ORD 2022-10 An Ordinance Implementon a Gas Energy Franchise Fee on CenterPoint Energy Minnesota Gas (CenterPoint Energy) for Providing Gas Energy Service within the City of Otsego.ORDINANCE 1140.2022-10
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
AN ORDINANCE IlVIPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT
ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY") FOR PROVIDING GAS ENERGY
SERVICE WITHIN THE CITY OF OTSEGO.
THE CITY OF OTSEGO DOES ORDAIN:
Gas Franchise Fee
(a) Definitions. For the purposes of this Ordinance, the following terms shall have the following meanings:
(1) City. The City of Otsego, County of Wright, State of Minnesota.
(2) Company. CenterPoint Energy Minnesota Gas ("CenterPoint Energy"), its successors and assigns.
(3) Franchise Agreement. The franchise agreement between the City and Company pursuant to City
Ordinance 336.
(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, Vice President Regional Operations, 505 Nicollet
Mall, Minneapolis, MN 55402. Notice to City shall be mailed to the City Clerk at:
13400 90th Street NE
Otsego, MN 55330
(b) Purpose. The Otsego 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 Agreement the City has the right to impose a franchise fee on Company.
(c) Franchise Fee Statement and Schedule. A franchise fee is hereby imposed on Company commencing
with the October 2022 billing month, and in accordance with the following fee schedule:
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Customer Classification
Residential
Firm A
Firm B
Firm C
Sm Vol, Dual Fuel A (SVDF A)
Sm Vol, Dual Fuel B (SVDF B)
Lg Vol, Dual Fuel (LVDF)
Amount per Account per Month ($)
$4.00
$5.00
$20.00
$60.00
$80.00
$80.00
$100000
(d) Account Fee. This fee is an account based fee and not ameter-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.
(e) Payment. 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,G999/0-
09-970, and submitted to the City as follows:
January —March collections due by Apri130.
April — June collections due by July 31.
July — September collections due by October 31.
October — December collections due by January 31.
(f) 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.
(g) Payment Adjustments. Payment to the City will be adjusted where the Company is unable to collect the
franchise fee. This includes non -collectible accounts.
(h) 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,G999/0-09-970.
(i) Dispute Resolution. If either party asserts that the other party is in default in the performance of any
obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy.
The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith
to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the
parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and
expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30
days after first meeting with the selected mediator, either party may commence an action in District Court to
interpret and enforce this ordinance or for such other relief permitted by law.
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J) Effective Date of Franchise Fee. The effective date of this Ordinance shall be after its publication and
ninety (90) days or more after sending written notice enclosing a copy of this adopted Ordinance to Company
by certified mail. Collection of the fee shall commence as provided above.
(k) Relation to Franchise Agreement. This ordinance is enacted in compliance with the Franchise Agreement
and shall be interpreted as such.
(1) Periodic Review. The City Council shall review this ordinance every two years in whatever manner the
City Administrator determines to be appropriate, including, but not limited to, review by the City Council in
either a work session or a regular session. Failure to review this ordinance shall not in any way invalidate or
limit it.
(m) 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:
(1) The Company applies for any and all permits, licenses and similar documentation as though this
provision did not exist.
(2) The Company requests the fee to be waived at the time of application.
Section 2: Effective Date. This ordinance takes effect as provided herein.
PASSED AND ADOPTED BY THE CITY COUNCIL THIS 23RD DAY OF MAY 2022.
SEAL
ATTEST:
Bethany Benti g, Deputjoerk
(Published in the
the day of
2022.
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3
PUBLICATION SUMMARY OF
ORDINANCE NO.202240
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
OFFICIAL SUMMMARY FOR PUBLICATION
ORDINANCE ESTABLISHING A FRANCHISE FEE FOR
CENTERPOINT ENERGY MINNESOTA GAS
Ordinance Number 2022-10 was recently adopted by the City Council. Because of the lengthy nature of
the ordinance, the following summary of the ordinance has been prepared for publication as authorized by
law.
