08/23/1971 Council Minutes - Laserfiche WebLink

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$/23/71 After further discussion the votw was taken on the motion to adopt Ord. #57 as follows: Mr. Jaworski, Aye, Mr. Cardinal, Aye, Mr. Rosengren, Aye, Mr. Bohjanen, Aye and Mr. L'Allier, Aye. Motion carried unanimously., Mr. L'Allier stated that after publication of the ordinance, making it legal, he will appoint the five members of the new commission and a chairman. Mr. Locher had nothing specific to report on. The matter of gas service to Molin was next on the agenda. Mr. L Allier re- minded the Council that this has been a topic of discussion for several weeks, that a special meeting on this had been held last Monday for 1 1/2 hours at which time representatives from North Central Public Service Co., Circle Pines Utilities and Molin Concrete had been heard. Mr. L'Allier stated that the question of voting on the matter had come up the latter part of the meeting, but that it had been decided to wait for a transcription of the minutes before taking a vote. He hoped that we would not spend much time discussing the matter this evening. However, representatives could take 5 or 10 minutes to make their points, but not to rehash everything said last Monday night. Mr. L'Allier stated that the vote on the Molin gas matter would be taken up in 3 separate stages, to wit: 1. Approve or disapprove of Council action taken in, 1966,in regard to North Central Public Service Co. and the letter sent to Circle Pines asking them to restrict their lines to the area not franchised to North Central. 2. Approve or disapprove of the action of Circle Pines Utility in that they are in violation of the ordinance requiring that they must appear before the Council for permission to extend their lines. 3. Approve or disapprove of Circle Pines Utilities adding to or extend- ing their lines to cross existing lines, thus duplicating existing lines and coverage and servicing an area they were previously asked not to service. Mr. L'Allier asked Circle Pines to speak first. Joe Davis introduced Fred Burstein, Attorney for Circle Pines. Mr. Burstein stated that he understood that the attorney from North Central had attended the special meeting, and that Circle Pines was unaware that he would do so. Mr. Burstein pointed out the following: 1. Their franchise is a non - exclusive grant for the entire Village of Lino Lakes. 2. Investment in the line is substantial to the Village. For the reason that Molin couldn't get firm gas from North Central they did from Circle Pines; they have a valid and binding contract. He understands that the firm gas is available from North Central now, but it wasn't then. 3. This addition to Molin will substantially increase revenues to Circle Pines gas in Lino Lakes, and will put them on or close to a profitable basis. Competition was a factor in giving North Central a franchise. 4. Circle Pines was servicing the Youth Center - -at no time did the Council require approval for plans of extension to the Youth Center. The length of line to Molin would not be considered different than that to any customer. 5. They are in default of the contract to Molin since they are ready and Malin wants the gas. Mr. Burstein felt there is no violation and is sorry if we feel there is; therefore they haven't commenced service. Circle Pines is willing to give any information required to the Council and show their position. They feel they are in compliance with the ordinance and want to cooperate even though they don't feel they need approval, etc. Mr. L'Allier noted that we all have a different interpretation; that in the question of extension, no precedent would be set by a previous violation.