HomeMy WebLinkAboutResolution - 916 - Designating Member for Suburban Rate Authority - 11/26/1974 Nov. 22, 1974
CITY OF EDEN PRAIRIE.
HENNEPIN COUNTY, MINN.
RESOLUTION NO. 916
RESOLUTION AUTHORIZING PARTICIPATION IN
THE SUBURBAN RATE AUTHORITY; DIRECTING
THE EXECUTION AND DELIVERY OF A JOINT
POWERS .AGREEMENT; AND DESIGNATING A
REPRESENTATIVE OF THE CITY AS ITS MEM-
BER ON THE BOARD OF THE SUBURBAN RATE
AUTHORITY_
WHEREAS, the City of Eden Prairie is authorized by Minnesota. Statutes,
Section 471. 59 to enter into joint and cooperative agreements with other gov-
ernmental units, and
WHEREAS, the City Council has determined that the City cooperate with other
municipalities in the monitoring of utility services in the Metropolitan Area by
participating in the Suburban Rate Authority, and
WHEREAS, the City is presently a member of the Suburban Rate Authority es-
tablished by joint agreement in 1962. to administer -the regulatory provisions of
uniform franchises granted to Minneapolis Gas Company, and
WHEREAS, the City Council has determined that it is necessary and desirable
that the Suburban Rate Authority continue in existence, notwithstanding the assump-
tion of utility regulatory powers by the State, for the purpose of monitoring
utility services and participating to the maximum degree possible in the utility
rate-making procedure, and that the Suburban Rate Authority' s scope of activities
be broadened to include electric utilities and other utilities if necessary.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Eden Prairie, Minnesota,
as follows:
1. The Mayor and (Clerk, Manager) are authorized and directed to execute the
attached Joint and Cooperative Agreement providing for membership of the City in
the Suburban Rate Authority.
2. In accordance with the provisions of the Joint and Cooperative Agreement,
the Council hereby designates Carl J: Jullie, P.E. as its first director on
the Boar3 of Directors of the Suburban Rate Authority.
3. The City Clerk is directed to file a copy of the executed agreement to-
gether with a certified copy of this resolution with the City Manager of Columbia
Heights.
ADOPTED ON November 26, 1974 '
David W. Osterholt
ATTEST: / SEAL
f
Jo Frane, City Clerk
SUI3UIZBAN P11TE AUTHORITY
13520 Bellevue Drive
Minnetonka , Minnesota 55343
November 8 , 1974
Dear SRA Member :
As you know , effective January 1 , 1975 , the .Minnesota Public
Service Commission will assume jurisdiction of rate regulation of
public utilities in Minnesota , including Minneapolis Gas Company .
The uniform franchises our members have granted the Gas Company will
remain in effect , but the rate regulation features of them and the
SRA regulatory system will no longer be in effect.
The SRA Board of Directors has been considering the question
of the future role of the organization for the past months and ,
after much deliberation , has come to the conclusion that it is
desirable that the organization remain in existence and that its
functions be somewhat modified to recognize the changed regulatory
system.
At its regular meeting on October 7.6 , 1.974 , the SRA Board adopted
a set of recommendations to the membership for reorganization of
the S12YA. These are attached in enclosure `1o. 1 . In essence the
Board recommends that the SRA bo. continued , its activities broadened
to include electric utilities , its membership opened to any municipality
in the metropolitan area , and that its pride role be one of general
oversight and monitoring of gas and electric utility services and .r.ax-
:i_murn input into the rate-making proceedings of the Public Service
Commission .
Please note that the Board ' s recommendations are only recommen-
dations ; the final decision as to participation rests with each
municipal council . There was a general consensus , however, that
the primary reasons for continuance were as follows :
1 . The two most critical rate filings to come to the PSC
will be the first NSP filing and the first Minneapolis
Gas Co. filing Which undoubtedly will be made soon after
January 1_ , 1975 . The PSC decision in these filings will
set the pattern for future rate-setting and establish
the basic principles for future rate-setting .
2 . The SRA is an on-going organization , with funds avail-
able to it, enabling it to actively and effectively
participate in these initial PSIC determinations.
3 . A critical question for SRA members is the disposition
of funds in the Minneapolis Gas Co . overage account
` established. under the exi_stinci uniform franchise . It
is essential that this account be properly recognized
in rates established for SRA members .
4 . The same need for cooperative activity in presenting the
municipal point of view to the PSC exists as existed in
dealing with Minneapolis Gas Co.
