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HomeMy WebLinkAbout03/23/1987 Council Minutes (2)1 O�� ^ u e- / COUNCIL MEETING MARCH 23, 1987 The regular meeting of the Lino Lakes City Council was called to order at 7:17 P.M. by Mayor Benson' Members present: Bieel, Marier, Reinert, 8ohjanen' City Attorney, Bill Hawkins; Engineer, Ron Stahlberg; Public Works Director, Don Volk; Building Inspector, Pete Klu*gel; Administrator, Randy Schumacher and Clerk-Treasurer, Marilyn Anderson were also present. c0N5IDER4TI0N AND APPROVAL. OF MINUTES --ular Council Meetinc . March 9 1987 - Mr' Bisel moved to approve • these minutes as presented' Mr' 8ohjanen seconded the motion' Motion carried unanimously' Council Work Sesaion, March 9, 1987 - Mr' Marier moved to approve these minutes as presented. Mr' 8isel seconded the motion. Motion carried unanimously. c0NSIDER4TI0N AND APPROVAL OF DISBURSEMENTS - MARCH 23, 1987 Mr' 8ohjanen moved to approve the Disbursements as presented' Mr' Reinert seconded the motion. Motion carried unanimously. OPEN MIKE, Gregg Eldon, North Central Public Services - Mr- Eldon explained the three basic differences between the Circle Pines Gas Utility and the North Central utility. Currently the North Central Services rates are 16% lower than Circle Pines' This means about $83'00 per year less than Circle Pines gas per residence. The second difference is that North Central pays property taxes. During 1986, the City of Lino Lakes received about $3,284'00 in taxes. The third basic difference is the gas line extension policy. North Central prnvidea •up to 05 feet of line free to a customer and 70 feet of main line extension per customer free' Mr' Schumacher asked if a customer has a problem who responds and What is the charge' Mr' Eldon explained the customer can choose his own service provider or toll North Central. North Central does charge for all service calls at a rate of minimum of $32'00 per call for the first fifteen minutes and then $16'00 per fifteen minutes thereafter' There was discussion regarding the number of service calls mode in Linn Lakes and this information was not available. Mr. Eldon said he would make available any additional information that the Council requested. PROPOSED JOINT AND COOPERATIVE CABLE T.V. AGREEMENT AMENDMENTS - MIKE CUSICK - RESOLUTION N0' ll - 87 Page 1 D�� u�v 0UNCIL MEETING MARCH 23, 1987 Mr' Cusick explained the proposed resolution for the Council. Basically it provides a method of determining the number of directors on the Cable Commission. It also describes the method of financial contributions by each Member in support of the Commission. Mr, Reinert asked Mr' Cusick if the cable system has as many hookups as anticipated originally' Mr. Cusick said no but this is a trend in Minnesota not in just this area. Mr' Marier moved to adopt Resolution No' ll - 87 and dispense with the reading' Mr. Reinert seconded the motion. Motion carried unanimously. CITY OF LINO LAKES COUNTY OF 4N0K4 STATE OF MINNESOTA Resolution No' 11 - 87 RESOLUTION AMENDING BY SUBSTITUTION ARTICLE VI, SECTION I AND ARTICLE %, SECTION 3 OF THE NORTH CENTRAL SUBURBAN CABLE COMMUNICATIONS COMMISSION II JOINT AND COOPERATIVE AGREEMENT FOR THE ADMINISTRATION OF A CABLE COMMUNICATIONS SYSTEM' WHEREAS, the City of Linn Lakes, (hereinafter "City") is an existing member of the North Central Suburban Cable Communications Commission II (hereinafter "Commission"); and WHEREAS, the Commission has made recommended amendments to the Joint and Cooperative Agreement For the Administration Of a Cable Communications System (hereinafter "Agreement") relating to the voting structure of the Commission and the financial contributions of the Members; and WHEREAS, the City believes it to be in its best interest to amend the Agreement as recommended by Commission; THEREFORE, BE IT RESOLVED, that the City Council of the City of Lino Lakes amends by substitution the existing Agreement as follows: 1. Article VI, Section 1 is amended in its entirety as follows: Section l' Each Member shall be entitled to one (l) director to represent it on the Commission' Each director is entitled to one vote for each 500 subscribers or fraction thereof to the cable system located in the municipality represented by the director; provided, however, that each director shall have at least one Page 2 1 1 COUNCIL MEETING MARCH 23, 1987 vote' For purposes of this section, the number of subscribers shall be those actual subscribers on December 31 of each year determined by the records of subscribers of the cable operator. Prior to the first Commission meeting of each year, the Secretory of the Commission shall determine the actual number of subscribers of each Member and certify the results to the Chair' 2. Article X, Section 3 is amended in its entirety as follows: Section 3' The financial contributions of the Members in support of the Commission shall be in direct pro- portion to the percent of annual subscriber revenues of each Member to the total annual revenues of the system multiplied by the Commission's annual budget. The annual budget shall establish the contribution of each Member for the ensuing year and a timetable for the payment of said contribution. The remainder of any franch- ise fee paid to the Member by Grantee Shall be used for • cable-related expenses. Prior to the collection of franchise fees adequate to cover expenses, the Grantee, as a prepayment of the fees, shall reimburse Members for all cable-related expenditures incurred by Members and the Commission' The above-listed resolution was moved by