The Ordinance imposes a franchise fee on CenterPoint Energy Minnesota Gas, its successors and assigns as
part of the franchise previously granted the company by ordinance number 2002-20.
Ordinance 2022-10 provides for the imposition, collection, quarterly payment, and periodic auditing of a
franchise fee at the following rates:
Class
Residential
Firm A
Firm B
Firm C
Sm Vol, Dual Fuel A (SVDF A)
Sm Vol, Dual Fuel B (SVDF B)
Lg Vol, Dual Fuel (LVDF)
Amount tier month
$4.00
$5.00
$20.00
$60.00
$80.00
$80.00
$100000
Printed copies of both ordinances are available for inspection by any person during the City Hall regular
office ours.
Approved for publication by the City Council of the City of Otsego, Minnesota this 23rd day of May
2022.
SEAL
ATTEST:
Bethany Benb1 , Deputy Cler c
Date Published: �J'ag"�0'd-o?
L�
F OTSEGO
l
209421v5
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA ) ss
COUNTY OF SHERBURNE
Karen Nelson being duly sworn on an oath,
states or affirms that he/she is the Publisher's
Designated Agent of the newspaper(s) known
as:
Star News
with the known ofI"ice of issue being located .
in the county of:
SHERBURNE
with additional circulation in the counties of:
WRIGHT
and has full knowledge of the facts stated
below:
(A) The newspaper has complied with all of
the requirements constituting qualifica-
tion as a qualified newspaper as provided
by Minn. Stat. §331A.02.
(B) This Public Notice was printed and pub-
lished in said newspaper(s) once each
week, for 1 successive week(s); the first
insertion being on 05/28/2022 and the last
insertion being on 05/28/2022,
MORTGAGE FORECLOSURE NOTICES
Pursuant to Minnesota Stat. 2580.033
relating to the publication of mortgage
foreclosure notices: The newspaper complies
with the conditions described in,§580.033,
subd. 1, clause (1) or (2). If the newspaper's
known office of issue is located in a county
adjoining the county where the mortgaged
premises or some part of the mortgaged
premises described in the notice are located,
a substantial portion of the newspaper's
circulation is in the latter county.
Designated Agent
Subscribed and sworn to or affirmed before
me on OS/28/2022 by Karen Nelson.
Notary Public
DAALENE MARIE MACPNERSON
NOTARY PUBLIC - MINNESOTA
My WHOSsloa tOM Jan 31, 2024
Rate Information:
(1) Lowest classified rate paid by commercial users
for comparable space;
$23.00 per column inch
Ad ID 1232728
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
PUBLICATION SUMMARY OF ORDINANCE NO, 2022-10
OFFICIAL SUMMMARY FOR PUBLICATION
ORDINANCE ESTABLISHING A FRANCHISE FEE
FOR CENTERPOINT ENERGY MINNESOTA GAS
Ordinance Number 2022-10 was recently adopted by the City Coun-
cil. Because of the lengthy nature of the ordinance, the following sum-
mary of the ordinance has been prepared for publication as authorized
by law.
The Ordinance imposes a franchise fee on CenterPoint Energy Min-
nesota Gas, its successors and assigns as part of the franchise previ
ously granted the company by ordinance number 2002-20.
Ordinance 2022-10 provides for the imposition, collection, quarterly
payment, and periodic auditing of a franchise fee at the following rates:
class Amount per month
Residential $4.00
Firm A $5,00
Firm B $20.00
Firm C $60.00
Sm Vol, Dual Fuel A (SVDF A) $80.00
Sm Vol, Dual Fuel B (SVDF B) $80.00
Lg Vol, Dual Fuel (LVDF) $100400
Printed copies of both ordinances are available for inspection by any
person during the City Hall regular office hours.
Approved for publication by the City Council of the City of Otsego,
Minnesota this 23rd day of May 2022.
CITY OF OTSEGO
Tom Darkenwald, Acting Mayor
ATTEST:
Bethany Beniing, Deputy Clark
Published in the
Star News
May 28, 2022
1232726