposed a franchise fee on
the operations of the franchise by Ordinance No. 2003-23 adopted on December 8, 2003,
which ordinance, including the franchise fees imposed thereby, was amended by
Ordinance No. 2009-02, adopted on January 12, 2009 (the “2003 Franchise Fee
Ordinance, as amended”).
1.3. The City Council has adopted a new franchise ordinance for CenterPoint Energy
Resources Corp (the “Franchisee”), by Ordinance No. 2015-12, adopted on August 10,
2015 (the “2015 Franchise Ordinance”), which, upon becoming effective, will supersede
the 2003 Franchise Ordinance.
1.4. The City Council finds that it is reasonable, prudent, and in the interest of the public that
the franchise fee imposed by the 2003 Franchise Fee Ordinance, as amended, be
continued under the 2015 Franchise Ordinance on the same fee schedule as the 2003
Franchise Fee Ordinance, as amended.
1.5. The Franchisee has consented and agreed to the imposition of the franchise fee provided
for herein and waived the dispute resolution process and the right to object to the fee
provided for in Section 8 of the 2015 Franchise Ordinance.
ORDINANCE NO. 2015-11
Section 2. FRANCHISE FEE.
2.1. Franchise Fee. A franchise fee ("Fee") is hereby imposed on Franchisee, under the 2015
Franchise Ordinance, as set forth in the fee schedule attached hereto and incorporated
herein by reference as Exhibit A, upon the effective date of the 2015 Franchise Ordinance
and the end of the Franchisee's obligations to collect a franchise fee under the 2003
Franchise Fee Ordinance, as amended, so that the collection of franchise fees will not be
interrupted, all as approved by the Minnesota Public Utilities Commission.
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 Franchisee may have an account for each
rate classification, which will result in more than one franchise fee assessment for electric
service to that premise.
If the Franchisee 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 Franchisee's manner of billing for energy used at all similar premises in the
city will control.
2.2. Payment. The Fee shall be payable to the City in accordance with the terms set forth in
the 2015 Franchise Ordinance.
2.3. Surcharge. The City acknowledges that Franchisee may choose to add the full amount of
the Fee as a customer surcharge to reimburse the Franchisee for the Fee. Franchisee shall
provide to the City a copy of the proposed customer bill line item describing the Fee
thirty days before the first bill collecting the Fee is sent to customers.
2.4. Proof of Customer Usage. Franchisee shall make each payment when due and shall
quarterly furnish a complete and correct statement of gross operating revenues for said
quarter. Franchisee shall permit the City and its designated representative reasonable
access to the Franchisee's records for the purpose of verifying such statements.
2.5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance
will be resolved in accordance with the 2015 Franchise Ordinance.
ORDINANCE NO. 2015-11
Section 3. EFFECTIVE DATE. This ordinance shall become effective after adoption and
upon thirty(30) days following its legal publication.
Adopted this 10th day of August, 2015.
Mayor
ATTEST:
&A"-
City Clerk
Date of Publication: August 20, 2015
Effective Date: September 19, 2015
ORDINANCE NO. 2015-11
EXHIBIT A
CenterPoint Energy Gas Franchise Fee Schedule
Class Fee Per Premise
Residential $ 1.52 per month
Commercial A $ 1.58 per month
Commercial Industrial B $ 5.15 per month
Commercial C $20.60 per month
SVDF A $51.50 per month
SVDF B $98.88 per month
LVDF $98.88 per month