88-583 WHITE - CITV CLERK t .
PINK - FINANCE COIlI1C11
CANARV -OEPARTMENT GITY OF SAINT PALTL �
BIVE -MAYOR File NO.
•
O� indnce Ordinance N 0.�,-.1�.5'� �'
_ �' � 1 ,
o(_
Presented y _
Referred To ��� �- w `� � Committee: Date �'�'��� '��
Out of Committee By Date
AN ORDINANCE GRANTING TO NORENCO CORPORATION, A
WHOLLY�OWNED SUBSIDIAR OF NORTHERN STATES POWER
COMPANY, AND ITS SUCCES ORS AND ASSIGNS, PERMISSION
TO CONSTRUCT, OPERATE A D MAINTAIN A HIGH PRESSURE
STEAM LINE UNDER AND T ROUGH PUBLIC RIGHTS OF WAY
AT SEVERAL LOCATIONS WI HIN THE CITY OF SAINT PAUL
THE COUNCIL OF THE CITY 0 SAINT PAUL DOES ORDAIN:
Sec ion 1 .
Permission and authority re granted to Norenco Corporation,
a wholly�owned subsidiary o Northern States Power Company
(hereafter , "Norenco") , its s ccessors and assigns, to operate
and maintain a high pressure steam line under and through public
rights of way at several loca ions within the City of St. Paul.
Sa id 1 ine has been constructe underground along the tracks or
right of way of the Chicago, Milwaukee, St. Paul and Pacific
Railway Co. (hereafter, "Milwa kee") , and along the tracks of the
Chicago and Northwestern Tra sportation Company (hereinafter ,
"Northwestern") , between Nor hern States Power Company's High
Bridge Plant and the Waldorf Corporation (hereafter, "Waldorf")
recycled paperboard and foldi g carton manufacturing facilities
at 2250 Wabash Avenue in St. aul , and crosses public streets ,
ways and/or air rights at seve al locations. The location of said
tracks or right�of�way is desc ibed as follows:
COUNCIL MEMBERS
Yeas Nays Requested by Department of:
Dimond
�� [n Favor
Goswitz
Rettman
Sc6eibel A gai ns t BY
Sonnen
Wilson
Form Ap oved by Cit ttorney
Adopted by Council: Date ° ' � �
Certified Passed by Council �ecretary BY
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
By BY
, . - � ��-��-�
Beginning at North rn States Power Company' s High
Bridge Plant and M lwaukee' s right-of-way, adjacent
Cliff Street near Smith Avenue ; thence running
southwesterly along Cliff Street to Ann Street; thence
curving westerly t Western Avenue and Grace Street;
thence westerly alo g Grace Street and Benhill Road to
Short Line Road; th nce along Short Line Road to Selby
Avenue; thence continuing northwesterly on a line
crossing Snelling Avenue at Marshall Avenue and
Fairview Avenue at Interstate 94; thence along St.
Anthony Avenue to Pr 'or Avenue, continuing on sam e line
to Vandalia Avenue north of Interstate 94 and to
Waldorf' s facilities which are the terminus of the
line.
The steam line herein uthorized is for the purpose of
serving Waldorf ( its succes ors and assigns, including as a
partial assign of Waldorf, the Housing and Redevelopm ent
Authority of the City of Sain Paul, Minnesota) exclusively; and
this Ordinance does not autho ize Norenco to construct, operate
and m aintain said line to erve high pressure steam to the
public. Said Milwaukee trac s cross public streets or ways at
several locations along their ength, including:
Cleveland Ave. and G lbert Street, sidetrack,
Ordinance No. 1827, uly 22, 1895, and
Iglehart Ave. and Fr Street, spur tracks ,
Ordinance No. 2806, anuary 9 , 1909, and
Ordinance No. 2855, ugust 23, 1909.
Permissionand authority re further granted for such steam
line to cross over , under and hrough all other public streets or
ways along the length of the M lwaukee and Northwestern tracks as
now constructed and located from the Northern States Power
Com pany High Bridge Plant to he Waldorf facilities, where such
tracks or crossings now law ully exist pursuant to ordinance
granting such permission. Suc permission and authority shall be
given for a period of years beginning with the effective date of
this Ordinance, and continuing until June 30, 2001.
