Ordinance No. 0230 03-04-19631
'
oRDINANC� N0. 230
GR.I�NPING TO THE �OLIS GeS COMPANY� A CORk'OR6TION ORGANTL�I1 UNDER
THE 1,AwS OF THE STATE OF Dr:ir�wAR.�, TTS SDCCrSSORS is2� ASSIGN3, Y�ffSSION
TO IIS� THE STR�ETS AI�ID YUBLIC PLACFS IN THE CTi'Y OF FRIDLE^I FOR THE
CONSTRUCTION, MAINTffiZLNCE AA1D OPERATION OF R SYST.�2+I OF MAINS, PIYELIA�
AND OTH�R FACTt,ITIiyS FOR THr: MANUFACTUR�, DI9'PRIBUTION AND SALA OF GAS,
SUBJDCT TO CGRTAIN TF�i'fS APID CONDTTIONS, AbID YRESCRIBZNG THE RATr� TO
BE CHAFiC*ID THrg?.EFOR, isN� RE!'�1LING �wL ORDINiiNCr�, �t PARTS OF ORDINANCFS,
INCON3ISTr�7T ArRr1vITH.
whereas, the Minneapolis Gas Company, a corporation organized under
the las�rs of the State of Delaxare, ovns property used and use£nl in the
manufacture, distribution and sale o£ gas in the Citg of Fridley and is
operating said property in aaid City; and
wheresa� the Billage Covncil oP the Vt7�e af Fridle� on the itth
day of Angust, 1952, adopted sn ordinance grazrting s franchiae to the
Minneapoli� Gas Compaziy, its succesaora and assigna, for the �nufacture,
distribution and sale of .gas in said Villege for a period of twenty (20)
yesrs� and said ordinaaee is nofr effective in said Gity; and
wheress� meetinga have been held betxeen representstives of the
Minneapolis Gas Company and the City Couneil of the City of Fridley reI-
ative to a renision of the franchise previ.ously grsnted; and
whereas, the Mi.nneapolia Gas Company, as and for cansideration and
ccmpensation for the rights and privileges here� granted, has agreed to
aimrender its present franchise oxdinanee and has agreed� during the
term hereof� ta continuously auppl� gas service to the inhabitants of
the Qity, a� providsd in this franchise ordinance� and has a�reed to per-
forn� contractval obligations set forth in said £rsnchise ordinanee, and
has sgreeci to pay to the Snbvrban Rate Authorit� for the use and benefit
of the City the amaunt provided in Section 18; and
whereas, the City Council of the Citg of Fr3dle�� in cooperstiox�
xith other mvni_cipalitiea of the suburban area� has detarmined that it
is desixabZe and to the advanta�e of the consvmers of gss in the City
o£ Fridley that a new franchise should be granted by ssid City to esid
Co�any upon the terma and conditions e�ressed herein and that the previous
franchise horeinabove referred to should be repealed ara3 all rights and
prinileges of the Company thereunder surrendered and cancelled except
as hereinafter provided.
NOW, THI�t�'OR�� TfiE CITY OF FRIDLEY DOES OHIIAINs
SHCTION 1. In this ordinanee the terms "Murd.cipalitq'�, �'Municipal Council"
and "Municipal Clerk" shall mean respecticely, tha City of
Fridlerg� the Council of the Citg of Fridley and the Clerk of
the City of Fridley. If at ar� t3me the pc�tders o£ the
Municipality, the Municipal Council or the Municipal Clerk
aha21 be tran�ferred to any other suthority, board� officer
or oificera, then and in such case such authority, board�
. officer or of£icers shttll have the righta� poirers and dutiea
herein refarred to or prescribed for t�e Mvnicipality, the
t4unicipsl Covncil and the MunicipaZ Clerk respectivelq.
The term '�Compariy" ahall mean the Minneapolis Gaa Compax�y�
� , its snecessors and assigna, aixl the rrords '�atreeta and pnblic
places" sha21 mean the straets, avenues, alleys, parkways,
roads, squares, parks, bridges, roi.aducts and public placea
in the Mtmicipality.
The term °gas° as uaed herein shall be held to include
manuf�etnred gas, natural gas, reformed natural gas, a
miarture of natural gas and manuSactured gas� or other form
oP gaseous energy,
The term "one thousand cubic feet" of gas vhere uaed in
this oxdinance is 1,000 cubic feet of gas measured at tern-
perature and pressure existing at the point o£ metering,
or, when corrected, at 60° F and 7.lG.5 pou�s per square
inch, abaolute.
�
The term "suburban area" shall include the cities of �
Bloomi.ngton, Co2umbia Heights, Cryatal, P'ridlep, Hopkina,
Robbia�adale, St. Louis Park and Wayzata; the villsges of
Brooklyn Genter� Brooklyn Park, Deephisven� Fdina? NSrcelaior�
Golden Valle�, Greemvood, HilZtop, Maple Grove� Minnetonka,
Morningside� Ne�r Aope, Osseo, P7,Ymonth� Richfield, St. Anthony�
Shorewood and woodland; the tovmship of Edea Prairie; aml
the area of Fort Sneiling. Other municipalities or area
adjaeent to or near the City of Minneapolis or the "suburban
area'� may be included in the "subvrban area" Por rate-making �
purpoaes, subject to the provisions of 3ection 12.
The term "Suburban Rate Authority" shall mean an organiza-
tion consisting of one member appointed try the Municipal
Covnci� of each Mun_tcipality in the subvrban area adopting
this ordinance and e�cisting £or the pvrpose of administering
the rate provisi�ns oP th3a ordinance. It is empowered to
employ consultants arid others ard ahall adopt auch rnles,
regulations and byla�rs as vill enable it praperly to perform
the funetions harein provided for.
3I�TION ?. There ia hereby gr�ted to Minneapolis 6as Company� its
succesaors and assigna, for a period extending to Januarg 1,1983,
from and after the acceptance of this ordinance bg the Company�
and j.*ainer oP rights by said Company required by Section 27
hereoi� and enbject to the terms� conditions and limitations
Aerein stated, the right to manufaetura� i�ori, transport�
sell and distribute gas for hesting, il2emiinating and other
purposes vithin the limits oY the Municipality as the bound-
aries thereoP naw axist or as they may be extended in the
£uture, and £or that purpose to eatablish the necessary
£acilities and equigment and to r�intain a manufacturing plant�
gas mains� servi.ce pipes and a�y other appurtenancea necessaxy
to the manuiacture, asle and distribution of gas in and along
the streeta and pubZic places of aaid Municipality, and to
do all things whic}: are reasonable, necessary or customary
in the accomplishment of this objective, aubject, hrnrever,
to the fvrther proviaions of this franehiae. Frovided� hcnrever�
that bafore esid Compaqy shall estabZtah ariy pla nt in asid
Municipality fer the manuiacture of gas� the approval of the
Municipal Council oP the lxation thereof� in the exerciae
of a r�asonable discretion by sa3d Ceuncil, ahall be first
obtained by said Cotrq�az�y*.
