2013-1066 Amend Section 701 and 702 for Franchise FeesCITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORDINANCE 2013-1066
AN ORDINANCE AMENDING SECTIONS 701– ELECTRIC UTILITY FRANCHISE
FEES AND 702 – NATURAL GAS UTILITY FRANCHISE FEES
OF THE HOPKINS CITY CODE AMENDING FRANCHISE FEE RATES,
THE EFFECITVE DATE OF THE FEES 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 as follows:
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 Monthly Fee Per Customer Premise
Residential $2.20
Small C & I— non demand $3.85
Small C & I— demand $15.50
Large C & I $105.50
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.
Resolution No. 2013-1066
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Section 2. Hopkins City Code, Section 701.09 is hereby amended as follows:
701.09. 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 2014.
Section 3. Hopkins City Code, Section 701.17 is hereby amended as follows:
701.17. Termination of Ordinance. This ordinance and the franchise fee imposed by it shall
remain in effect until December 31, 2018, 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, 2018 and
collected after that date.
Section 4. Hopkins City Code, Section 702.07 is hereby amended as follows:
702.07. Franchise Fee Imposed. A franchise fee is hereby imposed on the Company,
CenterPoint Energy Minnegasco, pursuant to City of Hopkins Franchise Ordinance 2002-879
and Minnesota Statutes 216B.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
$2.20
$2.20
$5.50
$15.50
$30.50
$105.50
$105.50
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 702.09 is hereby amended as follows:
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 2014.
Resolution No. 2013-1066
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Section 6. Hopkins City Code, Section 702.15 is hereby amended as follows:
702.15. Termination of Ordinance. This ordinance and the franchise fee imposed by it shall
remain in effect until December 31, 2018, 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, 2018, and
collected after that date.
Section 7. The effective date of this ordinance shall be the date of publication.
First Reading: August 20, 2013
Second Reading: September 3, 2013
Date of Publication: September 12, 2013
Date Ordinance Takes Effect: September 12, 2013
r
By:
Eugenel. xwell, Mayor
ATTEST:
Kristine A. Luedke, City Clerk
APPROVED AS TO FORM AND LEGALITY:
C4Attomey S' nature Date