5 . Unless SRA. broadens its activities to cover electric
utilities there will be no effective joint municipal
voice in electric rate matters before the PSC.
There are a number of other reasons for continuance , many of
which are quite obvious to you; but they are best surnmed up by saying
that joint and cooperative action in a field as complex as utility
regulation is more effective than individual effort . I think the
history of the SRN ' s success demonstrates that fact .
The Board directed the attor:iey to draft a new agreement embodying
the principles set forth in its recommendations . The agreement and
model authorizing resolution are attached in Y,nciosure No . 2 . As the
agreement is drawn the reorganized SRA will come into existence when
seven of the present mei;ibers file the necessary documents . (Under
the present agrc:emont , seven is the minimum. number necessary for the
continuance of the. organization. ) Any member choosing not be par-
ticipate in the new organization will be entitled to a pro -rates share
of SRA assets as provided in the present agreement.
I know the council will give serious consideration to continuing
the SRA, and I sincerely hope that it will be continued. Because
time is short , the Board requested that action be taken prior to
December 1 , if possible , so that necessary arrangements for shifting
to the new organization can be accomplished by January 1 , 1.975 .
Council action by motion or resolution indicating intent to participate
and communicated to me or Mr . LeFevere by letter will be sufficient ,
and the documents should be executed and filed as soon as possible
thereafter.
Also attached as Enclosure No . 3 is a draft franchise for I4SP and
a memo explaining its development. The Board instructed me to send
this to all members for their information ;
Thanks for your consideration and I look forward to hearing from
you soon.
Very truly yours ,
SUBURBAN RATE AUTHORITY
/s/ Donald Asmus
Donald Asmus , President
DA : DJK: caw
Enclosures
cc : City Clerk
Enclosure No. 1
The following recommendations were adopted by the SRA Board
of Directors on October 16 , 1974 :
Recommendations
The Hoard of Directors recommends the SRA be reorganized
according to the following principles :
1 . Scope of Activity: The Authority should broaden
its activities to specifically cover gas and electric utilities
including the authority to appear before the Public Service
Conunission on behalf of its members . It should be authorized
to extend its activities to other public utility matters by an
extraordinary majority vote of 75% of its members . While
service levels and rates are no _longer subject to its juris-
diction, the Authority would have an important role to play
in input and liaison with the PSC , cooperative effort in
uniform franchise ordinances , and research and investigation
into utility rate and service matters .
2 . Nature of Organization : The Authority would continue
as a joint powers organization . Because its function is
changing somec•:hat and there is a possible need to permit other
municipalities to join , it is recommended that a new agreement
be prepared and executed by members , with membership open to
any municipality in the Metro Area.
3 . Status of Present Members : Any present member not
wishing to participate in the new organization would be
entitled to a return of its pro rata share of SRA assets in
accordance with the present agreement.
4 . Financing : Adeauate funds are available for operation
during calendar year 1975 and perhaps longer . Thereafter ,
financing would be from ani.ual contributions from members and
possibly special contributions from members for extraordinary
costs (e . g . rate studies, appearances before PSC etc . ) based
on an equitable formula under the present agreement .
5 . Representation : Representation on the Board of
Directors of the Authority should be related directly to
population of members with a minimum and maximum limit on
voting strength . It is recommended that each member have at
least one vote and no member have more than 20 votes .
6 . Time Frame : It is recommended that the new organi-
zation be formed as of January 1 , 1975 .
• - Enclosure No. 2
' JOINT AND COOPERATIVE AGREEtIENT
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I . PARTIES
The parties to this agreement are governmental units of
the State of Minnesota. This agreement is made pursuant to
Minnesota Statutes, Section 471. 59, as amended.
II . GENERAL PURPOSE
The general purpose of this agreement is to establish an
organization to monitor the operation and activates of public
utilities in the metropolitan area; to conduct research and
investigation of the activities of such utilities ; and to conduct
such other activities authorized herein as may be necessary to
insure equitable and reasonable public utility rates and service
levels for the citizens of the members of the organization.
III. NAME
The name of the organization is the SUBURBAN FATE AUTHORITY.
The name may be changed in accordance with Article XII .
IV. DEFINITIONS
Section 1. For purposes of this agreement, the terms
defined in this article have the meaning given them.
Section 2 . "Authority" means the joint and cooperative
organization created by this agreement.
Section 3 . ".Board" or "Board of Directors" means the Board.
of Directors of. the Authority established by Article VI .
Section 4 . "Council" means the governing body of a
governmental. unit.
