246381 t . � ('�
ORIGINAL TO CITY CL6RK 4�f�j t�
x CITY OF ST. PAUL couNCi� ' �
OFFICE OF THE ITY CLERK F��E NO.
COUNCIL RES TIO GENE F RM -
PRESEN7ED BY `��s'` `�� ��/�i���
COMMISSIONE / �
RESOLVED, that the Corporation Counsel of the City of Saint
Paul is hereby authorized and directed to communicate with the proper
officials of Northern States Power Company for the express purpose
of exploring the possibility of negotiating an agreement between the
City and said Company whereby that Company' s gross earnings tax due
or to become due in the year 19'70 shall be paid monthly during 1970
and such taxes for the years following shall also be due, owing
and payable on a current monthly basis.
Reconsidered on November 25, 1969
Y�as I�ays
``�C>ARISON
Pp 0 DALGLIS�
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M ;'� ' Go�� �I�i
F�R �,ocp�ta ,�� �
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�SPRA�'KA
�.'EDESC4
_ MR. PRESID�NT (BYR1�E�
�0� � � 1969
COUNCILMEN Adopted by the Counci� 19—
Ye Naqs NO� � �� �,�6�
�arlson Disapproved and vetoed Nov. 24 , 1969
Dalglis il��w�1 19—
� �1VIeredith ,_,_,� Tn Favor
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�pr�� Mayor
°�Against
�Tedesco
Mr. President, Bv�e
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PAUL �,�� NQ.
�FICE OF THE CITY CLERK ,
COUNCIL RESOLUTION-G�ERAL FORM
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COMMISSIONE� �I►*F
Al6SOLYEa, t�at � C�s�a►ratis� �ea�t�tl +t# i�t 61t�r �t �1ti�att
Paitl #�s 11s�1r�r a,ut#�ris�i � ti�r��4 t+m► �ie+ltt� ��t #Ia �
oiiioials oi lt�s�urra St�at+�s !'e►wr C�r ferr t�a a�p�s�M �arpos� ;
o! �laria� ti+r �os�iL�,li�r oi arr�oti.a�i�, � �t �1��► t� .
Cit�r aqM �al��t C�s�► �r�+t�r '�a� C��1�r*� �r�a►�t �1.�r �c �
�r to b�v�e +A� ia � y�ar i9',�0 sball � p�►ir� �athhiy darta� 19?Q
aw! �reh tss� ios � rMr� lsllorris� s�ll a2ar '1�► �a� �►�
aad ps�rabi• a� a crar�n� sa►sf�61r bssii.
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NOV 2 0 19G9
COUNCILMEN Adopted by the Coanc>> , ' �9_.
Y '� car�son xa� NAV 2 0 1969
D�� ✓ Approv� 19—
�/ Meredith Tn Favor
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./ Sprafk� �r
/ A on;nat
✓ T�P.8C0
Asr.President, Byrne �
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qUADRUPLICAT6 TO D�ARTMBNT 2��3R1
• • CITY OF ST. PAUL ��ENC�� NO
OFFICE OF THE CITY CLERK
COUNCIL RESOLUTION—GENERAL FORM
PRESENTED BY
COMMISSIONER DAT�
��a�.v�, �si t� �or�+aratfo� c�as•� �r tbe �ity �►r �at��►`
F�a�i f• l�er�t�r autheris�l uut dlrt�t�d ia ,�aa�pu�iQat� �rit� th+r prsprrr
otiiciair ai �iorthern Sf,ates Powwr Co�rpaa�► �'or t�� �rs��� p�egos�
o� eacplorin� tAe p��,�i.t�ila[ty +�i na�otisii� a►�►. a�ra�ent betwesr� tlt�
C#ty ana said f.�rapanr wher�by that ��11�'� �ro�� �arai�s tss dw
or �o i��aar� ��� ia td� y�ar 19�0 �11 be �s�d so�l�l�r 0nri»a 19�0
aaA �tcd .taz�• sor tl�a yearr iollowi� sbia2l u2�a M Itae, cxin�
a� paTable om a cnrreet 0cunthly basi�.
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NOV Z � 1969
COUNCILMEN Adopted by the Counci� 19—.
