279195 �NHITE - CITV CLERK � t �����
PINK - FIN�INCE COUI1C11
CANARY�- L�PARTMENT GITY OF SAINT PAUL File NO. t
. BLUE - MAVC!
Ci'cy ,Attny/PBB
. „ 0 rdindnce Ordinance N�. /��� �
� J
Presented By
Referred To Committee: Date
Out of Committee By Date
A legislative ordinance granting to the
Port Authority a non-exclusive franchise
to use public streets and property to
construct a heating and cooling system
in and for Energy Park
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1.
The Port Authority of the City of Saint Paul , a body corporate
and politic under the laws of the State of Minnesota, hereinafter
designated as "Company" , �wns the Energy Park Energy System, an
integrated community energy system demonstrating innovative tech�
nologies and techniques in energy production, energy conservation,
and energy management which applies new and emerging technology
to the task of providing efficient and economical delivery of
__ heatinq, cooling, and other energy services. The Company is
hereby granted a franchise to use the streets and other public
property located in such City for such purpose for a term extending
from the effective date of this ordinance as provided in section
19 to December 31, 1992 . Said franchise may not be sold, trans-
ferred, assigned, pledged, mortgaged or in any way disposed of or
encumbered without the consent of the City by ordinance, any of
the foregoing to be treated as a modification of this franchise.
Section 2 .
The franchise granted herein shall extend to the Company' s
use of all streets and public property now being used by the
Company in connection with such service and of such other streets
COUIVCILMEN Requested by Department of:
Yeas Nays
Fletcher �
�evine In Favor
Masanz
Nicosia B �
i
Scheibel Against Y
Tedesco
Wilson
Form Ap ro ed by City Attorney
Adopted by Council: Date ` •
Certified Passed by Council Secretary BY � � ��/ G �
By � '
Approved by Mayor: Date Appr ve y Mayor for iss o to Council
By By
,
� ' �y��'�
-2-
and public property as may from time to time be designated by the
City Council . Such franchise to use the streets and other public
property located in such City shall include such use for the
purpose of constructing, maintaining, and operating a system of
pipes, subways and manholes with all other necessary appurtenances
for carrying on the business of conveying hot and cold water for
consumers for all purposes.
Section 3 .
In locating its energy system facilities, the Company shall
in no caay unreasonably interfere with the safety and convenience
of ordinary travel along and over said streets and public prop-
erty nor interfere with other uses to which such places may be
put by the City of Saint Paul, and in the event it shall become
necessary during the term of this franchise to remove or relocate
the physical property of the Company located within or upon any
of the streets or public x�roperty in the City of Saint Paul, be-
cause of such interference or use by the City, or as a result of
any public improvement undertaken by the City, the Company shall,
when so advised by the Council, remove and relocate said facil-
ities without cost to the City of Saint Paul, and shall place
the streets or public property in the same condition as they were ,
prior to said removal or relocation. All restorations within the
right-of-way shall conform to the "City of Saint Paul, Minnesota, �
Department of Public Works, Standard Specifications for Street
Openings" , as amended. Any relocation or removal of the Company' s
facilities made necessary because of the extension through or
into the City of a federally-aided trunk high�aay, included with- ;
in the National System of Interstate Highways, shall be governed !
by the provisions of the Minnesota Statutes 1981, Section 161. 46;
provided that the City shall not bear any cost or expense as a
result of the application by the Authority for assistance under
said section, and the streets and public property shall be re-
stored as required even though federal or state assistance is
not available for any rea�on under said section. '
Section 4 .
i
The Company in the installation, maintenance, and operation
of its facilities shall be subject to such reasonable regulations
as may be provided by the Council, and no pipe or pipes or other
appurtenances shall hereafter be installed or laid by the Company
� � �9�9�_
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upon the streets and public property of the City, except upon appli-
cation to the Department of Public Works or other persons designated
by the City Council, and written permission therefor granted by
said department or person. The Authority may enter into contracts
and agreements to provide for the installation, construction, recon-
struction, maintenance and operation of the Energy System, which
contracts and agreements (1) shall be subject to the terms and con-
ditions of this franchise, and (2) shall not relieve or be construed
to relieve the Authority from its obligations under this franchise .
Section 5 .
During the term of the franchise hereby granted, the Company
shall pay into the treasury of the City of Saint Paul a yearly
franchise fee of 8�, the monetary amount of which is to be measured
by the Energy System' s gross earnings during the preceding year,
and the payment of such amount shall be in the following manner:
In monthly installments commencing in the
month in which this ordinance becomes
effective pursuant to section 16 hereof,
and continuing through the term of the
franchise . The installment payment for
each month shall be due on or before the
25th day of the following month. The
Company' s payment obligation shall be met
if payment is mailed and postmarked on or
before the due date .
The amount of the franchise fee shall be allowed as an operating ex-
pense to the Company attributable solely to the Company' s operations
within the City of Saint Paul, and in calculating such amount,
"gross earnings" shall be held to mean and include all sums re-
ceivable by the Company from the sale of hot water and cold water
distributed and used within the city limits of the City of Saint
Paul . In no event shall the Company be required to pay a franchise
fee in excess of the amount which it can legally collect from its
customers in the City by means of a surcharge on its rate schedules
for the purpose of collecting the franchise fee . The terms "sale
of hot (and) cold water" including the heating or cooling therefrom.
Notwithstanding the foregoing, during the period from January 1 to
April 30 and from November 1 to December 31 of each year, the fran- ',
chise fee on that portion of �he gross earnings derived from sales ;
for residential use shall be as follows: i
1985 and �
1982 1983 1984 thereafter �
i
4 . 3% 2 .9� 1 .4% Og �
I
i
�r���eJ(,�
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Section 6 .
(a) All rates made, demanded or received by the Company
shall be just and reasonable . Rates shall not be unreasonably
preferential, unreasonably prejudicial or discriminatory, but
shall be sufficient, equitable and consistent in application
to a class of consumers . Rates shall generate sufficient revenue
to allow the Company to recover its reasonable operating costs
and expenses; to provide for the timely and orderly payment of
costs and expenses; to provide for the timely and orderly retire-
ment of debt; and to provide for improvements , enlargements and
extensions necessary to adequately service the territory of the
City authorized herein or later designated by the City pursuant
to Section 2 .