Council Member Marier and duly seconded by Council Member Reinert' The following Council Members voted in the affirmative: 8isel, 8nhjanen, Benson, Mnrier, Reinert' The following Council Members voted in the negative: None. Adopted by the Lino Lakes City Council this 23rd day of March, 1987' ATTEST: ` ��', Mar:lyr G.. Anderson, Clerk-Treasurer Randall B. Schumacher, Administrator Page 3 enjam'/ G. Benson, Mayor COUNCIL MEETING MARCH 23, 1987 PLANNING AND ZONING REPORT - PETE KLUE8EL Conditional Use Permit - Custom Homes, LoMotte Drive Mr' Kluegel told the Council that this item is a continuation of the public hearing held last fall' Custom Homes had hauled in a great deal of fill dirt onto a lot on LoMntte Drive and were proposing to build a home on the lot. A new plot plan for the lot has been prepared and submitted to Mr' Stnhlberg' He has reviewed the plan and has recommended approval of it' Basically the new plan shows the house further bunk on the lot and there is a slope and provision for drainage to gp either toward the lake or toward the road. Custom Homes will also be required to submit a $1,500'00 escrow to insure that the lot and home is completed to the satisfaction of the City Engineer' Mr. TimmerS felt that the new plan was still very severe and since it was the last vacant lot on the block this builder should be made to comply with other homes in the neighborhood' Mr' Stnhlberg noted that none of the homes in the neighborhood are the same elevation and he did not feel this builder should be made to build at the level of Mr' Timmers' Also there is nothing in the code that restricts heights of homes. Mr' McKasy asked about the runoff' Mr' Stahlberg said the plan shows swelee on both sides of the lot to accommodate the run off' Mr' Timers felt the higher elevations were too close to his lot line to accommodate all the run off and his lot would receive some of the run off as well' Mr- Marier said he had been to the lot and noticed that some of the dirt was removed from the front of the lot' Mr' Stahlberg said the plan was to move the house to the rear of the lot and then the dirt will be brought around the house. Mr' Reinert noted that if the lot was made to conform to the lot on the north then the new lot would be lower than the lot on the south and this would create a problem for the new lot. Mayor Benson said he senses that the problem here is not just the lot but the type of house that is to be constructed. Mr. Reinert suggested that maybe this is the wrong house for this lot' After further discussion, Mr' Bisel moved to deny conditional use permit #86-23 and require that the owner submit a plan that will equalize the lots or move out the extra dirt' The reasons for this denial are; 1) the house. and the lot does not conform to the surrounding area, the house and the lot are too high; 2) water run off will create a problem to adjoining properties and the entire area 3) the plan is not harmonious with the neighborhood. Mr' Reinert seconded the motion. Motion carried unanimously. Page 4 1 1 [l�1 u.»/ COUNCIL MEETING MARCH 23, 1987 Variance, Ken Chapeau - Addition to Garage - Mr' Kluegel explained that Mr' Chapeau is requesting a variance so that he be allowed to add on additional 96 square feet t0 his garage at 1243 - 8lst Street. The Planning and Zoning Board has recommended approval of the variance with the following findings of fact: l) the property in question cannot be put to a reasonable use if used under conditions allowed by the accessory building ordinance, 2) that the plight of the landowner is due to circumstances unique to his property (wotertoble problems and osthetios problem if the Storage building is located alongside of the house). These circumstances are not created by the landowner. 3) the hardship is not due t0 economic considerations alone, 4) granting the variance will not confer on the applicant any special privilege, 5) this action will not unreasonably diminish or impair established property values within the neighborhood, 6) the proposed actions will be in keeping with the spirit and intent of the ordinance. Mr. Marier moved to approve this request with the stipulation that no other storage building be built in the future and to include the stipulations of the Planning and Zoning Board. Mr' Bisel seconded the motion. Motion carried unanimously. Variance, Mike Wise - Fence, 4th Avenue and Main Street - Mr' Kluegel explained that this is a request for a variance to construct a portion of fence on the north side of Mr' Wises home taller than that allowed by the City Code. The request for the variance has come from the County because the County is proposing to acquire additional right-of-way from Mr' Wise and that will bring the right-of-way line within eleven feet of Mr' Wis*s`s home' A fence this high will help mitigate the noise and other effects of the construction project. In addition the City will be acquiring additional right-of-way on the 4th Avenue side of Mr' Wiae`a property and this will pose further hardship on Mr' Wise' Mr' Bisel moved to approve planning item no' 87-5 to include the findings of fact provided by the Planning and Zoning Board' Mr' Bohjanen seconded the motion. Mr' StahlberA asked if this fence will in any manner obstruct the view of traffic on Main Street. Mr' Marier explained that the County Engineer has looked at that situation 'and does not feel it will be a problem' Motion carried unanimously. House Move-In, Albert Thiltgen - Mr' Kluegel explained that this is a request to move a house from Hugo to a one acre vacant lot at 