Loading...
265491 WHITE — CITY CLERK 1 PINK — FINANCE COl1I1C11 CANqRY — DEPARTMENT GITY OF SAINT PAITL File NO. ���,��e[1 BLUE — MAVOR Council Resolution Presented By Referred To Committee: Date Out of Committee By Date Resolved, that upon recommendation of the Mayor and pursuant to Section 10.07.4 of the Charter of the City of St. Paul, there is hereby transferred the sum of $50,000.00 from the Contingent Reserve General, Activity 09060 to Activity 00105 in the Office of the Mayor to be delineated as follaws: Office of the Mayor Activity 00105 City Administrator 159-000 Fees - Other _ . $50,000.00 A pproved as to funding: Approved: ����W � �'-�0-25 udget Dir ctor ��a. COUIVCILMEIV Requested by Department of: Yeas Nays � �Christensen C.�Hozza In Favor Levine /i► c�^ Rcedler � Against BY �lvester edesco /j President Hunt��� / / Adopted by Council: Date � 2 9 �� Form Approved y Cit Attonyb' ' f Certifi as by ouncil Secretary BY . i Y . Approv by Mayor: Date '7 Approved by M �+or for Submission to cil By By � *"i"-'°',t�';� �� � �:�r J Acting M yor GITY OF SAIrT PAIIL e ■° OFFIGE OF TIiE MAYOB r�.��■aa�s ���, _ ���� �� I.AWRENCF, n. CiOHEN May 2 1 � 19 7 5 MnYOa MEMORANDUM T0 : Council President Ruby Hunt , Chairman, Utilities Committee FROM: Mayor Lawrence D. Cohen SUBJECT: Proposed Feasibility Study of New Downtown Steam Plant By memorandum dated May 19 , 1975, you expressed your intent to oppose participation by the City of Saint Paul in a proposed feasibility study of a new downtown steam plant . I agree with you that the city should be very cautious lest its participation in the study somehow commit us to actual participation in the ownership or operation of a steam facility which might be built pursuant to the findings and analysis of an in-depth study. In my opinion your statement regarding this point, which was incorporated into the motion, will be sufficient to protect the city, and I appreciate your foresight in recognizing this potential danger . However, I have great difficulty with your analysis concerning the public benefit . The city , over the years , has expended millions of dollars to rejuvenate and establish a healthy downtown area, which is so important for the entire city. This has been done by use of many strategies , including outright funding , by use of Urban Renewal Bonds , and more recently , the Downtown Development District concept . If in future years NSP is not going to supply steam to our growing downtown area , it seems that a $25 , 000 investment by the city in a joint venture with the private sector in such a study is fully justified in light of the substantial investments already made and future growth which could be jeopardized by the absence of a comprehensive analysis of providing needed steam. This study could indicate many factors , such as environmental benefits and energy conservation. Surely there could be no better expenditure of public funds than to protect val.uable assets and areas which have had the continued support of the City Council and the Administration over a number of years . I strongly urge you to reconsider your position on this matter. Such a study is needed and in my opinion of great public concern. Partic- ipation in this study by the city serves a valid public service and I encourage all members of the City Council to support the city ' s participation in this study . LDC/lm r22 � r� , CITY OF SAINT PAUL + ��* � � OFFICE OF THE CITY COUNCIL ,� --,�s:?� tir. C, ,.`�'�' 4_ � �5��,f, , 265�91 - - May 19, 1975 RUBY t-�UNT Counci2�cman T0: Mayor Lawrence D. Cohen City Council t4embers f�DM: Ru6y Hunt, Cnairman, Utilities Committee ��- � P,c: Proposed Feasi6flity S�udy of New Downtown Steam Plant At a meeting on April 22, 1975, tfie Council Utilities Corr�nittee approved a motion 6y Councilman Sylvester that we move ahead on the proposed feasifiility study of a new downtown steam plant wit�i a corr�nitment of $25,000 of city money. The motion was approved on a 2 to 1 vote, wit�i Sylvester and myself in favor, Councilman Levine opposed. Since both Councilman Christensen and Councilman Roedler had previously in- dicated tf�eir support, and I wras concerned a6out moving the matter 6ack to Council , I voted in favor of the mot�on, subject to certaln conditions. T suggested the motion include a statement tf�at t�e city has no intent to participate in 6uying