Section 5. "Governmental Unit" means a city or town in
the metropolitan area .
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Section 6 . "Metropolitan Area" means the metropolitan �
area defined and described by Minnesota Statutes, Chapter
473B . 02, as amended.
Section 7 . "Member" means a governmental unit which has
entered into and become a party to this agreement. i
Section 8 . "Public Utility" or "Utility" means an investor
owned utility supplying gas or electricity under franchise
within one or more governmental units; the term may include
,
other utilities as provided in Article YII. The term does not
include municipally owned utilities .
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Section 9 . "Statutory Cities" means cities organi<ed under
Minnesota Statute, Chapter 412 .
V. MEMBERS HIP
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Section 1 . Any govern—mental unit in the metropolitan area
is eligible to be a member of the Authority .
Section 2 . A governmental unit desiring to become a member
shall execute a copy of this agreement and conform to the member-
Chip provi_si_ons of Article VI I .
Section 3 . The initial members shall be those members who
become members on or before January 1, 1975 .
Section 4 . Governmental_ units wishing to become members
after January 1, 1975, may be admitted only upon the favorable
vote of two-thirds of the votes of the members of the Board of
Directors . 13nnrcl may , in its by-laws, impose conditions
upon the admission of additional members . �i
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Section 5 . A change in the governmental boundaries , struc-
ture, classification or organization of a governmental unit
affects the eligibility of a unit to become a member of the
Authority.
VI . GOVERi•7ING BODY: 130ARD OF DIRECTORS
Section 1. The governing body of the Authority is its
Board of Directors . Each member is entitled to one director on
the Board . Each director is entitled to one vote for each 5, 000
of population or fraction thereof of the governmental unit
represented by the director; provided, however, that each
director shall. have at least one vote and no director shall have
more than 20 votes . For purposes of this section, population of a
governmental unit shall be that population determined pursuant
to the provisions of Minnesota Statute 275 . 53 . Prior to December
31 of each year, the Secretary-Treasurer of the Authority shall
determine the population of each member in accordance with
this section and certify the results to the chairman.
Section 2 . A director shall be appointed by resolution of
the council of the members for a term of one calendar year. A
director shall serve until his successor 9_s appointed and
qualifies. Directors shall serve without compensation from the
Authority, but nothing in this section shall be construed to
prevent a governmental unit from compensating its director for
service on the Board if such compensation is otherwise authorized
by law.
Section 3 . The Board, in its by-laws, may provide for the
appointment of alternate directors and prescribe the extent of
their powers and duties.
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Section 4 . Vacancies in the office of director will exist
for any of the reasons set forth in Minnesota Statutes Section
351 . 02 , or upon a revocation of a director ' s appointment by a
member duly filed with the Authority. Vacancies shall be filled
by appointment for the unexpired portion of the term of director
by the council of the member whose position on the Board is vacant .
Section 5 . Amajority of the votes of the Board of
Directors constitutes a quorum, but a smaller number_ may adjourn
from time to time .
VII . MEETIZ4GS - ELECTION OF OFFICERS
Section 1 . A governmental unit may enter into this
agreement by resolution of its council and the duly authorized
execution of a copy of this by its proper officers . Thereupon,
the clerk or other appropriate officer of the governmental unit
shall file the executed copy of the agreement and a certified
copy of the authorizing resolution with the city manager of the
City of Columbia Heights , Minnesota. The resolution authorizing
the execution of the agreement shall also designate the first
director for the governmental unit on the Board.
Section 2 . This agreement is effective on the date when
executive agreements and authorizing resolutions of seven
governmental units presently members of the existing Suburban
Rate Authority have been filed as provided in Section 1 of this
Article .
Section 3 . Within thirty days after the effective date of
this agreement, the mayor of the member having the largest
population shall call the first meeting of the Board of Directors
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which shall- be held no later than 15 days after such call .
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Section 4 . The first meeting of the Board shall be the
organizational meeting of the Authority. At the organizational
meeting, and at each annual meeting thereafter, the Board shall
select from among the directors a chairman, a vice-chairman,
and a secretary-treasurer .
Section 5 . At the organizational meeting, or as soon there-
after as it may reasonably be done, the Board shall adopt by-laws
governing its procedures, including the time, place, noti.ce for
and frequency of its regular meetings , procedure for calling
special meetings, and such other matters as are required by
this agreement. The Board may amend the by-laws from time to
�tirle. The Board shall meet at least once each year and on such
other dates as may be provided in its by-laws .
