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HomeMy WebLinkAbout1974-18 07-18 AP CITY OF BROOKLYN CENTER ORDINANCE NO.— THE REPEAL OF AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS BROOKLYN CENTER POST PERMISSION TO CONSTRUCT, (A continuation of the Brooklyn Center Press) • OPERATE, REPAIR AND MAIN- , TAIN, IN THE CITY OF BROOKLYN CENTER, MINNESOTA, AN ELECTRIC DISTRIBUTION AFFIDAVIT OF PUBLICATION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, POLE LINES, AND 111 TURES AND APPURTENANCES; FOR THE FURNISHING OF STATE OF MINNESOTA ELECTRIC ENERGY TO THE CITY SS. AND ITS NHABITANTS, AND COUNTY OF HENNEPIN + OTHERS, , AND TO USE THE STREETS, ALLEYS, AND PUBLIC WAYS OF SAID CITY FOR SUCH PURPOSES; PRESCRIBING CERTAIN TERMS AND CON- DITIONS THEREOF, AND PRESCRIBING THE RATES TO BE CHARGED THEREFOR E. C. L'Herault, being duly sworn, on oath says he is and during all The Times herein stated has been the President of THE CITY COUNCILOF THE CITY The Post Publishing Co., publisher and printer of the newspaper known as OF BROOKLYN CENTER DOES • ORDAIN AS FOLLOWS BROOKLYN CENTER POST (A Continuation of Brooklyn Center Press) Sections: Chapter 9 re the City and has full knowledge of The facts herein stated as follows: Ordinances is hereby repealed as (1) Said newspaper is printed in the English language in newspaper format and in column and sheet form follows in printed space to at least 900 square inches. (2) Said newspaper is a weekly and is distributed at least once each ch (Section PURPOSES. Nor- week. (3) Said newspaper has 50 percent of its news columns, devoted To news of local interest to the community corporation States s P Power Company, oration organized under the laws s which it purports to serve and does not wholly duplicate any other publication and is not made up entirely of patents, c of the State of Minnesota, owns and plate matter and advertisements. (4) Said newspaper is circulated in and near the municipality which it purports operates property used and useful in To serve, has at least 500 copies regularly delivered To paying subscribers, has an average of at least 75 percent of its the production, transmission, total circulation currently paid or no more than Three months in arrears and has entry as second -class matter in its • d; ition and sale of electricity in local post- office. (5) Said newspaper purports to serve the i' / of Brooklyn Center CITY OF BROOKLYN CENTER City Council has determined that tt is desirable, in the public in- in the County of Hennepin and it has its known office of issue in the City of Crystal in said county, established and open terest, and to the advantage of the during its regular business hours for the gathering of news, sale of advertisements and sale of subscriptions and consumers of electricity in Brooklyn maintained by the managing officer of said newspaper or persons in its employ and subject To his direction and control Center, that a franchise be granted To during all such regular hours and at which Time said newspaper is printed. (6) Said newspaper files a copy of each Company upon the terms and con- issue immediately with the State Historical Society. (7) Said newspaper has complied with all the foregoing conditions ditions contained herein. for at least two years preceding the day or dates of publication mentioned below. (8) Said newspaper has filed with Company, in consideration of the Secretary of State of Minnesota prior to January 1, 1966 and each January 1 thereafter an affidavit in the form • benefits accruing to it under the prescribed by the Secretary of State and signed by the managing officer of said newspaper and sworn to before a franchise agrees to supply electric notary public stating That the newspaper is a legal newspaper. service in Brooklyn Center upon the p �4+` terms He conditions contained herein Hefurtherstatesonoaththatthe printed ) (Section 9 -202_ EF pNITIONS. p y, i.: V Subdivision 1. in this ordinance „ Munici alit " Municipal Coun- ... �, �� .C, ..� ............ .... `.i...i.: �..... �-.-?......................................... ............................... cis," and "Municipal Clerk" mean, respectively, the City of Brooklyn • Center, the Council of the City of hereto attached as a part hereof was cut from the columns of said newspaper, and was printed and published therein in Brooklyn Center, and the Clerk of the City of Brooklyn Center. IT at any time ` f the powers of the Municipality, the The English language, onceeach week, for. . r.. successive weeks; that itwasfirstso published on Municipal Council, or the Municipal LG - " Clerk shall be transferred to any other ( authority, board, office, or officers, the..,r'. %. day of...1.F+...L...... ...... 19 ..... . and was thereafter printed and published onevery ..................... then such authority, board, office, or , officers shall have the rights, powers, r and duties herein given to The to and including the.......... day of ........................ 19 ...... and that the following is a printed copy of The Municipality, the Municipal Council, and the Municipal Clerk, respectively. Subd. 2. "Company" means Nor- lower case alphabet from A to Z, both inclusive, and is hereby acknowledged as being The size and kind of Type used in thern States Power Company, a Minnesota Corporation, its successors and assigns. the composition and publication of said notice, To wit: Subd. 3. "Metro Area" includes all areas served with electricity by Company in the Counties of Hennepin, abcdefghijklmnopgrstuvwxyz -5 pt. Sans Ramsey, Washington, Dakota, Anoka, ' Carver, and Scott. Subd. 4. "Metro Rate Authority" or "Authority" means the organization of municipalities created by joint agreement and amendments thereto, pursuant to Minnesota Statutes Sec- tion 471.59 and which is authorized To admi -inter provisions of this or F dir as herein provided. The ... .............. ......... .' ....,...........c...: .. r: .. .... .. .. ........ .. .. .. ... Au y consists of representatives + of an municipalities which adopt this uniform franchise ordinance. Subscribed and sworrlto before Subd. 5. "Executive Committee" or ,/ - "Committee" means the committee G appointed by the Authority. The me this... ...............day of.�.� ,'... .............A.D., 19.. ;.:.. Committee shall consist of not more r than 15 members. The Committee shall have those Powers specified in ..:....... ..........�. ..... ..............,,:....,.. i - .. , : ..:.:............. ............................... this franchise and those delegated to it by the Authority pursuant to the joint agreement. (NOTARIAL SEAL) Subd. 6. "Party" means the Municipality, the Authority or Com. P 5 bd 7 p erson" may extend and Notary Public ....... ........................County, Minnesota • be applied to bodies politic and cor- porate, and to partnerships and other My Commission Expires ....... .......................19...... unincorporated associations. I No. ................ Affidavit of Publication Or ° Published is BROOKLYN CENTER POST 5617 Corvallis Ave. N. f MINNEAPOLIS, MINNESOTA 55429 DATE Or PUBLICATION ATTORNEY FILED BROOKLYN CENTER POST 1 1 s, cessive fluctuation in the rates, the Sub. 3. "Allowable Rate of Return" -74 Company may additionally once means the weighted average actual during a calendar year, but not prior cost for the year of filing of 1) Senior Subd. 8. "Notice" means a writing to lulu 15 }hereof, adjust the rates in Capital of Company and its utility served by any party or parties on any Subd. 2. Company's provision of the same manner as provided above. subsidiaries and 2) the Allowable ' party or parties. In the case of Com electric service to its customers is Subd. 3. The rates to become ef- pany, notice shall be mailed to an subject to interruption and distur- fective on and after March 15, 1974, officer thereof at 414 Nicollet Mall. bance of service due to: pursuant to Subd. 2 of this section, Return on Common Equity. The Minneapolis, Minnesota. In The case of la)conditions beyond its control; shall be subject to a temporary weight to be given to each class of Authority, notice shall be mailed to the ' (b) necessary maintenance and reduction during the year 1974 totaling capital shall be based on Company and Rat 'ministrator. In the case of operation of its system; $6,000,000. Such reduction and any its utility subsidiaries' actual average Mu lity, notice shall be mailed to (c) effect of operations of any in- credit balance in the Stabilization outstanding amount of each class the . - _..,cipal Clerk. terconnecting electric systems; or Reserve Account resulting from 1973 throughout the year of filing. Subd. 9. "Rate Administrator" (d)curtailment of electric service as operations will be applied only To the Subd, 4. "Allowable Return on means a professional person qualified may be prudent to maintain ser- bills of customers located in those Common Equity" means that return and experienced in public utility t vice to priority loads or to maintain areas of the Metro Area in which the on common equity capital determined regulatory matters. The Rate Ad- the operating stability of Com - base electric rates for residential pursuant to Section 12, ministrator is appointed by the pany's system; service, general service, and large Subd. 5. "Senior capital" means all Authority.) neither Company, Municipality, the general service were no less than such debt, including short -term debt, and (Section 9 -203. GRANT. Subdivision Authority nor any customer shall be base electric rates charged in The City preferred stock. 1. There hereby is granted to Company liable for damage or loss for in- of Minneapolis on January 1, 1973. Subd. 6. "Cost of Senior Capital" for the period extending to January 1, terruption or disturbance of service Base electric rate means the charge to means the weighted average cost of all 1983 (subject To termination on due to said causes. The Company shall the customer for electric service senior capital, where the cost of each December 31, 1977 upon notice from make reasonable effort to notify at excluding any franchise fee, street issue is obtained by multiplying the Company to Municipality and fected customers of scheduled in- rental charge, gross receipts tax or principal amount of The issue by the #Authority, or upon notice of ' terruption and disturbance of service. duties or imposts, imposed by the interest rate in the case of debt and by Municipality to Authority aAd Com- Company will not be in breach of this municipality included in or added to the dividend rate in the case of pany at least 90 days before said date franchise for interruptions of service said charge. preferred stock, and dividing by the of December 31, 1977) the right and due to such causes. Subd. 4. Increases or decreases in net proceeds of the issue. Privilege of constructing according to Subd. 3. Company will promptly rates or the continuance of existing Subd. 7. "Net proceeds" in the case specifically approved permits, take such action as may be practicable rates shall be based on forecasts for of long -term debt capital means the under he circumstances to remove the calendar year of filing of expenses, operating, repairing, and maintaining t capital costs and of the revenue • principal amount issued, plus ca in, on, over, under, and across the the cause of any interruption, P premiums received less issuance streets, alle and disturbance, or curtailment and to required to enable Company to earn an ex p ense and discounts. In the case