264820 WH17E - CITY CLERK
PIKYC - FINANCE COl1I1C11 '`,;���;''�.� . " "'i
�BLk1ER�- �`AypRTMENT GITY OF SAINT PALTL File NO. � �
9iGo ' '' �
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- Council Resolution
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Presented By
Referred To Committee: Date
Out of Committee By Date
WHEREAS, the City of Saint Paul is authorized by Minnesota Statutes,
Section 471. 59 to enter into joint and cooperative agreements with other
governmental units, and
WHEREAS, the City Council has determined that the City cooperate
with other municipalities in the monitoring of utility service in the
Metropolitan Area by participating in the Suburban Rate Authority, and
WHEREAS, the City is desirous of becoming a member of the Suburban
Rate Authority, which was originally established by joint agreement in
1962 to administer the regulatory provisions of uniform franchises
granted to Minneapolis Gas Company, and
WHEREAS, the City Council understands that the Suburban Rate Authority
shall continue in existence, notwithstanding the assumption of utility
regulatory powers by the State, for the purpose of monitoring utility
services and participating to the maximum degree possible in the utility
rate-making procedure, and that the Suburban Rate Authority-s scope of
activities be broadened to include electric utilities and other utilities
if necessary; Now, Therefore, Be It
RESOLVED, By the City Council of the City of Saint Paul that the
proper city officers are authorized and directed to execute the attached
Joint and Cooperative Agreement providing for membership of the City in
the Suburban Rate Authority; and be it further
RESOLVED, in accordance with the provisions of the Jo 'nt and Co�
operative Agreement, that the Council hereby designates
COUNCILMEN Requested by Department of:
Yeas �� Na s
1�x Chris�.ensen
��� Hozza In Favor
Levine
��i� Sylvester Against By
� Roedler
Tedesco
Mme.President��t,
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
By
Approved by Maxor: Date Approved by Mayor for Submission to Council
By By
WH17E - CITV CLERK COl1T1C11
PINK - FI.FNANCE GITY OF SAINT PALIL �
CANARY - Q PARTMENT
BL11E �- MAYOR File NO. �����
� - Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
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as its first director on the Board of Directors
of the Suburban Rate Authority; and be it further
RESOLVED, That the City Clerk is directed to file a copy of the
executed agreement, together with a certified copy of this resolution,
with the City Manager of the City of Columbia Heights.
C���;�,LMEN
Yeas Nays Requested by Department of:
aL�aadxx Christensen
�ana�p�� Hozza —�� In Favor
Levine
�pe2tixk► Sylvester � Against BY
� Roedler
Tedesco
Mme.President� HLtD't
DEC 31 1�74 Form Approv d t rney
Adopted by Council: Date
Certifie assed Cou ' Secretary Y
Y
Approve Ma Date Approved by Mayor for Submission to Council �
By BY
pUBLtSHED i�N � � +975
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CITY OF ►SAINT PAUL :. �-,,
OFFICE OF THE CITY COIINCIL �"�� `�'`��
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nu
RUBY HUNT
Conncilwoman
T0: A1 Qlson
FROM: Ruby Hunt, Chairman, Utilities Committee ��'
DATE: December 27, 1974
SUBJECT: Utilities Committee Report
Tfie Utt'lities Committee recammends approval of the attached
resolution�which. would authorize the City of St. Paul to join
wlth other metro area communities in a rate authority.
pm
CITY HALL SEVENTH FLOOR SAINT PAUL, MINNFSOTA 55102 612/298-5378
O
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� R�SOLUTION AUTAORIZING pARTICIPATIUN ����`��
IN THE SUBURBAN RATE AUTHORZTY;
DIRF.CTING THE EXECUTION AND D�;LTVERX
OF A JOINT POS�7ER5 AGREEr1LN'I'; AND .
� DESIGNATING A REPRESENTATIVE OF
� THE CITY AS ITS MEMBER ON THE
BOARt7 OF THE SUBURBR.N RATE AUTHORITY.