(b) The rates contained in Schedule "A" attached to this
Ordinance and incorporated herein by reference, shall remain
and continue in force until amended or changed as provided
herein.
(c) The Com�any shall not directly or in�irectly charge,
demand, collect or receive from any consumer or person a greater
or less compensation for any service rendered or to be rendered
by it than that prescribed in Schedule A; nor sha11 any �erson
knowingly receive or accept any service from the Company for
compensation greater or less than that prescribed in Schedule
A. The Company shall not, as to rates or service, make or grant
any unreasonable preference or advantage to any person or subject
any person to any unreasonable prejudice or disadvantage.
(d) The Company shall keen and render its books, accounts,
papers and records accurately and faithfully in the manner and
form prescribed by the City, and shall comply with all direc-
tions of the City relating to these books, accounts, papers and
records, including furnishing of such information or compilations �
and permitting an audit of the books, accounts, papers and records , ;
as may be requested by the City.
(e) The Company may, with the approval and concurrence of j
its governing board and after 60 days' notice to the City, file i
in the office of the City Clerk a new or amended Schedule A, �
containing new or amended rates, rules or regulations. Such
notice shall include statements of facts, substantiating docu-
ments , and exhibits supporting the changes requested, and fur- (
ther shall state the changes proposed to be made in the rates �
then in force, and the time when the changes will go into effect.
Such new or amended rates shall be effective and may be charged
on the tenth day (or such later date that the Company shall
��J�z1 t!
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designate on its filing) after the filing of the new or amended
Schedule A in the office of the City Clerk, and shall continue
in effect until approved or denied by resolution, or until
deemed approved, pursuant to the terms of this Ordinance and
the Charter, which Charter requires a public hearing after
proper notice.
(f) The proposed changes shall be approved if they are
just, reasonable and nondiscriminatory. The City shall be
reguired to take into account the need of the Company for
revenue sufficient to enable it to meet the cost of furnishing
the service; to provide for the timely and orderly retirement
of debt; and to provide for improvements, enlargements and
extensions necessary to adequately service the territory of
the City authorized herein or later designated by the City
pursuant to Section 2 .
(g) At the request of the Company and in order to assist
in determining whether the proposed changes in Schedule A shall
be approved or denied, the City may require a public hearing
before a hearing examiner who shall be selected by mutual
agreement of City and the Company within 10 days of the '
Company' s request. The hearing examiner shall hold a hearing '
as a contested case and make recommendations to the City. Upon
receipt of such recommendations, the City shall by resolution ,
approve or deny the proposed changes in Schedule A. If no ii
such action is taken by the City within 30 days after receipt I
of the hearing examiner' s recommendations , such proposed �
changes are deemed approved.
(h) Proposed changes to Schedule A can only be approved,
approved in part if severable, or denied; and cannot be modi-
fied or amended. The City may notwithstanding require the
Company to refund or credit to its customers any increases in �
rates which are in excess of the lawful and reasonable rates �
as finally determined.
Section 7.
i
For the purpose of assisting the Council in the regulation �
of the activities and rates of the Company as provided in this
franchise, the office of the City Attorney shall designate an
individual on its staff to serve to perform the duties that
such regulation necessitates .
a�9/9�
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Section 8 .
The Company shall pay the City during the term hereof an
annual amount of $15,000 payable on May 1 of each year herein,
which sum shall be used to pay that part of the annual salary
of the individual designated by the City Attorney, his assistant
or assistants, clerical help and office expenses, outside
accountants, hearing examiner, attorneys, advisors, and consul-
tants' fees, reasonably related to the regulation of the
Company, its rate schedules, and other matters and operations
under this franchise. The amount of such payment or payments
shall be allowed as an operating expense of the Company in the
City of Saint Paul .
Section 9 .
The Company shall file during each month, with any person
designated by the City Council, a report of the number of
customers, sales and revenues by classes of service for the
preceding month based upon its utility operations within the
City of Saint Paul .
The Company shall also file with any person designated by
the City Council, within three months after January 1 of each
year, a complete detailed statement on forms to be approved by
said person, covering the utility operations within the City of
Saint Paul for the preceding year, including all revenues , ex-
penses and plant investment, together with such breakdown and
analysis of operating statements as the said person may request.
The said person designated by the City Council shall have the
right to require additional information concerning operations
under this ordinance from time to time in such form as may be
prescribed by said person.
Any person or persons designated f_or that purpose by the
council shall have the right, at all reasonable times and upon
reasonable notice, to examine the books of account, records,
vouchers, disbursements, rates, revenues, contracts, purchases,
sale and other transactions bearing on and relevant to the
rates Company charges and the service it provides to its
customers in the City of Saint Paul.
- 2�9195
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Section 10.
Before this ordinance shall be finally adopted by the council,
a public hearing shall be held upon ten (10) days' published
notice in the official newspaper and after said hearing the
Council may pass this ordinance, revise or amend the same . The
Company shall bear the costs of publication of the franchise
ordinance and shall make a sufficient deposit with the City Clerk
to guarantee publication before the ordinance is passed.
Section 11 .
The Company shall defend, indemnify and save the City whole
and harmless from any and all claims for injury or damage to
persons or property occasioned by or arising out of the construc-
tion, maintenance, operation, or repair of said transmission and
distribution system or by the conduct of the Company' s business
in the City; and shall insure the obligations in this section
with an insurer authorized to do business in the State of Minne-
sota in form approved by the City Attorney and the Director of
the Department of Finance and Management Services. ':
Section 12 .
Every section, provision, or part of this ordinance is de-
clared separate from every other section, provision or part; and ,
if any section, provision, or part shall be held invalid, it !
shall not affect any other section, provision or part. I
�i
Section 13. ;
The Company shall have the right to promulgate, from time to
time, such rules , regulations, terms and conditions governing the '
conduct of its business, not in conflict with this franchise
ordinance, as shall be reasonably necessary to enable the Company
to exercise its rights and perform its obligations under this
franchise ordinance, and to assure safe, adequate and continuous
service to its customers. Nothing herein shall be construed as
a limitation upon, or as a bar to the future exercise of, proper
and lawful action in the exercise of the City' s police or any other
legitimate municipal legislative or administrative power.