7791 - 20th Avenue' The house is proposed to be brought up to code and will be compatible with other houses in the area and will meet all codes regarding set back requirements. A mound septic system will be required because of soil conditions. The Planning and Zoning Board has recommended approval of this request. Page 5 032 COUNCIL MEETING MARCH 23, l987 Mr' Mmrier moved to approve the Planning and Zoning Boards recommendation and added that the entire construction project should be completed as Soon as possible. Mr' Bimel seconded the motion. Motion carried unanimously. First Rending - Ordinance No 04 - 87, Design Requirements for Off Street Parking - Mr' Kluegel explained that there was concern about off street parking in commercial areas. The P & Z Board had struggled with several variations of the ordinance change and could not come to an agreement and recommended that the present code not be changed. Mayor Benson suggested to Mr. Kluegel that he specifically address his concerns Such as parking areas where heavy truck users such as Glenn Reht`ein Excavating may be concerned and long driveways such as Spetzman Transmission's driveway. He asked that he be more specific regarding residential driveways and not leave any gray areas. Mr' Marier moved to instruct the Building Inspector to revise Ordinance No [)4 - 87 and return it to the Planning and Zoning Board for their review and approval. Mr' 8ieel seconded the motion' Motion carried unanimously. First Reading - Ordinance No. 05 - 87, Durable and Dustless Surface Definition' - Mr. Kluegel explained that this ordinance would define durable and dustless and he suggested that the Council table it until Ordinance No. 04 - 87 is approved. Mr. Reinert moved to table this item' Mr' Marier seconded the motion' Motion carried unanimously. First Reading - Ordinance No. 06 - 87, Semi Parking in Residential Areas' - Mr. Kluegel expained that this ordinance is the same as in the City Code except that it.includes semi-trailers as well as vehicles exceeding a gross weight of 11,075 pounds' He noted he has a problem with some residents who pull semi trailers onto residential lots and then let them sit there for long periods of time. This addition to the code would clarify the present code and make it easier for Mr. Kluegel to enforce the code. Mr. Bisel was concerned about overnight parking of trucks and trailers within the City. Mr' Reinet felt this applied more specifically to people who park for longer periods of time, Mr' Kulmszewioz from the audience asked that the Council consider parking in residential areas for a limited amount of time' He noted that there is no problem for parking in commercial areas' Mr' Mnrier moved to approve Ordinance No' 06-87 and dispense with the reading. Mr' Reinert seconded the motion' Mr' 8isel, Mr' 8nhjanen and Mayor Benson voted no, motion failed. Page 6 1 1 COUNCIL MEETING MARCH 23, Mr' 8isel felt the proposed ordinance did not address the problem. He asked that Mr' Kluegel be more specific in his draft. Mr' Reinert noted the restrictions in Spring Lake Park and asked Mr' Kluegel to put together something on that order. Mr' BiSel said he would get together with Mr' Kluegel and rewrite this ordinance. First Rending Ordinance No 07 - 87, Accessory Buildings - Mr' Kluegel explained that the purpose of this ordinance is to clarify the intent of the present City Code regarding accessory buildings' The present code does not state that accessory buildings must be separate and not physically attached to one another and also does not address the limit on square feet on an attached garage. There was concern that the lOOO square foot limit in the ordinance would restrict an attached garage to a three car garage. Mayor Benson noted that four car garages are quite popular. There was concern that there be a limit on the square footoges of attached garages otherwise there may be some unsightly looking houses. After further discussion, Mr' Bisel moved to approve Ordinance 07 - 87 and change the wording to read: "Appendix 8, Section 4, Subdivision 7 (11) A, B, C, D, E, F is amended to include: One attached garage (maximum square footage not to exceed the foundation Size of the house)' Each detached accessory building must be separate and not physically attached to another." Mr' Bohjnnen seconded the motion. Motion carried unanimously. CITY OF LINO LAKES COUNTY OF 4N0K4 STATE OF MINNESOTA Ordinance No' 07 - 87 AN ORDINANCE AMENDING' THE CITY CODE, APPENDIX B, ZONING ORDINANCE 0F THE CITY OF LINO LAKES BY ADDING T0 SUBDIVISION 7 ACCESSORY BUILDINGS AND STRUCTURES (ll), A, 8, C, D, E, F. The City Council of the City of Lino Lakes, Anoka County, Minnesota does ordain: Ordinance No. .2 of the City of Lino Lakes, Anoka County, Minnesota passed by the City Council on May 24, 1983 is hereby amended by amending Section 4, Subdivision 7 Accessory Buildings and Structures to include the following: Page 7 A �/� w ~p� COUNCIL MEETING MARCH 23, l98/ AMENDMENT: Appendix B, Section 4, Subdivision 7 (ll) A, B, C, D, E, F is amended t0 include: One attached garage (maximum square footage not to exceed the size of the house foundation). Each detached accessory building must be separate and not physically attached to another. II' Save as above amended, said Ordinance No. 2 shall stand as initially passed and as previously amended' This Ordinance shall be in full force and effect from and after its passage and publication according to City Charter' Passed by the City Council this_2a_day of _March, 1987' -- Benjaxo G. Benson, Mayor Marilyn