If the right or priv3.lege to manufact�e� purchase� tranaport�
mix, distribnte or sell gas in annezed territoxy, shall be
owned or coritrolled by tho Compaap at the date of anne�cation�
aaid right or privilege sha11� from arri after the date ot
annexation and dvring the balsnce oP the term hereof� be
exercised ami controlled by the provisions of thi� a�dinance.
The Company agrees ta manage ita plsrrt ar�d operatiane in a
reasonable e£ficient and economical manner. The Company
also agreea to use due diligence in the matter of the iasuance
o£ long-term debt to aasure reasonable cost of such debt,
provided, hmaever� that thts should not be construed as
requiring competitive bids on nert debt issues.
3r7CT20N 3. The Compan,p shall charge, demand, collect and receive jnst
and reasonable rates, charges and eo�ensation sa hereinafter
providec3. The altering, amend3sig or revising of any ratea
made by the Company to obtain eomplianee with this ordinance
shall be by the Suburban Rate Authority. The said Suburban
Rate Authority exiata for the puxpose oP revier�ring gas ratea
made by the Company and undertaking appropriste action thereoa
aa in this ordinance authorized.
Nothing in this ordinance shsll prevmt the power harain
given to the Snburban Rste Authority to alter� amend or reviae
Compariy ratea from being hereaPtes delegated, by law� to
- aome othar governmental snthoritp.
�
'
�
From rsnd after the efiective date of thia brdinance, tdie
� Company ahall chazge, demand� colleet ax�d receive not to
exceed the follo�ting rates for gaa �upplied %o each customsr
at ons lxation in the enti.re anbnrban ax'ea, including the
� Municipality� for each month, eaccsept as said rates shall be
changed or modiSied s� hereinafter provlded, vizt
!'ips� 300 cu ft or lesa
Neoct � 3,700 cu ft
Naet 26,00o cu ft
Neoct 130,000 cu ft
Neact ]1t0,000 cu Yt
Atl over 300,0�o cu it
$2.00
1.1�3 per M
1.10 per M
1.00 per M
1.00 per M
.90 per M
The rates above specified are called "Block Ratee".
'Phe rates permitted by this ordinance, e�ccept a4 to natnral
gas furnishe:3 indvatrial cuatomers, are for natural gas
having a monthly aversge toial gross heating value of not
less that 950 Briti�h Thermal IInits per cubic foot, and
shall continue, subject to adjustment as herein provided.
Bills shsil be rendered at ratea permitted by this ordinance;
pro7ided� however� that srhen a bill is not paid within ten
(10) days after s bill is delivered or mgiled to a customer'
the Company may charge, demand, collect ancl receive the
amount thereof plus ten per cent (10�1. The Company may
require a�r consumer of gas to depo�it w3.th it a reasonable
amount as security for paymeat of gas vsed or to be used Uy
said consvmer. The Company shall pay interest on the deposit
at the rate of aix per cent (6�) per amm�n.
(a): The said rstea shall remain in force and effeet and
be adjusted from time to time, as hereinafter provided.
In order to avoid undue discrimination between customers
the Compa�y may, at tha time apecif3.ed in this seetion a�
subject to review in the aarae manner as is provided in said
ordinance, adju�t the Blook Rates either ir,/ changing the
nvmbex and size of the blocks or by changing the price
variation hetween the blocks, or both, br'by changing the
rate form, by submitting at the time of £iling the adjusted
Block Rates materisl and data s�porting the de�irability
for such change or changes and the ressonableneas thereof.
Yrovided, the Company ahall make a rate atructure study at
lesst once in each five qeara herasfter. Yroaided� inrther�
that the Hlock Rates for ariy other type of gas flmnished in
place of natural gss may be revised by agreement between the
Subvrban Rate Authority and the Compa�y.
Aothirtg herein sha].1 prevent the Cotnpan,y from establishing
from time to time during the term hereot lart+er rates than
the rates hereby permitted, and, in addition to tha rate
schedulss contained in this section, from establishing,
changing or discontinuing load bvilding, inducement or com-
petitive rates, provided that such rates shall be reasonable
for consumer� frithin different classes of seraice and that
s lesser rate t� one ela�s of conawners shall not impose
an undue burden of coat upon conavmera in other classes.
The Compa� ahall have the right to contract for the aale
of gas for industrial use on an interrixptible basis, re-
quiric� the customer to have standby equipment for use upon
not3ce b� the Gompaziy. T1'ie Company�s svles� regulations�
achedules or contraeta for eurts3ling iirterruptible gas
aerviee shall be nniform as applied to eaeh class oi
interruptible customera.
i
�
(b). The Black Rates apecified in thia section shall re-
main in force and effeet until January 31� 1963. In the mc�nth
of January, 1963, ancl thereafter in the month oP Januarp of
each year during the remaining period cover� by this ordi-
nance, the Compsny shall decrease the Block Rates, and map
increase the save, sufficient to permit and enable the Company
to realise Actual Net Earnings equal to the Allcrwable annual
Return� as provl.ded for in Section L�, for eaah calendar
year o£ aaid remaining period.
Increasea or decreases in the Black Rate� to be made at or
about the end af eaeh of the �bove mentioned calendar qears
ahall be based upon forecasts £or the ensuing eale�ar year
of the rates required to permit artd enable the Compaqy to
reslize Actual Net r:arnings during said calandar year suf-
ficient ta produce the Allovable Annual Return plus past
unabsorb� deficiencies therin, or less past unatsorbed over-
ages therein, aa the caae may be� whieh may occur aFter
January 1, 1963, nnder the terms of this orr3inance.
The Comptu�y shall fi2e xi.th the Subvrban Aate Authority�
on or before January 10 of each yesr, the aforasaid fore-
casts, together with the Block Rates irhich are proposed to
be e££ective on bills rendered after January 31 of that
year.
Provided, hcntever, in order to minimize or prevent �cessiva
- fluctuations in the B1oek Rates� the Companp may ac3ditionallq
once during a calendar year, but not prior to July 15 thareof�
adjust the Block Rates in the same msnner as provided above
for the adjustment of said BZock rates at or about tY:e end
of each calendar year.
In Mak3ng increaaea or decreeaea in the Blocsk Rates here-
under� fractions oP one-half (zj cent or more shall be
contited as one cent and fractions of Iess than ona-hs1F (�j
cent shaZl be disregsrded so far as �,he current period is
concerned.