WH17E - CITV CLERK �'�9195
PINK - FINANCE GITY OF SAINT PAUL Council
CANARY=..D�PARgMENT
BI.UF,. - MA,VOR
_ File
Ordin�nce Ordinance N�. f(� ! (� (:
Presented By
Referred To Committee: Date
Out of Committee By Date
-8-
Section 14 .
The Company shall, within thirty (30) days after the passage,
approval and publication of this ordinance, file with the City
Clerk of said City its written acceptance thereof in form to be
approved by the City Attorney, and therein shall agree to abide
by, keep, and perform all of the terms, limitations, conditions,
and provisions of this ordinance.
Section 15 .
This franchise herein granted shall not be exclusive nor
irrevocable, but may be terminated and forfeited after notice
and hearing for any breach or failure by Company to comply with
the terms, limitations, or conditions hereof.
Section 16 .
This ordinance shall take effect and be in force after the
public hearing prescribed in Section 10 and thirty (30) days after
its passage, approval and publication, and upon its acceptance,
as provided in Section 14 hereof. ,
I
Section 17.
i
This ordinance shall be inElud'ed as an Appendix to the Saint ;
Paul Legislative Code at the time of its next printing. ;
i
i
COU[VCILME[V '
Yeas Nays Requested by Department of:
Fletcher �
Levine In Favor
Masanz �
Nicosia � B ;�j, ' i
scneibel Against Y
;e��w�
Wilson '
Adopted by Council: Date JGr � � ,�o� Form Approved by City Attorney
Certified P e un il S r ta BY
By
1 t
Approve Mayor: Date App d y Mayor for Su i o Council
%
gY ULh�'_ —' BY
PUBLISHE� 0�� 9 1982
������
EXHIBIT A
Effective In: City of St. Paul
Availability:
Rate:
Monthly Minimum Charge :
Fuel Clause :
Prompt Payment Provision:
Surcharge: '
INTERRUPTIBLE SERVICE I
i
;
Effective In: City of St. Paul ;
i
I
�
Availability: �
i
,
Character of Service : I
i
�
Rate:
Monthly Minimum Charge:
'
� ��91�5
Fuel Clause:
Additional Charge for Use of Energy During Curtailments :
Emergency Service for Interruptible Customers :
Prompt Payment Provision:
Surcharge :
Term of Agreement:
�
� a��i� �
PORT AUTHORITY OF THE CITY OF ST. PAUL �
ST. PAUL ENERGY PARK
RATE FOR HOT WATER SERVICE
RATE SHEET N0. 1 �
RATE CODE CH-1
GENERAL HOT WATER SERVICE
Availability: Available to all commercial and industrial buildings. Each
connection point to the Energy Distribution System shall be
considered one customer.
Rate:
customer charge $100.00 per customer per monLh
demand charge $975.00 per 106Btu per hour of subscribed
demand per customer per mor�th
commodity charge $3.80 per 106Btu per customer per month
Fuel Clause: Bills subject to the adjustment provided for in Fuel
Adjustment Clause Rider No. 1.
Prompt Payment Provision: A charge of 5; will be added to net bill
which charge shall constitute a discou�t
from gross bill for payment within the
discount period.
Surcharge: Residential , commercial and industrial bills shall be
subject to separate charges provided for in surcharge rider.
Determination of Demand: Subscribed demand shall be determined by the
Ho� and Chilled Water Service Agreement.
;
PORT AUTHORITY OF THE CITY OF ST. PAUL �
ST. PAUL ENERGY PARK
RATE FOR HOT WATER SERVICE
RATE SHEET N0. 2 �
RATE CODE RH-1
RESIDENTIAL HOT WATER SERVICE
Availability: Available to all residential buildings. Each connection
point to the Energy Distribution System shall be considered
one customer.
Rate:
customer charge $100.00 per customer per month
demand charge �975.00 per 106Btu per hour of subscri5ed
demand per customer per month
commodity charge $3.80 per 106Btu per customer per month
Fuel Clause: Bills subject to the adjustment provided for in Fuel Clause
Rider No. 1.
Prompt Payment Provision: A charge of 5% will be added to net bill
which charge shall constitute a discount
from gross bill for payment within the
discount period. .
Surcharge: Residential , commercial and industrial bills shail be
subject to separate surcharges provided for in surcharge
rider.
Determination of Demand: Subscribed demand shall be determined by
the Hot and Chilled Water Service Agreement.
I
PORT AUTNORITY OF THE CITY OF ST. PAUL '
ST. PAUL ENERGY PARK
RATE FOR CHILLED WATER SERVICE
RATE SHEET N0. 3 �
RATE CODE CC-1
GENERAL CHILLED WATER SERVICE �
Availability: Available to all commercial and industrial buildings. Each
connection point to the Energy Distribution System shall be
considered one customer.
Rate:
customer charge $100.00 per customer per month
demand charge $975.00 per 106Btu per hour of subscribed cooling
demand per month
commodity charge $3.73 per 106Btu per customer per month
Note: The chilled water customer charge shall be waived for customers
utilizing both hot water and chilled water services.
Fuel Clause: Bills subject to the adjustment provided for in Fuel Clause
Rider No. 1. �
Prompt Payment Provision: A cha•rge of 5°o will be added to net bill
which charge shall constitute a discount '
from gross bill for payment within the j
discount period. I
�
�
Surcharge: Residential , commercial , and industrial bills shall be sub- '
ject to separate surcharges provided for in surcharge rider. �
Determination of Demand: Subscribed demand shall be determined by the
Hot and Chilled Water Service Agreement.
,
PORT AUTHORITY OF THE CITY OF ST. PAUL
ST. PAUL ENERGY PARK
RATE FOR CHILLED WATER SERVICE
RATE SHEET N0. 4
RATE CODE RC-1
RESIDENTIAL CHILLED WATER SERVICE
Availability: Available to all residential buildings. Each connection
point to the Energy Distribution System shall be considered
one customer.
