271923 WHITE - CITV CLERK COI1flC11 �f�� q��.
PINK - FINANCE GITY OF SAINT PALTL h� �5-
CANARV - DEPARTMENT !,_ri�✓
BLUE - MAVOR File NO.
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED, That the proper City Officers are authorized
and directed to execute and sign that certain contract engaging
Thomas J. Stearns as Public Utility Rate Expert, a copy of which
is attached hereto, and which calls for the performance of certain
services by said Rate Expert in connection with an analysis,
investigation, and report on the character of the Northern States
Power Company public utility gas rates now pending before the
Minnesota Public Service Commission at compensation payable to said
Rate Expert not to exceed $5,000.00 and chargeable to Account 50200
(Special Fund) upon the terms and condi,tions in said contract
contained.
COUNCILMEN
Yeas Nays Requested by Department of:
Butler �
Hozza In Favor
Hunt
Levine U __ Against BY
Rcedler
Sylveste
� ' � � Form Approved by City Attorney
Ad ed by Council: Date
Certified P by Cou '1 Secr�tary BY
By
Approved by � ayor. Date � ! Approved by Mayor for Submission to Council
By BY
�u6l�st�EO 0 CT 21 1g78
THOMAS J. STEARNS
Exnployed by the City in City Attorney's Office from 1963 to 1976.
Civil cases for 8 years. Public utility rate expert from 1971 to 1976.
Presented City case in heari.ngs on electric and gas rates before Justice
Robert Sheran and Leonard Lindquist of Minneapolis. Results kept
City rates from 4% to 11% below outside rates in service area.
Represented City in electric rate he.aring i.n 1975 before PSC.
After leaving City in 1976, represented City on appeal to Mfnnesota
�
Supreme Court from decision of District Court of Ramsey County.
VVas successful and 5upreme Court gave relief to residential customers.
Presently recognized in Ohio and Pennsylvania. Filed as consultant
with The Office of Consumer�s Counsel, Columbus, Ohio, and Office
of Consuxner Advocate, Harrisburg, Pennsylvania, upon request of
respective organizations.
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, AGREEMLLENT
THI5 CONTRACT, Made and entered into this day of October,
°1978, by and between the CITY OF 5AINT PAUL, a municipal corporation
of the State of Minnesota, hereinafter referred to as "City," and
THOMAS J. STEARNS, 400 Endicott Building, Saint Paul, Minnesota,
hereinafter referred to as "Rate Expert,"
' WITNESSETH:
1. Rate Expert warrants to City that he is professionally competent
to conduct studies of gas rate matters as they relate to regulated public '
utilities, that he is a qualified public utility rate expert, and that he is
able to do the work referred to herein in a workmanlike manner, and
as needed by City.
2. Relying upon the warranties made hereunder, City engages
Rate Expert to analyze, investigate and report on the proposals incor-
porated by the Northern States Power Company in its natural gas petition
for an increase in its gas rates and for a consolidation of the rate zones
withi.n the 5tate of Minnesota, which petition and supporting documents
have been filed with the Minnesota Public Service Commission on the 22nd
day of September, 1978.
3. Rate Expert contracts to provide as services herein:
a. Review Northern States Power Company's arguxnents
for the rate increase and consolidation of rate zones;
b. Review arguments in favor of retention of the rate zones;
c, Make a formal report on the reasonableness of the rate
design changes incorporated in the final rates for
consumers in the City of Saint Paul; and .
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d. �.dvise City on a strategy for its participation in the
rate hearing, including the extent of testimony
necessary for such participation, and L-hereby pro-
vide the City with direction as to what utility
policy would 'pe most beneficial to both the City as
a unit of government and to residential, cornmercial,
and industrial consumers located withi.n the City.
4. Yn consideration of the Ra�e Exper�'s services, his analysis,
,
inves�igation, and repor� or reports rex^�dered to �he City, the City agrees
to pay the Ra�e Expei•ti for his services at the rate of $ 50. 00 per hour and
to xeimburse him for his necessary and reasonable out-of-pocket expenses
as approved by John Connelly as repre�entative of the Council Investigation
and Research Center, the total ar�ount of such compensation and reimburse-
ment being limited to $ 5, 000, 00, and being charged to Account 50200
(Special Fund) .
5. The payment to the Rate Expert for his services shall be macle
monthly upon itemized billings from said Expert which shall be presented
to and approved for disbursal by �'ohn Connelly or other authorized
representative acting upon behalf of the Saint Paul City Councilo
6. The work performed hereunder shall be under the supervision
and direction of John Connelly or other authorized officer or agent of the
Council Tnvestigation and Research Center of the City of Saint Paul,
7. This contract may be terminated by City at any time by direction
of the Saint Paul Citiy Council with no obligation other than to make payment
to Rate Expert £or services rendered and expenses incurred to the datie
that said Rate Expert �eceives notice o� such termination. It...shall be
the respon�ibility of said Rate Expert to return all papers, docuxnentis
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and repor�s belonging to said City upon the termination of said contrac� or
upon the cQmpletion of his work hereunder, whichever comes first.
CITY OF SAINT PAUL
By
Mayo r
Director of Department of,Finance
City Clerk
9
THOMAS J. STEARNS
. Pub�.ic Utili�y Rate �xpert
Form approved:
City Attorney
Approved as to form and executiQn
this day of October, 19780
City A�torney
T3,-