Such permission and authority are not effective and are not
granted for any period of t me during which permittee, its
successors and assigns, has ot obtained and/or maintained in
full force and effect a surety bond and insurance policy pursuant
to sections 2 (a) and 2 (b) and pproved as required therein , nor
shall any extensions of permission and authority be granted on
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account of cancellation, laps or absence of said surety bond or
insurance policy.
Se tion 2.
The Director of the Dep rtm ent of Public Works is hereby
authorized to extend the perm t already issued to Norenco for the
construction, operation and m intenance of the underground steam
line according to approved pl ns filed with the Department, upon
said permittee's (hereafter to include Norenco and its successors
and assigns) continued compli nce with the following conditions:
(a) Said permittee shall furnish and maintain a surety
bond to and in fa or of the City of Saint Paul as
obl igee in the annu 1 amount of one and a hal f m il l ion
dollars ($1,500,00�) conditioned to require the surety
to comply with and fully perform all of the terms ,
conditions, requi em ents and obligations of this
Ordinance, includin but not limited to the payment of
compensation as re uired by subsection (n) below, if
the permittee fails to so perform and comply, without
regard to whether t e failure is or could be construed
as a default or a b each ; and further conditioned to
fully indemnify, h ld harmless and defend the City of
Saint Paul, its agents, officers and em ployees from any
and all damages, c aims, losses, judgments, suits or
expenses arising out of the failure of the permittee to
com ply with or perform the terms , conditions ,
requirements and o ligations of this Ordinance. Said
bond shall expres ly refer to this Ordinance and
incorporate its t rms by reference, including any
amendments authoriz d by subsection (o) below. Said
bond shall by its t rms not be subject to cancellation
except upon the expiration of 90 days following receipt
of written notice b permittee and by the Clerk of the
City of Saint Pa 1 . Permittee shall not be in
com pliance with th s subsection until said bond has
been obtained and is in force, and has been approved as
to form, coverage a d com pliance with this subsection
by the City Attorne and the Director of the Departm ent
of Finance and Mana ement Serv ices. The surety on sa id
bond shall be a pers n, firm or corporation resident in
the State of Minn sota and registered to transact
business therein , and shall have com plied with
applicable statuto y certification or authorization
provisions;
(b) Said permitt e shall fully indemnify, hold
harmless and defend the City of Saint Paul, its agents,
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officers and employees from any and all damages ,
claims, losses, jud ments, suits or expenses on account
of all claims of whatever nature for injury to
person(s) and/or p operty arising out of or connected
with the construct on , maintenance, operation and/or
removal of sa id un erground steam 1 ine , or out of the
permission and au hority granted herein , except for
damage caused to t e underground steam line itself by
the negligent act r omission of an agent, officer or
employee of the C ty; and that supplemental and in
addition to all ot er obligations on its part, jointly
and/or severally, hereunder, said permittee shall
furnish and maintain and pay all premiums and other
expenses therefor, iability insurance coverage with a
duly licensed lia ility insurance com pany, or an
authorized surplus lines insurance com pany, authorized
or certified as m y be required by law to transact
business in Minne ota, naming the permittee as an
insured and the City of Saint Paul as an additional
nam ed insured, to the extent of a minimum of ten
million dollars ($1 ,0l�J01,�00) combined single limit for
injury ( including eath) to any person and/or persons
and for damage to property in any single accident,
insuring the City f Saint Paul against liability on
account of all cla ms of third persons for injury to
person(s) and/or p operty arising from or connected
with the construct on, maintenance, operation and/or
rem oval of said underground steam line hereunder ;
except for dam age caused to the underground steam line
itself by the negl gent act or omission of an agent ,
officer or employe of the City. Such policy shall not
be a "claims made policy, and shall not have any