or relocating t�ie present steam piant or to affect the expansion plans of West Publish- ing Company, and this statement rrras incorporated into the motion. After consi.dera6le tE�ought, I have concluded that even with these stated con�itions, T cannot support t�e motion, and must present the proposal to the Council without my 6acking. Tfie reason I have reached this conclusion invol�s the proposed funding of the study. T 6eiieve we must explore furtf�er whether there is indeed a puolic benefit to justify tE�e expenditure of pu6lic funds. Perhaps it is more appropriate to use private fur�s to underta[ce the study. The possibility of federal or state grants for the purpose couid also 6e explored. In answer to my question as to wF►o would be responsible for running a new steam plant, Mr. Hall replied tfie study would answer this, but perhaps we are looking tah�ard a pu6lic-private partnership. As I stated at the time, this is a major policy decision. I am concerned that a public-private partnership in the study will lead tQ a public-private partnersE�ip in steam plant operation. I am not ready to conclude that this is the direction we should go, and there- fore, I 6elieve the city would 6e well advised not to participate directly in any steam plant study. I have asked the Ci.ty Clerk to place this matter on the agenda for Thursday, May 2Z CC: �homas Kelley John Nassef City C7erk 4tat Davidson Tha�as Connelly Bill Buth Erv Timm Amos Martin Bob Hall Tony Deliel T(�o�nas Stearns CITY HALL SEVEN`I�-I FL�JOR SAINT PAUL, MINNESOTA �5102 612/298-5378 :�� � � ����9� CITY OF SAINT PAUL OFFICE OF THE CITY ADMINISTRATOR LAWRENCE D. COHEN THOMAS J. KELLEY MAYOR Apri l �6, 19 7 5 RECEIVED APR 171975 Council President Ruby Hunt Honorable Council Members Council President Saint Paul �ity Council Ruby Hunt City Hall BUILDING Dear President Hunt and Honorable Council Members : Enclosed for your consideration and action is a transfer of funds in the amount of $50 ,000 from the Contingent Reserve General account to the Office of the Mayor. The purpose of this transfer is to make sufficient monies available to undertake a feasibility study of steam plant op- erations in downtown Saint Paul - the first step in a series of activities aimed at phasing out Northern States Power' s existing plant, constructing a new steam generating facility in an appropriate downtown location, and creating adequate space for an environmentally sound expansion of the facili- ties of West Publishing Company. The $50 ,000 will be used to employ the consulting firm of Gibbs , Hill, Durham and Richardson, Inc. of Omaha and Minneapolis. This firm was chosen after interviews with several consultants conducted by Housing and Redevelopment Authority staff, representatives of the Building Owners and Managers Association (BOMA) , and Northern States P�wer. This office has reviewed the proposed study scope of services and generally found it to be acceptable (see attached scope of services and City-HRA correspondence) . As you will note from the attached City-BOMA corres- pondence, BOMA has volunteered to pay $25,000, or one-half, of the costs of the proposed study. The City would provide the entire $50,000 immediately to begin the study, and would be reimbursed by BOMA when sufficient member pledges have been collected. 365 City Hall, Saint Paul, Minnesota 55102 - 55 Kelley to Council - 2 - April 16, 1975������ I have asked the manager of this project, Robert Hall of the HRA, to be present at the Council meeting at which this matter is brought up for consideration to answer any questions you may have. If you wish to contact him prior to this , he may be reached at 298-4218. In addition, a brief summary report prepared by Mr. Hall is attached for your information. The Administration urges your early action on this matter so that we can begin to resolve this series of re- lated problems whose solution is so important to the future vitality of our downtown area. If you have any questions about this matter, please contact me at yaur �onvenience. Sincere ly, r >� / `��� � . �,��-,� s . Thomas J. i�elley City Administrator attachments cc: Mayor Lawrence D. Cohen Richard Schroeder Roger Mattson Donald Spaid Daniel Dunford Rose Mix Edward Helfeld Robert Hall William Buth John Nasseff TJI�:lb �'6��91 SCOPE OF SERVICES The purpose of this study is to determine if the