2011-1036 Utility Franchise FeesCITY OF HOPKINS
Hennepin County, Minnesota
ORDINANCE 2011-1036
AN ORDINANCE AMENDING SECTIONS 701.07, 701.17, 702.01, 702.07 AND 702.15
OF THE HOPKINS CITY CODE
AMENDING UTILITY FRANCHISE FEE RATES AND
EXTENDING THE TERMINATION DATES FOR
UTILITY FRANCHISE FEES
Whereas the Hopkins City Council adopted utility franchise fees to help make up for the loss of
Local Government Aid; and
Whereas the Hopkins City Council imposed a two year limit on these fees to ensure that there
would be a review of the effect and need for these fees; and
Whereas the Hopkins City Council has determined that utility franchise fees are a fair and
equitable means to raise revenue; and
Whereas the Hopkins City Council has determined that there is a continued need for this
revenue;
Now therefore, the City Council of the City of Hopkins does hereby ordain:
Section 1. Hopkins City Code, Section 701.07 is hereby amended:
701.07. Franchise Fee Imposed. A franchise fee is hereby imposed on the Company,
Xcel Energy, pursuant to City of Hopkins Franchise Ordinance 87-578 and Minnesota
Statutes 21613.36 and subject to the fee schedule below.
A franchise Fee is to be collected by the Company from each customer in the designated
customer classification for service at each and every customer premise, as indicated by
the following schedule:
Fee Schedule
Customer Classification
Residential
Small C & I— non demand
Small C & I—demand
Large C & I
Monthly Fee Per Customer Premise
$1.70
$3.35
$15.00
$105.00
This fee is an account -based fee on each premise and not a meter -based fee. In the event
that a customer of the company 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 for a single customer billed at different rates, the
Company 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 Company
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 customer of the Company covered by
this ordinance has more than one premise, each premise (address) shall be subject to the
applicable fee. In the event a question arises as to the proper fee amount for any premise,
the Company's manner of billing for energy used at all similar premises in the city will
control.
Section 2. Hopkins City Code, Section 701.17 is hereby amended:
701.17. Termination of Ordinance. This ordinance and the franchise fee imposed by it
shall remain in effect until December 31, 2013, at which time they shall terminate and be
of no further effect, except that the Company shall remain obligated after that date to pay
the City all franchise fees due with respect to any period of time prior to December 31,
2013 and collected after that date.
Section 3. Hopkins City Code, Section 701.02 subd. 2 is hereby amended:
702.01 subd 2. Company. CenterPoint Energy Minnesota Gas, a division of CenterPoint
Energy Resources Corporation, a Delaware corporation, its successors and assigns.
Section 4. Hopkins City Code, Section 702.07 is hereby amended:
702.07. Franchise Fee Imposed. A franchise fee is hereby imposed on the Company,
CenterPoint Energy Minnesota Gas, pursuant to City of Hopkins Franchise Ordinance
2002-879 and Minnesota Statutes 21613.36 and subject to the fee schedule below.
A franchise Fee is to be collected by the Company from each customer in the designated
customer classification for service at each and every customer premise, as indicated by
the following schedule:
Fee Schedule
Customer Classification
Residential
Commercial A
Commercial/Industrial B
Commercial/Industrial C
Small Dual Fuel A
Small Dual Fuel B
Large Volume Dual Fuel
Monthly Fee Per Customer Premise
$1.70
$1.70
$5.00
$15.00
$30.00
$105.00
$105.00
This fee is an account -based fee on each premise and not a meter -based fee. In the event
that a customer of the company 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 for a single customer billed at different rates, the
Company may have an account for each rate classification, which will result in more than
one franchise fee assessment for gas service to that premise. If the Company 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 customer of the Company covered by this ordinance has more than one
premise, each premise (address) shall be subject to the applicable fee. In the event a
question arises as to the proper fee amount for any premise, the Company's manner of
billing for energy used at all similar premises in the city will control.
Section 5. Hopkins City Code, Section 702.15 is hereby amended:
702.15. Termination of Ordinance. This ordinance and the franchise fee imposed by it
shall remain in effect until December 31, 2013, at which time they shall terminate and be
of no further effect, except that the Company shall remain obligated after that date to pay
the City all franchise fees due with respect to any period of time prior to December 31,
2013, and collected after that date.
Section 6. The effective date of this ordinance shall be the date of publication.
First Reading: September 6, 2011
Second Reading: September 27, 2011
Date of Publication: October 13, 2011
Date Ordinance Takes Effect: October 13, 2011
ATTES
Deborah L. Sperling, City Clerk
APPROVED AS TO FORM AND LEGALITY:
City Attorne ignature
Gene a ell, Mayor
I --oma 5�-- l
Date