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08/16/1971 Council Minutes
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08/16/1971 Council Minutes
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City Council
Council Document Type
Council Minutes
Meeting Date
08/16/1971
Council Meeting Type
Special
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8/16/71 <br />Molin for signature; and that there was no indication of a franchise existing <br />in the area. Mr. Davis said this was considered a service line and not a main <br />line. <br />Mr. Simon, Attorney for North Central, informed the Council that he was the <br />attorney for North Central at the time they were given a franchise in the <br />village; that action of priorvillage councils is not binding on the present <br />council; and that the franchise was accepted on the basis of Good Faith and <br />Good Sense; that it was reasonable to accept the franchise if the council made <br />intentions clear to Circle Pines. This was done. Also, that it is uneconomical <br />to duplicate services. There was no legitimate question before the Council; that <br />Circle Pines is asking the Council to depart from arrangements made years ago. <br />Mr. Rosengren stated that we had given an exclusive contract to Circle Pines to <br />service the entire village with gas and then had voided that contract and <br />given part of the village to North Central; he wondered what kind of Good <br />Faith that was. <br />Mr. Davis stated that the Council had asked for a feasibility study and that <br />this had been done and presented to the Council. The service had been pro- <br />jected as to expansion and population growth and service had been seen as not <br />coming to some areas for a long time. Mr. Pehl stated that he was sure that <br />North Central had made the same sort of a study. <br />Mr. L'Allier stated that we were not here to decide if the Council in 1966 made <br />the right or wrong decision but to decide if Circle Pines will be allowed to <br />remain and service Molin or if they will be made to adhere to the North Central <br />franchise lines and abide by our ordinance & franchise involved. <br />Mr. Davis read from a letter from Molin to the Village Council dated 7/16/71, <br />stating that they had an offer of firm gas from Circle Pines and that they had <br />signed a contract with the Circle Pines Utilities and felt that the contract <br />should be honored. Mr. Molin explained that they had checked into the cost of a <br />standby system and felt that it was too expensive at the present. Also, that <br />Molin had had no offer for firm gas from North Central. Mr. Davis also stated <br />that in his opinion there would be no precedent set because this was a service <br />line and not an extension. <br />Mrs. Gould felt that wouldn't have such a mess if Circle Pines had come in for <br />approval in the first place; that all companies, should have to abide by our <br />rules regardless of who they are. <br />Mr. O'Brien restated his position that North Central would offer Molin gas on a <br />firm basis or on a standby system which probably would only be used two or three <br />times a year. The tanks and propane would be the property of North Central and <br />would cost Molin nothing. <br />Mr. Molin stated that they had never been told they could have firm gas <br />from North Central. Mr. Olson said that they had been told that there was no <br />way they could get an offer of firm gas from North Central. <br />Mr. O'Brien stated that earlier this year that they couldn't but now they could. <br />No explanation as to why. <br />Mr. Cardinal stated that he could understand their concern over an interruptable <br />system and that he knew of the problems with such a system serviced by oil, but <br />he thought that gas would be an entirely different thing. <br />
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