Yeas Nays
f Carlson NOV 2 � ],��
Dalgliah �� Approved 19—
�/ Meredith Tn Favor
� Mayor
S�,rafku
fTedesco ASainst
Mr. President, Byrne �
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" � 246381
t��:S�tLr�'�►, trhat the� Carp�ratiqa Cou�at�el +ai th� C�ty of �ri�t�
��a�l i• h�rlla�► aa�ari��d a�rc! dir�ctM �b�a etr�xte�t• rrit,� tba prc>�ar
ott2eisls o! �for�h�cs Stat�r Po�e�r C�p�a�r !ar tht as�r��� p�ur�de
oi �splori� tb� poss3biltty �! n��otistinn� sn +�rs�rat b�tr�ea t�•
City �►ad •siQ C�p�a�ty ���arr,b�► i�utt G�pa�►'a �ro�� s�arsfu�s t�r du�,
�r to beco�a da• ftt iD�e ysar 19T4 il�21 be pait �o��Yl�r lb�t�ria� 197� -
aud Aucti tq►a��s #ar tha yatr+r iollorin� sb�tll •l�o D�r �r�, o�rfa�
and payaDle a� a curseot soAt61Y b�tsi�.
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N O R T H E R N 5 T A T E 5 P O•W E R C O M P A I� Y
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MINNEAPOLIS, MINNESOTA 55407 .
LAW DEPARTMENT NOVeTI11J@Y' 2�, 1969 TELEPHONE 330-6600
DONALO e.nieLSOnI " AREA CODE 612
VICE PRESIOENT AND ' .
GENERAL COUNSEL
ARTHUR R.RENQUIST - .
- ARLAN� O.BRUSVEN . .
GENE R.50MMER5 �
RALPH 5.TOWLER '
�AVIO G.MCGANNON . .
' JOSEPH D.BIZZANO.JR.
ATTO R N EY6 .
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Mr. Robert Eo 0'Connell � � � � � � €�� �
Corporation Counsel 1��V2 �: �969
City of St. Paul GOP.PORATIO�J COU�IS�a!
City Hall
St. Paul, Minnesota
Dear Mr. 0' Connell:
As a result of our discussions concerning legal guidelines
which should control any agreement to accelerate gross earn- .
ings payments in St. Paul, we agreed on the following legal
guidelines:
l. Any agreement relating to acceleration of gross earnings
payments should be by formal contract and should not be
�- by informal agreement. '�
2. The f'ormal con'cract relating to gross earnings payments
should be one of the conditions of the permit under which �
NSP. operates in St. Paul. This can be accomplished by �
amendment of the existing permit or adoption of a new �
permit. �
3 . The provision of the permit which relates to gross earn- �
ings payments should only cover that period for which the y
permit authorizes NSP to conduct its utility operations �
within the City of St. Paul, .
�. The proper legal procedure for enactmerit of a contract
relating to gross earnings payments would be for the
Council to enact an ordinance amending the existing per-
mit or adopting a new permit, which would then be subject
to acceptance by NSP.
If you �oncur, please sign below . �
Very tru7�y ours,
;�-��. � ,. .
��.� �,;�:.:c_s..,�.�..�..�--�ti��
ARR:Pd A. R. RENQUI�ST
APPROVED:
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�Corporation Counsel
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OFFICE OF THE MAYOR
CITY O� SAI�TT PAUL
EXECUTIVE Dt:PARTMENT
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Thomas R. Byrns C/>-< �.,
blayor . ' �C� .�--.
November 24 , 1969 �� „
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To the Members of the City Council • �'
City of Saint Paul, Minnesota r �;
� Gentlemen:
Saint Paul City Council File 246381 was presented to me for
signature Thursday afternoon, November 20 , 1969 . I find that it
is necessary for me to veto this resolution.
There are several reasons whv I must take this action which is ��
u:,c�„�,�o;� ��. x�ec���t �:�ty �:ou;��:�I ;�i5 �oi•y . Dec:au5e ui Ene importance
of these reasons , I wish to state them for you.
1. This resolution has , as its intent , the negotiation of a �
payment to the City by Northern States Power Company of a
sum of money to be used in the 1970 budget. It is true that
this money rightfully belongs to the citizens of Saint Paul .
However, I cannot emphasize too strongly that according to
the contract between the City and Northern States Power Company,
this payment is. not due until 1971. Any prepayment made by
Northern States Power Company that would represent a cost to
the company would in fact be a deprivation of benefit to the
stockholders unless there would be the expectancy of some
benefit for the company and the stockholders to be received
at a future date. I assign no improper motives to anyone at
this time . I do say that a conflict of interest situation
(perhaps moral and ethical rather than legal) exists if we
persist in pursuing this course of action. .
