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COUNCIL MEETING <br />November 10, 1986 <br />Bisel moved to table this matter until the Strategic Planning <br />meeting. Mr. Bohjanen seconded the motion. Motion carried <br />unanimously. Mayor Benson asked the Council to study this <br />proposed ordinance prior to the meeting. <br />Mr. Bisel moved to instruct the staff to prepare a temporary <br />ordinance placing moratorium on pole -type construction in <br />the industrial, commercial type area for six months to allow <br />time to review and prepare plans for development. Mr. Marier <br />seconded the motion; motion carried unanimously. <br />Mr. Reinert asked if this would apply to proposals already <br />pending. Mr. Hawkins said no, it would apply to any requests <br />made after the moratorium becomes effective. <br />ATTORNEY'S REPORT <br />Mr. Hawkins did not have a report. <br />GAS UTILITY FRANCHISE UPDATE - RANDY SCHUMACHER, ROB TAUTGES <br />Mr. Schumacher had prepared a status memorandum for the <br />Council outlining what has transpired regarding the Franchise <br />Negotiating Committee's attempt to negotiate a new franchise <br />with Circle Pines before the old franchise expires. The <br />committee has looked into all the options open to Lino Lakes <br />and did hire a consultant to evaluate the option of pur- <br />chasing the Lino Lakes portion of the gas systems. <br />The final proposal of the Negotiating Committee consists <br />of a request for a 7% profit based on gross gas sales.. <br />By using this method, all previous issues were made irrele- <br />vant. Also all risks would be eliminated and based on <br />today's sales would guarantee Lino Lakes a profit of approxi= <br />mately $20,000.00 per year. Circle Pines agreed to this <br />proposal and at the November 3rd Negotiating meeting requested <br />additional language be included in the franchise regarding <br />Circle Pines' ability to drop the franchise after five years. <br />At that time Lino Lakes would have the same options as <br />exist in the present franchise. In order to protect the <br />franchise rights which presently exist in the franchise, <br />the Lino Lakes' staff have notified Circle Pines that it <br />is exercising its option to purchase the gas system. There- <br />fore, if Circle Pines does not come back to Lino Lakes with <br />a signed franchise as negotiated at the November 3rd meeting, <br />Lino Lakes is covered under the franchise language for <br />acquisition rights. It is now up to this Council to decide <br />if they wish to approve the Negotiating Committee's <br />recommendations. <br />1 <br />1 <br />1 <br />