of y public ways of P Municipality, an electric distribution resume normal delivery of electric amount equal to the Allowable Annual short -term debt capital, the term system and electric transmission +service.) Return defined in Section 10, plus part means the sum of a) the principal lines, including all poles, pole lines, (Section 9206. NONEXCLUSIVE or all of any debit balance or less part amount of bank loans outstanding, and conduits, and fixtures and ap- FRANCHISE. This is not an exclusive or all of any credit balance in The b) the principal amount of commercial franchise ) Stabilization Reserve Account as notes, less prepaid interest. In the case purtenances, usually, conveniently, or P necessarily used in connection (Section 9207, - RATES Subdivision provided in Section 15. of preferred stock, the term means the therewith, for the purpose of tran 1. The rates and charges imposed and Subd. S. Company will annually stated value plus premiums, less smitting and furnishing electric collected by Company for services in supply forecast data To the Rate Ad- „ issuance expense and discounts. In the energy for light, heat, power, and the Metro Area shall be fair, just, ministrator in accordance with the case of re- acquisition, retirement or other purposes for public and private reasonable and compensatory and following schedule: refunding of long -term debt or use in and To Municipality and the designed to recover all reasonable Revenue Budget November 1 preferred stock, the call premiums, inhabitants thereof, and others, and costs of service therein, including a Expense Budget December 1 expenses and discounts are To be for the purpose of transmitting reasonable return as herein provided Capital Budget December 15 considered as part of the over -all cost electric energy into and through on the capital investment in the or on such later dates as the Rate of capital. Municipality. The electric distribution business under an economical and Administrator may authorize. Subd. 8. "Actual Net Earnings" for system and transmission lines shall be efficient management. Subd. 6. On or before December 1, the year 1973 means actual gross so located as not To interfere with the Subd. 2. The rates charged to any 1975, and at intervals of no more than revenues of Company received for safety and convenience of oridinary class of customers will not cast an five years thereafter, Company shall , electric utility service furnished in the travel along and over said streets, undue burden on any other class of furnish a current study of its rate Metro Area less operating expenses alleys and public ways. customers nor shall any rates charged structure to the Authority. reasonably incurred in rending such Subd. 2. This ordinance is intended to customers within the same class of Subd. 7 On or before March 1 of service. For subsequent years said to regulate the exercise of The right # service cast an undue burden on other each year Company will supply term means gross revenues of Com - and privileges granted to Company customers within that class. # Authority with a tabulation of pany for electric utility service fur - herein Nothing in this ordinance is to Subd. 3. The schedule of rates customers and revenues attributable nished in the Metro Area computed at be c red to modify, alter or amend contained in Appendix A, attached and toeach Municipality in the Metro Area the Metro Area Rates, less operating any ory or charter power of the made a part hereof by reference, is for the previous calendar year.) expenses reasonably incurred in Municipality to regulate the use of its effective as to all bills computed on (Section 9 -209. RATES; RATE rendering such service. To the streets, alleys and public ways. Such regular meter readings on and after FILING. Subdivision 1. Any filing by , resulting net income shall be added regulations, insofar as they do not the effective date of this ordinance. Company with the Authority to change that portion of the amount credited affect the rate regulation and ad- The schedule shall remain in effect or continue any rates or rate strut- under the Uniform System of Accounts ministration provisions of this or- until changed in accordance with tures as provided in Section 8, Subd. 2, to Allowance for Funds Used During dinance, need not be identical among • Section 8 of this franchise. The cost to may be altered, amended, or revised Construction applicable To con - members of the Authority. the Company of any franchise fee, by the Executive Committee in con- struction work in progress included in Subd. 3. Nothing in this ordinance street rental charge, gross receipts formance with and subject to the the Allowable Rate Base in Subd. 9 prevents the powers of the Authority taxes, or any other duties or imposts, provisions of this ordinance. hereof. For the years 1973 and 1974 from being hereafter delegated by law imposed by the Municipality will be Subd. 2. The Rate Administrator such allowance shall be computed at to some other governmental recovered by Company as a surcharge shall make written recommendations the rate of 8 percent. Thereafter, the authority.) to such rates within the Municipality. as to the filing to the Executive , annual percentage rate applied to (Section 9 -204. EXTENSIONS: Ad valorem taxes may not be Committee within 20 days of the filing. determine the Allowance for Funds SERVICE: RULES AND recovered by a surcharge. Such Subd 3. Any alteration, amendment, Used During Construction shall be the REGULATIONS. Subdivision 1. surcharge will be equitably or revision in the filing shall be made lower of a) the nearest even one -half Company shall provide efficient, distributed among electric customers by written order of the Executive percent below the