2 . .We have very serious legal questions that have not been clearly
answered because there are those who would use this situation
for ulterior motives . There are those who are more interested
in defeating the proposal to be voted on December 9 than they
are in helping our city . They hope to create an atmosphere of
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Members of the City Council
November 24 , 1969 '
Page 2
doubt and confusion. This confusion has worked to the detriment
of the pending special election and it seems sure that this
confusion is one of the objectives of those pushing so h ard to
force Northern States Power Company to pay the city, and to
force the city to accept this money from Northern States Power
Company. ..
The whole arrangement , as proposed thus far, depends on Northern
States Power Company paying the city an extra $1. 2 million in
1970 and going on a current or pay-as-you-go status in 1971.
The Utilities Committee of this council has stated that it is
impossible to even think of renegotiating a new permit franchise
while the electric rate hearing is in progress . Such a change
would represent a tremendous financial loss to the City. The
present permit franchise of Northern States Power Company
expires on December 31, 1970 . I question that we can amend any
cont ract to cover a pe riod of time with that cont ract th at is
not covered in the terms of the original contract. Th us , in
��FF....+ �± �TT�Y1�f1+1�1 ic 11'nT!'14C't�i�ca }jOth tQ NPGElV� an early
...��...... y �. j.t+.��..... ...�J �.. �._.r
payment in 197U and to change to tne monthly payment syste;l�� i;i
1971 simultaneously at this time.
3. I feel most strongly that this council will have abdicated
totally its responsibility to provide sound leadership in the
fiscal affairs of our city if this haphazard, windfall financing
method is pursued. We have a sensible program to meet the needs
of our city through 1971. We have strong hopes that the 1971
legislature will provide the only real solution--a statewide ,
or at least a metropolitan-wide ,Municipal Aid Program. If the
December 9 proposal passes and if, despite all our efforts ,
there is no program forthcoming from the legislature , then we
in Saint Paul will have an excellent base from which we can
establish a program to levy on non-residents and corporations
a fair share of the cost of providing all the amenities necessary
in our city to ass ure them th at they can earn a living and
carry on busir�ess in a safe , healthy urban environment.
Meanwhile , we must balance an adequate budget for 1970 .
Contrast the alternatives with the above program:
a. We must live under a cloud of conflict of inte rest.
b. We cannot act on future rate he arings . with public confidence.
c. We cast a cloud of doubt on a corporate citizen of our community.
d. We have multiplied the problems of the 1971 budget.
e. We have not met the needs of the 1970 budget.
� . _ •
Members of �he City Council
November 24 , 1969
Page 3 �
Our comptroller, Joseph J. Mitchell, has repeatedly told us that
nothing can be put into the budget unless we have the money in hand
or we have an air-tight contract or legal procedure that will
produce the money.
What really is the situation in the light of the comptroller's position?
Maybe Northern States Power Company will make a payment in 1970 .
Maybe Northern States Power Company will make monthly payments
in 1971.
Maybe there will be another proposal to vote on in 1970 . "
Maybe the proposal will be approved by the voters . .
Maybe the hotel-motel tax will be in effect by April.
i•iayve zne S�faze ie�i5ioi.ui�c ►�iii �vive oiir �i•�LI�r,�.
Maybe we can enact a tax on the water users .
Maybe we can enact a tax on telephone users .
All of these "maybe's" do not add one penny of revenue to either the
1970 or the 1971 b udget. To risk the welfare of our city, to risk
the jobs of many fine policemen, firemen, and other city employes ,
and to attempt to fool the citizens by creating false hopes are
signs of irresponsibility and insensitivity that should not characterize
a public body.
I strongly urge all members of this council to reconsider the actions
that have divided this council. Let us pull together to support the
proposal th at is to be voted on December 9 , 1969 . This proposal h as
been thoroughly studied and approved by the Charter Commission of
Saint Paul, by this council, and by many civic groups . Let us not
be afraid to let the people decide at the polls . Let us not try to
confuse the issue in the mind of the voter. Let us act only to bring
facts before the electorate. Let us carry out all the recommendations
of the Charter Commission to present this proposal in a straight-
forward fashion to ,the electorate. We have a legal obligation to
do this according to law.
F
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Members of the City Council
November 24, 1969
Page 4 �
I am convinced that Council File 246381 does not meet these criteria.
I have therefore vetoed Council File 246381.
Sincerely,
' �
THOMAS R. BYRNE �
Mayor
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