08/23/1971 Council Minutes - Laserfiche WebLink

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74 8/23/71 Mr. Jerry,0'Brien, Director of rates and service for North Central, wished to reply to Mr. Burstein's comments. He didn't feel that we should rehash what was said before. He noted that Circle Pines,has the line and is ready to provide service - -so is North Central. Mr. O'Brien wished to correct one of Mr. Burstein's statements, namely that they both have non - exclusive franchises, but that Mr. Burstein didn't state that North Central has no franchise in the Circle Pines area. He does not argue about the contract. Mr. O'Brien noted that Mr. Burstein had said competition was the reason for North Central's franchise, but he differed on this. Lines were set forth, and it was made clear to Circle, Pines that Lino Lakes didn't want Circle Pines to extend beyond the boundary lines. When two companies run lines down the same street, the costs are duplicated and the customer pays these costs. Lino Lakes didn't want competition. In regards to the extension of line to the Youth Center with no special appear- ance before the Council, Mr. O'Brien stated that if the Council looked back to the feasibility study that Circle Pines gave to Lino Lakes in order to get the franchise- -this shows the line to the Youth Center, so it was approved with the franchise. Mr. O'Brien stated that Molin is not ready to take gas yet; they have the equipment but no lines to same. North Central is ready to serve and believes they are the logical ones to do so. Mr. Burstein commented that it appears now that North Central is prepared to serve Molin, but this is after the fact, after Circle Pines had signed, that they agreed partially on the same basis. He understood that withstanding Mr. O'Brien's statement that Molin was ready for gas. He noted that even though they are the small community to the south, that they serve many customers in Circle Pines and Lino Lakes, that they need more customers, that they cannot compare in size with North Central. He hoped they would let them go forth with Molin. There was no question from the Council. Crystal wanted to add again, that as regards violation of a franchise, one person is as good aa.another, that all should adhere to the rules and regulations for anything, She asked how Joe Davis, the mailman was involved wit! ^4rcle-Pines, but Mr. L'Allier would not allow the conversation to follow that line. Mr. L'Allier noted that all Council members have copies of correspondence received from Molin, Circle Pines Utilities and North Central Public Service Co. as well as copies of the ordinances and proposed amendments thereto con- cerned. He noted that only one of the present Council, members was involved when Ordinances No. 28 and 29 were passed, and that two of the present Council members were on the Council when Ordinance No. 41 was adopted. This is not something new; each will vote in their best judgment. The matter may be resolved out of these chambers in Court. Mayor L'Allier called for a motion to approve or disapprove the action of the previous Council as it relates to granting a franchise to North Central and the subsequent letter of intent to Circle Pines asking them to restrict their activities to the area not covered by North Central. ' Mr. Cardinal moved to approve the action of the 1966 Council in granting a franchise to North Central Publid Service Co. and the letter of intent ' restricting Circle Pines to the area not covered by North Central. Seconded by Mr. Bohjanen. Vote: Mr. Jaworski--Aye, Mr. Cardinal--Aye, Mr. Rosengren -- No. Mr. Bohjanen--Aye, Mr. L'Allier--Aye. Motion carried.