Rate:
customer charge $100.00 per customer per month
demand charge $975.00 per 106Btu per hour of subscribed
d�mand per month
commodi�y charge �3.73 per 106Etu per customer ,per month
Note: The chilled water customer charge shall be waived for customers
utilizing both hot water and chilled water services.
Fuel Clause: Bills subject to the adjustment provided for in Fuel Clause
Rider No. l.
Prompt Payment Provision: A charge of 5;� will be added to net bill
which charge shall constitute a discount
from gross bill for payment within the
discount period.
Surcharge: Residential , commercial , and industrial bills shall be subject
to separate surcharges provided for in surcharge rider.
Determination of Demand: Subscribed demand shall be determined by the
Not and Chilled Water Service Agreement.
PORT AUTHORITY OF THE CITY OF ST. PAUL �
ST. PAUL ENERGY PARK
RATE FOR BILLING ADMINISTRATIVE SERVICES
RATE SHEET N0. 5 �
RATE CODE BA-1
BILLING ADMINISTRATIVE SERVICES
Availability: Available to all commercial and residential customers who
wish to have their total monthly bill broken down and
billed directly to tenants based on allocation factors or
submeters. Such service will include preparing and mailing
statements, reading submeters, and pro-rating total bills
to tenants based on allocation factors provided by each
customer.
Rate: $1.50 per submetered or allocated account per month plus
postage or delivery charges.
Note: Customer is responsible for providing monthly allocation
factors or submetering data.
PORT AUTHORITY OF THE CITY OF ST. PAUL �
ST. PAUL ENERGY PARK
RATE SHEET FOR FUEL ADJUSTMENT CLAUSE RIDER
RATE SHEET N0. 6 �
RATE CODE FA-1
FUEL ADJUSTMENT CLAUSE RIDER N0. 1
The commodity portion of the hot water and chilled water rate schedules
will be adjusted upward or downward each month based on the difference
between actual variable costs and base variable costs. (The �ase var-
iable costs built into the6initial rate schedule are �3.73/10 Btu for
chilled water and $3.80/10 Btu for hot water. ) Actual variable costs
will be computed each month by dividing the cost of fuel (electricity,
gas, oil , propane and any other fuel ) plus other variable expenses to
operate the Central Energy Plant by sales made during the corresponding
month. The fuel adjustment charge applied to each customer's bill will
be the difference b�tween actual variable costs and base variable costs
(expressed $ per 10 Stu) multipiied by that customer's heating or cooling
energy use during the corresponding month. However, whenever actual
variable costs are less than base variable costs, the difference will be
considered zero.
Since actual variabie costs for the current month will not be known at
the time of billing, an estimate will be made at the beginning of each
month. When actual variable operating costs become known, the preceding
month estimate will be adjusted to reflect preceding month actual costs,
and the correction will be reflected in the current billings.
� � a��l�s'
PORT AUTHORITY OF THE CITY OF ST. PAUL
ST. PAUL ENERGY PARK
RATE SHEET FOR SURCHARGE RIDER
RATE SHEET N0. 7
RATE CODE S-1
SURCHARGE RIDER
All rates for providing chi?led water and hot water services will be sub-
ject to the City of St. Paul franchise fee and other appropriate state
and l�cal taxes.
- ° DEPARTMEfIT: P:E.D.
CONTACT: Terry Rittenhouse
ROUTIN6 a�n EXPLANAT14N St�ET PHONE: #35 :
GREEN SHEET '�}#�"�C�
I J
For Administr�tive Orders. Reaolutions, Ordin�nces and Agreemeats
ROUTING ORDER - ROUTE BY AS3I6NED NUMBER:
DIRECTOR OF MANA6EMENT
,� MAYOR
, � DEPARTMENT DIRECTO� �
1 CITY ATTORNEY F ' CITY CLERK
�_ BUDGET DIRECTOR AU� " � 'J��
NIAYORS OFFICE
ACTION REALESTED �GLIP ALL LaGATiONC FOR MAYOROL 4iGt�leTL�R£);
Signature
�HAT wILL BE {�GHIEVED Bl( TAKiN6 ACTI�N �N TWF Ana _w n M�T�Rrai s. (a�aansF ANI1 R6T2ANA )�;
Adoption of a Franchise Agreement be�tween the City and the Port Authority.
I ANCIA . B � ,FTARY AND P RcONN IMPAGTC AiTICIPATED;
� Establishes terms for the Port Authdrity's operation of the Energy System, �
. I
. ;
; -
ATTACHMENTS �LIST ALL ATTACHMENTS):
;
1. Franchise Ordinance
2.
3,
i
I
eaae n.eu.r.�u neceaa.c.#y ac ext o o aW�Pu cw^
�epa�Qn.t : . C�t�1 �4ttox�cey�
1. Counc.i.t. Reeo.Cwti.on Requ,�ted! YES �10 i. Reao�Cwtiont YES k0
2. Inew�ance Req;w�,.edf YES �10 2. Inaunance Su6�.i.c.i.en.tY YES NO
3. Inewta�tc.e AztachedY VES NO
Re�ri.si,on �i:6/29/82
, � � .
HOW TO USE THE GREEN SHEET
T'!ie GREEN SHEET has severa l purpo se s:
1. To assist in routing documents and in securinq
requir�d signatures , ' .
2 . To brief the reviewers of documents on the impacts
of approval
3. To help ensure that necessary supporting materials
are prepared and, if required, attached.
ROUTING
?+'lost GREE:V SiiE�T actions must �e re�r�ewed by a �epar'�:nent
�irector , zhe City attorney, ��e �irector oi Management, the
Director of Finance and Management Services. Other possible
reviewers/signatures are listed.
BRIEFING
Most of the GREEN SHEET headings are designed to ass�st in
developing a precis of the decision which the attachments
represent. The headings are offered to remind users of som�
� of the more critical elements of this brief.
� ,
The Financial, Budqetary and Personnel Impacts headinq provides
; a space to explain the cost/benefit aspects of the decision.
Costs and benefits relate both to City budget (General Fund andlar
� Special Funds) and to broader financial impacts (cost to us�rs,
� homeowners or other groups affected by the action) . The persannel
impact is a description of change or shift of Full-Tinre Equivalent
(FTE) positions.