WHE22EA5, the City of � is autharized
_ by Minnesota Statutes, Section 471 . 59 to enter into joint and
cooperative agreements with other governmenta). units, and
.
WHEREAS , the City CounGil has determined that the City
cooperate with other municipalities :�n the mo�.�.toring of �
uti7.ity services in the Metropolitan Area by partica.pating
� in the 5uburban Rate Authority, and
WI�SREAS, the City is presently a member af the Suburban
. Rate Authority established by joint agreemen� in 1.9b2 to "
administer' the regulatozy provisions of uniform ,franchises
granted to Minneapolis Gas Company, and :
WHEREAS, the City Cauncil has determined that it is
necessary and desirable that the Suburban Rate tiuthori_ty
- continue in existence, _ notwithstanding the assumption of -
utility regulatory powers by the State, for the purpose of
. monitoring .utility services and participating to th� maximum
degree possible in the utiiity rate-making pr�cedure, and .
� that the Suburban Rate Authority' s scope of activities be
broadened to include electric utilities and o�:her utilities �
if necess�ry. �
NOW, THEREFORE, BE Ii �SOLVED by the City Council of
. , T•�i.nnesota, as follows:
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. 1. Tl�.e Mayor and (Glerk, D�anager) are autliori7�d and
directed to execute the attached Joint. and Cooperative Agree-
ment providing for membership of the Ci�y in the Sub�arban �
�
Rate Authority. . .
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2. in accordance with the provisions of the Joa.nt and
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Cooperative Agreemen-t, the Council hereby designai:es
. as if:s first director Qn the
Board of Directors of the Suburban Rate Authority. �
3. The Gity Clerk is direc�ed to file a copy o� the
executed agreernent �ogether with a certS.fied copy of this .
"xesolu�ion with the City Manager o£ the City of_ Col.umbia Heights .
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- . ' � �nclosure Noe 2
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JOINT AND COOPERATIVE AGREEMENT �,
. I. PARTIE5 . _
� The parties to this agreement are governmental units nf
• the State. of Minnesota. This agreer,tent is rr�acie nursuant �o
Minnesota Statutes, Section 471. S9, as amendecl. �
• - II. GENERAL PURPO5E . �
• The general purpose of this agreement is to estabiish an
organization to�monitor the operation and aetivites of public
utilities in the metropolitan area; to conduct resea�ch and �
investigation of the �activities of such utilities; and to conduct
such other activities authoriz�d herein as may be necessary to .
. ins�zre equ�table and r�asonable pub�.i;c u�z�ity ra�es a�za s�rvice
levels for the citizens of the members 4� the organization. .
. III. . NAME � . '
The name of the organization is tYie SUBURBAN RA'FE AUTHORIT'�.
. The name may be changed in accordance with A�ticle XII . .
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- IV. DEFINITIONS .. '
• . � _ ,
Section 1. For purposes of this agreement, the te�ms �
defined in this article have the meaning given them.
Section 2. "Authority" means� � the joint and coo�eratiue
• organization created by this agreement. `
. Section 3. "B�ard" or "Board of Directors" means the Board
- of Direetors of the Authority established by Article VI . •
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, . Section 4. "Counci�.° means 'che governing bady of a
governmental unit, .
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� Section 5. "Governmental Unit" means a city or town �n �
. the raetropolitan area. �
Section 6. "Metropolitan Area° means the metropolitan .
area d.�efined and described by Minnesota 5tatutes, Ch�pter .
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� 473B. 02, as amended. � � •
, � Section 7. "Member" means a goverrli-:�tental unit wnich has
entered into and b�cor.te a party to this agreement. � .
Section 8. "Public Utility" or "Utility" means an investor
' owned utility supplying gas or electricity under franchise .
