09/27/1971 Council Minutes - Laserfiche WebLink

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98 9/27/71 Circle Pines' line to ;violin. Mr. Locer stated that Circle Pines refuses to honor the action by the Council and will enforce their contract with Molin; they Piave threatened Molin with a lawsuit if they don't go through with the contract. Mr. Locher had found that Mr. Dannheim had agreed that if Circle Pines were paid for out -of- pocket expenses for the installation of the line that they would drop the contract. Mr. Burstein had said that North Central had offered $350 for the cost (by letter), but that Circle Pines felt that it had cost substantially more than this. Mr. Cardinal asked if this was for the line all the way from the Youth Center or just from the road into Molin. Mr. Locher stated that Circle Pines feels they are entitled for reimbursement for the whole line, and they are now insist- ing that Molin go with the contract. Mr. Locher stated that Mr. Molin had told him that Mr. Gibas had told him that he must go with the contract or face a law- suit. Mr. Bohjanen asked if the Utilities Company can enforce the contract without approval of the Circle Pines Village Council. Mr. Locher stated that he believed the Utilities was under the scrutiny of the Council; he felt this was unfortunate and that it would be a costly lawsuit. Mr. Burstein had stated that Molin was a valuable hookup to both Circle Pines and to our gas, and this should be considered if we exercise our option to purchase the gas system. Mr. L'Allier noted that the Council in 1966 and 1971 had reiterated the action of the 1966 Council indicating their wish for an area not to be served by Cir- cle Pines Utilities, and that it was our intent to abide by their decision. Mr. Bohjanen asked Mr. Locher if he felt that the whole line should be consid- ered or only the portion that North Central could use. Mr. Locher stated that Mr. Collins had felt the offer of $350 was more than it would cost North Central to build the line. Mr. L'Allier mentioned that the court expenses incurred by Circle Pines Utilities are assessed to the Lino gas system, i.e., we are paying them to sue ourselves. There was discussion. Mr. Locher noted that Molin wants gas by October 1st. He noted too, that under ordinance No. 41, North Central will defend any law- suits; he would like to talk with Jerry Simon on this; it may be desirable to go to court to straighten this out. There was discussion on the previous law suit which Circle Pines Utilities had brought against North Central in 1966. Mr. Locher noted that the case was held up by a judge who denied a temporary restraining order to prohibit going ahead with the franchise; Circle Pines had held up no note of issue after the second appeal was lost. There was more discussion with Mr. L'Allier observing that because of the Council action in 1966 and 1971, even if we had been approached by Circle Pines prior to laying the line we wouldn't have granted permission. Mr. Locher read the notice that he had served to Circle Pines on June 17, 1971, that they were in violation of their contract in that they had no express coca ant of the Lino Lakes Village Council to extend their lines. After further discussion, Mr. Locher stated that we could cancel the franchise, send a notice to Circle Pines, and, if they ignore it, file notice. He noted that Molin was caught in the middle and that their defense was that the circumstances were beyond their control. Mr. L'Allier moved to authorize Mr. Locher to do back- ground work suggesting steps to be taken for revocation of the Circle Pines Utilities franchise in Lino Lakes. Seconded by Mr. Bohjanen. Carried unanimously. Mr. Cardinal inquired if Mr. Locher had heard from the County Health Officer on the Hansen sand pit. Mr. Locher stated he had not, but he had heard from a fellow who had contacted the owner in Duluth and had offered $400 for the building and was turned down. After discussion, Mr. L'Allier moved to authorize the Attorney to send a letter to the owner of the gravel pit, stating that in view of the offer