projected overall adequate and nondiscriminatory in the Municipality.) # Committee which sets forth its fin- rate of return or b) the current in- service, at reasonable rates, to all (Section 9 -208. RATE CHANGES. dings and conclusions upon all cremental cost of financing new members of the public within the Subdivision 1 Company may change material issues. The order shall be construction, and shall change only in Municipality who apply for such its rate structure by changing served on Company within 35 days increments of one -half percent, classification of rates, the number of after notice of the proposed change or provided, however, that such annual service in accordance with rules and blocks, size of blocks, the rice dif- continuance of rates has been filed regulations of Company P # percentage rare shall not be more nor Subd. 2. Company may, from time to ferential between blocks, or by adding with the Authority. less than that required by the Federal time, promulgate rules and a new classification of rates or by Subd. 4. Company may obtain Power Commission. regulations which are reasonably closing or withdrawing any existing judicial review de novo of any Operating expenses shall include j necessary in the conduct of its rate classification or schedule. Any Executive Committee order of Research and Development expenses business. The rules and regulations such change which does not result in a • alteration, amendment or revision of and donations made for charitable, may govern matters, including but not higher rate for an existing customer rates in the District Court of Hennepin social, or community welfare pur- limited to, forms, contracts, ex- may be made upon twenty days notice County if proper application is made poses. Research and Development to the Rate Administrator and shall be therefor within 30 days after service of expenses shall be accounted for in the tensions of service, curtailment of P service, reconnection charges, supported by data showing the the order of the Executive Committee manner provided in the Uniform billings, security deposits, and late desirabliity of The change and the upon Company. If judicial review is a System of Accounts. payment charges, if any. Existing reasonableness thereof. Other applied for, the rate proposed by Subd. 9. "Allowable Rate Base" rules and regulations of Company changes in rate structure shall be Company in Section 8, shall be in effect means the average of net plant less shall be filed promptly with the made under Subd. 2 of this section. until the question of such alteration, customer contributed capital and nl • Authority and shall become effective Subd. 2. The rates contained in amendment, or revision is finally working capital. Net plant means a) on filing. They shall be kept open for Appendix A shall remain in effect until • determined by the court. In such the original cost of electric utility public inspection. Thereafter Com- March 15, 1974. On or before February review and determination Company plant and common utility plant used pany may file amendments thereto or 1, 1974, and thereafter on or before has the burden of proof. AT the time of and useful in rendering electric ser- additional rules and regulations. February 1 of each year during the applying for judicial review, Company vice in the Metro Area, plus b) that Within 60 days after such filing the term of this ordinance, Company shall shall, if ordered by the Court, file with portion of the original cost of plant file notice with the Authority that it the Clerk a corporate undertaking held for future use and construction Executive Committee may, on its own such relief with s l it t ti bli will wi either continue, decrease, or in- obligating o comply wu � Motion or on the request of work in progress applicable to The Municipality, review such amend- crease the rates or continue or change as the court may order consistent with Metro Area, less c) related booked menns or rules and regulations. The the rate structure which will become the provisions of this franchise. reserves for depreciation and # Com after public hearing, may f effective on bills rendered on and after Subd. 5. The rates determined under amortization. by lion disapprove any such March 15 of that year, To enable # Section 8 or this Section are the Customer contributed capital means amen -gent or , rule and regulation Company to realize Actual Net Ear- "Metro Area Rates. ") amount related to service in The Metro which is unreasonable or unlawful.) nings during the calendar year of (Section 9210. RATE MAKING: Area contributed or advanced by (Section 9205. - SERVICE IN- filing equal to the Allowable Annual DEFINITIONS. Subdivision 1. for the customers for construction and TERRUPTION. Subdivision 1. Return, as defined in Section 10 plus purposes of this ordinance, the terms amounts collected from customers Company will provide continuous, Part or all of any debit balance or less defined in this section have the # through rates and charges for adequate and nondiscriminatory Part or all of any credit balance in the meanings given them. deferred operating expenses and taxes electrical service in The Municipality. Stabilization Reserve Account Subd. 2. "Allowable Annual Return" except where deduction of the established under Section 15. The means the product obtained by deferred amount is specifically filing shall recite the proposed change multiplying the Allowable Rate Base prohibited by Internal Revenue Laws. or continuance and the forecasts l by the Allowable Rate of Return. Said amounts shall include but are not substantiating it. Provided, however, in order To minimize or prevent ex- # necessarily limited to amounts Allowable Return on Common Equity same general part of the country a ' credited under the current Federal finally determined shall be effective on similar investments in other or retirement shall be debited to The Reserve for Depreciation and Power Commission Uniform System as of the proposed effective date. business undertakings which are Amortization of Utility Plant, subject, of Accounts to Accounts 252 Customer Subd. 3. Within ten days after attended by corresponding risks - Advances for Construction, 255 Ac- receipt of the order of determination, and uncertainties. however, To The provisions of cumulated Deferred Investment Tax any Party may appeal the order to a , (b) The Allowable Return on Common this section. The salvage value Credits (except that portion where hearing panel by filing a notice of Equity shall be reasonably suf- received and any other amounts appeal with the Authority and Com- recovered from said property shall be deduction from the rate base is + a PP Y ficient to assure confidence in The credited to said Reserve. prohibited by the Internal Revenue pany. The panel shall consist of three financial soundness of Company. ✓ Subd. 3. When a substantial segment Laws), 271 Contributions in Aid of members of professional standing, (c) The Allowable Return on Common of Company's utility plant is aban- Construction, 281 Accumulated Equity shall be adequate under Deferred Income Taxes - Ac. efficient and economical f un usual °r retired from service because o f celerated Amortization, 282 Ac- each having one vote. The members of management to maintain and ° unusual obsolescence or property pport Company's credit and damage and such property is not fully cumulated Deferred Income Taxes - the hearing panel shall be selected as su covered by the Reserve for Liberalized Depreciation, and 283 follows: Within 20 days of notice of , enable it To raise the money Depreciation and Amortization of Accumulated Deferred Income Taxes appeal the Company and the Authority necessary for The proper discharge -- Other. shall each appoint a panel member of its public duties.) Utility Plant, other reserves or by insurance, The Unless otherwise mutually agreed and each shall immediately notify the ( Section 9 -214. ACTUAL NET after consideration of d upon between Company and The other of such appointment. The two EARNINGS. Subdivision 1. In the such property af c balance of Executive Committee, working panel members so appointed shall computation of Actual Net Earnings, tax effects shall be credited to said capital means and includes the within five days after The second appropriate items may be amortized following, based on amounts allocable member is appointed, select a third or accrued according to generally Reserve or other appropriate reserve to the Metro Area: (a) cash working panel member. If The first two panel accepted accounting principles and, and be debited to a deferred account capital equal to one - eighth of members are unable to agree on a except as other wise provided in this designated as "Extraordinary operation and maintenance expenses third panel member, the Third panel ordinance for specific items, the Property Losses," or similar caption. excluding purchased power and one- member shall be appointed by The amounts and rates of amortization or Debits to said deferred account shall half of fuel expenses, plus average Chief Judge of the Hennepin County accrual shall be based upon The actual be amortized by charges to operating compensating bank balances to District Court upon application of experience of Company where such expenses as provided for in Section 14, support short -term borrowings, less either Company or Authority with five experience exists. and the unamortized balance shall be the monthly average of accrued t days notice to the other. In the event Subd. 2. An allocation shall be made included in the Allowable Rate Base. property and income taxes, but cash either Company or Authority fails by Company Of operating expenses Subd. 4. If the actual original cost is working capital shall not be less than within said twenty days to appoint a , and utility plant within and outside The not shown by the books and records of zero; plus (b) monthly average pre- panel member, the member appointed Metro Area on a basis that reasonably Company or its predecessors, such payments; plus (c) monthly average by the other party shall proceed as a reflects the occurrence of such ex- amount shall be estimated and a materials and supplies; plus (d) single member and issue his order, penses and plant for rendering service record be made' by Company showing monthly average fuel stocks; plus (e) which shall constitute the order of the within and outside the Metro Area.) The facts upon which said estimate was monthly average miscellaneous panel. (Section 9 -215. STABILIZATION based, the manner in which it was deferred debits.) • Subd. 4. The review by the panel of RESERVE ACCOUNT. Subdivision 1. determined, and the person by whom (Section 9 -211. ALLOWABLE the Rate Administrator's deter- Actual Net Earnings greater or less it was made.) RATES OF RETURN. Subdivision 1. mination shall 'be de novo and The than the Allowable Annual Return in (Section 9 -217. ACCOUNTS AND At the time of an annual rate filing, a panel shall consider all evidence any calendar year shall be credited or RECORDS. Subd. 1. All expense projection of Allowable Rate of Return material and relevant to the issues debited to an account designated the items, whether charged directly and shall be used as a basis for calculating raised by such appeal. The hearing "Stabilization Reserve Account." entirely in a calendar year or amor- allowable revenue for the calendar shall be conducted in the manner Subd. 2. Any credit balance in said tized or accrued over a longer period, 1 