(c). The Company agrees not to meke ax�y chsnge in ra%es
pezmii.tted or required by this ord3nance either by altering
the classi£icatian thereof, or otherw3.se�ugtil aftar twenty
(20) days� notice of a� euck change has been given to the
Suburban Rate Authority. Such notice shal7. be deemed to
have been given when a Written statement of any change� or
chmnges, in sneh ratea� signed by the Company, shall be
filed with the Suburban Rate Authority. The Company shall
furnish such information, reports as�d atatoments relating to
any such changes which may be required by the Suburban Rate
Authority. Any chan�e in rates made purauant to the terms
o£ this cxdinance shall be made ef£ective as soon as prac-
ticable aSter the expiration of each calendar year, subject
to the proviso in Subsection 3(b). Provided, that beYore
any rate established by the Co�s� for any new class oP
Consumers shall become effective� tlae Company sha11 give ten
(IO) days� similar notice to the Suburban Rate tluthority oP
the establishment of said rate, which mag be slter�, amended
or revised srithin ten (101 days thereafter as in this section
provided. The filing o£ any notice with the Suburban Rate
Rnthority� as required by this ordinance, shall be deemed
noiice to this raunicipality.
(d}. The Company agrees that an,p change in ratea made by
t$e Company, not in accordance vith this ordinance, may be
altered, amended or reviaed, so as to conform to the pro-
vfsions of thia ordinance and acaordi.r� to the terms thereoP,
by an engineer, auditor or sccovntant of tha Suburban Rate
Auihority duly appointed for sueh pnrpose. The engineer�
su8itor or secountant so appointed aha1Z be qualified and
axperieneed in pu6lic utility regulatory matters and an
employee oP the said Suburban Rate Authority. A�y auch
alteration, amendment or rev3sion ahall be made by order,
�
�
i
r,j
'
,
siating the reaaons ther£or, duly aerved on the Coa�ax�y
wtthin twenty (20) days sfter notice of such proposed rates
shall be gieen by the Campany, a� in th3s ordinance pro-
vided. The Compsny sha�7. have the right to a prompt hearing
and revie�,r of euc'r. alteration, araendment or revision in the
courts of the State of Minnesota, if proper application ia
made therefor Frithin ti,irty (30) daqa after notice of such
alteration� amendment or revision, and if euch hearing and
revi.ew ia applied for, then until such alteration, amendment
or revision shaLl be finally sustained or altered by such
courts, the rate made by the Company ahall remain in e£fect
for the period as prov3ded in this ordinance. At the time
of making the spplication £or review the Company sha11 file
with tte Clerk of Court a corporata undertakfng requiring
it to rePund, rebate or comply u3.th �uch other relief aa
said court� maq order. At the hearing provided Yor herein
on the issue or issues raised by the aforesaid order the
courE shall consider all evidence which may be relevant and
proper.
(e). The Company agrees that wiien no change in an erxiating
rate is proposed at the time of a rato Piling, the esid
Suburban Rate Authoritg shall haee the power to altera amend
or revise the sai.d e�cisting rate in the manrier provided in
Subsection 3(d), if the said exi�ting rate is not in accor-
dance with the provisions of this ordinance, The right of
the Company Por court review in sueh 3nstance shall also be
the same as provided in Subsection 3(dj.
(i). The Ccmpany ahall not charge� demand, cellect or
receive a greater or leas or different co»ipensation for ar�p
service or similar service rendered, or to be rendered,
than the rates and charges applicable to such servies in
effect at the time for consumers in the same class� nor shall
the Company ref�nc3 or remit in ar3y manner or by any device
arXy portion o£ the rates or charges so specified. The
Compan,y sha11 not offer, extend to� or accept from aziy person
or corporation any form of contract or agreement for aervice
that is not regularly and nniformly spplicable to all per-
sons and corporationa receiving the same or like aervice.
The Co��np shall not extend, afford or use an,y rule of
regulation, or any prinilege or fscility that is not reg-
ularly and vniformly applicabZe to ali persons and corporations
receiving aervice under the same or I,ike conditions' e�ccept
as provlded in 3ubsectien 3�aj hereof.
S�TION L�. It ia the purpoae oP this ordinance to inenre that the con-
awner shall pay only fair, just and reasonable rate;and
that sneh rate will pex�ait the Company to make a ressonable
rettarn on the capital investmettt in the business, as herein-
_ after defined in thia Section, vnder an economical aad
ef£icient management of the same.
, (a). As used in this ordinance, "allowable annusl return°
aha].1 mean the amount computed by application oi the
_ "allowable rate of retvrn" to the "allmrable rate 6sae�� aa
defined in accordance v3.th the provlsions o£ Subaectiona
(b), ic)� id), ie)e if) and fB).
,(b). The "allos,rable rste of return'� shall be 6-1/2�
during calendar years srhen the Company�a average eost oi
long-term debt capital at the beginni�g of the current ,year
is not leas than ?-2/2� nor greater than 1�-1/2�. Long-
term debt ahall consiat oY all debt due over one year siter
date of issne. The aeerage eost of long-term debt shall be
the weighted average e4fective cast of the outatanding
long-tarm debt at the beginning of the cvrrent year. The
e£feetive coat of each debt issue ahall be computed b�
diaidirig the product of the interest rate and principal
amount iasned b� the net proceeds of the iasue. The net proceeds
oi an issne shall conaiat of the pr3ncipal smovnt plus any pre-
miiuns reeeived� leas an,y discounts actt3 isauance expettse�
and less call premiume vhen any refunding of an i�sue resnits
in a lower effectise cost of debt, whenever there is a de-
erease in �he Companyte average cost of long-term debt capitsl
belox 3rl/2� or an increase abwe lt-?./2�� the "alloFrab2e
rate of return" of 6-1{2� ahall be decreaeed or increased by
50� of such decrease or increase. Thereafter� any contra
move in the average cost of long-term debt capital will
required the reverse adjustment in the"a2lotrable rate of
return". No change in the�'allawable rate of return" shail be
made unless the decrease or increase in the average cost oP
lang-term debt capital ahall equal at least 1/10 of one per-
centage point� and in no event shall the decrease or increase
in the ��allcntable rat� of retnrn" be other than im m�2tiplea
of 1/20 oi one percentage point.
(c). Tt�e "allovable rate base" shall be the sum of the
"fair value o£ the subvrban area utility plant" nsed and
aaeful in the publfc service as provided in Subsectiona
(dj� (a) and (P) and worTcing capital as provided in Section
5� less average contributions in aid of construction and
average cash advances for conatruc�ion, aa reflected on the
Gomp�+s Books.
(d). Thm "fair valns of the snburba�n a�rea �rtility plant"
shall be the svm of 50� o£ the avaraga original plant coat
including the current yesr net additions, leas depreciation
per books, computed on s monthly basia, ar�d 50� of the
"reproduotion cost nev" plant as de4ined in Subsections
(e) and (f), lesa depreciation. IIepreciation of the "rep-
rodnction cost new° plant shall be computed by the use
oY the ratio of the book depreciation reserve to the original
p2ant groaa cost� plus three (3) percentage pointa.