G. Anderson, Clerk-Treasurer First Reading - Ordinance Nn' 08 - 87, Earth Sheltered Homes - Mr' Kluegel explained the purpose of this ordinance would be to allow earth sheltered homes as a conditional use in R, ER and RI districts which would allow the P & Z Board to review each request' Mr' Hawkins felt there would not be a problem with this ordinance, however the City Planner had recommended ogainat it because of the discrimination point' Mr. Hawkins noted that if this ordinance were contested, the City could make'n good argument because of the ground water situation' Mr' Reinert asked if there was a definition for earth-sheltered houses. Mr' Klueg*l read the definition from the state code' He noted that other cities have had problems where earth-sheltered homes did not fit in' Mr' Reinert moved to approve the first reading of Ordinance No' 08-87 and dispense with the reading' Mr' Bnhjanen seconded the motion. Motion carried unanimously. Page 8 1 1 COUNCIL MEETING MARCH 23, 1987 CITY OF LINO LAKES COUNTY OF 4N0K4 STATE OF MINNESOTA ORDINANCE NO 08 - 87 AN ORDINANCE AMENDING THE CITY CODE, APPENDIX B, ZONING ORDINANCE OF THE CITY OF LINO LAKES BY ADDING EARTH SHELTERED HOMES T0 CONDITIONAL USES IN THE R, ER, AND R - 1 SUBDIVISION DISTRICTS' The City Council of the City of Lino Lakes, Anoka County, Minnesota does ordain: Ordinance Nn' 2 of the City of Linn Lakes, Anoka County, Minnesota passed by the City Council on May 24, 1983 is hereby amended by adding the following: AMENDMENT: • Appendix 8, Section 6, Subdivision 2 (R), Subdivision 4 (L), Subdivision 5 (6) add: Earth Sheltered Home. II' Save as above. amended, said Ordinance No. 2 shall stand as initially passed and as previously amended. This Ordinance shall be in full force and effect from and after its passage and publication according to City Charter. Passed by the City Council this _ of , 1987' Marilyn 0J' Anderson, Clerk-Treasurer ENGINEER'S REPORT - RON STAHLBERG Page 9 enjnmi G. Benson, Mayor COUNCIL MEETING MARCH 23, 1987 Seal Coating - Resolution Nn' 09 - 87, Accepting Plans and Specifications and Calling for Bids - Mr' Mayier moved to approve th resolution. Mr' Biael seconded the motion. Motion carried unanimously' CITY OF LINO LAKES Resolution No 09 - 87 A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR THE 1987 SEAL COAT PROGRAM WHEREAS, pursuant to the instructions of the City Council, the City Engineer has prepared plans and specifications for the Seal Coating of certain streets listed in the 1987 Seal Coat Program (a copy is attached hereto) and has presented such plans and specifications to the Council for approval; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA; l' Such plane and specifications, a copy of which is attached hereto and made a port hereof, are hereby approved. 2' The City Clerk shall prepare and cause to be inserted in the official paper and the Construction Bulletin an advertisement for bids upon the making of such improvement under .such approve plans and specifications. The advertisement shall be published for two days, shall specify the work to be done, shall state th will be opened and bids will be received by the City Clerk 10:00 A.M. on April 24, 1987, at which time they will be publicly opened in the council chambers of the city hall by the City Clerk and Engineer, will be tabulated and will be considered by the Council at 7:00 P.M. on April 27, 1987 in the council chambers' Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the Clerk for 5 per cent of the amount of such bid' Adopted by the Lino Lakes City Council the 23rd day of March, 1987' Page 10 � 1 1 1 1 COUNCIL MEETING MARCH 23, 1987 Marilyn ,xv Anderson, Clerk-Treasurer Consideration of Bids for Pump House - Mr' Stmhlberg presented a summary of bids for the pump house and recommended that the C0uncil accept the low bid of $116,220'00 from Riohmar Construction, Inc. Mr' Reinert moved to accept the bid from Richmar Construction, Inc' for $116,220'00' Mr'8iael seconded the motion' Motion carried unanimously. Update Shoreview Connections - Resolution No' 12 - 87 - Mr' Stahlberg told the Council he has received a petition from several property, owners on Ash Street requesting extension of sanitary sewer and municipal water from the City of Shoreview. The petition is in order and also states they waive their right to another public hearing and waive the right to fifty (50) of the sixty (60) day •waiting period' He recommended that the Council proceed with ordering plans and specifications. He said those home owners who do not wish to connect at this time can be treated in the same manner as the residents on Sunset Road. That is if they do not wish to connect at this time, they will not be assessed but will be required to pay a one time connection alarge at the time they wish to connect. This connection charge will include interest and a certain inflation factor. Mr. Reinert moved to approve the Engineers recommendations and approve Resolution Nu' 12 - 87' Mr' Bnhjanen seconded the motion' Motion carried unanimously. CITY OF LINO LAKES Resolution No' 12 - 87 RESOLUTION ORDERING IMPROVEMENT .AND PREPARATION OF PLANS FOR MUNICIPAL WATER AND SANITARY SEWER FOR CERTAIN RESIDENTS ON ASH STREET (EXTENSION OF SH0REVIEW UTILITIES) WHEREAS, a resolution of the City Council adopted on the 27th day of December, 1984, fixed a date for a Council hearing on the following described improvement: Extension of Shoreview sanitary sewer and municipal water to 165 Ash Street, 185 Ash Street, 205 Ash Street, 225 Ash Street, 245 Ash Street and 255 Ash Street, AND WHEREAS: published and mailed notice of the hearing as required by the Linn Lakes City Charter was given and a hearing was held thereon on the 28th day of January, 1985, at which all persons desiring to be heard were given an opportunity to be Page 11 COUNCIL MEElING MARCH' 2.), 1987 heard thereon' AND WHEREAS: a period of (60) days has elapsed after the public hearing and no petitions have been filed against the improvement as provided by in Section 8'U4, Subd' l of Chapter 8 of the Lino Lakes City Chmrter' AND WHEREAS: the above described property owners have signed a petition waiving the right to a second public hearing and requirement for the 60 day waiting period. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES: 1. Such improvement is hereby ordered as proposed in the Council resolution adopted the 27th day of December, 1984' 2' Mr' Ron Stahlberg of TKDA is hereby designated as the engineer for this improvement'' He shall prepare plans and specifications for the making of such improvement' Adopted by the Council this 23rd day of March, 1987' en` Marilyn G. Anderson, Clerk-Treasurer n G. 8ensn/, Mayor 1 Update Arbor Lake Plat - Resolution Nn' 13 - 87 - Mr. Stahlberg explained that the owners of Arbor Lakes plat have been before the P & Z Board and have reworked the plat to show one less lot and a better street pattern. They have also requested that something be done with Ash Street so that they can start marketing thenlnts and building their interior street' This improvement of Ash .Street would include widening and filling of the street. The owners of Arbor Lakes plat have indicated that they would provide the fill dirt necessary for this improvement' Mr' Stahlberg has also contacted Ramsey County, White Bear Township and Mr' 8ruggemon regarding this improvement' Preliminary indications are that Arbor Lakes plat will pay 25% of the cost of the improvement, Mr' 8ruggeman,^25% of the cost and Ramsey County 50% of the cost of the south side of the improvement' Mr' Page 12 1 1 1 �3 COUNCIL MEETING MARCH , 1987 Schumacher noted that Arbor Lakes is willing to place their costs in escrow now so that they can get started with their construction. He noted that there may be a problem with securing the funds from Ramsey County in o timely manner' Mr' 8isel moved t0 authorize plans and specifications for this improvement and approve Resolution No' 13 - 87' Mr' 8nhjanen seconded the motion. Motion carried unanimously. CITY OF LINO LAKES Resolution No. 13 - 87 A RESOLUTION ORDERING PLANS AND SPECIFICATIONS FOR THE UPGRADING OF 43H STREET EAST WHEREAS: the Lino Lakes City Council has received a report from City Engineer •Ron Stahlberg and a request from the landowner of Arbor Lakes plat in reference to upgrading Ash Street from Fnxtail Drive west to where the street terminates, and WHEREAS: not wishing to delay construction in the plot of Arbor Lakes, NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. Mr' Ron Stnhlberg of TKDA is hereby designated as the •engineer for this improvement. He shall prepare plans and specifications for the making of such improvement. Adopted by the City Council of Lino LokAs this 23rd day of March, 11r M� 1987' qf~enjam Benson, Mayor 22_~-.. -_ - ___ _ _______ Marilyn C. Anderson, Clerk-Treasurer Consideration of Resolution No. 07 - 87, Approving Feasibility Report and Calling for Hearing for Elevated Tank and Water Main System - Mr' Marier moved to table this item until Mr' Stohlberg has provided more information. Mr' Bnhjonen seconded the motion. Motion carried unanimously. ATTORNEY'S REPORT - BILL H4WKINS Page 13 040 u �\x 23 COUNCIL MEETING MARCH 23, 1987 Mr' Hawkins did not have a report' REAUEST FOR STREET LIGHTING - EQUITY ESTATES AND BLACK DUCK DRIVE DON V0LK Mr. Volk explained he had received petitions for street lights at -- ' three locations: l) intersection o f G aage Lane and Birth Street, 2) Intersection of Joyer Lane and Birch Street and 3) Intersection of Black Duck Drive and Birch Street. These requests do fit into the City street lighting policy and he recommended approval of these requests. Mr' Reinert moved to approve these three street lights. Mr' 8nhjanen seconded the motion' Motion curried unanimously. The Council took a five minutes break at 9:30 P.M. CONSIDERATION OF SECOND READING OF ORDINANCE N0' 13 - 86, CIRCLE PINES GAS FRANCHISE - RANDY SCHUM4CHER At the February 23, 1987 Council meeting two issues were discussed. The first issue was comparisons of gas rates' Mr' SChumocher`s memorandum outlines the comparisons and indicates that the rates of North Central Public Services are lower however Circle Pines does not charge the customer for service calls' Therefore rotes may essentially be the some' The second issued raised was regarding the acquisition costs Of the Lino Lakes gas system' Mr' Schumacher outlined the cost per a rep prepared by the City Auditor. The Auditor had determined that it would cost $113,211'50 to purchase the system from Circle Pines an also noted that North Central has indicated they would purchase the same system for $182,000'00' Mr' 8is«*l was concerned and felt this City. did not know exactly what the purchase price would be from Circle Pines' He also presented an overhead projector view on how he compared the rates of Circle Pines and North Central which indicated that a Circle Pines customer would be paying a considerably higher rate than a North Central customer. He asked how this City could justify this situation' He also felt that the purchase price from Circle Pines had not been pursued far enough because