09/30/1985 Council Minutes - Laserfiche WebLink

Home Search

116 SPECIAh COUNCIL MEETING September 30, 1985 A special Council meeting was called to order by Mayor Benson at 6:00 P.M., September 30, 1985. Members present: Bohjanen, Reinert. Members absent: Kulaszewicz and Marier. Public Works Director, Don Volk; Engineers, Bob Toddie and John Davidson and City Administrator Randy Schumacher were also present. Mr. Schumacher explained there were two issues to be covered at this meeting regarding the gas utilities. One issue is that he had received some correspondence from the prison which indicated to him and the State Department of Administration that they felt their gas costs were too high and listed several other complaints about the Circle Pines gas utilities. He has written a letter back to the prison saying the Lino Lakes City Council would be happy to work with them to resolve the problem with Circle Pines Gas. About two weeks ago, he met at the prison with the State Department of Administration, the Correctional Facility Administration and Circle Pines. It appears the prison wishes to discontinue use of Circle Pines gas. There were two alternatives proposed by the prison: 1) the Lino Lakes City Council authorize the prison to go to North Central Public Utilities for gas, or 2) use wood chips for fuel. North Central is proposing a rate that Circle Pines claims is unfair and unjust. North Central claims Circle Pines should be more competetive. The Circle Pines staff said if the prison will give them a letter asking that Circle Pines lower its rate, they will go to their supplier to see if they can get =a reduction from their supplier. If the Circle Pines Gas Utility gets a reduction Circle Pines in turn will give the prison a reduction. Mr. Reinert asked what percent of the total volume is the prison. Mr. Schumacher said a significant amount of about 60% of the Lino Lakes system; of the total system he did not know. If the rate is dropped as Circle Pines proposes the Lino Lakes profit would drop from $29,465 to $12,365 a year. It is important to keep the prison on the Lino Lakes gas system. The prison has now sent a letter to Circle Pines saying they would go to an alternative fuel source if they cannot get a better rate. Now Mr. Theil from Circle Pines can take this letter to his supplier and ask for the reduction. Mr. Schumacher also questioned North Central's proposed rate; how long is it for; one year, two years? According to Mr. Theil there are specific regulations on utilities that regulate how much they can charge certain customers. They feel their rates will remain more constant.