The 50� weighting of the ��reproduation cost nev" plant
- sha11 be used as long as the Co�anyts ratio oP debt capital
does not exc�ed 60� at the beginning of the current yESar.
If it exoesds 60� the �0� xeighting of the d1reproductian coat
- nex" plant will be deereased by one percent�ge point for
e�ery one percentage point increase in the tlebt capital ratio
above 60�. In auch event the 50� weighting of the original
plant cost �ill be increased by eaeh percentage point that
the saeighting of "reproduction aoat nex" plant ia decreaaed.
{e). ��Reproduction cosb ne�r" ahall conaist of the avm oY
the following amountss
(1) The original eoat at the beginning of the pre_
ceding calendar year oP alI plant clssaified as
Intangibla Plant, Land and t�artd Rights, arx7 General
Plant, e�ecluding Structures and Tmprovements.
(2J The original coat at the beginning of the pre-
ceding calendar qear of all other plant trerxied to
reflect the Aandy_wh3tman Index of Yublic Utility
Construction Costs {North Central Divisianj as of
- Jvlp 1 px^ior to the current calendar year. Each
plant account shall be trended by nse of the follm+l.n�
irid m�es :
Plant Account
Itx9ea
All Manntactured Gas F'rodne- Totsl Conatruction and
tion Plant �cluding l,and Equipment (Mann-
and Lattd Righta faetured Gas)
Distribution Plant
Sbractvrea and Improvements
Maina - Steel
Maina - Cast Iron
Ptm�ping and Regulating
�quipment
Structnrea and Improvementa
Maina - Steel
Mains � Cast Iron
Mechanical Equipment excln-
sive of Gas Holdera
�
'
�
(Fla� Accovntj
Services
Meters
Meter Installationa
House Regulators
House Regulator Installa-
tiona
Other Property on Cnstomera�
Premisea
���)
3exviees
Hetera
Meter Installations
House Regulators
Houae Regulator Inatalla-
tions
Structurea and Improvementa
(3eneral Plant
Structurea ani Isprovexenta Structurea and Improve�eenta
At�q neK Plant Account srhich mag hereafter be eatahlishad
shall be trended in accordanee with the appropriate Handy-
- whitman Indeu.
�31 The original cost of the groa� plant additione, lees
retirementa, installed in the preceding calendar year.
- (�) The original cost of the gross plant additiona� leaa
retireenerita, installed during the current calendar year
aneraged on a monthly basis.
(Y). At the end of each five-year interval the constructioa
cost trends eacperienced by the Comparip since the adoption of
this ordinance ahall be compared with the appropriate Handy-
whitman Index. Zf, after such compariaon, the di£ference
betxean the Aand,p-whitman costa and the Company"s experience
ia 15�, or lesa, of the to�al '#reproduotion cost new" plaat,
the Handy-whitman Index costs Trill be used for the sncceeding
five qears. I£ the differencs ezceeds 15�, the parties agree
to adjuat the Handy-whitman costs to rafl�t Company experience.
In the event the Handp Whitman Index of Nublic Utility Con-
struction Costs {North Central Division), or its successor,
is no langer avsilable, another aimilar Index mntually agrae-
- able to the Company and the Suburban Rate Authority xi].Z be
used.
(g). Aa used in thia ordinance, "Actual Net Barnings° of
the CompamJ sha1Z consist of the balance remaining after deduct-
- ing from ihe gross revenues o£ the Company from the manufact�zre,
purchaae, m.i�ctnre, tranaportation, diatribution and sale of gas
sold in the said subnrban area during the calendar year of
1963, � aach calemdar year thereafter� the foZlowing operating
and msintenance coats snd expen'es connected with the manu-
fact�e? pvrchase� mixture, transportation, distribution and
sals of gas sold in the said suburban area dnring such ca2endar
periodss
(S) Prodnctioii Expenaea, inalnding cest oP purchsaed gaa;
(2} Dfatribution azrl Utilization Ekpensea;
(3) Customers� A¢eounting and Collecting NScpenses;
(�) 3alea Promotion Expensea;
(5) An item to cover ��Adminiatrative and General EkpenaeaM
xhich shall be the just, £air and reasonable cost to the
Compa�- of all of the sub-accounts that are included in
auch tidminiatrative and GeneraZ �cpenses, but ti,e aggregate
of ��administrativa Salaries�� a�r1 °General Incidental
Expenses" classified aa in the preaent practice a£ the
Comparty in these accounts shall not eaceed in an� calendar
year three per cent (3�) of the annuai gross revenue,
including contr3butions� gratvities and donations not
to exceed three-tenths of one per cent {3�10 of 1�) of
the annual groas revenue.
(6) All taxes a� governmental impositions of every
ttature acivally paid b� the Companv directly to govern-
merital tax collecting agencies or acexued in secordance
0
�._
xith general acceptable aceovnting prinaipZea. Any
tax other than an ad valorem tax xhich may hereafter be
la�rfully suthorized and ihereafter separately imposed
by a�* municipality shall be added only to the bills oP
the customers within auch municipa2ity.
(7) An annusl allovance, beginning lanuary 1, 1963, Yor
depreciatioh of d�praciable property oxned by the Comparry
snd used and useful in randering gas service in the sub-
urban area for each calendsr yesr during the term of
this ordinance oP sn amount des3gned to recover the original
cost of such depreciable propertp wer �he eatimated average
aervice-life of each group of propertg on a straight �ine
baais, computed by application of the anrmal depreciation
ratea, nbw uaed by the Company in recnrding depreciation
on the books of the Co�aqq to tlze origina2 cost ef dep-
reciable property included in each of the major property
classifications and properly chargeable to depreciation
�xpens�a. Yroeided, hrnvever' aneh annuai depreciation
ratea may be reviaed periodically so as to reflect all
PsetorS bearing on the amovnt desi�ned to recover the orig-
inal cost o£ auch depreciable property over ita estimated
average aervice-2ife;
(8) All other aetval and praper classea oP maintenance
and apersting e�epenses of the Company;
�9) � item to cover taxas , depreciation and return
on at� plant not included in the suburban area AlloWable
Rate Base, but Which is used and usefnl in rendering
public service therin, � credit item (deduction frora
expenses) ta oover taxes, depr�iation and return on ariy
plant included in the suburban area allouable rate base,
but vhich is properl� allocable to rendering aervice out-
aide the suburban area, snbject� however� to the proviaions
of Section 1.
(10) Annual allo�rance for amurtization of extra-ordinary
property losses resulting irom change in tqpe of gas,
tmusua2 obsolesceace or vnYoreseen property da�aage.