existing steam plant system can adequately serve the heating and cooling requirements of downtown St, Paul or whether a new facility will be necessary, The study will include an alternative fuel price comparison of gas, oil, coal and s olid waste. The study will identify the economic and environmental impact plus the operating and financial options regarding ` the facility. The study will also include an analysis and system layout for the selected location as determined by the study, The consultant proposes that the study goals will be accomplished within the framework of services as outlined in the scope below, The study as proposed will be completed six months after the notice to proceed. Task 0100 Develop Public Information and Involvement Program 0110 Develop a plan for establishing continuing communi- cations with local officials and the general public. Task 0200 Market Research -- Seasonal Heatin� and Coolin� Requirements for powntown St. Paul 0210 Determine the potential boundaries of the area to be served. 0220 Prepare a questionnaire to be distributed to the present and futu�e heating and cooling customers. �� 0230 Survey the market area by distributing questionnaires and managing the data collection. 0240 Using the market data in Task 0230, compile and tabulate consumption and demand loads for heating and cooling requirements, 0250 Project these load requirements into 5, 10, and 20 year forecasts. 3/28/75 . Page 2 �S��n� �j � 0260 Using existing steam system data provided by the city and NSP, evaluate the physical conditions of the distribution lines (age, size and usage). 0270 Determine the projected operating plant capacities for 5, 10, and 20 years, Task 0300 Preliminary Plant Concept 0310 Determine if the existing plant and facilities are adequate for future consideration, � 0320 Develop criteria for and choose sites in cooperation with the client, 0330 Based on the extent of the analysis conduct in Task 310, the sites will be rated to determine location selection. 0340 Prepare a general layout of the proposed facilities. 0350 Prepare a preliminary cost estimate for the plant and distribution system. 0360 Prepare flow schematic showing plant operation. Task 0400 Economic Evaluation 0410 Estimate the final system capital and operating costs for the initial installation and the 5, 10, and 20 year incremental additions. 0420 Discuss various Financing Plans such as; 1, Revenue B onds 2. Industrial Bonds 3. Federal or State Grants Review financing alternatives with principal users. 0430 Determine the economic feasibility for both the user and the operating entity. 3/28/75 � . �s5�9 Page 3 1 0440 Evaluate the use of solid waste as a supplemental fue 1. 0450 Compare alternative fuels such as: gas, oil, coal and s olid waste. Task 0500 General Environmental Considerations < 0510 Prepare a preliminary assessment of potential beneficial and/or detrimental environmental effects that may be produced by the facilities. The consul- tant does not intend for this task to result in a complete Environmental Impact Statement. Task 0600 Implementation 0610 Analyze the various methods of system operation and ownership, such as: 1. Joint Venture 2. Private Enterprise 3. Othe r C ombinati ons Select an operating entity based on the analysis conducted. 0620 Recommend a preferred financing plan, 0630 Prepare a construction schedule for the project, Task 0700 Final Report 0710 5ubmit a preliminary draft report in 4 months. 0720 Print twenty-five copies of first draft for official public review and c omment, 0730 Complete final report. 0740 Print fifty copies of final report. 3/28/75 . ' �6�491 Page 4 MEETING AND REPORTING GHDR personnel will be available for periodic review of the study and not less than three public meetings as required, DATA 50URCE5 All study data will be provided upon clients request. =�Indicates tasks that will be performed by the client, 3/28/75 � , � � �65�9� COMPENSATION GUIDELINES Task Subtotals Months Dollars Tasks 100 and 200 2. 0 $17, 500 Task 300 1. 