_ wi�hin one or .more goverrunenta l units� the term�may include . .�
. - other utilities as provided in Article XII.. , The term does not
include municipally owned utilities. . ' . ,_
• � . • .S.ec�ion 9. "Statut�ory Cities" means cities organized� 'under .
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' � - • =1�Ii:nnesota �=5:���ute, C-�apt�er '4"12. �
• V. � MEM3ERSHIP • -
_ . • _ • Section 1•. Any .gover.run�nta.l unit in the. metropoli�an ar•ea . .
i� � eligible� to be a member of the Authority. ' ' . � - � .
� . � Section 2, .A.governmental unit desiring to become a member -
' = shall execute a copy of this,agreement and con£orm �to the member=���.
. - ship provisions of Artiele �VII . � � • � . . .
Section 3. 2he initial mertbers shall be �nose memhers ��ho .
� become members . on or before January 1, 1975. � �
Section 4. Governmental units wishing to become members
. - after January 1, 1975, �may be admitted only upon the favorab7.e �
- vote of'two=thirds�� of the votes of the members of the Board of �
� Directors. �The Board may, 'in its by.-laws, impose conditions '
upon the admissio.n of.: additional members . . . '
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Section 5. A change in the governmental, boundaries, stru�-
ture, classification or organization of a gov�rrunental. unit •
affects the eligibility of a unit to become a mer.lber of �h�
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Author�ty. �
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• �' ; VI. • GOVERNING BODY: BOARD OF DIRECTORS
� Section l. The governing body of the Authority i� its -
� Board of Directors. Each member is entitlecl to one director �n .
the Board. Each director is entitled .to one vote for each• 5, 000
. of populatiori or fraction thereof of the governmental uni`
_ ' � - represented by the director; provided, however, that. each • . .
.: ' � director shall ,have at least one vote and no director �shal� have
, more than 20 vate's. For purposes •of this section, �opula�ivn of a �
governmental unit shall be that population determined pursuant � .
to the provisions of Minnesota•"5tat�tte �275. 53. Prior to December
� 31. of �ach year, the 5ecretary-Treasurer of �the Authority sha11 '
-. _ determine the population of each member. 'in accordance with . � •
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. . this s.ection and •certify the •results to the chairman. . �• � _.
� � Section �2. A director shall be appointed by. re�olution of �
�. the council of 'the members for a terin of one calenda•r year. A - � .
' director shall serve until his successor is appointed and � . . • ' �
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� � qualifies. Directors shall serve without compensation from the � �
Authority, but nothing in this section shall be const'rued £o
preyent �a governmental unit from compensating its director .for
service on the Board if such compensation is otherwise authorized
by law. " , .: . . . . • _ . . .
�. ` Section� 3.. The Board, in its by-laws, may� provide for the
appointment o£• alternate c�irectors and prescribe �he extent of
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their powers and duties. � �'._ ' '. _
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Section �. Uacancies in the c�£�ice o� director will exist . �
for any of the reasons set forth in Minnesota Statutes Section
351.02, or upon a revocation of a director' s appointment by a
member duly filed with the Authority. Vacancies shall be filZed
by appointment for the unexpired portion of the term of director
by the council of the member whose position ori the Board is vacant.
Section 5. A majority of the votes of the Board of
Directors constitutes a quorum, but a smaller number may adjourn
from time to time. '
� VII. MEETIi�tGS - ELECTION OF OFFICEh'S � � �,
Section 1. A governmental unit may enter into this '
� agreement by resolution of its council and the duly authorized
� execution of a eopy of �this by its proper •of�icers. Thereupon,�� ' �
. . the clerk- or �other appropr•�t.� of.f_icer,.;af �.he .g�ver.nmenta`� unit � �
_ �shall ;file the . executed •copy of:'the� agreement �and a certified . � . �
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. � copy of :the authorizing resolution with the city manager of the .� .