quite possibly Circle Pines would not accept the sale price as outlined in the old franchise' Mr' Schumacher and Mr' Hawkins said Circle Pines would have to accept it if Lino Lakes decides to purchase this system' However, there could be a long court battle on the issue. Mr' Morier said he was surprised regarding Mr' Bieels concerns. He was given all the facts as were the other Council Members and he personally had conversations with Mr' Biael on this subject. Mr' • Page 14 1 1 0�1 u�/ COUNCIL MEETING MARCH 23, 1987 Bisel Said he Still had a problem in telling some of Lino Lakes residents that they will be paying a premium because the are using circle Pines gas. Mr' Reinert suggested that Mr' Bieel look beyond this and look at the potential for future growth and therefore income because we own that portion of the System' Mr' Mnrier moved to continue the meeting until all business• was finished. Mr' Bisel seconded the motion' Motion carried unanimously. Mr' Marier said because he felt continuing the franchise was a better way to go he moved to approve Ordinance No' 13 - 86' Mr' Reinert seconded the motion. Motion carried with Mr' BVhjonen and Mr' 8iael voting no. This ordinance is printed at the end of these minutes. CONSIDERATION OF RESOLUTION N0' 10 - 87, DESIGNATING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING FOR YEARS 1987 - 1988 Mr' Schumacher explained that this resolution outlines the manner in which the C'D'G'B' funds for 1987 - 1988 will be distributed' Mr' Marier asked that funds be included for Alexandra House. The resolution was amended to include funding for Alexandra House of the balance of the funds to a maximum of $3,000.00' Mr' Bohjmnen moved tc approve the amended resolution. Mr' Biael seconded the motion. Motion carried unanimously. CITY OF LINO LAKES Resolution Nn' 10 - 87 A RESOLUTION DESIGNATING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING FOF THE CITY OF LINO LAKES FOR FUNDING YEAR 1987 - 1988' WHEREAS, the City of Lino Lakes is anticipating receiving Community Development Block Grant Funds in funding year 1987 - 1988 and, WHEREAS, WHEREAS, the City is in the process of extending utilities based on the City's Comprehensive Planning needs and, certain residents within these assessable areas meet Housinc • and Urban Development low and moderate income guidelines and WHEREAS, it is the desire of the Lino Lakes City Council to assist those residents with assistance through the use of C'D'G'B' funds and, WHEREAS, the Linn Lakes City Council also supports the extension of Page 15 �3 COUNCIL MEETING MARCH , 1987 the Senior Citizens Center Coordinator Program which has been funded through the C'D'G'B' since its inception, WHEREAS, the Lino Lakes City Council also supports the program a general operation of Alexandra House, NOW, THEREFORE BE IT RESOLVED; 1' That the Lino Lakes City Council hereby requests that approximately $20,0()0 of its 1987-1988 C'D'G'B' funds be dedicated t0 the payment of area assessments for those residents who qualify under H.U.D. low and moderate • income guidelines. 2' That the Lino Lakes City Council also requests $3,900 of its 1987-1988 C'D'G'B' fundS be used for funding the Senior Center Coordinator's salary in promoting the Centers activities, programs, and general operation. 3' That the Lino Lakes City Council hereby requests that up to $3,000 of its 1987-1988 C'D'G'B' funds be used in supporting the Alexandra House programs and operation' Adopted by the Lino Lakes City Col ~~� this 23rd day of March, l987' en AO --, '---- n_:A/' ens_n, Mayor 1 _ Marilyn n Anderson, Clerk-Treasurer CONSIDERATION OF APPOINTING LINO LAKES ECONOMIC DEVELOPMENT COMMITTEE - RANDY SCHUMACHER Mr' Schumacher had submitted a 'memorandum to the Council indicating that the present Economic Development Committee members had not indicated an interest in continuing as members of this Committee and suggested several possible members: Roger Jensen- Director of the Anoka County Economic Development Partnership Warren Tester - Centennial School District Business Manager Pat Smith - Resident and owner of Smith Office Equipment Ken Wallace - Residential Housing & Commercial Developer Gary Uhde - Residential Housing Developer One City Council Member Page 16 1 1 1 1 COUNCIL MEETING - 0�'� u � ~� MARCH 23, 1987 Mr' Reinert felt there may be a problem with two of the suggested members in that they may find the position selfserving' Mr' Schumacher felt that there may be some conflict but this would not have an adverse affect on the committee' He also noted that their tenure would be short term but these are people who work on a daily basis with todays developments and are familor with marketing people' Mayor Benson felt the Committee should be even larger so that they co' form subcommittees when necessary. He said he Would also like to see some Lino Lakes business men on the committee. There was discussion regarding the previous makeup of the Economic Development Committee with Mr' Reinert noting that the Council and Mr ^ f leadership y the com0ittee ond Schumacher should provide more o possibly lay out a course of action for them' Mr' Bisel suggested that the Chamber be requested to supply some names for this committee Mayor Benson asked that Mr' Schumacher contact the current members to see if they are interested in continuing on the committee and send letters to Some of the local businesses and organizations and solicit members. OLD BUSINESS Disposition of Wilson Property - Mr' Wilson has indicated that he would like to negotiate a settlement with the City regarding