City Council Ordinance 859 (CenterPoint Franchise Fee)ORDINANCE NO.859
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
AN ORDINANCE IMPLEMENTING A GAS ENERGY FRANCHISE FEE ON
CENTERPOINT ENERGY MINNESOTA GAS, A NATURAL GAS UTILITY FOR
PROVIDING GAS ENERGY SERVICE WITHIN THE CITY OF MONTICELLO,
MINNESOTA.
THE CITY CO UNCIL OF MONTICELLO, MINNESOTA DOES ORDAIN THA T.-
Section 1. A Gas Franchise Fee on CenterPoint Energy ("Company") is established and
implemented as follows:
(a) Purpose. The City of Monticello City Council has determined that is in the best interest of the
City to impose a franchise fee on those utility companies that provide natural gas and electric
services within the City. Pursuant to Minnesota Statutes, Section 216B.36 and Section 7.1 of the
Franchise Ordinance, the City has the authority and right to impose a franchise fee on Company.
The purpose of this ordinance is to establish such franchise fees to be paid to the City by the
Company.
(b) Definitions. For the purposes of this Ordinance, the following terms shall have the following
meanings:
(1) City. The City of Monticello, County of Wright, State of Minnesota.
(2) Company. CenterPoint Energy Minnesota Gas ("CenterPoint Energy"), its successors
and assigns.
(3) Franchise Ordinance. The franchise ordinance adopted by the City on June 8, 2009,
City Ordinance No. 500.
(4) Notice. "Notice" means a writing served by any party or parties on any other party or
parties. Notice to the Company shall be mailed to CenterPoint Energy, Minnesota
Division Vice President, 505 Nicollet Mall, Minneapolis, Minnesota, 55402. Notice to
the City shall be mailed to the City Clerk at 505 Walnut Street, Monticello MN 55362.
(c) Franchise Fee Statement and Schedule. A franchise fee is hereby imposed on Company
commencing with the January 2026 billing month, and in accordance with the following fee
schedule:
237470v1
Amount Per Account
Customer Classification Per Month ($)
Residential $7 per month
Firm A $7 per month
Firm B $24 per month
Firm C $83 per month
Small Volume, Dual Fuel A ("SVDF A") $83 per month
Small Volume, Dual Fuel B ("SVDF B") $175 per month
Large Volume, Firm and Dual Fuel ("LVDF") $292 per month
(e) Payment. Franchise fees are to be collected by the Company, consistent with the Minnesota
Public Utility Commission's March 23, 2011, Order establishing franchise fee filing requirements
in Docket No. E,G999/CI-09-970, and submitted to the City 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 of city residents to reimburse the Company for the
cost of the fee, consistent with the Minnesota Public Utility Commission's March 23, 2011 Order
establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970.
(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 this Ordinance shall be after its
publication and ninety (90) days after sending written notice enclosing a copy of this adopted
Ordinance to Company by certified mail. Collection of the fee shall commence as provided above.
237470v1
(k) Relation to Franchise Agreement. This ordinance is enacted in compliance with the Franchise
Ordinance and shall be interpreted as such.
(1) Periodic Review. The City Council shall review this ordinance every two (2) years in whatever
manner the City Administrator then determines to be appropriate, including, but not limited to,
review by the City Council in either a work session or a regular meeting. Failure to review this
ordinance shall not in any way invalidate or limit it.
Section 2. Effective Date. This ordinance shall be published and take effect as provided by law.
PASSED AND ADOPTED BY THE CITY COUNCIL THIS 27th DAY OF OCTOBER, 2025.
Mayor
ATTEST:
Ayes: Christianson, Gabler, Hilgart, Hinz, and Martie
Nays: None
Absent: None
Published in the Monticello Times newspaper the 61h day of November, 2025.
237470v1