0 11, 100 Task 400 1, 0 7, 800 Task 500 1, 0 3, 200 Task 600 1, 0 4, 300 Task 700 1, 5 6, 100 Total Compensation 6, 0 $50, 000 ' �n ; rn rn �v _ _ b � � 8 r � m � � � rn � � f;11 � � ��`. "� n C'� Z f�1 2 z � -� � m � M Op000 pO' QZOQ Q00� 000000'� o OOOOOONOO �1 �) �) �)� � A 01� �+'"I + + • y• ♦' 41 W W W W �1 N N N N N� -�. O � Y �� � �$ Or 0 � 000� � oo �lO �D 00000OSAO� 2 O � _ �m n o2 V1 Z � -� O Z � � Y 1'� � � � Z > N ' � r � _ � rn p � � rn � z -�"in c� • -� � 9° c � � r -� p • c � O � 0 c rZ -< � Za � N � '{ D _ � rn � ` � v � m c � � � r N rn s c c� w rn v � T g� � � : . � � . . � : �5 East Fifth Street, Saint Paul, Minnesota` 551 O1. Edward N.Helfeld,executive director.phone 223 5218 . , - - . �- . . �DATE �cx 3i, i9�s � �6��9� HOUSING AND R,EDEVELOPMENT AUTHORITY OF THE CITY OF SArl�l�l�' �PAUL,, MINNESOTA �/�,� r . . . . TO �orr�s J. KELLEY - CITY AI)i�INISTRATOR ` �:� �'" , ' �-f � _ � . FROM EDWARD N. HELF�.,'LD 4 _, j�,,; :. ;� , � .� t ; SUBJECT STEAt�1 PLP.NT rEASIBILITY STUDY � =� • . _ - . . �^ 1 H, �x�\ � �`�,�A � 4��f'` �.; \�� �j ' _1`� ,,*� �':� ,, � r._.�,, On March 21, 1975 the staff and the BOMA group intervfewed the three finalist consultants and after considerable discussion, the unanimous choice to undertake the Feasibility Study was Gibbs, Hill, Durham and Richardson, Inco, of Omaha and Minneapolis. They have agreed to do the Study for $50,QUO and complete it within six months. The anclosed Scope of Services was prepared by the consultant and reviewed and modified by our sCaff and the B0.3A staff and could be attached to and made part of a normal city Contract for Services. The remaining question is how the Study should be financed and we would recommend , that the City pay the full $50,000 with a pledge from BO?�fA to reimburse the City for 5Q% of the $5d,000 or $25,000. The BOMA group will meet on Wednesday, April 2, 1975 to consider this recommendation and wi11 get back to us. We will advise you of the outcome of that meeting. Incidentally, we did contact Prof. Pat Starr of the University and invited him to sit in on the consultant interview meeting, but he declined because he has already done so�e work for one of the consultants and felt that his attendance might be a conflict of interest. • � ENCLOSURE _ (�,'', i`�' nIr';' ('(� � ' , J 1.l i.; ''�`�:i.f i_�L1 4�.�J .. ' � � ����� . � CITY OF SAINT PAUL OFFICE OF THE CITY ADMINISTRATOR. April 7, 1975 THOMAS ). KELLEY TO: Edward N. Helfeld FR• Thomas J. Kelley (5�-- RE: Steam Plant Feasi.bility Study The HRA-BOMA choice of consultants for the feasibility study is ac- ceptable to ttie City, and we are in the process of identifying the requisite $50,000 to fund the study. We are pleased that BOMA has chosen to assist in study funding, and the $50,000 will become � available shortly after we have received BOMA's written commitment for its $25,000 share of the costs. With regard to the scope of services which you transmitted with yaur memorandum, we have certain concerns which we would appreciate your staff considering: l. Who is responsible for making contacts with other, possibly- affected aqencies; such as the Follution Control Agency or the Waste Control Commission? 2. We understand that the impiementation task will include schematics on all new pipe locations and sizes, necessary redesign of,existing .pipes, and so on. Is this correct? 3. Who exactiy is the "client" mentioned in task 0320 and else- where? 4. What is meant by the phrase "based on the extent of the analysis conduct (sic) in Task 310 . . ." in task 0330? 5. Who will take responsibility locally for task 0230? • 6. We would suggest that 40 copies of the draft report and 75 copies of the final report be prepared. . TJI�/ca cc: Mayor Lawzence D. Cohen Richard E. Schroeder Donald L. Spaid 365 City Hall, Saint Paul, Minnesota 55102 ^�O . . . , . .. . - ' . ';__. . . � . . . _ _ _ . �l�, � . DAT�E APRIL 14 19 75 ' .`�� �- �`�'s �� �^� � � � � y �v�'���� � , h �� � , -...�� �t�� ;$„���� ] • � � � �� i J 9,.,� �y ( � 'C�-� .a -a��;7 J . . � .' '� �'� � HOUSiPJG AND REDEVELOPMEP�T AUTHORITY OF THE CITY OF SQI�I��Pat���'�j��;�r� r ' y�- SOTA •�� • \ ' ��-'`�i7 � �`� :��'" TO TIiOMAS J. iC�I.LEY . �, `��.. � �'J i � �W c?;-`' . . � �;;`�`� f RO M rb,- EDWARD N. HLZFL'I,D ,j`v/J � r SUBJECT STEA.�Z pLANT F�ASIBILITY STUTJY This is in response to your memo of A ri1 7. � ' * � P I'irst BO.