Appropriate itema maq be amorti$ed or aearued according to
accepted aceonnting practice and, axcept aa othex�riae pro-
vided in this ordinance for specific itema' #he actual experience
ef the Compauy shall be the determinjng fsetor in support of
the amounts and rates of amortization or aecrual for euch iteIDS�
as such �cperience gives a definite guide.
All expenme items, xhether charged direet7,y and entirely in a
ealend� year or amortized or accr�zed aver a longer period, all
revemie items and all bala�e aheet itema shall be, at ail
tines� reeorded bp the Company in su6stantial aecordance with
tho Uni£orm Syetem o£ Accounts for l3as IItilities aP the Nationsl
Assoaiation oP Railroad azxt Utility Co�mnieaioners, except as
otherrriae pronided in this ordinanee arxi except that installment
and carrying charges tir3.11 be credited to gross merchandise sales.
The allocation of the Compa:ry�e operating eacpenses and Plant
within axxl without the snburban area sha12 be made by the
Gompa� in aceordance xith � formula that ressonably reflecta
the costs as they oecur far rendering service within and wi.thout
the said ares. A� change in such fornnnila made in ang rate
filing will be speciPically referred to in a separate comm-
�i.cation filed rrith the Snburban Rate buthority at the time
of t.he rate filin�o•
When there ia a balance in the accovnt for cumulative overage
in excess of the allcnrable retnrn, such balance shall be
credited wi.th interest computed at the current prime 3nt4reat
rate. Net refnnds (after taxes) £rom ar�y supplier ahall be
credited to such secount. (3verages in such account may be
used, by mutnal agreement, in anch manner as srlll minimise or
prevent vioZent ilnctuations in ratea, notwithstand3ng the
proviaiens oT Subaection 3(b).
�
�
�
1
'
'
Sr7CTI0N 5. The Compar�,y shall be entitled to fair and adeqnate irorking capital
in an amount determined sa followss
As used in this ord3nance, "working capital" shall mean sn amonnt
applicable to the suburban area for the aalendar year of 1963,
a� for each caler�ar qear thereaftert equal to the annual
average funda imrested by the Company during auch calendar'
yeara in materials and supplies on hand� merchandise accounta
receivabZe, prepayments and deferred charges properly chsrge-
able to operations, plus a cash £vnd equal to ten (10) days�
average daily operating expenses and ta�cea, plus one-eighth
(1/8) of the annual operating expenaes and taxea, less credits
for the annual average of accrued taxes and purchased gea
accounts payable.
The working capital computed in accordance stith the foregoing
formula ahall be included in the allrnrable rate base as
provi.ded in Subsection !t(c).
SF7CTION 6. The Co�ar�y shall file with the Suburban Rate Authority printed
scheduZes xhich shaZl be kept open for pnb2ic inspection,
ahofrl.ng all rates, chasges, corrpensation, forms o£ contracts
or agreements made� established or enforeed or to be enforced
Srl.th customers in the auburban area� t�ogether xith all rules
and regulations relating to rates, charges or serviees rendered
or to be rendered and aZl pri,vileges allawed arn3 Sacilities
afforded by the Company to its cuatomers in the snburban ares.
The Suburban Rate Authority shall have the right at at�y reason-
able time to inspect, �amine and audit the accountsa books�
recaxz3s, reports, contracts� document� and papers of the
Compatiy. The said Suburban Rate Autiiority may sppoint or
. designate the person or persons to make snch inspection, examin-
ation or audit.
S➢CTIOit 7. The Comparry ahall at alI times keep� maintain and preaerve Por
the suburbaa area proper and secvrate engineeris�, accounting,
financial and stati�tical records� reZating to the construction,
cost, maintenance and operation of its property v�hich at all
tirr�es shall show carrectly and in deta3l a71 its financial
transaetions� inclixdir� a11 of ita r�eipts and diaburaementa
and the partieulars thereof, and all data need£ul for the
preparation of the statements and reports hereinafter prov3d �I
_ for.
The Company aha71, each month, prepare artd file with the
Subnrban Rate xuthority the.follovings
(a) A detai2ed ststement o£ all asaeis and liabilitiee of the
Company as of the cloae of the preceding month;
(b) A detailed atatement shawing aource s� application oP
revenues of the Compar�y from the sale of gas and of bq-prodncta
and from all other sources for the preceding month and year,
up te ani including the preceding month; also ali expenditures
of the Company during ssid pear; all dividends arrl interest
psidj the eoat of all materials used in ths manufaeture of gas�
all operating expenses� taxes and salariea; the cost o£ aIl
repairs and af all propert,y, real or personal, by 3t purchased,
sequired, constructed or installed; ss3d statements shall be
so prepar� as to shrnr the net inaome of the Company irom ita
regular bnsiness and from all other eources and the nae or
disposition of said income.
The Company shall also, from time to time, fvrnfah monthlp
operating azid financial reports ar� such other information,
reports snd statements regarding its property and businsss,
and the cor�uct thereof� as the Suburban Rate Authority msy
requ3re. All infora�stion, reparta S19d 6't8t�lfiBIlt9 furniahed ta
the Suburban Rate Authority by the Corrq�any ffih�]1 be certified
by the President� Secretary or other proper officer of the
Compat�r.
$GiTIQri Ve
�.
The prrnrl�iona uf thia ordinance rela%ive to alloorable azmusl
return' alloorable rate of return, a7l.avable rate base arul
acex�ing annval depreciation rates f�ed under the proviaions
hereof and other requirements ahall be ecnsidered as conditiona
h�reof, but no such proviaiona, nor any matter, fact or thing
herein corrtained aha11 be constrned aa an admission either by
the Muniaipaliiy cS the Compa�y in conrtectioa xith any proceeding
Por the acqvisi.t3on of the Company�a praperty� or aziy pert
thereof, wndsr emtnent donaain or condemmation proceedings� or
in coimectian with an� proceeding for the aaluation of the
Co�as��a property,, or azpr part thereof' dari.ng or aft•er the
termtnation hereoP� or in comeeetion wi.th ar�y proceeding for the
fizit� of ratea aiter the terminaticn hereof� to any of srhieh
proceedings the Mimicipality aha11 be a party.
3HCfI0N 9. In determining "allotaable annual returu", "allcaxable rate of
return" and "allwable rate base" vnder 3eetion !t hereof, the
books and reeorda of the Company, a� it� preciecessors, made
asd kept prior to the passage of this oxdinanoe,, ahall be used
insofar as necessary in app2ying said Section !�.