endorsements res ricting the foregoing coverage;
provided , however, that a claims made policy will be
acceptable if it m ets all the other requirements of
this subsection nd includes an option in form
satisfactory to th City, which provides defense and
indemnification for the City as to all claims required
to be covered by t is subsection, for at least three
years after the ter ination of such policy, regardless
of when or whether the permission granted under this
Ordinance has expir d or been terminated. Nor shall the
above limits be onsidered or provided as annual
aggregate limits. The permittee shall furnish a
certificate of this insurance policy from time to tim e
to the City of Sai t Paul as described in subsection
(c) below. If permittee is required to indemnify and
defend the City, t will thereafter have com plete
control of such 1 ' tigation , but permittee may not
settle such litigat on without the consent of the City,
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which consent shall not be unreasonably withheld. This
subsection is not, s to third parties, a waiver of any
defense or imm unit otherwise available to permittee;
and permittee, in d fending any action on behalf of the
City, shall be entitled to assert in any action every
defense or immunit that the City could assert in its
own behalf;
(c) Said permitte shall submit the surety bond and
insurance policy( i s) required by subsections (a) and
(b) above, on or efore the effective date of this
Ordinance, to the 0 fice Engineer of the Department of
Public Works . The Office Engineer shall submit said
documents to the C ' ty Attorney for review and if the
insurance and bond re acceptable said docum ents shall
be filed with the D partment of Finance and Management
Services of the Cit of Saint Paul;
(d) Said permittee shall without any cost to the City
in accordance with all applicable ordinances of the
City of Saint Paul, statutes of the State of Minnesota
and regulations of ublic authority having cognizance,
maintain and operat said underground steam line;
(e) Said permitte shall maintain and operate said
underground steam ine entirely without cost to the
City, in accordance with the permittee's approved plans
on file in the Department of Public Works ;
(f) Said permittee shall pay the costs of publication
of this ordinance nd all resolutions or ordinances
passed in relation t said ordinance;
( g ) Said permi tee shall pay the costs of
administration, eng 'neering and inspection incurred by
the Department of Pu lic Works due to this undertaking,
up to a max imum amo nt of $2, 0�J0;
(h) Said permittee expressly agrees to comply with
Chapter 125 of the Saint Paul Legislative Code as
amended pertaining to street obstructions , in the
prosecution of any o erations involving the maintenance
and/or removal of sa 'd underground steam 1 ine;
( i) Said undergro nd steam line shall be removed
and/or relocated by aid permittee without any cost to
the City, Port Authority or Housing and Redevelopment
Authority whenever the Council of the City of Saint
Paul shall by resol tion after notice and opportunity
for hear inq by the erm i ttee, determ ine such removal
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and/or relocation necessary ( 1) to discontinue or
avoid interference with the public use of a public
street or way as existing , or with any improvement of
such street or wa , which shall include the repair
and/or reconstruc ion of the railroad bridge and
adjacent public str ets or ways, crossing Marshall and
Snelling Avenues i the vicinity of the intersection
thereof ; or (2) o avoid interference with the
developm ent of an industrial park, major housing
project, or redevel pment area project. In the event of
vacation of a publi street or way which is not part of
a public improveme t project , industrial park, major
housing project, o redevelopment project, the City
shall only vacate s bject to the rights granted by this
permit. Upon or after July 1 , 2PlA1 , or upon the
earlier termination of the permission granted herein,
the Council of the City of Saint Paul may, without
notice or hearing , order the said steam line and all
appurtenant equipm e t rem oved from all public streets
and ways by the per ittee at its sole cost and expense ,
allowing a reaso able time therefor . If not so
removed, the City m y perform the work, and permittee
shall pay all cos s therefor within 30 days after
receipt by it of an invoice or invoices from the City.
