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HomeMy WebLinkAbout1721ORDINANCE NO. 1721 CENTERPOINT ENERGY GAS FRANCHISE FEE AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY RESOURCES CORP. d/b/a CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY"), ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA. THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN: Section 1. Gas Franchise Fee (a) Definitions. For the purposes of this Ordinance, the following terms shall have the following meanings: (1) City. The City of Columbia Heights, County of Anoka, State of Minnesota. (2) Company. Centerpoint Energy Resources Corp. d/b/a Centerpoint Energy Minnesota Gas its successors and assigns including all successors or assigns that own or operate any part of parts of gas facilities subject to the City Gas Franchise Ordinance. (3) Franchise Ordinance. The franchise agreement between the City and Company pursuant to City Ordinance No. 1689. (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, 505 Nicollet Mall, Minneapolis, MN 55402. Notice to City shall be mailed to the City Manager at 3989 Central Avenue, Columbia Heights, Minnesota, 55421. Any party may change its respective address for the purpose of this Ordinance by written notice to the other parties. (b) Purpose. The 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. (c) Franchise Fee Statement and Schedule. Pursuant to the Franchise Ordinance, the franchise fee is hereby imposed on Company commencing with its January 2026 customer billings, and in accordance with the following fee schedule: Customer Classification Amount pgr Month Residential $4.00 Commercial - A $6.00 Commercial/Industrial — B $28.00 Commercial/Industrial — C $112.00 Small Volume, Dual Fuel A ("SVDF A") $56.00 Small Volume, Dual Fuel B ("SVDF B") $66.50 Large Volume, Dual Fuel ("LVDF") $95.00_ (e) Payment. Franchise fees are to be collected by the Company and submitted to the City pursuant to Section 8.4 in the Franchise Ordinance 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. (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 to reimburse the Company for the cost of implementing and administering the fee. (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. 0) Effective Date of Franchise Fee. The effective date of the franchise fee in this Ordinance shall be after its publication and ninety (90) days after the sending of a written copy by certified mail. Collection of the fee shall commence on February 1, 2026. 2 (k) Relation to Franchise Ordinance. This ordinance is enacted in compliance with the Franchise Ordinance and shall be interpreted as such. (1) Periodic Review. The City Council may review this ordinance from time to time to determine whether the fees set hereby should be amended. (m) Permit Fees. The Company will administer the collection and payment of franchise fees to the City. Said fees are not in lieu of permit fees, or other fees that may be imposed on the Company in relation to its operations as a public utility in the City. Section 2. Effective Date of the 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 Company by certified mail. Collection of the fee shall commence as provided above. First Reading: October 14, 2025 Offered by: James Seconded by: Spriggs Roll Call: All Ayes Second Reading: October 27, 2025 Offered by: Buesgens Seconded by: Spriggs Roll Call: All Ayes, Marquez Simula absent Rac el James, Cou President Attest: Sara 116n, tlty Clerk/Council Secretary SUMMARY OF ORDINANCE NO. 1721 AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY RESOURCES CORP. d/b/a CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY"), ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA. The City Council for the City of Columbia Heights, Minnesota adopted Ordinance No. 1721 on October 27, 2025. The purpose of this ordinance being an ordinance implementing gas energy franchise fee on CenterPoint Energy Minnesota Gas, its successors and assigns, for providing services within the City of Columbia Heights. This is a summary of Ordinance No. 1721. A copy of the entire text of the Ordinance is available for public inspection during regular office hours at City Hall, by standard or electronic mail, or at www.columbiaheightsinn.gov. Rachel James, Council P esident Attest: Sara Ion, City Clerk/Council Secretary N AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) ss COUNTY OF ANOKA I do solemly swear that the notice, as per the proof, was published in the edition of the BSLP Col Hght Frid Life with the known office of issue being located in the county of: ANOKA with additional circulation in the counties of: RAMSEY 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 10/31/2025 and the last insertion being on 10/31/2025. MORTGAGE FORECLOSURE NOTICES Pursuant to Minnesota Stat. §580.033 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. By: Designated Agent Subscribed and sworn to or affirmed before me on 10/31/2025 Notary Public t?arlene Maxie MacPherson - � = Notsiy Public Minnesota My Commission [ xµires Jan. 31, 2029 .yea: Rate Information: (1) Lowest classified rate paid by commercial users for comparable space: $999.99 per column inch Ad ID 1499875 CITY OF COLUMBIA HEIGHTS SUMMARY OF ORDINANCE NO. 1721 AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON CENTERPOINT ENERGY RESOURCES CORP. D/B/A CENTERPOINT ENERGY MINNESOTA GAS ("CENTERPOINT ENERGY"), ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF COLUMBIA HEIGHTS, MINNESOTA. The City Council for the City of Columbia Heights, Minnesota adopted Ordinance No. 1721 on October 27, 2025. The purpose of this ordinance being an ordinance implement- ing gas energy franchise fee on CenterPoint Energy Minnesota Gas, its successors and assigns, for providing services within the City of Columbia Heights. This is a summary of Ordinance No. 1721. A copy of the entire text of the Ordinance is available for public inspection during regular office hours at City Hall, by stan- dard or electronic mail, or at www. columbiaheightsmn.gov. Rachel James, Council President Attest: Sara Ion, City Clerk/ Council Secretary Published in the The Life October 31, 2025 1499875