I SUPPORTING MATERIALS
�
In the Attachments section, list all attachments. If the GREEN
SHEET is well one, no letter of transmittal need be included
(unless signing such a letter is one of the requested actions) .
� Note: Actions which require City Council resolutions include:
a. Contractual relationship with another government unit.
b. Collective bargaining.
c. Purchase or sale of land, or lease of land.
d. Issuance of bonds by City.
e. Eminent domain.
f. Assumption of liability by City, or granting
by City of indemnification.
g. Agreements with State or Federal Government
under which they are providing fundinq.
Note also: If an agreement requires evidence of insurance/G.Q�
insurance, a Certificate of Insurance should be �one
of the attachments at time of routing.
/ �
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� ;��,� �r� � � ' I `� �
�.,�� :� J -- __ _ ___ __
J
NOTICE OF PUBLIC HEARING ON A PROPOSED
ENERGY PARK HEATING AND COOLING FRANCHISE
FOR THE CITY OF SAINT PAUL, MINNESOTA
Notice is hereby given that the City Council of the City
of St. Paul, Minnesota will meet in the Council Chambers,
Third Floor of the City Hall and Court Aouse i}� t�e �ity of
Saint Paul, Minnesota at 10:00 a.m. (CDT) on ��,.,���.� � J, I 9 �' �
to consider a proposed legislative ordinance en�cting an
Appendix to the Saint Paul Legislative Code, granting to
the Port Authority of the City of Saint Paul, a non-exclusive
franchise to use public streets and property to construct and
operate a hot water heating and cold water cooling system in
Energy Park.
A copy of the proposed ordinance for a non-exclusive
franchise together with �attachments and exhibits thereto, is
available for public inspection beginning September 9, 1982
from 8 :00 o' clock a.m. to 4 : 30 p.m. Monday thru Friday, at
the Office of the City Clerk, Room 386, City Hall and Court-
house in St. Paul, Minnesota. At the time and place fixed
for Public Hearing the City Council of the City of St. Paul
will give all persons who appear at the hearing an opportunity
to express their views with respect to the proposed ordinance.
Dated September 9, 1982.
Albert B. Olson
City Clerk
( S r 1 ( , 1 � � 'J
Nancs or rvst�c es�pa oH e no-
roasu sr�s�oat rns�as�un+a exn
000�.ao nu�t ros�as caz
w stixr rsv�,twrasvrs
Notic�L�aeD��iv�taat tbe Qt�Cowdl
o!tse pt�o!8l.Au1.]/imrot�will meet in
the C.oundl.ComMes.lLird Floor o1 tbe Qt�
x.0.aa o��ew..m ee.a�r ot s.�s
Pau�. l[ion�ola at 1Q00 �.m. (CD11 on
Sept�mpet !1. 1M2 to eoatldv�Pmposcd
le�lsLtive ordia�nae�ctie�an Appmdl:to
tse Sdnt Paul 1.qliLtiv!OodR�eantin�to
t6e Aort Authorlq ot tse pc�of Saint AaL a
aoo�acdusive lneesise Oo use publie steeets
�nd pmpert�to coesbuR aad oyente a bot
water bstioj aod cold�ntu enolln�pstem
1n�erp A�t.
A mp�W tAe p�opo�ed ordloaoc�for�noo-
adusire k�ne�W Lopt�r�lthattachmmb
�nd�4ibib thento,h iv�ilaDle!or publk in-
rytttlon be{innln{ S�ptaD�r 0. 19lZ fmm
!:W o'dodc�.m.to�:�0 p.m.11oou7 eh�u Frl-
dq.at the Otrice o!tAe qqr Clerk.Aoom]!?,
Cit�H�ll and Oourtsowe 1n St Paul,Yio-
nesot�.At t��tlm�aed place��d!or A�Dlic
Hearia�the qtr Coundl o!tAe Clty oi St
P�ul wW�Ive all p�noat wAo appa�r at the
hs dn{aa oppoeludq 10�spnas their vievs
vftL nq+a1 W t0ep�opos�d ordiwna.
D�tad 8ephmOr Y.19�l.
11LBTRf H.OLSOtJ
C1t�Clerk
(S�teaEer 11,19�
� a�q��5_
PORT AUTHORITY OF THE CITY OF ST. PAUL •
ST. PAUL ENERGY PARK
RATE FOR HOT WATER SERVICE
RATE SHEET N0. 1 •
RATE CODE CH-1
GENERAL HOT WATER SERVICE
Availability: Available to all commercial and industrial buildings. Each
connection point to the Energy Distribution System shall be
considered one customer.
Rate:
customer charge $100.00 per custo�er per mon�h
demand charge $975.00 per 1068tu per hour of subscribed
demand per customer per morith
commodity charge $3.80 per 106Btu per customer per month
Fuel Clause: Bills subject to the adjustment provided for in Fuel
Adjustment Clause Rider No. 1.
Prompt Payment Provision: A charge of 5; will be added to net bill
which charge shall constitute a discou�t
from gross bill for payment within the
discount period.
Surcharge: Residential , commercial and industrial bills shall be
subject to separate charges provided for in surcharge rider.
Determination of Demand: Subscribed demand shall be determined by the
Hot and Chilled Water Service Agreement.
,
PORT AUTHORITY OF THE CITY OF ST. PAUL �
ST. PAUL ENERGY PARK
RATE FOR HOT WATER SERVICE
RATE SHEET N0. 2 �
RATE CODE RH-1
RESIDENTIAL HOT WATER SERVICE
Availability: Available to all residential buildings. Each connection
point to the Energy Distribution System shall be considered
one customer.
Rate:
customer charge $100.00 per customer per month
demand charge �975.00 per 106Btu per hour of subscribed
demand per customer per month
commodity charge $3.80 per 106Btu per customer per month
Fuel Clause: Bills subject to the adjustment provided for in Fuel Clause
Rider No. 1.
Prompt Payment Provision: A charge of 5% will be added to net bill
which charge shall constitute a discount
from gross bill for payment within the
discount period. �
Surcharge: Residential , commercial and industrial bills shall be !
subje�t to separate surcharges provided for in surcharge �
rider. �
�
Determination of Demand: Subscribed demand shall be determined by
the Hot and Chilled Water Service Agreement.