(j) Said permittee shall coordinate all work involving
existing or propose utility installations, public or
private , with the affected utility companies or
agencies;
(k) Said permit ee shall properly protect all
excavations made i or adjacent to public streets or
ways so as to avoid all damage or injury to persons or
property, shall pro erly fill and compact said street
right-of-way to avo d settling, and shall restore said
street right�of=way in accordance with the Departm ent
of Public Works st ndards for street openings, under
the supervision and to the satisfaction of the Director
of the Department of Public Works ;
(1) Said permitte shall , during the term of this
permit , restore an repair ( 1) all public property
damaged by the construction , operation , maintenance ,
rem oval or relocati n or presence of said und erground
steam line provide for herein, and (2) all private
property damaged y the negligent construction ,
operation , mainten nce, removal or relocation , or
presence of said und rground steam line;
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(m) Said permitt e shall , within thirty (30) days
from and after the ublication of this ordinance, file
written acceptance thereof, specifically agreeing to
all the provisions terms and conditions herein, with
the City Clerk ; nd the filing of said written
acceptance shal also constitute permittee' s
acknowledgement hat this Ordinance settles and
complies in all res ects with the terms and conditions
of the settlem ent of the litigation referred to in
section 1 of this 0 dinance;
(n) Compensation. Fees due under this Ordinance:
1988=1989. Fo the fiscal year beginning July l,
1988 and endin June 30, 1989, permittee will pay
to the City the sum of $250, 0f�(�.4J0, in twelve
m onthly paym e ts of $20,833.33 com m encing August
1 , 1988 and c ntinuing on the first day of each
month thereaft r until paid in full.
1989'=1990. Fo the fiscal year beginning July 1,
1989 and endin June 3P1, 1990, permittee will pay
to the City the sum of $260, �00.00, in twelve
monthly paym e ts of $21,666.66 com m encing August
1 , 1989 and c ntinuing on the first day of each
month thereaft r until paid in full.
199P1-2�01. Fo the fiscal year beginning July 1,
199P1, and fo each year thereafter until and
including the iscal year beginning July 1, 2000,
permittee wil pay to the City an annual permit
fee equal to he Base Amount increased by the
product of th Annual Escalator , tim es the Base
Amount, as tho e terms are herein defined.
The "Base Amo nt" shall be equal to the total
annual permit ee required to be paid by permittee
during the i mediately preceding fiscal year
beginning July 1 and ending June 3�J. For example,
the Base Am oun for the fiscal year beginning July
1 , 1990 and ending June 30, 1991 would be
$26�1, ��0. 00.
The "Annual Es alator" shall be a percentage equal
to the percentage increase, if any, in the total
amount of all those costs itemized in Article IV
of the "Amende Agreement for the Sale of Thermal
Energy between Northern States Power Company and
Norenco Corporation" (attached hereto as Exhibit
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A) , incurred i the immediately preceding fiscal
year ending Ju e 3(� over the total amount of such
costs incurre in the fiscal year immediately
prior to suc preceding fiscal year . For
example, if t e total amount of all those costs
itemized in s id Article IV incurred during the
fiscal year e ding June 30, 199�, had increased
4.5� over the mount of such costs incurred during
the fiscal year ending June 30, 1989, the Annual
Escalator of .5% would be applied to the Base
Amount of $26 ,00PJ resulting in an annual permit
fee of $271 , 7 0 for the fiscal year ending June
3�1, 1991 (which would in turn become the Base
Amount for he next following fiscal year
beginning Jul 1 , 1991) . The Base Amount shall
not be decrea ed if there is a decrease in the
said Article V costs, but shall remain the same
for that year.
( iii) Permit ee may provide for the payment of
com pensation a d permit fees by another, but shall
remain primar ly responsible for compliance with
all terms and conditions herein, including those
relating to co pensation and fees.
