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(Council Fi e No . 85-301) is hereby withdrawn; and be it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
, =��,
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� �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:��