BY COUNCILOR STOVER:
RESOLVED, that the proper city officers are hereby authorized to enter into an agreement with Duluth Steam District No. 2, substantially in the form of that on file in the office of the city clerk as Public document No. __________, for the provision of water service to the district.
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an agreement with Duluth Steam District No. 2 for the provision of city water service to the district’s steam generation facility at the old Hibbard Station in West Duluth.
When LSPI was developed in the middle 1980's, part of the city’s responsibility was the conversion of two of the boilers at the old Hibbard electrical generating facility to produce steam for the paper-making process, which the city did. However, the resulting capacity of the steam generating facility was in excess of that needed by LSPI and so Steam District No. 2 was created to provide for the steam requirements of LSPI and to provide the excess steam to other potential users in the area.
Steam District No. 2 is a high volume water user and, as such, the city has negotiated a volume rate with them. This resolution authorizes an agreement approving those rates. The agreement authorizes the same rate structure as the agreement with StorEnso recently approved by the council.