12/22/1986 Council Minutes (2) - Laserfiche WebLink

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COUNCIL MEETING December 22, 1986 give Lino Lakes five years to determine the profitability of the system if Circle Pines operates it. An arbitrator will determine the Committee has the system in five years. Mr. Marier said that the Negotiating has contacted the other gas utility in Lino Lakes and believes that this gas company would buy the Lino Lakes portion of the Circle Pines gas Company and pay Lino Lakes a franchise fee. However, the Committeecle has negotiated this franchise and feels it would be accepted by Pines. If it is not accepted by Circle Pines, Mr. Marier has told Mayor Dahl he will not negotiate any further. Mayor Benson felt if the second reading of this Ordinance were approved tonight it would be law not just a concept. Mr. Hawkins agreed, however the Council could just refer it to Circle Pines and ask for their approval in writing. Mayor Benson asked what would it take for Lino Lakes to operate its own gas system? What expertise? Is it a viable option? He asked to to hear from our gas consultant regarding these questions. Mr. Reinert moved to table this issue until the Lino Lakes gas consul- tant can come before the Council to explain all the options to the Coun- cil. The motion died for a lack of a second. Mayor Benson asked if the language in this document could be changed to "depreciated value" and the document forwarded to CircleAPines. Mr. Hawkins explained that he, Mr. Schumacher and the City had met with representatives from Circle Pines and pointed out they had agreed to the "depreciated value" language. The Circle Pines repre- sentatives said they were not going to agree to this language. Mr. Marier explained the Lino Lakes Negotiating Committee then met again and changed enough language in the document to insure that Lino Lakes will not ge forced to buy the system. Mr. Bisel asked Mayor Benson why he wanted the consultant to appear before the Council. Mayor Benson explained that since we do have a consultant he should appear before the Council and explain all the options open to Lino Lakes. Mr. Marier and Mr. Hawkins pointed out that the document before the Council tonight should go forward to Circle Pines and not give Circle Pines any further reasons for contend- ing that Lino Lakes has waived any rights under the previous franchise. Mr. Marier moved to forward the document in concept to Circle Pines and request a reply from them within 30 days and continue this public hear- ing Until, January 26, 1987 at 8:30 P.M. and have the consultant attend the next Council Meeting. Mr. Bohjanen seconded the motion. Motion passed with Mayor Benson voting no. 8:15 P.M. PUBLIC HEARING - CONSIDERATION OF THE 1987 OPERATING BUDGET - RESOLUTION #60 -86 Mayor Benson oCouncilthe hadpublic athearing P.M.B.tonight and•discussed Schumacher the explained the Co1 uncil 1