Title
Acknowledging receipt of request for franchise negotiation from District Energy St. Paul Inc. and District Cooling, St. Paul Inc., and establishing a City of Saint Paul staff team for this issue.
Body
WHEREAS, the Charter of the City of Saint Paul, Chapter 16, requires that any entity using city property or the City's right-of-way, or which maintains permanent or semi-permanent fixtures therein for purposes of operating a utility, have a franchise from the city; and
WHEREAS, the Charter vests with the Council the power and authority to grant and regulate franchises; and
WHEREAS, District Energy St. Paul, Inc. f/k/a District Heating Development Company ("Company"), was granted a 20-year franchise by the City in 2007, located in Appendix F of the Saint Paul City Code and set to expire on December 12. 2027; and
WHEREAS, District Cooling St. Paul, Inc. was granted a 20-year franchise by the City in 2007, located in Appendix K of the Saint Paul City Code and set to expire on December 12, 2027; and
WHEREAS, District Energy St. Paul and District Cooling St. Paul (collectively, "DE") each submitted to the City a separate application dated June 7, 2013 to extend the terms of each franchise to June 26, 2034; and
WHEREAS, DE indicated in each application that the basis for the extension request is to consolidate debt financing that is part of an effort to secure a favorable credit rating for DE from one or more nationally recognized rating agencies; and
WHEREAS, the City process for consideration of a franchise amendment request includes the appointment of a team of staff to consider the request and to provide a written evaluation and recommendation to the Council.
NOW, THEREFORE, BE IT RESOLVED:
The City Council hereby establishes the following DE Franchise Extension Committee to perform the functions set forth in Appendix K, Section 23:
Todd Hurley, Director, Office of Financial Services;
Jonathan North, Office of Financial Services;
Trudy Moloney, Director, Office of Council Research; and
Nhia Vang, Council Research; and
BE IT FURTHER RESOLVED:
The Council authorizes and directs this committee and appropriate city staff to undertake all studies and to take all actions necessary to analyze this request and to make a report and recommendation to this Council in an efficient and prudent manner.