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HomeMy WebLinkAbout08/16/1971 Council Minutes66 8/9/71 Mr. Cardinal suggested the Clerk check the records and that Mr. Szymanski come to the next Planning and Zoning meeting on August 18, 1971. Al Robinson was wondering what was going to be done to the extreme west end of Pine Street. He says the village took fill out about 8 or 9 years ago and said they would then finish it. Nothing has been done and it sinks more each year. Mr. Locher said he would check the records on easements, as Mr. Robinson said he has one. He also indicated that if the municipality has kept 'it up for six years, then they must maintain it. Mr. Locher is also going to check with Columbus Township't Attorney. Mr. Gotwald said we fulfill lateral system requirements to scheduling hearings etc. Some contact with Sewer Board will have to be made to get something concrete. Mr. Jaworski moved that Mr. Locher, Mr. Gotwald and Mr. L'Allier meet with the staff of the Metro. Sewer Board to ascertain their intentions, as it relates to the installation of the main interceptor. Seconded by Mr. Rosengren. Carried unanimously. Mr. Gotwald indicated Lino wants completion of lateral. Village is half way through comprehensive plan now. Mr. Jaworski moved to pay the bills as add,ited. Seconded by Mr. Bohjanen. Carried unanimously. Mr. Cardinal moved to adjourn at 9:55 P.M. Seconded by Mr. Rosengren. Carried unanimously. Minutes approved at the meeting of August 23, 1971 Deputy -Clerk 8/16/71 The ' pecial meeting of the Lino Lakes Village Council was called to order by Mayor L'Allier at 8:10 P.M. with all members present. Mr. L'Allier stated that the purpose of the meeting was to discuss gas service to the Molin Plant. Participants in the discussion were the Circle Pines Utilities Commission, North Central Public Service and the Molin Concrete Co. The Circle Pines Utilities was represented by Mr. Wayne Dannheim, Mr. Joe Davis and Mr. Jerry Pehl. The North Central Public Service was represented by Mr. Jerry O'Brien and Mr. Simon, Attorney for North Central. Mr. Bill Molin and Mr. Dick Olson were also present. Mr. L'Allier invited each side to present their views and then the Council would have the opportunity to question them. Mr. L'Allier stated that the question before the Council was whether or not Circle Pines had the authority to extend their gas lines to the Molin Plant; whether it is the Council's intent to restrict Circle Pines to areas not franchised to North Central. Mr. Dannheim spoke for the Circle Pines Utilities. He explained that their Engineers were doing some private work at the Molin Plant when the subject of gas service came up. Molin was offered gas service on a firm basis and since this was the kind of service desired by the company, they signed a contract with the Circle Pines Utilities for gas. Circle Pines was informed of the violation on the day the work was completed and no further work has been done. Mr. Jerry O'Brien spoke for North Central stating that it is not economically feasible for two utilities to operate in the same community and duplicate lines. 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. 8/16/71 Molin for signature; and that there was no indication of a franchise existing in the area. Mr. Davis said this was considered a service line and not a main line. Mr. Simon, Attorney for North Central, informed the Council that he was the attorney for North Central at the time they were given a franchise in the village; that action of priorvillage councils is not binding on the present council; and that the franchise was accepted on the basis of Good Faith and Good Sense; that it was reasonable to accept the franchise if the council made intentions clear to Circle Pines. This was done. Also, that it is uneconomical to duplicate services. There was no legitimate question before the Council; that Circle Pines is asking the Council to depart from arrangements made years ago. Mr. Rosengren stated that we had given an exclusive contract to Circle Pines to service the entire village with gas and then had voided that contract and given part of the village to North Central; he wondered what kind of Good Faith that was. Mr. Davis stated that the Council had asked for a feasibility study and that this had been done and presented to the Council. The service had been pro- jected as to expansion and population growth and service had been seen as not coming to some areas for a long time. Mr. Pehl stated that he was sure that North Central had made the same sort of a study. Mr. L'Allier stated that we were not here to decide if the Council in 1966 made the right or wrong decision but to decide if Circle Pines will be allowed to remain and service Molin or if they will be made to adhere to the North Central franchise lines and abide by our ordinance & franchise involved. Mr. Davis read from a letter from Molin to the Village Council dated 7/16/71, stating that they had an offer of firm gas from Circle Pines and that they had signed a contract with the Circle Pines Utilities and felt that the contract should be honored. Mr. Molin explained that they had checked into the cost of a standby system and felt that it was too expensive at the present. Also, that Molin had had no offer for firm gas from North Central. Mr. Davis also stated that in his opinion there would be no precedent set because this was a service line and not an extension. Mrs. Gould felt that wouldn't have such a mess if Circle Pines had come in for approval in the first place; that all companies, should have to abide by our rules regardless of who they are. Mr. O'Brien restated his position that North Central would offer Molin gas on a firm basis or on a standby system which probably would only be used two or three times a year. The tanks and propane would be the property of North Central and would cost Molin nothing. Mr. Molin stated that they had never been told they could have firm gas from North Central. Mr. Olson said that they had been told that there was no way they could get an offer of firm gas from North Central. Mr. O'Brien stated that earlier this year that they couldn't but now they could. No explanation as to why. Mr. Cardinal stated that he