VIII . POWERS AND DUTIES OF THE BOARD OF DIRECTORS
Section 1. The powers and duties of the Board of Directors
of the Authority are set forth in this article .
Section 2 . The Board may make such contracts and enter
into sucli agreements as it deems necessary to make effective
any power granted to the Authority by this agreement . It may
contract with any of its members or others to provide space,
services or materials on behalf of -the Authority.
Section 3 . It may provide for the prosecution, defense,
or other participation in actions or proceedings at law in which
it may have an interest, and may employ counsel for that purpose .
It may employ such other persons as it deems necessary to accomplish
its power.s and duties . Such employees may be on a full-tune or
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part-time , or consulting basis as the Board determines , and the
Board may make any required entploycr contributions which local
government units are authorized or required to make by Law.
Section 4 . It may conduct such research and investigation
an3 take such action as it deems necessary , including partici-
pation and appearance in proceedings of state and federal
regulatory, legislative or administrative bodies , on any matter
related to or affecting utility costs , levels of service , rates
or franchises , and advise riembers concerning such matters with
a view toward obtaining compliance ,with franchises granted to
utilities and insuring reasonable rates and service levels
for the members and their residents . The Board may conduct the
activities authorized by this section on behalf of any govern-
mental unit located outside the metropolitan area at the request
of such a unit, embodied in a resolution of its governing body;
provided however, that the conduct of such activities on behalf
of any such governmental unit shall be specifically authorized
by the Board and shall be subject to such reasonable conditions
as to cost of service and other matters as may be imposed by the
Board.
Section 5 . The Board may obtain from any utility and from
any other source such information relating to utility rates , costs
and service levels as any of its meinbers is entitled to obtain
from such utilities .
Section 6 . it may receive and hold moneys from any utility
to the extent and in the manner as may be provided by this
agreement or any franchise granted to a utility by a member; and
it may accept voluntary contributions from its members or other
sources as provided in Article X. The Authority shall have no
taxing power . It may accumulate reserve funds and may invest and
re-invest its funds not needed for current expenses in the manner
and subject to the _limitations applicable by law to statutory
cities . The Board may not incur_ obligations in excess of funds
then available to Authority .
Section 7 . The Board shall make a financial accounting
and report to the members at least once each year . The books
and records of the Authority shall be open and available for
inspection by members at all reasonable times .
Section 8 . The Board may accept gifts , apply for and use
grants of iY:oney or other property from members or other govern-
mental units or organizations , and may enter into agreements
required in connection therewith , and may hold , use, and dispose
of such moneys or property in accordance with the terms of the
grant, gift or agreement relating thereto .
Section 9 . The Board shall establish the annual budget for
the Authority as provided in Article X.
Section 10 . The Board may , in its by-laws , establish an
executive committee and may delegate duties and authority to such
a committee between Board meetings .
Section 11. . The Board may purchase public liability insurance
and such other security bonds and insurance as it may deers
necessary .
Section 12 . The Board may exercise: any other power necessary
and convenient to the implementation of the powers and duties
given to it by this agreement .
IX. OFFICERS
Section 1 . The officers of the Board shall consist of a
chairman, a vice-chairman , and a secretary-treasurer who shall be
elected by the Board, for a term of one year and until their
successors are elected and qualify , at the annual meeting . New
officers shall take office at the adjournment of the annual meet-
ing at which they were elected. An officer must be a duly
qualified and appointed director .
Section 2 . A vacancy in the office of chairman , vice-
chairman , or secretary-treasurer shall occur for any of the
reasons for which a vacancy in the office of director shall
occur . Vacancies in these offices shall be filled by the Board
for the unexpired portion of the term.
Section 3 . The chairman shall preside at all meetings of
the Board. The vice-chairman shall act as chairman in the absence ,
disqualification or disability of the chairman .
Section 4 . The secretary-treasurer is responsible for keep-
ing a record of all the proceedings of the Board, for custody of
all funds , for keeping of all f inanci al records of the Authority
and for such other duties as may be assigned to him by the Board.
Persons may be employed to perform such services under his super-
vision and direction as may be authorized by the Board . The
secretary-treasurer shall post a fidelity bond or other insurance
I
against loss of Authority funds in the account specified by the
Board . The cost of such bond or insurance shall. be paid by the
Board . The Board may provide for compensation of the secretary-
treasurer for his services .
X. FINANCIAL MATTERS
Section 1 . The fiscal year of the Authority is the calendar
year.