3�CCTIflN 10. The books of accovnt shall contain an acceunt that may be
designated as "Reaerve for Deprecisiion of Utility Ylsnt", or
similar term� s�thich ahall ahew at alt times as near]y as may
be the unexpended or unused balance of aecumulated charges to
operati.ng e�cpenees on accrnmt of depreciation, replacemente�
renerasle or retirements, when any property is abondoned or
. remoeed, withdrawn� retired from� or ia not uaad and uaeful in
- the public s�rvice for ax�,y cause, the actual mriginal cost
aha11 be credited to the appropriate capital account, and
auch amount plus the coat incidental to said abandonmerit, removal�
xithdrastal or retirement shall be ¢harged to ssid reserve9
- sub3eet� hcn�everT to the provisiona of the following paragraph.
Ths salvage value received and aay other amou�s recovered
from said property shall be credited to esid reserre.
When a snbstantial aegment oP the Coag�aiYy�a ut3lity property
ia reqnired to be abendoned and retired from service becanse
of change of type of gaa, or unusnal obaoleaeence, or unforeeeea
property damage and anch propertp ia not fully covered by the
depree3.ation reserve or other reaernea or bp insurance, then
the unrecovered balance of such property shall be credited to
the depreaistian reaerve or other appropriate reaerPe and be
charged to a deferru] charge accouttt deaigttated as "Ektra-
ordinary Yroperty i,oases". Charges to asid deferred charge
acconnt shall be amortised by charges to operating expenses as
provic�ed for in Section !�.
If the original coat is not shrnm by the booka and records
of the Compaqy or its predecessors� auch amovnt shaZl be eatimated
a� a record shall be made t�y Lhe Corapanp shwing the facta
npon which said estimate was based, the manner iti vhich it
�ras determined and the person by whum it xa� made, and said
estimated amount, together xith remc�vsl costs and aalvage value�
or other amo�mts received or recovered frc+m said property� ahall
be aceoumted for in Lhe manner aa hereinabove provided.
3i�TI�N 11. The Co�ar� shail at all timea keep� maintain aad preserve alI
the booka� records and accounts o£ the Minneapolis Gaa Zight
Compaany, a eorporation organised nnder bhe lavs of the State of
Minneaota, aral the Mimieapolie Gas I3ght Co�s�y� a corpe�ratioa
organtaed nnder the l�ars of the State oP Delavare, the predeceeaora
of the Company� ax� sueh books, records anc3 acconnte shall at all
reaaenable time$ be open to inspeetion arxi examination by th�
Suburban Rste Anthority� as provided in Section 6, in reapeet to
the books� reeords and accovnta of the Company.
The Companp ehall set up, keep and maintain at all times at its
gensral offices� acourate books of accozutt� shrnring among other
things a� nearly as map be the actual original cost of the property
ormed by the ComparXy within the subnrban area. For this purpose� tha
booka and recorde of +he predecesaor eompaniea (Minneapolis (3as Light
Compar�y oS Minnesota arnl Minneapolis Gas iight Compar�p of Delaware)
may be uaed withont prajudice to the Subnrban Rate euthority in any
proceeding vhere the setual original cost may be an issue. A11 property
��
�
�
i�
'
added ahall be .rttrred on the books at ita aetnal original eoat.
3HCTI02d 12. The Co�ar�Y agrees to lay such of its main� and pipee as come
within iia requirementa for service as soon a� reasonably poasible
to do so. The Company sha11 give reasonable notice to the municipal
engineer of plans to Iay maina in ar�T part of the Municipality.
the laying o£ such msins ahall not unduly interefara rrith esta-
bliahed municipal planning. �ictensions o£ serrice beyond the
borders of the aubnrban area as herein defined ahall not collec-
tively cast any undue bnzden on the customers in said suburban area.
S�TION 13. The csounail of the Municipalitv ahall have the right to make snch
reasonable rules and regulations as may be necessary to provide
adequate and proper service. The Municipalit� shall have the
p�rer to provide for the inspection� examination and aseertainment
of the accuracp of a� and all gas meters uaed or intended to be
used for measuring and ascertaining the quantity of gas supplied
by the Comparpr and to inspect, exami.ne and aseertain the accuracy
of racording pressure ganges and of all apparatns for testing
and proving the accuracq of gas meters.
SPATION ].lt. The Co�an,p ahall not open or diatvrb the aurface of any atreet
or publie place for ar�y purpose i.ri,thont f3rat having obtained a
pm^�ni.t so to do from the propsr Municipal offi¢ials, for Which
. pexmit the Municipality may impose a reasonable i'ee to be paid by
the Cotrspar�. Tha mains, services and other property placed in
the streets anci public places pvrsuant to sueh permit shal7. be
lasated in the,streets or portion of the atreets and public places
as ahall be deaignated by the Municipalitp. The Cor�any shall,
uoon completion of any w*ork requiring the opening of an,y atraet
or public place, reatore the same, including the paving snd its
Toundations� to as good condition as fflrmerly, and shall exercise
reasonable care to msintain the same for two (2) years therea£ter
in good condition. Said xork sha1Z be performed with due diligence
and if the Company shall £ail promptly to perform and complete
the Work, to remove all dirt and rubbiah and to put the street
or public plsce in good condition, the Municipalitp shall have thm
right to put the atreet or public place in good conditfon at the
expense of the Company; ami the C mrq�arty shall� upon demand� pay
to the Municipality the cost of such work done for or performed
by the Municipality, together with ten per ¢ent (10�) additional
as liquidated damages. Notwithstanding the foregoing provisione
of this section, the Company may open and disturb the surface of
any strset without a permit vhere an emergencp exiats requiring
the irmnediate repair o£ a gas main or gas aerv3ce. The Company
in such event will request a permit not later than the second
working day thereafter.
SI�TION ls, whensver the Mvnieipality shall grade� regrade or ehange the
line of aqy street or public place or censtruct or reconstruet
aryp seFrer or vrater system tHerein and shall, in the proper ezerciae
of ita police pc�rer, and with due regard to seasonable working
conditions� order the Compar�y to relocate permanently its m�i.ns�
serv3ces and other property located in said street or public
plsce, the Company shall relocate its facilities at its rnm expenae.
In construing this paragraph� the obligation of the Company to
relocate its facilitiea ahall be as applieable to water systema
ss it is to se�ter sy�tems. The Municipality sha21 give'the
Company reaaonable notice of plans to grade, regrade or change
the line of sup atreet or public place or to construct or re-
construct amf ae�rer or water sqstem therein.
'Phe Compar�y may be required to relooate its facilitias at its
own e�cpense ahere grade changes are made by the Municipality for
improved drainage or improved traffic canditions} provided,
hoxever� iP a aubsequent relocation or relocationa shall be ordered
within ten yesrs from and after th� first relocation the Munici-
pality ahall reimburae tha Compan;}* Yor such non-betterment
relocation expense whieh the Company may incur on a time and
material basi�. Provided� however� nothing in this ordinance
contairted sliall deprive the Company of ite righta nnder
Section 261.ltb, M3_hnesota Statutes.
