2018-1136 Amending Section 702 of the Hopkins City Code Pertaining to Natural Gas Utility Franchise Fees CITY OF HOPKINS
COUNTY OF HENNEPIN
ORDINANCE 2018-1136
ORDINANCE AMENDING SECTION 702 OF THE HOPKINS CITY
CODE PERTAINING TO NATURAL GAS UTILITY FRANCHISE FEES
THE COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS:
Section 1. That Section 702 of the Hopkins City Code be deleted in its entirety and replaced with
the following:
Section 702-Gas Utility Franchise Fee
702.01. Definitions. For purposes of this Ordinance, the following capitalized terms shall have the
following meanings:
Subd. 1. City. The City of Hopkins,County of Hennepin, State of Minnesota.
Subd. 2. Company. CenterPoint Energy Minnesota Gas, a division of CenterPoint Energy
Resources Corporation,a Delaware corporation, its successors and assigns.
702.03. Purpose. The Hopkins City Council has determined that franchise fees should be imposed on gas
and electric utilities in return for their use of City-owned rights-of-way. The purpose of this ordinance is to
establish such franchise fees to be paid to the City by the Company.
702.05. City Authority. Minnesota Statutes 21613.36 grants cities the authority to impose a franchise fee
on gas and electric utility services. Such fees are in return for basic right to operate within municipally-
owned rights-of-way and other public property as provided in utility franchise agreements/ordinances
between a city and the respective utilities operating within the municipal boundaries. In addition, City of
Hopkins Franchise Ordinance 2002-879 authorizes the City to impose, by separate ordinance, a franchise
fee on the Company.
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 Monthly Fee Per Customer Premise
Residential $3.50
Commercial A $3.50
Commercial/Industrial B $8.75
Commercial/Industrial C $24.70
Small Dual Fuel A $48.55
Small Dual Fuel B $170.50
Large Volume Dual Fuel $170.50
529029v DTA HP 145-42
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.
702.09. Date Franchise Fee Takes Effect. The above utility franchise fees shall go into effect in and be
applicable to all of the Company's billings commencing with bills for the month of January 2019.
702.11. Payment of Fee. Franchise fees shall be paid to the City quarterly, based on a calendar year,with
payment due by the 30th day after the end of each quarter.
702.13. Dispute. Any disputes or other issues which arise will be subject to the terms of this Ordinance,
Franchise Ordinance 2002-879, Minnesota Statutes 21613.36 as well as any other agreements entered into
by the City and the Company.
702.15. Termination of Ordinance.This ordinance and the franchise fee imposed by it shall remain in effect
until December 31, 2023, 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 31,2023,and collected after that date.
Section 2. The effective date of this ordinance shall be January 1, 2019.
First Reading: September 18, 2018
Second Reading: October 2, 2018
Date of Publication: October 11, 2018
Date Ordinance Takes Effect: January 1, 2019
By: /G'� ��� 0 _
Molly ummings, Mayor
ATTEST:
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Amy Domeier, City Clerk
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