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Ordinance 650ORDINANCE NO. 650 AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY MINNESOTA GAS, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF C14ANHASSEN THE CITY COUNCIL OF THE CITY OF CHANHASSEN, CARVER AND HENNEPIN COUNTY, MINNESOTA, ORDAINS: SECTION 1. The City of Chanhassen Municipal Code is hereby amended to include reference to the following Special Ordinance. Subd.1. Purpose. The Chanhassen 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 Chanhassen. (a) Pursuant to City Ordinance 649, a Franchise Agreement between the City of Chanhassen and CenterPoint Energy Minnesota Gas, its successors and assigns, the City has the right to impose a franchise fee on CenterPoint Energy Minnesota Gas, its successors and assigns, in an amount and fee design as allowed in Section 7.1 of the CenterPoint Energy Minnesota Gas Franchise and in the fee schedule attached hereto as Schedule A. Subd. 2. Definitions. For the purposes of this Ordinance, the following terms shall have the following meanings: (a) City. The City of Chanhassen, County of Carver and Hennepin, State of Minnesota. (b) Company. CenterPoint Energy Minnesota Gas, its successors and assigns. (c) Franchise. The franchise agreement between the City and Company pursuant to City Ordinance No. 336. Subd. 3. Notice. Means a writing served by either party hereto to the other party. Notice to Company shall be mailed to CenterPoint Energy, Vice President Regional Operations, 505 Nicollet Mall, Minneapolis, MN 55402. Notice to City shall be mailed to the City Administrator, City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN 55317. Subd. 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. Subd. 5. Franchise Fee Statement and Payment. A franchise fee is hereby imposed on CenterPoint Energy ("Company"), under its gas franchise in accordance with the Schedule A attached hereto and made a part of this Ordinance, commencing with the Company's February 2020 billing month. Franchise fees are to be collected by the Company, consistent with the Minnesota Public Utility Commission's March 23, 2011 Order establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970. Subd. 6. Record Support for Payment; Audit. (a) 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. (b) No more than once every three (3) years and upon thirty (30) days prior written notice, City shall have the right to conduct an independent review/audit of the Company's records solely for the purpose of assessing the Company's compliance with the franchise fee obligation herein. In the event the audit reveals an underpayment of five percent (5%) or more of the franchise fee amounts due during the period audited, the Company shall reimburse the City's audit fees and expenses in full. Any verified underpayment of franchise fees shall be paid to the City within thirty (30) days of verification, plus interest at the same rate ordered by the Minnesota Public Utilities Commission for interim rate refunds from the Company's most recent rate case. Subd. 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 Subd. 8. Surcharge. The City 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, consistent with the Minnesota Public Utility Commission's March 23, 2011 Order establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970. Subd. 9. 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, whichever is later. Collection of the fee shall commence as provided above. Subd. 10. Relation to Franchise. This ordinance is enacted in compliance with the Franchise and shall be interpreted in accordance with its terms and applicable law. Subd.11. 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: (a) The Company applies for any and all permits, licenses and similar documentation as though this provision did not exist. (b) The Company requests the fee to be waived at the time of application. 2 Subd. 12. 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 the Company by certified mail. Collection of the fee shall commence as provided above. Passed and approved: October 28, 2019. Attest: City tdanager, Chanhassen, Minnesota Mayor of the City of anhassen, Minnesota 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 $ 5.00 Firm A $ 5.00 Firm B $ 9.00 Firm C $ 20.00 Small Volume, Dual Fuel A ("SVDF A") $ 90.00 Small Volume, Dual Fuel B ("SVDF B") $ 90.00 Large Volume, Dual Fuel ("LVDF") $ 90.00 Franchise fees are submitted to the City on a quarterly basis as follows: January — March collections due by April30. April — June collections due by July 31. July — September collections due by October 31. October — December collections due by January 31. 