Aothing eontained in this section ahsll require the Company
to remove and replace its mains or to cut and reconnect its
aervice pipe running from the main to the customerts premises
at its c>wn expense crher� the removal axx3 replacement or cutting
and reeonnecting is made for the gurpose o£ a mora e�cpeditious
operation for the construction or reconstruction of said sexer
or vater system; nor shall anything contained herein relieve
ax�y pereon� persons or corporationa from liabilit� arieing out
of the Pailvre to exercise reasonable care to avoid injuring
the Company�s facilities xhile performing any work connected
with grading� regrading or changing the line oi any street or
public place or with the construction or reconstruction of
a�y sewer or water syrstem.
where the Manicipality ordera the CompasXy to relocate ax� ot
ita facilities� the Compan,p aha11 procesd with such relocation.
If euch relocation is done xithont an agreeme�st f3rst being
made as to who sha11 pay £or the relocation coat, such relocation
of the facilities bp the Company ahall not be construed as a
xaiver of its right to be reimbursed tor the relocation coat.
If the Gompan,p claims that it should be reimbursed for such
relocation eo�ts} it shall notifp the Municipality within ten
(10) days aYter receipt of such order.
SHCTION I6. The MunicipaZity shall give the Comp�ny reasonable written
notice of plans £or street improvements xhere paving or
resurfacing o£ a permanent natura is imolved, which notice
shall contain the nature and character of the improvements,
the atreets upon which the improvements are to be made� the
extent of th� improvements and the time when the Mnnfcipality
ia going to start the Work, and� if more than ona street is
involved� the onier in which this work is to proceed. Pavinr
or resurfacing of a permanent nature refers only to Yortlarni
cement concrete or high type bitvminous concrete.
The notice ahall be given to the Cocr�any a sufficient length
of time� considering seasonable working cond3t3ons, in advance
of the actual co�mnencement oP the work to permit the Compan,p
to make any additions, alterations or repairs to its facilities
deemed necesssry by it.
In cases where streets sre at final w9.dth and grade, and the
Municip�.7.ity has inatalled underground sewer ar�d water maina
and aerviee connections to the property line abutting the
streets prior to a permanent paving or reaurPac3ng of 5uch
streete� arx3 the Company�s main ia located under such atreet,
the Company may be raquired to install gaa sezvice connectiona
prior to such paving orzesurfacing� whenener it is apparent
that gas service will be required dvring the £ive yeara
fo7lowing the paving or resnrfacing.
3F�CTION 17. ill maina� services, governors arni oiher propertv and £acilitiea
ahall be so located, constructed, installed and maintained as
not to endanger or unnecessarily intpr£ere crith the ususl and
customary wrade, traffic and travel upon the streets and p�lblic
places of the Municipality. The Company ahall keep and maintain
a11 of its property in good conc�ition, order and repair, so
that tMe same shall not menace or endanger the life or property
of a�y peraon. The Municipalit�r ahall hane the right to inspect
ar� examine at any reasonable time the property owned or used,
in part or in whole, b� the Company £or the purpose o£ manu-
factUr3.n�� diatributing, furnishi.ng or selling gas in the
suburban area,
SI�TION Y8. Tha Compan�r agrees to pay to the Suburban Rate Authority,
ef£ective Janusry 1, 1963, not less than $30,000.00 per qesr
to be allowed as an operating expense to the Compar�y and which
shall be used to secure compliance with this ordinance,
and for such other purposes relaiing to the Co�r�pany}s
purchased gas coats and gas supply as the Subtirban Rate
�
u
�
�
'
Authority sha11 deem necessaxq. The �ount of such annual
pa,yment aha3.l be subject to posaible revision by the Suburban
Rate Authority anci the Co�any� not oftener thsa once in
five (5) Ye�'$, if mutual�y agreed to.
3�TIOii 19. Z'he Compa�y shall at all times provide arxl P�u�niah an ade4nate,
safe and continuous supply of gas to the Mvnicipalit� and its
, inhabitanta� subject� however, to the further provisions of
this seciion. The Compar�y salls and distributes gas through-
out its entire diatribution system. The natural gas distributed
by the Compst�y is 4vrnished b, the pipeline sy�tem o�med and
operated by Northern Natural Gas Compang, a"natural gas
company" under the Federal Natvrsl Gas det, xhich subjects
aaid Northern Natural Gas Compa�y to the jnrisdiction of the
Fedaral rower Convnission.
The Compa�{}r shall not be liable to the Mnni:cipality or ita
inhabitants� nor shall the Municipality, or a�y inhabitant
xho is a customer of the ComQaag, be liable to the Compar{y
hereunder by reason of the failurs of the Company to deliv�r�
or of the tiunicipality,or a cnstomer to receiva, natural gss
as a result oP acta of (}od� or the publia eneirq*� inability
cd pipel3ne supplier to furnish an adequate euppl,y due to an
emexgency, an order or decision of a public regulatorv body
or other acts beyond the control of theparty affeeted.
� whenever any of the occurreness named above take place, the
Compat� sha71 have the right and suthorit,y and it shall be
ita duty to adopt reasonable rules and regulations in con-
nection with Iimiting� curtailing or allocating exten�ions ot
aervice or supply of gas to any castom�r or prospective customer�
and �rith-holding the supplying oP gas to new cnatomera,
provided that such rulea and regulationa shall be uniform ss
applied to each elasa of cuatomers; classiiications of
custamera shall be reasonsble and shnll be non3iseriminatorg
ag between mvnicipalitiea in the anbnrban area,
IS service is temporarily suspended b�auas of anq of the reasons
sat £orth above, occurring �Chrough no faolt or negligent act
on the part of the Compan;r, such suspension shail not be made
the basis of ar�y acti.on or proceeding to termi.nate thia franchise.
'Phe quality of the gas sold in the suburban area shall be th e
sama as that sold to the Companyts customers in the City of
Mirmeapolis.
The pressure at which gas is snpplied arxi the method and
manner of testing the heating value, quality, purity and
pressure of tha gas supplied, shall be in seeoidance with
aecspted national startdards.
37�TION 20. The Compa�+ shall indemnify� keep arni hold the Municipality
free and hax�mless from liability on aceovnt of injury or
damage to peraona or property grosring out of the negligent
construetion� msintenance, repair and operation of ita prop-
erty, and in the event that suit ahall be brought against
the Mun.tcipality either indepen3ently or joinbZ,y �rlth the
Company on account thereoP, the Corrg»ar{Y� upo:: notice to it
by the Municipslity, ahall defend the Mwiicipality in an9
snit at the cost oY the Gompany, and in event of a final
judgmerrt being o�tained against t.he Municipalit,y, eibher
_ indepe�ently or jointly with the Company, the Compsny shall
pay sueh judgment with all costs and hold the Municipality
harmless therefrom.