( iv) Permitt e shall timely pay all permit fees
and com pensati n required herein without regard to
cessation of se of the steam line , or tem porary
interruptions f the delivery of steam through the
line; provide , ho wever , that if the use of the
steam line is permanently discontinued, then the
obligation to ake monthly paym ents of the annual
perm it fee sh 11 continue through December 31 of
the calendar ear in which permanent cessation
occurred and then shall cease ; and provided
further ho wev r, that if for any reason deliveries
of steam are o ce m ore m ade through the steam line
under the ex sting agreement or an amendment
thereof , or under a new agreement , between
Waldorf, Nort ern States Power Company, Norenco,
or any successor or assign thereof , monthly
installm ents hall resume for the remainder of the
period until J ne 301, 20011, and permittee shall in
addition pay to the City the Base Amount as
increased by he applicable Annual Escalator for
each month in which no payment was m ade. The Base
Am ount and An ual Escalator, in case of resum ption
after a cessa ion which resulted in discontinued
paym ents , shall be com puted as if the cessation
had not occur ed and the steam line had remained
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in operation.
(o) Every section, provision or part of this ordinance
is declared sepa ate from every other section ,
provision or part; and if any section, provision or
part shall be held invalid, it shall not affect any
other section, pro ision or part. If Section 2 (n) or
any part thereof i held invalid , the City may at its
option amend said ection 2 (n) , to which amendment or
new language permittee, and its successors and assigns
are bound and shal accept its terms and conditions so
long as the total a ount of the annual paym ent required
by the terms of thi Ordinance is not increased;
(p) The provisions of this ordinance are for the
benefit of the ity , the permittee , Waldorf
Corporation , the u er of the steam service, and the
successors and assi ns of such parties, and not for the
benefit of third p rties , except as and to the extent
provided in subsections 1 , j , and k herein ; nothing
herein shall be deemed to relieve any person , persons
or corporations f om liability arising out of the
fa il ure to exerci s reasonable care to avo id inj ur ing
the permittee' s fa ilities while performing any work
connected with the rading, regrading, or changing the
line of any public street or way, or with the
construction or rec nstruction of any utility system or
other construction roject.
9
WHITE ♦CITV CLERK ,
PINK - FINA'N�E COl1flC11
CANARV -DEPARTMENT GITY O SAINT PAUL ���
BLUE -MAVOR File NO.
•
r indnce Ordinance N 0. ��S� �
Presented By
Referred To Committee: Date
Out of Committee By Date
Section 3.
This ordinance shall take ffect and be in force thirty (30)
days from and after its passa e, approval and publication, or
upon f il ing of the wri tten acc ptance required by Section 2 (n) ,
above, whichever date is later.
COUNCIL MEMBERS
Yeas Nays Requested by Department of:
Dimond
�ng � In Favor
Goswitz
Rettman
�� � Against BY
Sonnen
`i�1N �u
t�'a� 3 � �� Form Ap roved by City At ey
Adopted by Council: Date ' . /G�i�-/
Certified Pas u i e BY ` 8 gt�
B �����
Y
Appro by Mayor: Date — �° Approved by Mayor for Submission to Council
ey
iSN�D
�. �-�3
Form 17•5267(2-8'n
• • NORENCO Corporation
Post Office Box 1396
Plaza VII—Suite 3140
45 South Seventh Street
AsubsidiaryotNorthernState9PowelCompany Minneapolis, Minnesota 55440
(612)330-�791
RECEIVED
June 2 0, �9 s s JUN 2 91988
C1TY CLERK
Albert B. Olson
Clerk, City of Saint Paul
386 City Hall
Saint Paul, MN 55102
Subject: Ordinance N . 17567 Council File No. 88-583
Dear Mr. Olson:
Pursuant to Section 2(m) o the above ordinance which was
adopted by the Saint Paul ity Council on May 31 , 1988, the
permittee, NORENCO Corpora ion, is pleased to and does hereby
accept and agree to abide y all the terms and conditions of
said Ordinance No. 17567 .
Sincerely,
�� � •
Crai J. Anderson
President
CJA/kmp/nnnl
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ASSIGN NUMBER FOR ROUTING ORDER Cl i All Lo ations for Si nature ., , _ :�: ::, : �.: � . ,
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P �` Director of �Managemen��%Mayor��
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Total Amount of "Transaction: 1U�i0� quired if under . .
