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85-390 WHITE - CITV CLERK PINK - FINANCE I TY O F SA I NT PA U L Council �-�9b CANARV - DEPARTMENT BLUE - MAVOR File NO. City Attny/PBB Council Resolution Presented By Referred To Committee: Date Out of Committee B Date RESOLV D, th t Council File No . 85-302 is hereby rep aled and rescind d, an the ordinance attached to said resolut on (Council Fi e No . 85-301) is hereby withdrawn; and be it FURTHE RESO VED, that these actions are induced and taken in ex ress eliance upon the First Amendment to the Transportat'on Ag eement dated March 1 , 1985 , between Peo les Natural Gas Compa y and Northern States Power Company, an upon the co itme ts and assurances made by Northern Stat s Power Compa y to he City of Saint Paul in the letter of Raymond A. aik, enior Vice President and General Counse , dated. March 11, 1 85 , both of which are attached to this Resolution. COUNCILMEN Reque ted by Department of: . Yeas Nays ��j� +,,^/ Dr�'S�� � � �J'G��i'KJLK.� Masanz In Favor NiCOSia sche�bet � __ Against BY ��vdsseo-- 1Kileen Adopted by Council: Dat AR 1 9 1985 Form App ved by City Attorney Certified P�. d Council BY ' 3 � /���� sy , �1 v by.lVlavor. Da e _ Approv y Mayor Eor Sub issi n to ouncil BY — BY Pueus��n � �a��,� � � 1985 . - . � ��--��v - Tot-thern States Po���er Company La��• Department Reymond A.Ha�k 414 NiC011et Mall Senior At�omeys Senwr v�ce P�esioent d Generai C unsei Minneapolis, Minnesota 55401 Gene R.Sommers Arthur R.Renquist Tele hone 61 Raiph S.Towler V�ce�Pres�tlenl—Law � P ( 2) 330-6600 � Joseph D.Bizzano,Jr. David G.McGannon Stephen C.Lapadat D�rec�or—Law March 1.1 � 17 H S Herold J.Bagley Wm?r�s D�•ect D:al NumDei Jack F Sjoholm,Jr. 3 3 0-2 9 9 8 Robeh W.Gro1h David A.Lawrence Gale K.Noitlling Gary R Johnson A1fOrneyS Honorable Geo ge La imer Jo4nn M.MCGuuB Mayor of the ity o Saint P3111 Joanne E.Hintleraker 34 7 City Hall Davitl M.Sparby Saint Paul , M' nneso a 55102 - � Re: NSP ' s Con ract with Peoples Dear Mayor La imer: I have review d the first Amendment to the Transpor.tation gree- ment between orthe n States Power Company (NSP) and Peopl s Natural Gas C pany (Peoples) , dated March 1, 1985, which signed on beh lf of NSP, a copy of which is attached heret . It was the full ' tent of NSP that the last sentence of the endment means that NS will always require Peoples to pay the gros earnings fee Sai t Pau1 as Iong as NSP maintains a cont actual "' " relationship 'th P ples allowing it to use NSP facilitie to provide gas se vice o Ford Motor Company. (NSP currently does not intend to enew he Agreement which expires in 1989) . - • I understand t e Cit is concerned that the Amendment may ot contractual],y bliga e NSP to carry forward the language o the Amendment in t e unl 'kely event NSP were to renew with Peo les after the curr nt Ag eement dated June 26 , 1984 , terminate in I989. . NSP hereby co its t the City of Saint Paul that the lang age in Paragraph N . 8 a set forth in the attached 'Amendment i11 be contained a d con inued in its contract with Peoples in the unlikely event that SP were to enter into a new Transport tion Agr�eement a110 ing P oples to continue gas service to Ford Motor Company in Sai t Pau , Minnesota, after the expiration or ther termination of the c rrent Transportation Agreement dated une 26 , � � . 1984 . Any suc rene al or amendment language will be subm'tted to the City Attor ey fo the City of Saint Paul for his revie and approval prior to ex cution. . ' Ver ruly' yours, j , � �� M ,� R.AYMO A. HAI K , R�H/ccj tit�aciunent , =��, �;-.. � �5 ,39� FIRST AMENDMENT TO THE TRANSPORTATION AGREEMENT THIS AGREE ENT, e tered into as of the lst day of March, 1985, by and between PE PLES N TURAL GAS COMPANY, a Division of InterNorth, I c. , a Delaware cor oratio (hereinafter referred to as "Peoples") , and �ORTHERN STATE POWER COh1PANY, a Minnesota corporation (hereinafter referred to as "NSP") WITNESSETH THAT: k�HEREAS, P oples nd NSP are parties to a Transportation Agreeme t � dated June 26, 1984, or the transportation of gas by NSP for People for two specific c stomer locations, one location being Ford Motor Compa y in Saint Paul , Mi nesota and bJHEREAS, t e parties desire that the Transportation Agreement be amended to spe ificall reflect the long established intent and prac ices � of the pa ties in reg rd to the payment by People of a franchise pa ent . to the City of Saint aul in regard to sales to Ford Motor Company i the same amount as ould e paid if the sales were made by NSP under its franchise from the Ci . - . NOW THEREF RE, in onsideration of the mutual terms, conditions nd convenants her f, the parties hereto agree to amend, effective