- . City of Columbia Heights, Minnesota. The �resolution �authoriz 'ing �
the execution of the �agreeMent shall �also 'designate :the �first �
� • . director for the governmental unit .on the Board. - ' • ' ' . . - - �
, Section 2 . . This� �agreement. is �effective ori, the date when
� executive agreements and authorizing xesolutions of seven '
, governmental units presently members of the existing Suhurban
. � Rate Authority have been f'iled. as provided in Section 1 of �this
Article. � -
- � ' . � Seetion 3. `v'ithin thirty days after the effective date of .
this agreement, the mayor of the member having the largest
: � populatiori shall call the first meeting of the Board of Directors
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: which shall be held no later than 15 days after such �alla �
Section 4. The first meeting of the Board shall be the
organizational meeting of the Authority. At the organizational
meeting, and at each annual meeting therea£ter, the Board shall
select fror► among the directors a chairman, a vice-chairman,
and a secretary-treasurer.
Section 5. At the organizational meeting, or as soon there-
' after as it may reasonabl.y be done, the Board sna11 adopt by-laws
governing its procedures, including the time, place, notice for
and frequency of its regular meetings, procedure for ealling
special meetings, and such other matters as are required by
� this agreement.' The .Board may amend the by-laws from time to
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�tirxe. The Board shall meet at least once each year and on such • �
- -. � .other dates as may be provided in its by-laws a - • ' • •
• � � VII�I. POWERS AND �DUTIES OF THE BOARD OF� DIRECTORS •
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: � Section 1. The powers and duties of the Board of Directors �
• � of the Authority are set forth in this� article: . � �
� Section 2. The Board may make such contracts and enter
into such agreements as it deems necessary to •make• ef�ective .: - .
' any power .granted to the Authority by this agreement. It.may•
contract with any of its members or others to provide space,
� services or materials on behalf of the Authority�.
� Section 3. It may provide �or the �,rosecution, defense,
- or� other participation in actions or proceedings at law in which
it may hav�' an interest, and may employ counsel for that purpose .
It may emp].oy. sueh other persons as it deems necessary to acccmplish
• its powers and duties. Such employees may be on a full-time or � '
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part-time, or consulting basis as the Board determines, and the
Board may make any required employer contributions which lc�cal
'. government units are authorized or required to make by law. ,
Section 4 . It may conduct such research and investigatiarx
and take such action as it deems necessary, incl�ading partici- .
. gation and appearance in proceedings of state and federa�
� regulatory, legislative or administrative �odies , on any matter
� related to or affecting utility costs , levels of se?-vice, rates
or- franchises, and advise members concerning such matters with
. a view toward obtaining compliance ,with franchises granted to
utilities and �insuring reasonable rates and service levels �
for the members and their residents. The Board may conduct the .
activities authorized by this section on behalf of any govern-
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mental uriit locatecr�'o�ts�d�"=�t3�e tc�etropolitan �area at"�t�e '�r'equest �
. of such a unit, embodied in a resolution of its governing body;
provided however, tha� the conduct of such activities on behal�
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� of any such governmental unit shall be specifically authorized
by the _Board and shall be subject to such reasonable conditions .
as -to. cost of service and other matters as may be imposed by the �
. Board. : . . .
� Section S. The Board may obtain .from any utilit� and from
any' other source such information relating to utility rates, costs
and service levels as any of its members is entitled to obtain
from such utilities. • -
� �. - Section 6. It may receive and hold moneys from any utility
to the extent ,and in the manner as may be provided by this
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agreement or any franchise granted to a utility by a member; and
it may accept voluntary contributions from its members or other
sources as provided in Article X. '1'he Authority shall have no
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taxing'�power. It may accumulate reserve funds ancl may ir.vest and
re-indest its funds not needed for current expenses in the manner
� and subject to the limitations applicable by law to sta�kutory
cities. The Board may not incur obligations in excess of funds
then available to Authority. •
- Section 7. The Board shall make a financial accounting
and report to the members at least once each year. The books
. and records of the Author.ity shall be open and available for �
inspection by members at all reasonable �times. '
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- . • : . .Seation 8. The Board may accept gifts, apply for and use . .