year of filing. At the close of such year prescribed by Chapter 15, Minnesota account shall be credited monthly with all revenue items and all balance sheet the Allowable Rate of Return shall be Statutes, for conduct of administrative interest computed at the current items shall be recorded in substantial determined and shall be used as a hearings. The burden of proof shall be prime interest rate. accordance with the applicable basis for the Allowable Annual Return. upon the appellant. Only those Parties Subd. 3. All or part of any debit or Subd. 2. Allowable Rates of Return and Persons who appeared before the credit balance in said account may be Provisions of The Uniform System or . Rate Administrator may appear Accounts, as amended from time to and projections thereof shall be amortized over not more Than two time, by the Federal Power Com calculated to the nearest one - before the panel. years to balance earnings and to , mission. When optional accounting is hundredth of one percent.) Subd. 5. The panel shall determine minimize fluctuations and stabilize permitted under the Federal Power the Allowable Return on Common rates in the Metro Area. By agreement (Section - 9 -212. ALLOWABLE Equity by written order served on Commissions Uniform System of RETURN ON COMMON EQUITY. Company and the Authority, which of the Executive Committee and Accounts, Executive Committee and • Subdivision 1. Company shall be y y' w �COmpany all i be part of any debit Company shall agree the option to Pa order shall set forth its findings and credit balance n said account may be allowed a Return on Common Equity conclusions, including the bases be followed for book a rate making for the Metro Area for the calendar amortized over more than two years To purposes. therefor, upon all material issues balance earnings and to minimize year 1973 of 13.25 percent. For the relative to such determination. The fluctuations and stabilize rates in the Subd. 2. Company shall file with the calendar year 1974 Company shall b Authority (a) schedules showing all of I determination Of the panel shall be Metro Area. allowed a Return on Common Equity made within 60 days after the third its rates and charges, (b) forms of for the Metro Area of 12.95 percent. Subd. 4. Any credit balance in the , service contracts or agreements, and For years subsequent to 1974, Com - panel member is selected. If no appeal Stabilization Reserve Account shall is taken from The panel's order of not be used to benefit customers (c) any rules and regulations relating pang or the Executive Committee may determination the order to rates, charges or service by final. lowered in Municipalities where rates Company to its customers in the Metro request a prospective change in the Subd. 6. Any Party aggrieved by a 1 Allowable Return on Common Equity. final order of the hearing panel is lower Than the Metro Area Rates were Area, all of which shall be open for Such requests shall be made during entitled to judicial review thereof in charged in the period during which public inspection. Such schedules, such credit accrued. i forms and rules and regulations shall the period between November 15 and the District Court of Hennepin County Subd. 5. Any balance in said account also be kept by Company, and shall be December 15 in any year, to be ef- if proper application is made therefor at termination of The rate- making available at all reasonable times for fective as of January 1 of the next a within thirty days after the hearing process in the Metro Area provided for public inspection. year, by serving upon The other Party panel has served its order. The review in this franchise shall be promptly a notice stating the reasons supporting shall be conducted by- the Court Subd. 3. Company shall keep, refunded or otherwise recognized for such change and specifying The without a jury and shall be confined To maintain and preserve proper and proposed Allowable Return on the record, except that in cases of customer's benefit.) accurate engineering, accounting, (Section 9 -216. RESERVE FOR financial and statistical records Common Equity for the year. If no alleged irregularity in p rocedure DEPRECIATION AND AMOR- AMOK relating to the construction, cost, request is made the Allowable Return before the hearing panel not shown on TIZATION OF UTILITY PLANT. maintenance and operation of its on Common Equity remains in effect. the record, testimony thereon may be Subdivision 1. The Company's books of utility plant which show all financial Subd. 2. The request for change in , taken by the Court. Except as account shall contain an account transactions, including receipts and the Allowable Return on Common otherwise provided, all proceedings Equity shall be reviewed by the Rate ,shall be conducted according to the designated as "Reserve for disbursements and the particulars Depreciation and Amortization of thereof. Administrator who shall forthwith set provisions of Minnesota Statutes Utility Plant," or similar caption, , Subd. 4. The Authority shall have a date prior to January 15 for hearing Sections 15.0424 - 15.0426. upon such request. He shall give 10 The Court may the which shall show accumulated access at all reasonable times to in. Subd. 7. affirm charges to operating expenses on spect, examine or audit all of the days notice of such hearing published decision of the hearing panel he or once in a legal newspaper in each remand the case for further account of depreciation adjusted for accounts, books, records, reports, county in the Metro Area. At least two proceedings; or it may reverse or salvage and retirements in ac- contracts, documents and papers of cordance with Subd. 2. of this section. Company relating to its electric days prior to the hearing date, any