, �
PORT AUTHORITY OF THE CITY OF ST. PAUL '
ST. PAUL ENERGY PARK
RATE FOR CHILLED WATER SERVICE
RATE SHEET N0. 3 �
RATE CODE CC-1
GENERAL CHILLED WATER SERVICE
Availability: Available to all commercial and industrial buildings. Each
connection point to the Energy Distribution System shall be
considered one customer.
Rate:
customer charge $100.00 per customer per month
demand charge $975.00 per 106Btu per hour of subscribed cooling
demand per month
commodity charge $3.73 per 106Btu per customer per month
Note: The chilled water customer charge shall be waived for customers
utilizing both hot water and chilled water services.
Fuel Clause: Bills subject to the adjustment provided for in Fuel Clause
Rider No. 1. �
Prompt Payment Provision: A charge of 5°o will be added to net bill
which charge shall constitute a discount
from gross bill for payment within the
discount period.
Surcharge: Residential , commercial , and industrial bills shall be s�:b-
ject to separate surcharges provided for in surcharge rider.
Determination of Demand: Subscribed demand shall be determined by the
Hot and Chilled Water Service Agreement.
.. � G� �/, j�,
PORT AUTHORITY OF THE CITY OF ST. PAUL
ST. PAUL ENERGY PARK
RATE FOR CHILLED WATER SERVICE
RATE SHEET N0. 4
RATE CODE RC-1
RESIDENTIAL CHILLED WATER SERVICE
Availability: Avail�able to all residential buildings. Each connection
point to the Energy Distribution System shall be considered
one customer.
Rate:
customer charge $100.00 per customer per month
demand charge $975.00 per 106Btu per hour of subscribed
derr�and per month
commodi�y charge �3.73 per 106Btu per custo�rer .per month
Note: The chilled water customer charge shall be waived for customers
utilizing both hot water and chilled water services.
Fuel Clause: Bills subject to the adjustment provided for in Fuel Clause
Rider No. l. �
Prompt Payment Provision: A charge of 5% will be added to net bill
which charge shall constitute a discount
from gross bill for payment within the
discount period.
Surcharge: Residential , commercial , and industrial bills shall be subject
to separate surcharges provided for in surcharge rider.
Determination of Demand: Subscribed demand shall be determined by the
Hot and Chilled Water Service Agreement.
PORT AUTHORITY OF THE CITY OF ST. PAUL
ST. PAUL ENERGY PARK
RATE FOR BILLING ADMINISTRATIVE SERVICES
RATE SHEET N0. 5 •
RATE CODE BA-1
BILLING ADMINISTRATIVE SERVICES
Availability: Available to all commercial and residential customers who
wish to have their total monthly bill broken down and
billed directly to tenants based on allocation factors or
submeters. Such service will include preparing and mailing
statements, reading submeters, and pro-rating total bills
to tenants based on allocation factors provided by each
customer.
Rate: $1.50 per submetered or allocated account per month plus
postage or delivery charges.
Note: Customer is responsible for providing monthly allocation
factors or submetering data.
PORT AUTHORITY OF THE CITY OF ST. PAUL � �
ST. PAUL ENERGY PARK
RATE SHEET FOR FUEL ADJUSTMENT CLAUSE RIDER
RATE SHEET N0. 6 �
RATE CODE FA-1
FUEL ADJUSTMENT CLAUSE RIDER N0. 1
The commodity portion of the hot water and chilled water rate schedules
will be adjusted upward or downward each month based on the difference
between actual variable costs and base variable costs. (The �ase var-
iable costs built into the6initial rate schedule are �3.73/10 Btu for
chilled water and $3.80/10 Btu for hot water. ) Actual variable costs
will be computed each month by dividing the cost of fuel (electricity,
gas, oil , propane and any other fuel ) plus other variable expenses to
operate the Central Energy Plant by sales made during the corresponding
month. The fuel adjustment charge applied to each customer's bill will
be the difference b�tween actual variable costs and base variable costs
(expressed $ per 10 Stu) multiplied by that customer's heating or cooling
energy use during the corresponding month. However, whenever actual
variable costs are less than base variable costs, the difference will be
considered zero.
Since actual variable costs for the current month will not be known at
the time of billing, an estimate will be made at the beginning of each
month. When actual variable operating costs become known, the preceding
month estimate will be adjusted to reflect preceding month actual costs,
and the correction will be reflected in the current billings.
a �9��s
PORT AUTHORITY OF THE CITY OF ST. PAUL
ST. PAUL ENERGY PARK
RATE SHEET FOR SURCHARGE RIDER
RATE SHEET N0. 7
RATE CODE S-1
SURCHARGE RIDER
All rates for providing chilled water and hot water services will be sub-
ject to the City of St. Paul franchise fee and other appropriate state
and local taxes.
i
�� ��91�5
-3-
upon the streets and public property of the City, except upon
application to the Department of Public Works or other persons
designated by the City Council, and written pe ission therefor
granted by said department or person. The Au ority may enter
into contracts and agreements to provide for the installation,
construction, reconstruction, maintenance a d operation of the
Energy System, which contracts and agreeme ts (1} shall be sub-
ject to the terms and conditions of this granchise, and (2) shall not
relieve or be construed to relieve the A�uthority from its obliga-
tions under this franchise. �
,;
Sectior�' 5.
During the term of the franc�fise hereby granted, the
Company shall pay into the treas�ary of the City of Saint Paul
a yearly franchise fee of 8g, tMe monetary amount of which is
to be measured by the Energy S,ystem' s gross earnings during
the preceding year, and the p�yment of such amount shall be
in the following manner:
�'
In monthly insta�lments commencing in the
month in which ;�his ordinance becomes
effective pur�/uant to section 16 hereof,
and continuir�g through the term of the
franchise. ifihe installment payment for
each montht'shall be due on or before the
25th day the following month. The
Company' payment obligation shall be met
if paym t is mailed and postmarked on
or bef e the due date .