Janu ry 1 , 1985, Paragraph No. 8 f that certain Transportation Agreement betwe n the . parties dated J ne 26, 1984, to read as follows: � . "8. People furth r agrees that so long as it shall retain gas ales contracts with Inver H'lls Junior College or Ford Motor Company as descr,�bed herei , it w�ll pay any tax or fee imposed by any governme tal authority on th trans ortation or sale of the gas transported to sa d customers throu h the foresaid facilities of NSP. In particular, P oples . � ���-3 9� agrees to pay direct y to the City of Saint Paul an annual fee equa to *he franchise fee th t NSP would pay the City if NSP were supplying the gas to Ford M tor Co pany under People' s rate schedule used for sal s to Ford hlotor Compan . The parties agree that the City is a third arty beneficiary t the a reement set forth in the preceding sentence. he parties furth r agre that the foregoing agreement on behalf of the City of Saint Paul shall e continued and maintained in any future amend ent or extension f this Transportation Agreement. " - IN WITNES WHERE F, the parties hereto have caused this First Amendment to he Tra sportation Agreement to be executed the day an year first wr tten a ove. "NSP" � PEOPLES NATURAL GAS COMPANY, - NORTNERN�STAT S POWE COMPANY Division of InterNorth, Inc. a Minnesota c rporati n a Delaware corporation Bv;, �% � � " By: � � Senicr i Presi ent Vi e Pre ident ��;;,`,;'�. , �and General Couns 1 �, � .. . � . .P,tz�st: Attest: /� � �ssist nt c etary Assista Secretary t '. . �����v ����.=� o. . � CITY O SAINT PAUL o �� DEPARTMENT OF FINANCE AND MANACE ENT SERVICES : ��j����i ; ♦� ,�o �... PETER C. AMES, DIRECTOR GEORGE LATIMER 234 City Hall, Sai t Paul, Minnesota 55102 MAYOR (612)298-4637 March 12 , 1985 Councilmembe Kiki Sonnen Seventh Floo City Hall Saint Paul , innes ta 55102 Dear Council mber Sonnen: On February 2 , at the request of Mayor Latimer, the Counc 1 passed a res utio withdrawing the City' s offer to Northe n States Power ompan (NSP) for a gas franchise in the City of Saint Paul . he C uncil also gave first reading to an ordinance` whi h would amend the proposed gas franchise agreement. Since the Cou cil a ted , the following events have taken p ace : l. On March 1 Peo le' s Natural Gas Company (PNG) sent to NSP. an amend ent t their agreement, which now calls for People' s to ch rge a franchise fee on its gas sales i Saint Pa 1 . W ile NSP intends to not renew the contr ct, which ex ires 'n 1989 , the contract amendment calls f r a similar rovis 'on to be included in any future contra t. It is NS ' s in ention to take over People' s gas sales in 1990 . A copy f the contract amendment is attached a Exhibit . 2. Also on arch , NSP transmitted to the City Attorney its acceptan e of he terms of the gas and the electric franchis agre ments . To be final , their acceptance eeds to be ap roved by the City Attorney as to form and fi ed with the City lerk. The electric franchise agreefien has been fil d wit the City Clerk. 3 . On March 8 , NS representatives gave me a check for $236 , 513 92 as a franchise fee payment for People' s g s sales in 1984 . 4 . On March 11 , N P sent a letter to Mayor Latimer promi ing that, in the u likely event that the People' s contrac is renewed n 198 , the City will be paid a franchise fe on gas sale . Ac ording to NSP officials, the contract amendmen and romisory letter are legally enforceabl . A copy of he le ter is attached as Exhibit II . . � �����9� Councilmember K ki So nen page Two March 12 , 1985 Since passage o the ouncil resolution and introduction of he ordinance have ad t eir intended effect, I request that you withdraw the or inan e , which, since you introduced it, is y ur prerogative . Coun il resolution, rescinding the February 8 , resolution has been repared and will be ready for Council review and app oval y March 19 . This resolution will acknowledge th Marc 1 NSP and PNG contract amendment and NSP' s March 11 lette to Mayor Latimer. I suggest layi g ove the ordinance , which will receive its third reading n Mar h 12 , to the March 19 meeting when the resolution wil be c nsidered . This will enable the two related Counci acti ns to take place at the same Council meeting and ma e cle r the Council actions are taken in reliance upon SP co mitments and assurances. Thank you for our c nsideration. Sincerely, Peter Hames PH:bz cc: Mayor Ge rge L timer Members f the City Council Greg Ble s Phil Byr e Joseph C scale da Tom Cran Raymond aik A1 Olson Karen Sw nson Ed Starr . �.F�.