�lA held• a meeting of their steam users on April 8th and unanimously endorsed the concept of pledging $25,000 tor the `�•�'� � feasibility study. On April 14th �,•e expect BO�fA to �ive its formal approval and in the .;., meantime Bill Buth �vill be contacting steam usErs and BOMA members to get individual _ pledges. Also, I am glad to learn that you caill schedule a hearing b�fore the City ' Council within the next two weeks, or as soon as possibl�e to secure the necessary appropri�tion. Please advise me or Bob Hall of the specific date and we wiZl be presen� along with BortA representatives to answer any questions the Council may have. The foZlowing are answers to the specific concerns raised in your memo; . ; b (1) Who is responsible for making contacts with other, possibly-affected agencies; Rac.h R�S thp Pol)T�tion l;ontr�] A�encv �r th,� W�ste Gor.*_ro? Gomr!;��;n,�� ; i Answer: Most of the contacts will be made by the consultant, specifically their � local repres�ntative, Mr. Floyd J. F'rosber r agencies on other stndies and knows s ecificalla whichealt with all the contacted. P y P�oP1e .,hould be If speci£ic requests from the City are required, the designated Project Manager, Robert F. Hall, will handle them. 6 (2) We understand that the implementation task will include schemAtics on all new pipe locations and sizes, necessary redesign of existing pipes, anc3 sa on. Is ;� r this correct? . f � � - • Answer:� Once a preliminary site selection is made or � two alternative sites), the consultant will preParebma s showinnathee or ` +• P g prebable location of r.ew steam lines from the site ro ttie service areas, indicating ' whether such sites should be located in streets, sidewalks, buildings, etc; � aTso indicaring where anc� how the eg;isfiing stea.*► distribution lines mi;;ht be utilized. The consultant will al�o provids cast estimates for the distribution systern but wili not go into actual working drawings of either tite plant or. the steam Iines. Such details are beyond the scope of thi� study and are part of the actual design of the plant when and if it is deterniined that it will be built. � f+ • � ',,'!;� n ��G �� �� , ��� ., 1 ` . THO�lAS J. KELLEY - 2 - " APRIL. I4, 1975 (3) Who exactly is the "client" mentioned� in task 0320 and elsewhere����� � Answer: The client is the City of Saint Paul unless the City Council should choose Co mak� the BOMA group a specific party to the contract. t�Je recommend that � ' the City remain as the sole client to keep the legal o'nligations as s3.mple and .strai�htforward as possible. In the conduct of the study, however, we . fully expect representatives of BflNi.A and the steam users to activcly partici- pate in iaorklsessions with the consultant and provide a great deal of input to the study. (4) What is meant by the ghrase "based on the extent of the analysis conduct (sic) in Task 310 ..." in task 0330? Answer: First the consultant will evaluate the existing NSP steam plant and determine its adequacy �ar continued and future use, includin� tiie candition �nd location of existing distribution lines. In the folloziing task (0320) the consultant together with HRA planning staff, Ylaruting Comsnission staf£ and additional staff input from other City agen.cies such as PubZic Works wi.11 examine and evaluate various r.eca site alternatives and will use data obtained i n 0310 as part of that evaluation. SpecificalZy, for ex�*nple, what existing NSP steam lines could be used ss part of a new distribution system? , �(5) Who wi11 Cake responsibility locally for task 0230? Ans_,,.,wer: T��sk 023C� is n?rt of *_he r�?rket resezrch p�:sse of the �tu�y u;.d i.t c���c� that the consultant will "Survey the market area by distribu�ing questionnaires and managing the data coZlection". The survey is intended to determine the nature, extent and locations of present and �uture ste��m and cooling users and the Project Manager �nd BO�tA representatives will assist the consultant iR distributing the questionnaires and gstting them hack to the consultanC in the shoreest possihle ti�ae so Chat he may pravide the necessary aizalysis. (b) T�e wauld su�gest that 40 copies of the draft report and 75 copies of the final report be prepared. . Answer: Wg have contacted the consultant and he agrees and will prepare 40 draft reports and 75 final reports. �.'he Scope of Services will be revised accord- ingly. I trust these will answer your concerns and should any further clarification be necessary, Bob Hall will be gl�d �o provide additional in€or�ation. CC: Mayor Lawrence D. Cohen � Richard E. Schroeder Donald L. Spaid P.S. tire will prepare report to City Council memhers as requested in your phone convsrsatior today