his property on Lake Drive' Mr, Schumacher will work with Mr' Hawkins or prepare a written agreement for Mr' Wilson's aignnture that will ollc Mr Wilson to mine some peat from his property and give the City easement across some of the property for water drainage and/or retention and Mr' Wilson will then drop the lawsuit and release the City from future liability. Lee Smith - 48^ Concrete Culvert - Mr' Stahlberg reported that there is about 424 feet of culvert available for about $3,000 and this includes delivery' Mr' Volk said he could use some of this culvert � the intersection of 4th Avenue and Lilac Street because the ditch wi] be very deep at that point' He may also be able to use some of it or future projects. Mr ' Bisel moved to purchase the culvert and try to negotiate the pri� near $2,500'00' Mr' Bnhjanen seconded � the motion. Motion carried unanimously. Lino Lakes Police Report - Mr' Reinert noted that the report was ver\ nice but felt it should be port of a city wide annual report' It appeared to him that it pointed out that the police deportment is an entity separate from the rest of city government. Mr' Schumacher fe. Page 17 COUNCIL MEETING MARCH 23, 1987 it is good because it is publicly oriented and cost very little' Mr' Bisel felt that it appears the police department takes a lot of p in their department' City Assessor - Mr' Marier moved to advertise for a City Assessor Mr' Bohjonen seconded the motion. Motion carried unanimously. LaMotte Drive - Mr' Stahlberg explained there has been considerable problems getting a proper elevation plan for the Custom Homes situation on LmMotte Drive because a benchmark was not found and Uaec to measure elevations. He suggested that the City Code require that on all such submittals to the City for review use sea level elevations' Mr' 8iSel moved that the code be amended to include Mr' Stahlbergs suggestion. Mr' Reinert seconded the motion. Motion carried unanimously. NEW BUSINESS Senator Durenburger - Staff will be at City Hall on April 8, 1987 from 9:30 A.M. to 11:30 4'M'tu Answer Oustinns and Hear Concerns' Mayor Benson noted this item' Mr' Bimel moved to adjourn at 10:40 P.M. Aye' These minutes were considered and approved at a regular council meeting on April 13, 1987. tll L.0 'Vey' M 4IL G. ANDERSON Clerk-Treasurer Page 18 1 1 1 ORDINANCE NO. 13 - 86 CITY OF LINO LAKES ANOKA COUNTY STATE OF MINNESOTA GAS FRANCHISE ORDINANCE AN ORDINANCE GRANTING TO THE CITY OF CIRCLE PINES, BY AND THROUGH ITS PUBLIC UTILITIES COMMISSION, A NON - EXCLUSIVE FRANCHISE AND RIGHT FOR A PERIOD OF 25 YEARS TO USE THE STREETS AND PUBLIC WAYS FOR THE PURPOSE OF CONSTRUCTING, OPERATING, AND MAINTAINING A SYSTEM FOR THE MANUFACTURE, DISTRIBUTION AND SALE OF GAS; PRESCRIBING THE TERMS AND CONDITIONS OF THE FRANCHISE; AND REPEALING ORDINANCE NOS. 28 AND 29. WHEREAS, the City of Circle Pines ( "the Grantee "), a Minnesota municipal corporation, by and through the Circle Pines Public Utilities Commission ( "the Utilities Commission "), owns and operates property used and useful in the manufacture, distribution and sale of gas in the City of Lino Lakes; and WHEREAS, the City of Lino Lakes ( "City "), a Minnesota municipal corporation, on October 9, 1961, duly adopted, and, on March 25, 1962, duly amended, an ordinance granting a franchise ( "the 1961 franchise ") to the Circle Pines Public Utilities Commission to construct, maintain and operate a gas distribution system in the City, and the Utilities Commission duly accepted the franchise; and WHEREAS, meetings have been held between representatives of the Grantee and representatives of the City relative to the adoption of new franchise ordinance; and WHEREAS, the City Council of the City has determined that it is desirable, in the public interest and to the advantage of the consumers of gas in the City that a new franchise be granted to -1- 045 046 the Grantee upon the terms and conditions contained herein, and that the 1961 franchise be repealed and all rights and privileges of the Grantee thereunder be surrendered and cancelled; WHEREAS, it is the intent of the Grantee and the City to permit the expansion of the Grantee's gas distribution system in the City; and WHEREAS, the Grantee as and for part consideration and compensation for the franchise herein granted, has agreed, as provided in this franchise, to supply gas service in the City, and to perform the contractual obligations prescribed herein and pay certain amounts to the City; NOW, THEREFORE, the City Council of the City of Lino Lakes does ordain as follows: Section 1: Definitions. The following terms shall mean: 1.1. City. The City of Lino Lakes, Minnesota, as its boundaries now exist and as they may be changed during the term of this franchise. 1.2. Grantee. The City of Circle Pines, Minnesota, its successors and assigns. 1.3. Council. The City Council of the City of Lino Lakes. 1.4. Gas. Natural gas, manufactured gas, or a mixture of natural gas and manufactured gas. 1.5. Street and Public Way. Any street, avenue, highway, boulevard, sidewalk, road, parkway, alley, square, bridge or other public way in the City. -2- 1 1 1 1.6. 1961 Franchise. The franchise granting to the Grantee, its successors and assigns, permission to use the streets and public places in the'City for the construction, maintenance and operation of a system of mains, pipelines and other facilities for the distribution and sale of gas, subject to certain terms and conditions, pursuant to the City's Ordinance Nos. 28 and 29, copies of which ordinances are attached to this Ordinance as Exhibits A and B, respectively. 