0 ---IINAINUE NO. 650 AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY MINNESOTA GAS, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF CHANHASSEN THE CITY COUNCIL OF THE CITY OF CHANHASSEN, CARVER AND HENNEPIN COUNTY, MINNESOTA, ORDAINS: SECTION 1. The City of Chanhassen Municipal Code is hereby amended to include reference to the following Special Ordinance. Subd. 1. Purpose. The Chanhassen 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 Chanhassen. (a) Pursuant to City Ordinance 649, a Franchise Agreement between the City of Chanhassen and CenterPoint Energy Minnesota Gas, its successors and assigns, the City has the right to impose a franchise fee on CenterPoint Energy Minnesota Gas, its successors and assigns, in an amount and fee design as allowed in Section 7.1 of the CenterPoint Energy Minnesota Gas Franchise and in the fee schedule attached hereto as Schedule A. Subd. 2. Definitions. For the purposes of this Ordinance, the following terms shall have the following meanings: (a) City. The City of Chanhassen, County of Carver and Hennepin, State of Minnesota. (b) Company. CenterPoint Energy Minnesota Gas, its successors and assigns. (c) Franchise. The franchise agreement between the City and Company pursuant to City Ordinance No. 336. Subd. 3. Notice. Means a writing served by either party hereto to the other party. Notice to Company shall be mailed to CenterPoint Energy, Vice President Regional Operations, - 505 Nicollet Mall, Minneapolis, MN 55402. Notice to City shall be mailed to the City Administrator, City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN 55317. Subd. 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. Subd. 5. Franchise Fee Statement and Payment. A franchise fee is hereby imposed on CenterPoint Energy ("Company"), under its gas franchise in accordance with the Schedule A attached hereto and made a part of this Ordinance, commencing with the Company's Affidavit of Publication Southwest Newspapers State of Minnesota) )SS. County of Carver ) Laurie A. Hartmann, being duly sworn, on oath says that she is the publisher or the authorized agent of the publisher of the newspapers known as the Chaska Herald and the Chanhassen Vil- lager and has full knowledge of the facts herein stated as follows: (A) These newspapers have complied with the requirements constituting qualification as a legal newspaper, as provided by Minnesota Statute 331A.02, 331A.07, and other applicable laws, as amended. (B) The printed public notice that is attached to this Affidavit and identified as No. L' was published on the date or dates and in the newspaper stated in the attached Notice and said Notice is hereby incorporated as part of this Affidavit. Said notice was cut from the columns of the newspaper specified. Printed below is a copy of the lower case alphabet from A to Z, both inclusive, and is hereby acknowledged as being the kind and size of type used in the composition and publication of the Notice: abcdefgh ij klmnopgrstuvwxyz By:_ �... Laurie A. Hartmann Subscribed and sworn before me on this day of ­2019 JYMME JEANNETTE BARK -/ kkiNOTARY PUBLIC MINNESOTA No ' ublic `� MY COMMISSION EXPIRES 01131123 ii J RATE INFORMATION Lowest classified rate paid by commercial users for comparable space.... $31.20 per column inch Maximum rate allowed by law for the above matter ................................. $31.20 per column inch Rate actually charged for the above matter ............................................... $13.62 per column inch February 202U Dining montn. Franchise fees are to be collected by the Company, consistent with the Minnesota Public Utility Commission's March 23, 2011 Order establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970. Subd. 6. Record Support for Payment; Audit. (a) 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. (b) No more than once every three (3) years and upon thirty (30) days prior written notice, City shall have the right to conduct an independent review/ audit of the Company's records solely for the purpose of assessing the Company's compliance with the franchise fee obligation herein. In the event the audit reveals an underpayment of five percent (5%) or more of the franchise fee amounts due during the period audited, the Company shall reimburse the City's audit fees and expenses in full. Any verified underpayment of franchise fees shall be paid to the City within thirty (30) days of verification, plus interest at the same rate ordered by the Minnesota Public Utilities Commission for interim rate refunds from the Company's most recent rate case. Subd. 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 Subd. 8. Surcharge. The City 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, consistent with the Minnesota Public Utility Commission's March 23, 2011Order establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970. Subd. 9. 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, whichever is later. Collection of the fee shall commence as provided above. Subd. 10. Relation to Franchise. This ordinance is enacted in compliance with the Franchise and shall be interpreted in accordance with its terms and nnnlirnhla law rr Subd. 11. Permit Fees. Tl,e--Uompany 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: (a) The Company applies for any and all permits, licenses and similar documentation as though this provision did not exist. (b) The Company requests the fee to be waived at the time of application. Subd. 12. 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 the Company by certified mail. Collection of the fee shall commence as provided above. Passed and approved: October 28, 2019. Mayor of the City of Chanhassen, Minnesota Attest: City Manager, Chanhassen, Minnesota 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 $ 5.00 Firm A $ 5.00 Firm B $ 9.00 Firm C $ 20.00 Small Volume, Dual Fuel A ("SVDF A') $ 90.00 Small Volume, Dual Fuel B ("SVDF B") $ 90.00 Large Volume, Dual Fuel ("LVDF") $ 90.00 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. (Published in the Chanhassen Villager on Thursday, November 7, 2019; No. 4807)