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Funding Source: I�f�
Activity Number: N�R� . - . . .. < . ._. _ , . . _
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ATTACHMENTS Li st 'and Number Al 1 Attachments : + -,:<w t,., {:J.:� _�
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1• pro�au,G� o��(,�u�tuc �vl� 200� " . ._ ,
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DEPARTMENT REVIEW a, CITY ATTORNEY REVIEW
�Yes No Council �� Required? Resolution Required? N�$ Yes No
Yes X No Insurance Required? Insurance Sufficient? N(�Yes No
Yes �( No Insurance Attached:
(SEE �REVERSE SIDE FO INSTRUCTIONS)
Revised 12/84
M �
_ � � Members:
� �' ► � - � � • , � Ro er J. Goswitz, chair
t;�; Li1 I i+ �11.1N 1: l 1iUL g
, „E,;,,;t� Janice Rettman
. ��R�,��R,�,�I� o���i+�ici�, r, .ru��, ci���Y (:U[JNCIL Tom Dimond
� Date: May 11, 198
Co mittee Repor�t
To: Saint Paul City Cou cil
From :Public Works, Util'ties, and Transportation
Committee
Roger J. Goswitz, Chair
The Public Works Committ e at its meeting of rlay 11, 1988 took the
following action:
1. , 5/24/88 VACATION: P tition of riiller and Holmes, Inc. for the
vacation of art of the alley in Block 59, Arlington Hills
Addition. urpose is to expand their present facilities
(bounded by eaney, Weide, Minnehaha and Arcade Street) .
,
Recommended pproval on 3-0 vote.
2. 5/24/88 FYNAL ORDER: Improving the alley in Block 33, St. Anthony
Park by grad ng and paving from the North line of Lot 8 in •
said Block 33 to the North line of Lot 12 in said Block
33. Also ondemning and taking an easement in the land
_. necessary fo the slopes in the grading and paving of said
alley (boun ed by Everett Court, Energy Park Drive,
Tainter Stre t and Marsh Court) .
Laid over in Committee to 5-25-88.
3. 5/17/88 FINAL ORDER: Improving MARYLAND AVENUE by overlaying that
portion fro Western Avenue to Abell Street; milling,
leveling and overlaying that portion from Abell Street to
Interstate 5-E and constructing curb and gutter and
sidewalk in the easterly 1,200 feet of the project; and
constructing a street lighting system from Western Avenue
to Interstat 35-E; and repair Westbound Bridge No. 62526
(located 600 feet east of Jackson) .
Recommended pproval on 3-0 vote.
4. 5/17/88 FINAL ORDER: Improving LEXINGTON PARKWAY from Jessamine
Avenue to ontana Avenue by constructing concrete curb,
grading and aving or overlaying with bituminous material,
reconstructi g a drainage system, constructing a signal
system and street lighting system, repairing existing
bridge and d ing all other work necessary to complete said
improvements.
Recommended pproval on 3-0 vote.
C1TY HALL S�;vi�.N17� r .uui� S�11N"T l'P�UL, ri1NNLS0'I�A 55102
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5. 5/17/88 FINAL ORDER: Improving WINTHROP STREET from Lower Afton
Road to appr ximately 250 feet south to the cul-de-sac by
grading, pav ng, constructing concrete curb and gutter;
constructing torm water drainage facilities; constructing
a sanitary s wer in Winthrop Street from Lower Afton Road
to cul-de-sac constructing sewer service connections and
constructing a water main in Winthrop Street from Lower
Afton Road t south to cul-de-sac. Also, constructing
water service connections.
Recommended a proval on 3-0 vote.
6. ORDINANCE: epealing C.F. 280088 adopted April 14, 1983
and settling laims pertaining to litigation involving the
Waldorf stea line. (Referred to P.W. Committee 4-28-88)
Recommended 3-0 vote.
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8. RESOLUTION 88-679 - Releasing City's interest in slope
easements ov r part of Lots 7 and 8 in Blk. 1 and Lots 2,
3, 4 and in Blk. 2, Hudson Road Gardens bounded by
- Wilson, Ha el, Conway and Jayne. (Referred to P.W.
Committee 5- 0-88)
Recommended pproval on 3-0 vote.