__ grants of money. or other property from members or other govern- .
mental units or organizations, and may enter into agreements
_ required in connection therewith, and may hold, use, and dispose
of such moneys or property • in accordance with the terms of the
grant, gift or agreement relating thereto. • �
Section 9. The Board shall establish the annual budget for" ,
the Authority as provided in Article X. _
. � Section 10. The Board may, in its by-laws, establish an
executive .committee and may delegate duties and authority to such
a committee between Board meetings.
- Section 11. The Board may purchase public liability insurance
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� � arid such other security bonds and insurance as it may deer.i
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necessary. ' . . �
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Section �2. The Board may exercise any �t�er �ower necessa�y
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and convenient to the implementation of the powers and duties
given to it by this agreemen't. .
IX. OFFICERS �
� Section l. The officers of the Eoard shall consist of a
chairman� a vice-chairman, and a secretary-treasurer who shall be
elected by the Board, for a term of one year and until �their .
successors are' eTected and qualify, at the annual meeting�. New
. officers shall take office at the adjournment of the annual meet=
ing at which they �were elected. An officer must be a duly
qualified and� appoi.nted director.
. . _ Section 2. A vacancy in the office of chairman, vice-
chairman, or secretary-treasurer shall occur for any of the
reasons £or which a vacancy .in the ..�.��fic.e.;.c�f. �ire.ctor '�h�all
occur. Vacancies in these offices shall be filled by the Board
for the unexpired portion of the term.
� Section 3. The chairman shall preside at all meetings ot
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- • the Board. The vice-chairman shall act as chairman in the absence,
disqualification or disability of the chairr.tan. " ._ .
Section 4. The secretary-treasurer is responsible for keep-
ing a record of all the proceedings o� the noard, for custody of
all funds; for keeping of all financial records of the Authority
_ and for such other duties as may be assigned to him by the Board.
Persons may be emp�.oyed to perform such services under his super-
� .vision and. directi.on as may be authorized by the Board. TYie �
secretary-treasurer shall. post a fadelity bond or other insurance
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against loss �of Authority funds in the account specifie� by the
Board. The cost of such bond or insurance shall be paid by the
� Board. The Board may provide for compensation of the secretar.y-
_ treasurer for his services.
X. FINANCIAL MATTERS •
Section 1. The fa.scaZ year of the Authority is the calendar
year. . ^ �
� Section 2. Authority funds may be expended in accoraance
with the procedures established by law for statutory cities.
Orders, checks and 8rafts shall be signed by the chairman and
countersigned, by the secretary--treasurer or such other person as
may be designated by the Board in its by-laws. Other �egal
instruments shall� be executed on behalf of the �,uthority by •
. � -' "the chairman and the secretary-treasurer. Contracts shall be � � �
• let and purchases made in accordance with the procedures
� established by law for statutory cities.
Section 3. The activities of the Authority shall be
� financed by funds available to it under Article XzI, �rom
voluntary contributions from its members or from� other sources, .
. and by contributions from rnembers of the �uthority if it is
- determined by the Board by a two-thirds vote of aIl votes of
. then existing members, that such contributions are necessary.
Such determination shall be made by the Board not later than
. August 1 of each year. in order to obligate r;iembers to make •
contrib•utions during the ensuing calendar year. The total annual
contribution by members for the ensuing year shall be established
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by the Board on the basis to anticipated expenditures and only '
if the anticipated expenditures are in excess of the anticipated
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funds otherwise �'to the Authority. The contribution in any year
by a member shall be in direct proportion to the number of votes
to which the director representing the member on the Board �is
entitled. Such contributions shall be made by the mem��r to
the Authority as follows: One-haZf on or before February 1 of
each year and one-half on or before August l of each yeax.
