06-82Council File # � � � � �
Green Sheet # 3029395
RESOLUTION
OF
Presented by
PAUL, MINNESOTA
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RESOLUTION ESTABLISHING A NEGOTIATING COMMITTEE
FOR THE NSP/XCEL GAS AND ELECTRIC FRANCHISES
6 W�xEAS, the Charter of the City of Saint Paul requires that any entity using City property or the City's
7 right-of-way — or which maintains permanent or semipermanent fixtures therein for purposes of operating a
8 utility — have a franchise from the City; and
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10 W�REas, the Saint Paul City Charter vests with the Council the power and authority to grant and regulate
11 franchises; and
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W�RFas, Northern States Power (NSP), now known as Xcel Energy, was granted two ten-yeaz franchises
by the City in 1996, through Council Files 96-416 and 96-417, to provide gas and electric services within
the City of Saint Paul from July 1, 1996 through June 30, 2006; and
W�RSas, the current NSP franchise agreements for use of the City's right-of-way to provide gas and
electric service cover issues ranging from the rate regulation, franchise fee rates and structure, to issues of
location of gas pipes, electric poles and other utility facilities, as well as the terms and conditions for
20 changesthereto;and
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W�izEas, the process of negotiating a utility franchise agreement, by its nature, involves conducting
research and analysis, consulting with key stakeholders and holding a series of ineeUngs over time to
thoroughly review the current agreements and proposals for their improvement; and
WxExEas, it is in the interest of both the City and Northern 5tates Power (NSP), now known as Xcel
Energy, to beginning engaging in discussions relating to the franchises, as they will expire in less than
eight months; and
WI�,1zEAS, due to a change in administration in 2006, a new negotiating team needs to be named to replace
the one named by former Mayor Randy Kelly; now therefore be it
RESOLVED, that the Saint Paul City Council and Mayor hereby establish the following committee to
negotiate or renew the gas and electric utility franchises held by NSP:
Matt Smith, Director of Financial Services, Chair
Trudy Moloney, D'uector of Council Operations
Jim Strommen, Consultant to the City
ob-�z
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45 And be it
46
RESOLUTION ESTABLISHING A NEGOTIATING COMMITTEE
FOR THE NSPJXCEL GAS AND ELECTRIC FRANCHZSES
(Page 2)
47 RESOLVED, that the Mayor and City Council direct the negotiating team to include members of the Strategy
48 and Resource Team, which is co-chaired by Lori I.ee of the Office of Financial Services and Marcia
44 Moermond of City Council Research, as appropriate at the negotiating table for the successful completion
50 of their work; and be it further
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52 RESOLVED, that the City Council and Mayor direct that these franchise discussions be consistent with duly
53 adopted City energy policies and that Councilmembers, the Mayor or his designee be provided with at least
54 quarterly briefings on these discussions; and be it further
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RESOLVED, that the Mayor and City Council direct that a policy discussion(s) be convened by the Chair of
the Negotiating Committee and the Director of Council OperaUOns to develop and refine a policy
framework for initiation of these negotiations; and be it finally
RESOLVED, that this policy framework be developed by April 1, 2005 with the thorough consultation of
Councilmembers, the Mayar and appropriate City staff.
Benanav
Bostrom
Hazris
Helgen
Absent Requested by Department of:
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By: ���i�~�''� �__
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Thune y / Form Approved by City At e A � ,
Adopted by Council: Date , By: �/ SG( 1`�C , U��"/
Adoption Certified by Council Secretary
By: � Form rove by yor f bmiss' to C ncil
Approv d � Date j 30 (,�'o BY:
By: ����--�/ b
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Gree�n Sheet �
Fs — Financial services
Contact Person & Pfione:
Matt Smith
266$796
GontractType:
RE-RESOlU710N
'13-JAt�F06
� '
Assign
Number
For
Routing
Order
Green Sheet NO: 3029395
UepartrneM SentTOPerson Initial/Date
0 'al
1 inanoal tvi at�en r
2 i At[ocne �_
3 a or's0ffice Ma odASSisfant
4 ancil
5 i Cterk G� erk
Total # of Signature Pages _(Ciip All Locations for Signature)
ActionRequested: -� ����
Signatures on attached resolution establishing a negotiating committee for the NSP/Xcel Gas and Electric Franchises.
idations: Appro�e (A) or Reject (R):
Planning Commission
CIB Committee
Civil Service Commission
Service Conhacts
1. Has this persoNfirtn e�er worked under a Contract for this department?
Yes No
2. Has this person/firm eeer been a city employee?
Yes No
3. Dces this persoNfirtn possess a skill not normally possessed by any
current city employee?
Yes No
Expiain all yes answers on separate sheet and attach to green sheet
Initiating Probiem, Issues, Opportunity (YVho, What, When, Where, Why):
The franchise agreements aze due to expire June 3Q 2006. Due to the change in administration, the City needs to establish a negotiating
team to work out the details of the renewal.
AdvanWgesHApproved: �
The team will continue its work on contract negoflafions for the gas and electric franchises.
�„'
DisadvanWpes IfApproved:
None.
DisadvanWqes tfNotApproved:
The team cannot continue their negofiations and continuiry would be lost.
�AN 1_ 3 2UU6
Transaction:
Fundinp Source:
Pinancial Information:
(Explain)
CosNRevenue Budgeted:
Activity Number:
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January 13, 20068:27AM Page 1 