wiCh Bob I�all. ' O � � lJ ' . �� �,,,r�., April 17, 1975 ��� ;��� TO: Mayor Lawrence D. Cohen Members of the City Council FR: Robert F. Ha11A�� 1� RE: ' Request for Funds for Steam Plant Feasibility Study A request will soon be made to the City Council for the appropriation of funds necessary to undertake a study to determine the feasibility of building and operating a new heating and cooling facility to serve the downtown Saint Paul area. This request is a result of ineetings between the City Administrator, Housing and Redevelopment Authority staff, and representatives of the Saint Paul Building Owners and Managers Association (BOMA) , who are attempting to determine whether the City and the downtown steam users should jointly undertake the construction of a modern steam plant to replace the present limited Northern States Power steam plant located on Kellogg Boulevard next to West Publishing Company. Such a venture, if possible, could have at least three beneficial results: 1. Provide a long-ter.m, low-cost heating and cooling energy source for present and future steam users in the Saint Paul downtown. 2. Reduce the present pollution levels in the downtown area by providing a new facility and eliminating the need for individual steam plants in separate buildings. 3. Permit West ?ublishing Company to expand from their present building, thus mainta.i.n:i.r�g a low profile and saving the present river view. Discussions with the downtown business community explored many pos- sible ways of accomplishing the objectives noted above. The building owners have, for several years, been acutely aware of the problems of rising energy costs, energy scarcity and the need to provide good energy alternatives to present sources, particularly gas service, It was at their request that the exploratory meetings began. Al1 parties quickly concluded that many very technical questions remained unanswered and that these questions must be answered before informed decisions can be made as to how (or if) the City of Saint Paul should become a participant in such a project. . • I • . . I A :request for a feasibility' study proposal° �iaas prepared jointly by ��v��,� staff and BOMA, and sent ta eight highly-qualified engineering con- sultant firms. Seven replied. Their proposals were evaluated and three were interviewed by HRA staff and BOMA. The fi�al unanimous choice was the firm of Gibbs, Hill, Durham and Richartison of Omaha and Minneapolis, who are presently undertaking a major solid waste study for Hennepin County and the University of Minnesota and are thoroughly familiar with Saint Paul and the �ain Cities area. In brief, the feasibility study will determine, from both an economic and engineering standpoint, whether or not to build a heating and cooling plant to serve the downtown. The study will recommend sites, suggest rates to be set, methods of financinq, methods of organization, ecological considerations and many othex factors as indicated in the Scope of Services. In addition to the consultant, many city agencies and departments, in- cluding the Department of Public Works, Assessments and Valuation Division, Office of City Planning, Planning Commission, the Port Authority and the Housing and Redevelopment Authority will be re- quested to provide necessary expertise and input. Also, the ap- propriate metropolitan and state agencies will be contacted and involved during the study process. A major source of information and evaluation will be the downtown businessmen themselves, who have already pledged to provide $25,000 or half of the tot�l study cost. The study, if funded, will produce a preliminary report in four months and a final report in six months. Periodic work progress reports will be provided to the City Council and Mayor's Office and public meetings will be held to keep the general public fully informed. cc: Thomas J. Kelley �6��9.� Mr. Thomas Ke l le y City Administrator April 15� 1975 Page Two The above statement was passed by our Membership at our April 14th, 19�5 Membership Meeting. A copy of the Resolution was submitted to Mr. Thomas Kelley for his information. We are pleased to cooperate with the City in this venture and we feel the potential benefit will enhanc� the development of S t. Paul. S incere ly, ST. PAUL ASSOCIATIC�T OF BUILDING Q�II�RS & MANAGERS , INC. W il liam A. Buth Executive Director WAB/gk