The amount of e franchise fee shall be allowed as an operating
expense to th Company attributable solely to the Company' s oper-
ations withi the City of Saint Paul, and in calculating such
amount, "gr, ss earnings" shall be held to mean and include all
sums recei able by the Company from the sale of hot water and
cold wate distributed and used within the city limits of the
City of int Paul. In no event shall the Company be required
to pay franchise fee in excess of the amount which it can
legally collect from its customers in the City by means of a
surcha ge on its rate schedules for the purpose of collecting
the f anchise fee. The terms "sale of hot (and) cold water"
incl e the heating or cooling therefrom.
= � �'�y1�5
-3-
upon the streets and public property of the City, except upon
application to the Department of Public Works or other persons
designated by the City Council, and written permission therefor
granted by said department or person. The Author' y may enter
into contracts and agreements to provide for th installation,
construction, reconstruction, maintenance and peration of the
Energy System, which contracts and agreement (1) shall be sub-
ject to the terms and conditions of this f nchise, and (2) shall not
relieve or be construed to relieve the Au ority from its obliga-
tions under this franchise.
Section .
During the term of the franc se hereby granted, the
Company shall pay into the treas y of the City of Saint Paul
a yearly franchise fee of 8$, t e monetary amount of which is
to be measured by the Energy S stem' s gross earnings during
the preceding year, and the yment of such amount shall be
in the following manner:
In monthly ins llments commencing in the
month in whic this ordinance becomes
effective pu suant to section 16 hereof,
and contin ng through the term of the .
franchise The installment payment for
' each mo h shall be due on or before the
25th d of the following month. The
Comp y' s payment obligation shall be met
if yment is mailed and postmarked on _
or efore the due date.
The amou of the franchise fee shall be allowed as an operating
expense o the Company attributable solely to the Company' s oper-
ations ' thin the City of Saint Paul, and in calculating such
amou , "gross earnings shall be held to mean and include all
sum receivable by the Company from the sale of hot water and
cold water distributed and used within the city limits of the
City of Saint Paul. In no event shall the Company be required
to pay a franchise fee in excess of the amount which it can
legally collect from its customers in the City by means of a
surcharge on its rate schedules for the purpose of collecting
the franchise fee. The terms "sale of hot (and) cold water"
include the heating or coolin� therefrom.
� . � � � �'�y1Q�
-3-
upon the streets and public property of the City, exce t upon
application to the Department of Public Works or oth persons
designated by the City Council, and written permiss 'on therefor
granted by said department or person. The Author' y may enter
into contracts and agreements to provide for th installation,
construction, reconstruction, maintenance and eration of the
Energy System, which contracts and agreement (1) shall be sub-
ject to the terms and conditions of this fr chise, and (2) shall not
relieve or be construed to relieve the Au ority from its obliga-
tions under this franchise.
Section .
During the term of the franc se hereby granted, the
Company shall pay into the treas y of the City of Saint Paul
a yearly franchise fee of 8�, e monetary amount of which is
to be measured by the Energy stem' s gross earnings during
the preceding year, and the ayment of such amount shall be
in the following manner:
In monthly ins llments commencing in the
month in whic this ordinance becomes
effective pu suant to section 16 hereof,
and contin ng through the term of the
franchise. The installment payment for
each mon shall be due on or before the
' 25th da of the following month. The
Compan ' s payment obligation shall be met
if pa ment is mailed and postmarked on
or b fore the due date.
The amount o the franchise fee shall be allowed as an operating
expense to he Company attributable solely to the Company' s oper-
ations wi in the City of Saint Paul, and in calculating such
� amount, " ross earnin.gs shall be held to mean and include all
sums re eivable by the Company from the sale of hot water and ,
cold w ter distributed and used within the city limits of the
City f Saint Paul. In no event shall the Company be required
to p y a franchise fee in excess of the amount which it can
legally collect from its customers in the City by means of a
surcharge on its rate schedules for the purpose of collecting
the franchise fee. The terms "sale of hot (and) cold water"
include the heating or cooling therefrom.
� � � � � ti'�91��
-3-
upon the streets and public property of the City, exc t upon
application to the Department of Public Works or ot r persons
designated by the City Council, and written permis ion therefor
granted by said department or person. The Autho ty may enter
into contracts and agreements to provide for th installation,
construction, reconstruction, maintenance and peration of the
Energy System, which contracts and agreement (1) shall be sub-
ject to the terms and conditions of this f nchise, and (2) shall not
relieve or be construed to relieve the Au ority from its obliga-
tions under this franchise.
Section .
During the term of the franch' se hereby granted, the
Company shall pay into the treasu y of the City of Saint Paul
a yearly franchise fee of 8�, t monetary amount of which is
to be measured by the Energy S tem' s gross earnings during
the preceding year, and the p ent of such amount shall be
in the following manner:
In monthly inst lments commencing in the
month in which his ordinance becomes
effective pur ant to section 16 hereof,
and continui g through the term of the
franchise. he installment payment for
� each month shall be due on or before the
25th day f the following month. The
Company' payment obligation shall be met
if pay nt is mailed and postmarked on
or be re the due date .
The amount of the franchise fee shall be allowed as an operating
expense to t e Company attributable solely to the Company' s oper-
ations with'n the City of Saint Paul, and in calculating such
amount, "g oss earnings shall be held to mean and include all
sums rece' vable by the Company from the sale of hot water and
cold wa r distributed and used within the city limits of the
City of Saint Paul. In no event shall the Company be required
to pay a franchise fee in excess of the amount which it can
lega y collect from its customers in the City by means of a
surc arge on its rate schedules for the purpose of collecting
the franchise fee. The terms "sale of hot (and) cold water"
include the heating or coolinc� therefrom.
- ��91��
-6-
Section 8 .
The Company shall pay the City during the term he eof an
annual amount of $35, 000 payable on May 1 of each ye herein,
which sum shall be used to pay that part of the anny�'�al salary
of the individual designated by the City Attorney, .�is assistant
or assistants, clerical help and office expenses, �outside
accountants, hearing examiner, attorneys, advis s, and consul-
tants' fees , reasonably related to the regulat'on of the Company,
its rate schedules, and other matters and ope,�ations under this
franchise. The amount of such payment or p�iments shall be
allowed as an operating expense of the Com�any in the City of
Saint Paul. �'�
,`
�'
�
Section �':
r
The Company shall file during ach month,with any person
designated by the City Council, a eport of the number of
customers, sales and revenues by lasses of service for the
preceding month based upon its ility operations within the
City of Saint Paul .