Section 2 . Authority funds may be expended in accordance
with the procedures established by law for statutory cities .
Orders , checks and drafts shall be signed by the chairman and
countersigned ay the secretary-treasurer or such other person as
may be designated by the Board in its by-laws . Other legal
instruments shall. be executed on behalf of the Authority by
the chairman and the secretary-treasurer. Contracts shall be
let and purchases made in accordance with the procedures
established by law for statutory cities .
Section 3 . The activities of the Authority shall be
financed by funds available to it under Article XII , from
voluntary contributions from its members or from other sources ,
and by contributions from members of the Authority if it is
determined by the Board by a two-thirds vote of all votes of
then existing members , that such contributions are necessary.
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Such determination shall be made by the Board not later than
August 1 of each year in order to obligate members to make
contributions during the ensuing calendar year. The total annual
i
contribution by members for the ensuing year shall be established
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by the Board on the basis to anticipated expenditures and only
if the anticipated expenditures are in excess of the anticipated
funds otherwise to the Authority . The contribution in any year
by a member shall be in direct proportion to the number of votes
to which the director representing the member on the Board is
entitled. Such contributions shall be made by the member to
the Authority as follows : One-half on or before February 1 of
each year and one-half on or before August 1 of each year.
Section 4 . An annual budget shall be adopted by the Board
at the organizational meeting and at the annual meeting each
year. Copies of the budget shall be mailed promptly to the
chief administrative office of each r;iember. The budget is deemed
approved by the members except one who , at any time prior to
the annual meeting gives notice in writing to the secretary-
treasurer that it is withdracaing from the Authority .
XI . DURATION AND DISSOLUTION
Section 1 . The Authority shall exist, and this agreement
is in effect, for an indefinite term until dissolved in
accordance with Section 3 of this article .
Section 2 . A member may withdraw from the Authority by
filing a written notice with the secretary-treasurer by June 15
of any year giving notice of withdrawal at the end of that
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calendar year; and membership shall continue until the effective j
I
date of the withdrawal . A notice of withdrawal may be rescinded i
r
at any time by a member . If a member withdraws before dissolu-
tion of the Authority, the member shall have no claim on the
assets of the Authority .
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Section 3 . The Authority shall be dissolved whenever the
withdrawal of a member reduces total membership in the Authority
to less than the number of members required for organization of
the Authority under Article VII , Section. 2 . The Authority may
be dissolved at any time by unanimous vote of all the members
of the Board of Directors .
Section 4 . In the event of dissolution , the Eoard shall
determine the measures necessary to affect the dissolution and
shall provide for the taking of such measures as promptly as
circumstances permit, subject to the provisions of this
agreement . Upon dissolution of the Authority all remaining
assets of the Authority , after payment of obligations , shall be
distributed among the then existing members in proportion to
the number of their votes on the ?Board and in accordance with
procedures established by the Board . The Authority shall
continue to exist after dissolution for such period , no longer
than six months , as is necessary to wind up its affairs but for
no other purpose .
XII . TRANSITIONAL AND MISCELLANEOUS MATTERS
,Section 1 . The activities of the Authority shall be con-
fined to gas and electric utilities , provided however, that the
Authority may extend and broaden its activities to any other
public utility as defined in this agreement by a 75% majority
vote of all the votes of the Board of Directors , taken at a
regular meeting of the Board. In the event the activities of
the Authority are so extended and broadened, the Authority and
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its Board of Directors shall have all of the powers and duties
with reference to any other public utility that it has with
reference to gas and electric utilities under this agreement.
Section 2 . The name of the organization created by this
agreement may be changed when deemed appropriate by the Board ,
but only upon a 75o majority vote of all the votes of the Board
of Directors taken at a regular meeting of the Board. If the
name of the organization is so changed , the Board shall provide
in its by-laws for necessary measurer to effect the change in
official and unofficial documents , papers , and other essential
respects .
Section 3 . It is the intention of the parties to this
agreement that the organization created thereby is the
successor to the Suburban Rate Authority now in existence .
It is further the intention of the parties that any funds made
available to the organization created by the agreement from
assets of the present Suburban Rate Authority shall be used
exclusively for the purposes of: this agreement.
IN WITNESS WHEREOF , the undersigned governmental unit
has caused this agreement to be executed by its duly authorized
officers and delivered on its behalf .
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In the presence of : (Governmental Unit)
By Its
By Its �_-<. C�. l•_ _
Dated: '�-��c 1974 .
Filed in the office of , this
day of , 1974 .
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