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<br />City Council <br />Meeting Minutes <br />May 3, 2005 <br />Page 5 of 16 <br /> <br />City Attorney Light read Ordinance No. 1464, Series 2005 <br /> <br />Mayor Sisk requested a Staff presentation. <br /> <br />Assistant City Manager for Governmental Relations Heather Balser explained <br />that Ordinance No. 1464, Series 2005, grants a non-exclusive franchise to Public <br />Service Company of Colorado. She noted that several citizen emails have been <br />received relative to the franchise agreement. She reviewed the highlights of the <br />agreement as follows: <br /> <br />1) The term of the franchise is 20 years. <br /> <br />2) The franchise fee is 3% of revenues. <br /> <br />3) Public Service agrees to pay any Colorado municipality a franchise fee based <br />on total consumption of gas or electricity. Then Public Service shall provide <br />written notice, which shall include the consumption based franchise calculation <br />for the City of Louisville. <br /> <br />4) The Company shall allocate an annual one percent of the preceding year's <br />electric revenues derived from the distribution of electricity in the City, for the <br />purpose of undergrounding its overhead electric distribution lines as well as <br />transmission lines. <br /> <br />Mayor Sisk opened the public hearing on Ordinance No. 1464, Series 2005, and <br />requested a Public Service Company presentation. <br /> <br />Mr. Pete West, Xcel Managing Director of Colorado Local Affairs, explained that <br />he and Todd Anderson are responsible for the Company's interaction with 721 <br />cities and two dozen counties in Colorado. He stated Xcel Energy strives to <br />provide reliable service at a reasonable cost and to be a good corporate citizen <br /> <br />Mr. West explained in 1954, the Colorado Constitution was amended to provide <br />that all power to regulate the facilities, service, rates and charges for public <br />utilities will be vested in the Public Utilities Commission (PUC). The regulation of <br />the right-of-way is the primary issue for local governments that is addressable in <br />a franchise. In Colorado, electric, gas and cable TV public utilities gain the right <br />to be in public right-of-way with a franchise agreement for cities and towns. <br /> <br />With respect to the 20-year term franchise issue, Mr. West agreed the electric <br />and gas business will change over the next twenty years, but stated the pipes <br />and wiring in the City's streets will remain the same. Because of the level of <br />investment it takes to provide electric and gas service, Xcel Energy requires a <br />20-year franchise agreement. He addressed the issues of renewable energy, <br />demand side management and energy conservation and voiced Xcel's belief that <br />