modify the decision if the substantial The annual charges to operating ex- operations. person may file with the Rate Ad- rights of the appellant have been ministrator a written notice of in- prejudiced because the hearing penses for depreciation of depreciable Subd. 5. Procedures and Accounting tention to appear at the hearing and of anel's findings or conclusions are: property used and useful in rendering Manual. As soon as practicable after p g nature and extent of his par- pa violation of constitutional electric service in the Metro Area the effective date of this Ordinance, the n ticipa Only persons complying provisions; or shall be an amount designed To . Company and the Rate Administrator with this notice provision may be (b) excess of the authority con- recover ratably the original cost of shall compile a manual of procedures such depreciable property over the and accounting methods to implement heard at the hearing. The Rate Ad- ferred upon said hearing panel by ministrator shall prescribe reasonable this ordinance; or estimated average service life of each this ordinance accordance with the rules and regulations for the conduct group of property. Annual sea forth herein. The terms of such hearings. Upon completion of (c) Made upon unlawful procedures; depreciation rates shall revised of of said ma manual shall apply to all rate the hearing, and no later than , or periodically so as reflect all factors filings and determinations until February 15, the Rate Administrator (d) Affected by other error of law; or bearing on the rec all of the original changed, modified or amended by will serve on Company and the (e) Unsupported by substantial cost of such depreciable property over mutual agreement of the Company Authority a written order determining 0 evidence in view of the entire its estimated average service life. At and the Rate Administrator. the Allowable Return on Common record as submitted; or least once every five years the Subd. 6. Company shall prepare and Equity for the current year and Setting (f) Arbitrary or capricious.) Company shall prepare a depreciation file with the Rate Administrator forth his findings and conclusions on (Section 9 -213. STANDARDS FOR study analyzing retirement ex- statements for its electric utility all material issues relative To his DETERMINING ALLOWABLE perience and other factors relevant to operations as provided in the determination. If es appeal is taken RETURN ON COMMON EQUITY. the establishment of depreciation Procedures and Accounting Manual.) The Allowable Return on Common rates. Such study shall be used as a Equity is determined by and must guide in from the Rate Administrator's order satisfy The following standards: rates to (Section 9 -218. IN DEMNIFICA- be used to recover the original determining the depreciation of determination, the order is final. If ?ION. Company shall indemnify, an appeal is taken from the Rate � -keep, and hold Municipality, its of- Administrator's order of deter- (a)The Allowable Return On Common cost Of depreciable property. ficers, employees and agents free and Equity shall permit Company to Subd. 2. The actual original cost of mination, the order is an interim order harmless from any and all liability on earn a return on its equity in- account of in property abandoned, otherwise retired . and shall remain in effect until finally injury t o persons or dam - vestment in property which it from service or not used and useful in age to ro i , m occasioned , the con - determined, provided that the ef- employs for the convenience of the the public service for any cause, shall remov ion, maintenance, repair, fective Allowable Return on Common Public equal s that generally being be credited h original cost plus the the appropriate plant removal or operation of Company's Equity for interim rates shall not be made at The same time and in the , account. Such less than that existing at the time of property located in, on, over, under, or ts incidental to said abandonment The filing for a change in the Allowable cos across the streets, alleys and public Return on Common Equity. The 7N -�g ways of Municipality, unless such validity and reasonableness of any injury or damage is the result of the ordinance so passed declaring a negligence of Municipality, its em forfeiture of the rights and privileges ployees, officers or agents, or results granted by this franchise ordinance • from the performance in a proper shall be subject to review by a court of manner of acts reasonably determined competent jurisdiction.) to be hazardous by Company, but such (Section 9 -222. CHANGE IN FORM performance is, nevertheless, ordered OF GOVERNMENT. Any change of or directed by Municipality after the form of government of the notice of such determination by i Municipality as authorized by the Company. In the event that suit shall State of Minnesota shall not affect the be brought against Municipality under validity of this franchise. Any circumstances where the above municipal corporation succeeding the agreement to indemnify applies, Municipality shall, without the consent 4 Company, at its sole cost and expense, of Company, succeed to all the rights shall defend Municipality in such suit and obligations of the Municipality if written notice of the suit is promptly provided in this franchise.) given to Company within a period wherein Company is not prejudiced by (Section 9 -223. COSTS OF AD- (Section 9 -224. ASSIGNMENT. lack of such notice. If sli notice is not MINISTRATION. The Company Company upon notice to the seasonably given as hereinbefore agrees to pay to the Authority, an municipality shall have full right and provided, Company shall have no duty initial sum of $150,000 within 30 days authority to assign all