DISCLAIMER

07-0380R


RESOLUTION AUTHORIZING AGREEMENT WITH MINNESOTA POWER FOR PROFESSIONAL SERVICES REGARDING ACQUISITIONS, TRANSPORTATION, AND MANAGEMENT OF NATURAL GAS SUPPLIES IN AN AMOUNT NOT TO EXCEED $63.600.

BY COUNCILOR JOHNSON:

     RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, a copy of which is on file in the office of the city clerk as Public Document No. _____________, with Minnesota Power (MP), a division of Allete, Inc., for the provision by MP for professional services related to the purchase, transportation and management of the natural gas supply for the city’s natural gas utility in an amount not to exceed $63,600, payable from the Gas Fund 0520.


STATEMENT OF PURPOSE: This resolution will approve a professional services agreement with Minnesota Power, a division of Allete, Inc., for assistance in acquiring, transporting and managing the natural gas supplies by the city’s gas utility.


Fees for the professional services, more fully described in the agreement under Article I, Sections a-d, are $5,300 per month ($63,600 annually). This contract is a continuation from a contract originally started in 2003. Average monthly costs for 2005 and 2006 were $6,920 and $5,860 respectively.


This agreement and its role in the gas purchasing process was reviewed by the gas purchasing oversight committee and is recommended for approval by the city council.