SHCTTON 21. �Tothing herein sha11 be conatrued to limit the right of the
Municipaiity to sequire the property of the Gompany urider
any act af the legislature notr or hereafter exieting, not
vnder any provisions oi law nosr e�cist3ng or hereafter adopted.
In the event tho Municipslitg shouli3 desire to acquire the
property of the Co�arqr by ths exercise of em3nent domain�
as herein set forth� the Cottq�any agrees that its value for
the pv�pose o£ such acquisition shall not inelude a�y amovnt
Por the vslue of any right, privilege, franchise or grant
from the State of Minnesota or the Munic3pality, for goa9
will, or for future profits, and that 3n determining said
value no regard shall be had to the amovnts of stocka,
bonds and other obligations of the Company.
SPATIQN 22. The rights and priv3.legea hereby granted are not exclvaive
and the N.unicipality e�cpressly reservea �Ghe right to grsnt
]3ke rights and privi.leges to other persons or corporationa.
S�TION 23. If the Compariy ahall be in dePsult in the per£ormance of any
of the material terms and conditions of thia oxdinance and
sha21 cozrtinue in default for more than ninety (90) days
after receiv3s�g notice from the Municipal3ty of such default�
the Municipal Conncil may, by ordinance duly passed and
adopted, terminate all rights granted vrnier this ordinance
to the Co�any. The said notice of defavlt ahall be in srriting
aaud shall speeify the provisions of thie ordinence in tt.e
per£ormance of which it ia claimeci that the Company is in
de£ault. Such notiee ahall be eerved in the manner provided
by the laws of Minnesota for the serniee of a summons and
complaint in a civil action. The reasonableness of any
ordinux e so passed declaring a forfeitnre of the rights and
privileges grartted by this franchis ordinance shall be subje¢t
to review by a court of competent jurisdietion.
SF7CTION 24. Any change of the form of governmeixt of the Mvnicipality aa
authorized by the State of Minnesota shaZ1 not afPect the
validity of this franchise, any municipal corporation
- sneceeding the Municipality shall, Without tbe consent af
the Company, succeed to a11 the rights and obligations oP
the Municigality prov3ded in this franchise.
3HCTION 25. �ceept aa herein otherwiae speci£ically provided, whenever
notice ia to be'given to the Compax�y, such notice in writing�
addressed to the President, Vice Yresiderrt, Secretax,y or
Treasurer oY the Company ami delivered at the Minneapolis
office ot the Company ahall be servi.ce of such not3ce; arrl
rrhenever notice is to be given to the Municipa2ity, such notice�
in trriting� addressed to the Municipal Clerk and delivered
at his ofiice� ahall be service of such notice; and ivhenever
notice is to be given to the Subarban Rate authority, auch,
3n Srriting, addressed to such Suburban Rate Aut�iority and
delieersd to its of£ice or to one of the members of ita
governing body� shall be sernice o£ sneh ncstice.
3�RION 26. An ordinance entitled "Granting to Minneapol3.s t3aa Light
Compasry� its stieceaaors and assigns� the right to manuPacture�
import, transport, sell and distribute gaa for heating�
illuminating anc? other purposes in the Vil].age of Fridley�
and to uae the streets, avenues and alleys thereof for that
purpose"' paased on the ltth day of August� 1952� ia hereby
repealed.
SE�TION 27. This ordinance ahall be null and void unle�s the Compax►y
aha7.1, after the publicatfon thereof and prior to aprii 1,1963,
Pi�e with the Municipa2 Clerk a written acceptance of the eame
and an agreement on its part, aigned and aclmcnrledged in its
behalf under its corporate seal by ita du7.,y authorized
of£icers� to snrrender all rights and privileges under the
ordi.nance described in Section 26, and to comp7y with, abide
by, keep sxed perform all of the terms� conditions ard require-
mertts herein contained upon its part t0 be complied vith or
performed, atv3 that the Gompany uill not contest the validity
af this ordinance or of a�y rate or ratea �rhich are in accordance
x3th the terms hereof, except as herein expressly proroided.
3�,"TI�N 28. The expenss cf the publicstion of this ordinance aha11 be paid
by the Company.
�
��
u
SF7CTION 29. 2£ this orcl3nance is not adopted by March 1, 1963, by munici-
paliti.es in which b6-2f3� of tha cuatomers oY the Company in
the suburban area are located� the M_vnicipal Council may revoke
the same, The Co�any agrees to fiZe with the Municipal Clerk
on or before March l�, 1963, a sworn statement showing the
total number of customers in the suburban area and the totsl
number o£ customers in municipalities in whic'.a the ordinance
has been adopted. I£ thi3 ordinance is revoked the provisions
of this ordinance shall be frithout prejudice to e3ther party
in ax�q* snbsequent proceeding. ,
SHCTION 30. Three years after January I, I963, either the Company or the
Subiirban Rate Auihority may request a review of the question
of rrhether the rate formuls contained in Sections it and 5
accompliahes the purpose e�cpeessed in the f3rat sentence of
Section 1t. Such review may be initiated by making a written
request therefor to the other partq dnr'l.ng the month oP January,
19b6. Theretxpon, the Suburban Rate huchority and the Gompany
shall revieyt and disc�ass such question with each other,
thoroughly and in good faith, for a period not to exceed s3x
months,. fuiy change in said rste formula siiall ba prospective
in egaration only and shall be made by amendment to Secti�na
1� or 5, Any such amendment to be effactive must be adopted
before Uecember 1, 1966, by municipalities in whic� 66-2%3�
of the custom�rs of the Compar,y in the suburban area are
located and accepted in r�miting by ihe Company in the form
provided in Section 27 prior to Januaxg l, 1967. In the absence
oS ar�y such amendment, so adopted and accepted, the rate £ormula
containad in Sections it an3 5 shali be axid remain in e£fect
during the bslance of the term of this franchise,
3�TSON 31. If ar�y s�otion� psrsgraph� aubdiviaion� alause or pravision
o£ thia ordinance shall be adjudged irnalid or unconstitutional,
� the same shall not affect the vaZidity of thia ordinance as
' s whole, or any part or orovision, other than the part so
- decided to be irrvalid oz unconstitutional.
�
S�CRTON 32. Thia ordinanee sha11 take effect ar� be 3n forCe ipom and at`ter
January 1, 1963� and after it� publication and its acceptance
by the Compar�y subject to the provieions of Section 29.
�
PASSED TH� ltth DAY OF MARCH, 1963.
.
�-� t F,✓� �� it �� c.e�ti.i
ATTk�Ts CITl� r1iiNAGt�;R..r;ar1 Y, wagner
. /'� / —
L,/
L - n . Brunae
r