rights conferred to indemnify nor defend. If Company after written acceptance of this upon it by this ordinance to any per - is required to indemnify and defend, it franchise by Company, and not less son, persons, firm or corporation. The < will thereafter have complete control than $160,000 per year payable in assignee of such rights, by accepting of such litigation, but Company may quarterly installments commencing such assignment, shall become sub - not settle such litigation without the on January 10, 1974, to be allowed as ject to the terms and provisions of this consent of the Municipality unless an operating expense to the Company ordinance.) Municipality unreasonably withholds and which shalt be used to secure (Section 9 -225. WRITTEN AC- such consent.) compliance with this ordinance, and CEPTANCE. Company shall, if it ( Section 9 -219. RELOCATIONS. , for such other purposes relating to the . accepts this ordinance and the rights Subdivision 1. Whenever Municipality Company's costs of service as the hereby granted, file a written ac- shall grade, regradeor change the line Authority shall deem necessary. The ceptance of the rights hereby granted of any street or public place or amount of such annual payment shall with the Municipal Clerk within 30 . otherwise improve any street or public be subject to review and revision by days after the effective date of the place or construct or reconstruct any the Authority and Company at the end agreement establishing the sewer or water system therein and of 1975 and thereafter as mutually Authority.) shall, with due regard to seasonal agreed to.) (Section 9 -226. REVOCATION. If working conditions, reasonably order this uniform franchise ordinance is not Company to relocate permanently its adopted by July 31, 1973, by electrical facilities located in said • Municipalities in which 60 percent of street or public place, Company shall Company's electric customers in the relocate its facilities at its own ex. Metro Area were located on January 1, pense. Municipality shall give Com- 1973, the Municipal Council may o •pany reasonable notice of plans revoke the same. However, this right requiring such relocation. Nothing in of revocation shall terminate when the this ordinance contained shall deprive Authority is established. For the Company of its rights under Minnesota purpose of this section each Customer Statutes Section 161.46, as amended. Account of Company shall be deemed Subd. 2. Where the Municipality a customer. Company shall notify the orders Company to temporarily Municipal Clerk in writing whether the relocate any of its facilities, Company above condition has been met. If shall proceed with such relocation. If revoked, the provisions of this or- such relocation is done without an dinance shall be without prejudice in agreement first being made as to who any subsequent proceeding.) shall pay for the relocation cost, such (Section 9 -227. EFFECT ON relocation of the facilities by Company EXISTING FRANCHISE. It is the shall not be construed as a waiver of intention of the Council that this its right to be reimbursed for The franchise ordinance is effective upon relocation cost. If Company claims compliance with Section 25 and that it that it should be reimbursed for such shall thereafter govern the rights and relocation costs, it shall notify the duties of Company and Municipality Municipality within ten (10) days after until its termination. It is further the receipt of such order. intention of the Council that the Subd. 3. Except where requiresi existing franchise granted to Com- primarily for a municipal im- pany by the Village of Brooklyn provement project, the vacation of any Center, dated September 23, 1953, is street, alley or public way, after the not repealed but is superseded by the installation of electrical facilities, terms of this ordinance and That upon shall not operate to deprive Company termination of this ordinance the of the right to operate and maintain existing franchise will continue to such electrical facilities, until the govern the rights and duties of reasonable costs of relocating the Company and Municipality until the same and the loss and expense termination thereof.) resulting from such relocation are (Section 9 -228. PUBLICATION first paid to Company.) EXPENSE. The expense of (Section 9 -220. TREE TRIMMING. publication of this franchise ordinance Company shall have the permission shall be paid by Company.) and authority to trim all trees and Section 2: This ordinance shall shrubs in the streets, alleys and public become effective after adoption and ways of Municipality, interfering with upon thirty (30) days following its the proper construction, operation, legal publication. repair, and maintenance of any poles, Adopted thi day of, Pole lines, conduits, fixtures or ap- t purtenances, installed in pursuance of The authority hereby granted, provided that Company shall save Mayor Municipality harmless from any ATTEST: liability in the premises.) Clerk (Section 9 -221. FRANCHISE Published in the official newspaper TERMINATION. If Company shall be .. .... ................... in default in the performance of any of Effective Date the material terms and conditions of (Parentheses indicate matter to be this ordinance and shall continue in deleted.) default for more than ninety (90) days Seal after receiving notice from the (Published in The Brooklyn Center Municipality of such default, the -ost July 18, 1974.) Municipal Council may, by ordinance duly passed and adopted, terminate all rights granted under this ordinance to Company. The notice of default shall be in writing and shall specify the Provisions of this ordinance in the performance of which it is claimed r that Company is in default. The