08/16/1971 Council Minutes - Laserfiche WebLink

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8/16/71 Circle Pines had a franchise to serve the entire village but when the franchise was given to North Central there were lines laid out to designate the portion of the village each would serve. That it was also necessary to get proper authorization for main line extensions. Circle Pines' lines cross North Centrals' main line. Also, if allowed to stand as is it will set a precedent. North Central will sell gas to Molin on one of two basis (1) firm gas with no interrupted service; or (2) set up propane tanks on property for interruptable service. These storage tanks and the propane would be the property of North Central. Also, North Central would agree to buy the lines already installed from Circle Pines at a reasonable rate. 67 Jerry Pehl from the Circle Pines utilities explained there was no reply to the request for a non exclusive contract because the utilities has already sold bonds and felt that it would be a violation of their intent. He also stated that the Lino Lakes Gas is no bonanza and that the business of the Molin Plant is needed by both parties. Mr. Cardinal asked Mr. O'Brien about the equipment used to store the propane; Mr. O'Brien replied that the equipment would be the property of North Central and that there would be no charge to Molin. Mr. Cardinal also asked if there would be a shut down when switching from one gas to the other. He was told there would be no shut down and there would be no effect on service. Mr. L'Allier asked about the difference between natural and propane gas. Mr. O'Brien replied that propane is about 2 1/2 time hotter than natural gas. Mr. Molin stated that they had an interruptiable oil service at their present location and had lost a lot of work hours because the system did not function so as to give them continous service. So they are understandably gun -shy of an interruptiable system. Mr. Joe Davis asked Mr. O'Brien if North Central would offer Molin firm natural gas. Mr. O'Brien said "Yes ". Mr. Davis pointed out that there were three men in the audience from Blaine, which is also served by North Central, who wish a firm gas contract from North Central and have been told that it is unavailable; and could he explain how Molin could be given such an offer and the people from Blaine could not. Mr. O'Brien said he had no answer, that he didn't know. Mr. O'Brien stated that in the Franchise the requirement to have prior approval for additions of extensions is clearly stated. Mr. Dannheim stated that he had no knowledge that it was necessary to have approval to extend to one customer; that they had never asked for approval to extend a service line to serve one customer. Parts of the Ordinance were read and Mr. Dannheim interpreted it to mean that they must have approval of any- thing that is put underground. Mr L'Allier replied, "yes ", except from the street to the house which would be considered a hook -up. Mr. Bohjanen read the part of Ordinance 49 which states that no lines shall be put in village streets without prior approval of the Council. Mr. Jaworski wanted to know that if Circle Pines is allowed to stay at the Molin plant will it set a precedent. Mr. Locher replied that they would issue a waiver or a variance and would be allowed only because of a misunderstanding. Mr. Rosengren asked about the firm gas offer. He was told that Molin had a firm gas offer from Circle Pines and not one from North Central and that was the reason they signed a contract with Circle Pines. Mr. L'Allier wanted to know who the engineers were. Mr. Molin said it was either Mr. Sullivan or Mr. Sebesta. Mr. L'Allier asked if they were told of the franchise. Mr. Molin replied that no franchise was mentioned and the contract was brought to Mr.