could understand their concern over an interruptable system and that he knew of the problems with such a system serviced by oil, but he thought that gas would be an entirely different thing. Mr. Jaworski asked Mr. O'Brien if the Council acted in favor of North Central would North Central continue firm gas to Molin? Mr. O'Brien said "Yes" with interruptable service only on request by Molin. Mr. Juleen stated that he thought the gas should be given on a competitive basis; he thought Molin should.be able to buy their gas from the company with the best offer; that he bought gas and oil from where he could get the best price and he wouldn't want the Council to tell him where he could and could not buy. Mr. Bohjanen pointed out the North Central pays taxes and that Circle Pines Utilities does not; also that Circle Pines Utilities is continually going down hill as far as finances are concerned. He wondered why. Also we have an Ordinance with the rules clearly stating that approval from the Council is necessary before installing any lines and that the line was already into the building before the Council had any knowledge of it. Mr. L'Allier asked that the discussion be restricted to the Ordinance and whether we issue a waiver or variance to Circle Pines or act in favor of North Central. Mr. Davis presented some figures stating that based on the present mill rate of the Village that North Central pays about $1,658.66 in taxes to the Village; but with the savings on gas and the accrued value in the system the Village has approximately $4,801.36 value in the Circle Pines system. Mrs. .Ahlman suggested that . Molin was .fortunate that we allowed them in the Village; that they were not exactly a desirable company and that all companies should have to abide by the rules of the Village; that_a big company, just because itis a big company, should not be allowed to make their,own rules as to who does or does not service them. Mr. L'Allier stated that we welcome all industry to our Village and that he thought it was an unfortunate thing that the MolinCompany should be caught in middle of this. Also, our concern was not whether the former Councils made the right or wrong .decision, but whether Circle Pines Utilities was in violation of the franchise provisions set forth in 1962 (Circle Pines) or in 1966 (North Central). That after hearing the discussions and reading the material and taking due. deliberation should the Council take steps to correct the violation - - -or if no violation, leave things as they are. Would the Council prefer to vote now or later? Mr. Bohjanen wanted to vote then. Mr—L'Allier preferred to have the minutes transcribed and vote at the next Council meeting. Mr. Cardinal asked how long it would take North Central to put gas into the plant? Mr. O'Brien said one day or less. Mr. Rosengren mentioned that the Circle Pines system is subject to buy -back by the Village and wouldn't it make more sense to buy a profitable company than a broke one, and that possibly the Molin contract could make the Lino Lakes gas a profitable situation. Mr. L'Allier thought that the bonds had to be retired before we could buy our 70 8/16/71 system; he wondered if that was all the Circle Pines Utilities bonds or just the ones concerning Lino Lakes. He also thought that 1972 was the year we could exercise our option to buy the lines. Mr. Locher quoted from Sec. 6, Ord. #28, concerning the option of buying the franchise from Circle Pines Utilities. Mr. Pehl stated that public utilities are required to publish their profits and losses and that this is unfair since private companies do not. He also thought that this phase of operations should not enter into the discussion. Mr. Pehl was asked about the additional facilities they are checking into and if this cost would be reflected in their service to Molin. Mr. Pehl answered that at the present there are no definite plans for additional facilities; the costs are so wide spread that they have a lot more checking to do. Mr. L'Allier motioned to adjourn at 9:20 P.M. Seconded by Mr. Rosengren. Aye. Minutes approvdd at the meeting of August 23, 1971 ;,,% Deputy -Clerk /s/ Dickey Sarner 8/23/71 The regular meeting of the Lino Lakes Village Council held on August 23, 1971, was called to order at 8 :12 P.M. by Mayor L'Allier with all members present. Mr. Bohjanen moved to accept the minutes of the special Council meeting held on July 29th as submitted. Seconded by Mr. Jaworski. Carried unanimously. Mr. Cardinal moved to accept the minutes of the regular August 9th Council meeting as written. Seconded by Mr. Rosengren. Carried unanimously. The minutes of the special meeting held on August 16th were corrected as follows: Page 2, bottom paragraph, last line, add "and abide by our ordinances and franchises involved. ", Page 3, top line, date changed to "7/16/71 "; Page 4, paragraph 8, first line, word "reited" to read "retired ". Mr. Jaworski moved to accept the minutes` of the special August 16th meeting as corrected. Seconded by Mr. Cardinal. Carried unanimously. The Clerk reported receipt of the following: 1. A booklet entitled, "Minnesota Federal Aid Coordination System." 2. A letter from the Metro Council on their Community Assistance Program, requesting suggestions from local officials. Mr. L'Allier requested members to read the material and offer comments at the next meeting. 3. The League bulletin on preparing municipal budgets. The Clerk remind- ed the Council that the budget meetings are generally held in Sept. It was decided to hold the first budget meeting on Sept. 7th at 8 P.M. with the second date to be set later. 4. Affidavit of publication for Ord. No. 56, District Zoning Code. 5. Municipal court fines in the amount of $107.50. 6. Per capita liquor tax in the amount of $3627.07 and cigarette tax in the amount of $4465.60. Adjustment for the new census figures had been included in these checks. 7. The list of names from the County Health Dept. to whom they had written letters concerning sewage systems. 8. Notice of an Oneka incorporation hearing to be held Sept. 15th. 9. Second quarter fire report from Centerville, which was read. 10. A letter from Mark Hurd Aerial Surveys, Inc., offering sale of aerial maps of the Village.