�-��� • � Ex ibit I FIRST AMENDMENT TO THE TRANSPORTATION AGREEMENT THIS AGRE MENT, ntered into as of the lst day of March, 1985 by and between P OPLES ATURAL GAS COMPANY, a Division of InterNorth, ne. , a Delaware co porati n (hereinafter referred to as "Peoples") , and PJORTHERN STAT S POL�lE COMPANY, a Minnesota corporation (hereinafter referred to a "NSP" . WITNESSET THAT: WHEREAS, eoples and NSP are parties to a Transportation Agreem nt � dated June 26 1984, for the transportation of gas by NSP for Peopl s for two specific ustome locations, one location being Ford Motor Comp ny in Saint Paul , M nnesot , and WHEREAS, he par ies desire that the Transportation Agreement b amended to sp cifically reflect the long established intent and prac ices of the partie in re ard to the payment by People of a franchise pay ent . to the City o Saint Paul in regard to sales to Ford Motor Company i the same amount a would be paid if the sales were made by NSP under its franchise fro the City. NOW THERE ORE, i consideration of the mutual terms, conditions nd convenants he eof, th parties hereto agree to amend, effective Janu ry 1 , 1985, Paragra No. of that certain Transportation Agreement betwe n the . parties dated une 26, 1984, to read as follows: "8. Peopl s furt er agrees that so long as it shall retain gas ales contracts with Inver ills Junior College or Ford Motor Company as descr�bed here'n, it ill pay any tax or fee imposed by any governme tal authority on t e tran portation or sale of the gas transported to sa d customers thro gh the aforesaid facilities of NSP. In particular, P oples ! �.F��S�`�g4 agrees to pa direc ly to the City of Saint Paul an annual fee equa to the franchis fee t t NSP would pay the City if NSP were supplying the gas to Ford otor Co pany under People's rate schedule used for sal s to Ford Moto Compan . The parties agree that the City is a third arty beneficiary o the a reement set forth in the preceding sentence. he parties furth r agre that the foregoing agreement on behalf of the City of Saint Paul shall e continued and maintained in any future amend ent or extension f this Transportation Agreement. " IN WITNES WHERE F, the parties hereto have caused this First Amendment to he Tra sportation Agreement to be executed the day an year first wr tten a ove. "NSP" ' PEOPLES NATURAL GAS COMPANY, NORTHERN STAT S POWER COMPANY Division of InterNorth, Inc. � a Minnesota c rporati n a Delaware corporation ,Bv; . `� �,� � ; : � By: ',••�'Senicr ic Presi ent Vi e Pre ident �,;;�;'�.•�;and Genera Couns 1 •: �� , , . � �'. ;i '', . . . . p�t��s.�� Attest: � Assist n�c etary Assista Secretary ; • . . . � ����e � _ � Ex ibit II 1 orthe�-n States Power Company Law Department I Raymond A.Haik 414 NiC011@t Mall Senior Arforneys t Senior Vice President 8 General C unsel Minneapolis, Minnesota 5540� Gene R.Sommers Arthur R.Renquist Ralph S.Towler Vice President—Law Telephone (612) 330-6600 Joseph D.Bizzano,Jr. Davtd G.MeGannon S�ephen C.Lapadat Director—Law March 11, 19 8 5 Harold J.Bagley Wriler's Direcl Dial Number Jack F.Sjoholm,Jr. Robert W.Groth 3 3 0-2 9 9 8 David A.tawrence Gale K.Nordling Gary R.Johnson AllOrneys Honorable Geo ge La imer Ja4nn M.McGuire Mayor �f the lty o Saint Paul Joan�e E.Hinderaker David M.Sperby 347 City Hall Saint Paul, M'nneso a 55102 Re: NSP' s Con� ract with Peop],es Dear Mayor La imer: I have review the first Amendment to the Transportation A ree- ment between rthe States Power Company (NSP� and People Natural Gas Co pany (Peoples) , dated March 1, 1985, which I � signed on beha f of SP, a copy of which is attached hereto It was the full i tent f NSP t�at the last sentence of the Am ndment means that NSP will lways require Peoples to pay the gross earnings fee t Sain Pau1 as ],ong as NSP maintains a contr ctual relationship 'th Pe ples allowing it to use NSP facilities to provide gas se vice o Ford Motor Company. (NSP currently oes not intend to enew he Agreement which expires in 1989) . I understand t e Cit is concerned that the Amendment may n t contractually bliga e NSP to carry forward the language of the F�mendment in t e unl 'kely event NSP were to renew with Peop es after the curr nt Ag eement dated June 26, 1984 , terminates in 1989. NSP hereby co its t the City of Saint Paul that the langu ge in Paragraph N . 8 a set forth in the attached Amendment w 11 be contained a d con inued in its contract with Peoples in he unlikely event that SP were to enter into a new Transporta ion Agreement a110 ing P oples to continue gas service to Ford otor Company in Sai t Pau , Minnesota, after the expiration or o her termination of the c rrent Transportation Agreement dated J ne 26 , 1984 . Any suc rene al or amendment language will be submi ted to the City Attor ey fo the City of Saint Paul for his review and approval prior to ex cution. , * Ver ruly' yours, � � -� RAYMO A. HAIK RAH/ccj Attaci:r.;e:��