03-458Q�iG��A�
Council File # O 3_'�is Y
Presented
Refened To
I
' OF
J
Green Sheet # t 14 O 5 Y
Committee Date
Resolution to approve District Cooling SL Paul, Inc.'s request to amend their customer billing rates.
1 WIIEREAS, District Cooling St. Paul, Inc. filed a notice on July 19, 2002 and an official affidavit on September 18,
2 2002 notifying the City of Saint Paul of a proposed cooling rate increase. The cooling rate increase became effecrive
3 in October 2002, until approved or denied by the Saint Paul City Council pursuant to Secrion 11(e) of the District
4 Cooling Franchise; and
5 WHEREAS, District Cooling St. Paul, Inc. agreed to an extension for review of the request by the City of Saint Paul
6 until May 14, 2003; and
7 WIIEREAS, evidence and recommendations have been presented to the City Council in the manner of a City staff
8 report submitted to the City Council on May 7, 2�03, in conjuncrion with a public hearing on this matter; now
9 therefore be it
10 RESOLVED, the Fiscal Year 2003 cooling system customer billing rates proposed by District Cooling St.
i l Paul, Inc. appeaz to be reasonable in today's market condirions, and thus formal approvai by City Council
12 Resolution is recommended based on the following:
13
14
15
1) The cooling demand rate changes from $22.38 to $22.82 per ton per month, an increase of 2.0 %.
2) The cooling energy rate changes from $0.060 to $0.061 per ton-hour, an increase of 1.7%. If
actual energy costs are less than estimated, customers receive a refund.
16 3) The chazge for chilled water flow exceeding 110 galions per ton-hour during June, July, August
17 or September billing period changes from $0.40 to $0.60 per thousand gallons above 103 gallons
18 per ton-hour, an increase of 50%.
19 4) The credit for chilled water flow below 75 gallons per ton-hour during June, July, August or
20 5eptember billing period changes from $0.40 to $0.60 per thousand gallons above 103 gallons per
21 ton-hour, an increase of 50%; and be it
22 FiJRTHER RESOLVED, District Cooling is opera6ng in an expanding/growth mode; therefore, it is
23 recommended that:
24 1) The City Council approved customer billing rates for 2003, be limited to District Cooling's
25 operating years of 2003 through 2006; and, that a new customer billing rate application be
26 submitted no later than fiscal year 2007.
27 2) District Cooling provide the City with an opporhu�ity to review, at the District Cooling offices,
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1 the confidenrial and proprietary four yeaz plan related to system expansion and capitai
2 maintenance, with anticipated debt financing and, or refinancing, whenever a customer billing
3 rate application is submitted; and be it
4 FIJRTI�R RESOLVED, it was difficult for City Staff to detemiine the appropriate level of cash and
5 reserve balances required for all current and anticipated needs of District Cooling's operations for 2003 and
6 for the foreseeable future; therefore it is recommended that:
7 1) Dishict Cooling's Board of Director's formally approve written policy statements which specify
8 desired cash balances and reserves for general operations, rate stabilization, debt service, and
9 capital repair and maintenance.
10
11 2) District Cooling provide the City with an opportunity to review, at the District Cooling offices,
12 the confidential and proprietary Board of Director's policy statements whenever they are adopted,
13 amended or when a customer billing rate applicarion is submitted; and be it
14 FINALLY RESOLVED, any modifications to the Cost Allocation Agreements for District Energy, District
15 Cooling and Market Street Energy can have a significant effect on both annual budgets and billing rates;
16 therefore it is recommended that:
17 1) District Cooling notify the City of any changes to the cost allocation agreements and provide the
18 City with the most current cost allocafion agreements.
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Adopted by Council: Date _� aa
Adoption Certified by Council Secretary
Fonn Approved by City Attomey
By: � / SGl i71 ' ��
03 -ys �
of Financial Services
266-8837
DATEINRIATFD
o�,o��� GREEN SHEET
I�IIDate
No 114058
InitlaVDate
crtr councv.
ASSIGN
�CRYPTlORHE'( �GIY4lERK
NUMBERFOR '
ROUTING
FlNANCNLSEfNICESDRt FlNANCW_SERVIACCTG
ORDER '
� MAYOR ❑
TOTAL # OF SIGNATURE PAGES 7_ (CLIP ALL LOCATIONS FOR SIGNATURE) I
of District Cooling St Paul, Inc.'s request to amend their customer billing rates.
PLANNING COMMISSION
q6 COMMITTEE
CIVIL SERVICE COMMISSION
PROBLEM ISSUE, OPPORTUNIN(Who, What, When, Where, Why)
PERSONAL SERVICE CONTRACTS MUST ANSW ER THE FOLLOWING QUESTIONS:
1. Has this persoNfrtn ever xrorketl untler a CoMract for Nis tlepaM1menl'�
YES NO
2. Has ihis persoNfirm ever been a crty employee?
YES NO
3. Dces this personlfirm posseu a skill not normally possessed by any curterrt city employee?
YES NO
4. Is this persoNfirm a iargetetl ventlaR
YES NO
:cordance wdh DisUict Cooling's franchise ag�eement, they have fJed notice to amerid Schetlule A of Ordinance 17816, regarding their heating and cooli�g rates.
City Councl must review Ne evitlence of Nis rate cas antl approve or deny iheir requesi. The attachetl resolution recommentls approval of the new rates.
IF APPROVED
�VANTAGESIFAPPROVED
VANTAGESIFNOTAPPROVED
needed for capi[al projecLS will not be avalable.
_AMOUNTOFTRANSACTIONS �_
ING SOURCE
:IAL INFORNUlT10N (EXPLAIN)
COST/REVENUE BUDGETED (CIRCLE ONE)
ACTIVIN NUMBER
VES NO