The Company shall also ile with any person designated by
the City Council,within th e months after January 1 of each
year, a complete detailed tatement on forms to be approved by
said person, covering th utility operations within the City of
Saint Paul for the prec ding year, including all revenues, ex-
penses and plant inves ment, together with such breakdown and
analysis of operatin statements as the said person may request.
The said person des ' gnated by the City Council shall have the
right to require a ditional information concerning operations
under this ordin ce from time to time in such form as may be
prescribed by s d person.
Any per n or persons designated for that purpose by the
council sh 1 have the right, at all reasonable times and upon
reasonabi notice, to examine the books of account, records,
voucher , disbursements, rates, revenues, contracts , purchases ,
sale a d other transactions bearing on and relevant to the
rates Company charges and the service it provides to its cus-
tomers in the City of Saint Paul .
- �'�91��
-6-
Section 8.
The Company shall pay the City during t e term hereof an
annual amount of $35, 000 payable on May l o each year herein,
which sum shall be used to pay that part o the annual salary
of the individual designated by the City ttorney, his assistant
or assistants, clerical help and office xpenses, outside
accountants, hearing examiner, attorne , advisors, and consul-
tants' fees, reasonably related to th reguiation of the Company,
its rate schedules, and other matter and operations under this
franchise. The amount of such pa t or payments shall be
allowed as an operating expense of e Company in the City of
Saint Paul.
S tion 9.
The Company shall file ring each month,with any person
designated by the City Coun 1, a report of the number of
customers, sales and reven s by classes of service for the
preceding month based upo its utility operations within the
City of Saint Paul .
The Company shall lso file with any person designated by
the City Council,withi three months after January 1 of each
year, a complete deta' led statement on forms to be approved by
said person, coverin the utility operations within the City of
Saint Paul for the eceding year, including all revenues, ex-
penses and plant i estment, together with such breakdown and
analysis of opera ng statements as the said person may request.
The said person signated by the City Council shall have the
right to require additional information concerning operations
under this ordi ance from time to time in such form as may be
prescribed by aid person.
� Any per n or persons designated for that purpose by the
council sha have the right, at all reasonable times and upon
reasonable otice, to examine the books of account, records ,
vouchers, isbursements, rates, revenues, contracts , purchases,
sale and' . ther transactions bearing on and relevant to the
rates Company charges and the service it provides to its cus-
tomers in the City of Saint Paul .
- �'�y1��
-6-
Section 8.
The Company shall pay the City during the term hereo an
annual amount of $35,000 payable on May l of each year rein,
which sum shall be used to pay that part of the annual alary
of the individual designated by the City Attorney, hi assistant
or assistants, clerical help and office expenses, ou ide
accountants, hearing examiner, attorneys, advisors, and consul-
tants' fees, reasonably related to the regulation f the Company,
its rate schedules, and other matters and operati ns under this
franchise. The amount of such payment or payme s shall be �
allowed as an operating expense of the Company n the City of
Saint Paul.
Section 9.
The Company shall file during e h month,with any person
designated by the City Council, a r port of the number of
customers, sales and revenues by asses of service for the
preceding month based upon its ility operations within the :
City of Saint Paul .
The Company shall als file with any person designated by
the City Council,within ree months after January 1 of each
. year, a complete detai d statement on forms to be approved by
said person, covering he utility operations within the City of
Saint Paul for the eceding year, including all revenues, ex-
penses and plant ' vestment, together with sueh breakdown and
analysis of oper ing statements as the said person may request.
The said perso designated by the City Council shall have the
right to requ' e additional information concerning operations
under this o dinance from time to time in such form as may be
prescribed y said person.
1�ny erson or persons designated for that purpose by the
council shall have the right, at all reasonable times and upon
reason le notice, to examine the books of account, records ,
vouch s, disbursements, rates, revenues, contracts, purchases,
sale nd other transactions bearing on and relevant to the
rate Company charges and the service it provides to its cus-
tom rs in the City of Saint Paul .
i
,
: �� � �'�91�5
-6-
Section 8.
The Company shall pay the City during the t m hereof an
annual amount of $35, 000 payable on May 1 of e year herein,
which sum shall be used to pay that part of t annual salary
of the individual designated by the City Att ney, his assistant
or assistants, clerical help and office exp nses, outside
accountants, hearing examiner, attorneys, dvisors, and consul-
tants' fees, reasonably related to the r ulation of the Company,
its rate schedules, and other matters a d operations under this
franchise. The amount of such payment or payments shall be
allowed as an operating expense of th Company in the City of '
Saint Paul. �
Sec on 9.
The Company shall file dur ng each month,with any person
designated by the City Council a report of the number of
customers, sales and revenues by classes o£ service for the
preceding month based upon � s utility operations within the
City of Saint Paul . ,I
The Company shall a o file with any person designated by
the City Council,within hree months after January 1 of each
year, a comnlete detai d statement on forms to be approved by
said person, covering he utility operations within the City of
Saint Paul for the pr: ceding year, including all revenues, ex-
penses and plant inv stment, together with such breakdown and
analysis of operati g statements as the said person may request.
The said person de ignated by the City Council shall have the
right to reguire dditional information concerning operations
under this ordin nce from time to time in such form as may be
prescribed by s id person.
� � Any pers n or persons designated for that purpose by the
council shal have the right, at all reasonable times and upon
reasonable otice, to examine the books of account, records,
vouchers, isbursements, rates, revenues, contracts, purchases,
sale and ther transactions bearing on and relevant to the
rates Co pany charges and the service it provides to its cus-
tomers 'n the City of Saint Paul .
�.. �..�._..:. _
�
� � �i
��/ � / ., ` (J �
lst �-/ � � �� 2nd `� �
t L
3rd �i — �' � �� Adopted ( �'2 � "��"
-Y �` ; J�
Nays
Yeas
FLETCHER
LE�IINE
�.S�Z ��y19�
� NICOSIA �
� G �
scxEZS� L I C v
WILSON
Mft, PRESIDENT TIDESCO j
E
4��