Section 4. An annual budget shall be adopted by the Board
at the organizational meeting � and at the annual meeting each
year. Copies� of the budget shall be mailed promptly to the
� chief administrative office of each nember. The budget is deemed
approved by the members except one who, at any time prior to
the annual meeting gives.�n��ice k�n writing to fihe��s�creta�ry-
. treasurer that it is withdrawing from the Authority. �
: . = XI. DURATION AND DISSOLUTIOI3 �
- Section 1. The Authority shall exist r and this agreement
is in effect; for an indefinite term until dissolved in �
accordance with Section 3 of this article. "
- Section 2. A member may withdraw frorn the �uthority by
filing a written notice with the secretary-treasurer by Jun� 15
of any year giving notice of withdrawal at the end of that
calendar year; and niembership shall continue until the effective
d'ate of the withdrawal. A notice of withdrawal may be rescinded
at any time by a member. If a member withdraws before dissolu-
tion of the Authority, the member shall have no claim on the
� - assets �of the Authority.
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' � Section 3. The Authority shall be dissolved wheneve� i�he
withdrawal of a member reduces total membership in the Authority
to less than the nurnber of inembers required for organizatian of
the Authority unc►er Article VII, Section 2. The �,uthorit� may
- be dissolved at any tim,e by unanimous vote of a11 the members
of the Board of Directors.
- Section 4. In the event of dissolution, the Board� shal?
- determine the measures necessary to affect� �he dissol�tion �.n�
shall provide for the t�king of such measures as prcmpt"l�� as
circumstances permit, subject to the provisions of this �
•agreement. Upon dissolution of the �uthority a�.1 r�mainiz�g .
assets of the Authority, after payment of obligations, shall be
: distributed among the then existing members in proportion ta
`�,�the number of their vot�s on �.�e Board .anc� �n.,.ac��,ozcian�e�� w.ith
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. procedures established by the Board. The Autharity shall .
continue _to exist after dissolution for such period, no longer .
than six months, as is necessary to wind u� its affairs but �or
no other purpose. � _ �
- XII. TRANSITIONAL ArdD b1ISCELLAIQEOUS r�iATTLRS -
Section 1. The activities of the Authority shall be cor.-
fined to gas and electric utilities, provided however, that �he
Authority� may extend, and broaden its activities .to any other
public utility as defined in this agreement by a 75o majority
vote of all the votes of the Board of Directors� taken at a
regular• meeting of�. the Board. In the event the activities of
the Authority. are so extended and broadened, . the Authority and
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its Board of Directors shall have a31 Uf the povaers �nd duti�s
with reference to any oth�r pubI.ic utility that i� ;�as s�i��h . .
• reference to gas and electric utilities under this agreem.en�o
Section 2. The name of the organization ereated bj t�is
agreement ma� be changed when deem�d a;�propriatE pv �=�e �c�a.rd,
but only upon a 75� majority vote of all the ��o�es o� �he 3oar�.
of Directors taken at a regular meeting af �ne �oard. ��. ��he
� name of the organization' is so changed, the Board shall provide
in its by-laws for necessary measures to effect the chanae in
official .ancl unofficial documents, �apers, �nc� �t}�.P.r essPrati�I
respects. . -
Section 3. It is the intention nf �ha parti�:s to �hiJ
agreement that the organization rr.Pated ��i�re�y is i.he
� successor to the Suburban Rate .�uthori�v zc�w :�n �xi.�t�r�e.
It is further the : intention of the parties that any funds made
available to the; organization created by the agreement from
assets of the present Suburban Rate Author:ty. s�.a]_1 �e i�sP�
� exclusively for the purposes of this agreemento
- � - IN WIT�IESS WHEREOF, the undersigned governmental uni�
has caused this agreement to be executed by its duly authorized
• officers �and delivered on its behalf.
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, ' In the presence of: (Governr►ental Unit)
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: . By Its �
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Dated: , 1.974.
Filed in the office of , this
day of , 1974.
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