HomeMy WebLinkAboutOrdinance 825ORDINANCE NO. 825
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE IMPLEMENTING A FRANCHISE FEE ON CENTER
POINT ENERGY NATURAL GAS OPERATIONS WITHIN THE CITY OF
MOUNDS VIEW
THE CITY OF MOUNDS VIEW ORDAINS:
SECTION 1. The City of Mounds View Municipal Code Appendix D is hereby amended
to include reference to the following Special Ordinance.
Subdivision 1. Purpose -The Mounds View 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 of Mounds
View.
a. .Pursuant to City Ordinance No. 625, a Franchise Agreement between the
City and Center Point Energy (formerly Reliant, formerly Minnegasco), the City
has the right to impose a franchise fee of not more than four (4) percent on
Minnegasco in amount and fee designs as set forth in Section 4.1 of the
Minnegasco Franchise.
Subd. 2. Franchise Fee Statement. A franchise fee is hereby imposed on
Center Point Energy under its natural gas Franchise Agreements in the amount of three
and seventy-nine hundredths (3.79) percent of Center Point Energy's gross revenues,
as defined in Section 4.1 of the Franchise Agreements commencing with Center Point
Energy's January 2010 billing month.
Subd. 3. Payment. The said franchise fee shall be payable to the City in
accordance with the terms set forth in Section 4.4 of the Franchise.
Subd. 4. Surcharge. The City recognizes that the Minnesota Public Utilities
Commission requires each said utility company to add to its effective rates for the utility
service on which the public utility gross earnings fee is imposed, a surcharge to
reimburse such utility company for the cost of the fee.
Subd. 5. Proof of Company Gross Revenues. Center Point Energy shall make
each payment when due and shall quarterly furnish a complete and correct statement of
gross revenues for said quarter. Center Point Energy shall permit the City and its
designated representative free access to the company's records for the purpose of
verifying such statements.
Subd. 6. Enforcement. Any dispute, including enforcement of a default
regarding this ordinance will be resolved in accordance with the Franchise Agreement.
Subd. 7. Effective Date of Franchise Fee. Notwithstanding the effective date of
this ordinance and notwithstanding any contrary provisions in Section 4 of the
Franchise, the effective date of the fee collected under Subdivision 2 of this ordinance is
the later of ten (10) days after the publication and after the sending of written notice
enclosing a copy of this adopted ordinance upon Center Point Energy by certified mail.
Subd. 8. Sunset Clause. This ordinance shall automatically sunset on
December 31, 2010.
SECTION 2. This ordinance takes effect as provided herein.
Read by the City Council of the City of Mounds View this 10t" day of August, 2009.
Read and passed by the City Council of the city of Mounds View this 24th day of
August, 2009.
Publication Date: September 3, 2009
6~
Jo lah rty, Mayor
ATTEST:
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Jim Ericson, City Clerk-Administrator
(SEAL)