12/02/1996 Council Minutes - Laserfiche WebLink

Home Search

SPECIAL CITY COUNCIL MEETING DECEMBER 2, 1996 scheduled. Mr. Schumacher also noted that he and former mayor, Mr. Vern Reinert have been working with consultant Andy Shea, an attorney with the firm of McGrann, Shea, Franzen, Carnival, Stroughn and Lamb. This group has been reviewing all gas service options available to the City and will not have their report ready for Council review for another three (3) or four (4) months. Mr. Schumacher explained that the issue tonight is a temporary gas extension because the weather is not cooperating and construction must stay on schedule. He presented a letter from Al Swintek of Minnegasco which he received about 4:00 P.M. this afternoon. The letter acknowledges that Mr. Swintek and Mr. Arne Hendrickson have met with the Lino Lakes group. Minnegasco has been seeking to renew its gas franchise in Lino Lakes and is developing a plan for temporary service to the middle school. Presently Minnegasco is operating as the successor of North Central Public Service under City Ordinance No. 41 established June 13, 1966. This franchise ordinance excludes certain areas of Lino Lakes, including the site of the new middle school. The franchise ordinance of other utilities operating within the City would permit Minnegasco to serve the middle school site. The letter also mentions Minnegasco's desire to take reasonable steps as the City may require to facilitate that service. It is Minnegasco's goal is to receive a franchise which would allow it to serve customers throughout the City, similar to those ordinances running to Circle Pines Utility Commission and NSP. Minnegasco is asking the City to partially waive the provisions of the 1966 ordinance and grant a temporary permit to install gas lines to the middle school. Minnegasco has agreed to provide approximately $150,000.00 in rebates to the middle school to offset the energy efficient construction and installation of certain equipment related to the gas cooling system and has also agreed to a long term gas supply contract. These assurances will not cause prejudice to the gas utility study or the City Council's flexibility in responding to the study. It is understood that the granting of a temporary permit will not constitute a franchise ordinance or an amendment to the 1966 ordinance. The permit would only allow Minnegasco to install the necessary temporary lines and provide temporary construction and customer service at the site of the middle school. If at a later date, it is found that another gas utility is to provide service to the middle school, it is understood that Minnegasco will be reimbursed for reasonable costs incurred in the installation of the pipe and to the extent that the pipe, as installed, may be of value to the other utility, will reimburse Minnegasco for the pipe. The letter also stated that if at a later date it is determined that the middle school is to be served by another gas utility, the City or the other gas utility that will be serving the middle school, would be bound to reimburse Minnegasco for the equipment rebates which Minnegasco has already paid or is currently obligated to pay. The letter also states that in all other respects, Minnegasco will defend and hold harmless the City from claims arising from or related to the proposed temporary permit. Council Member Kuether asked Mr. Schumacher when Minnegasco took over North Central Public Service, did they also take over the franchise. Mr. Schumacher said PAGE 5