1.7. Utilities Commission. The Public Utilities Commission of the City of Circle Pines, as now existing or hereafter constituted. Section 2: Grant of Franchise. There is hereby granted to the Grantee until March 31, 2012, the right to construct, operate and maintain a gas system or gas plant, or both, and to import, manufacture, transport, distribute and sell gas, in the City, and for these purposes to construct, operate and maintain the necessary facilities and equipment and to lay and maintain mains, service pipes and any other appurtenances necessary to the sale, manufacture and distribution of gas in and along the streets and public ways of the City, and to do all things which are reasonably necessary or customary in the accomplishment of these objectives, subject to the provisions of this franchise. 2.1. Effective Date; Acceptance by Grantee. This franchise and the rights granted herein shall take effect on and be in force from thirty days after publication by the City as provided by law, provided that the Grantee has filed with the Clerk of the -3- 048 City, within 30 days after publication of said franchise, a written acceptance thereof by the Utilities Commission, and a written acceptance by the City Council of the Grantee of the provisions of this ordinance relating to the City's option . to purchase the Grantee's gas distribution system in the City. The written acceptance by the Utilities Commission shall also surrender all of its rights and privileges under the 1961 franchise. 2.2. Non - Exclusive Grant. The rights hereby granted are not exclusive and the City may grant like rights to other persons during the term of this franchise. 2.3. Area. The rights hereby granted extend throughout the entire geographic area of the City, as said area currently exists and may be changed. Grantee may, from time to time, make reasonable additions and extensions to its existing gas distribution system in the City. The City and the Grantee shall cooperate to permit the development and expansion of Grantee's gas distribution system in the City. The Grantee shall comply with the underground permit requirements of the City. Section 3: Rates. Rates charged by the Grantee to its customers for service hereunder shall not be higher, for comparable classes of customers, than the rates Grantee charges its customers in the City of Circle Pines. Section 4: Franchise Fee. The Grantee shall annually pay the total of the following to the City as a franchise fee: -4- 1 1 (a) Seven percent (7 %) of the Grantee's gross revenues from the sale of gas within the City, other than sales of gas to customers who received interruptible gas service; and (b) Three percent (3 %) of the Grantee's gross revenues from the sale of gas with the City to customers who received interruptible gas service. The franchise fee to be paid pursuant to this Section shall be paid based on the gross gas sales to the Grantee's customers in the City from January 1 through December 31 of the applicable calendar year, as audited, net of the audit year bad debt expense and the audit year bad debt recoveries. The franchise fee shall be paid annually, commencing in 1988 for sales commencing on January 1, 1987, on or before May 15, such fee to be based on gross gas sales during the prior calendar year, as audited, net of the audit year bad debt expense and the audit year bad debt recoveries. In the event of termination or expiration of the franchise for any reason, the Grantee shall pay the applicable franchise fee within four and one -half months after termination or expiration of this franchise. Section 5: Purchase by City; Termination of Franchise. 5.1. Option to Purchase. Commencing on January 1, 1992 the City shall have the option to purchase all, but not less than all, of the real property, utility plant, meters, regulators and any other property used exclusively by the Grantee in Grantee's gas distribution system in the City and physically located in the City. The City's option shall be exercised by the City giving the Grantee written notice of its intent to purchase the Grantee's gas distribution system in the City of at least 18 -5- 050 months prior to the proposed date of the purchase. The notice shall set forth the proposed date of the purchase. This option shall expire on September 30, 2010, if the Grantee has not received written notice of the City's intent to purchase on or before that date. The terms and conditions of any purchase pursuant to this Section 5.1 shall be as set forth in Section 5.4 hereof. 5.2. Purchase Upon Revocation. Upon the revocation of this franchise for any reason whatsoever, including default by the Grantee, the City may purchase, within 180 days after the effective date of the revocation, all, but not less than all, of the real property, utility plant, meters, regulators and any other property used exclusively by the Grantee in Grantee's gas distribution system in the City and physically located in the City. This option shall expire 180 days.after such revocation if the Grantee has not received written notice of the City's intent to purchase on or before that time. The Grantee shall continue to operate the system under the applicable terms and . provisions of this franchise until the City closes on the purchase of the system pursuant to this Section 5.2. The terms and conditions of any purchase pursuant to this Section 5.2 shall be as set forth in Section 5.4 hereof. 5.3. Option to Terminate. Commencing on January 1, 1992, the Grantee shall have the option to terminate this franchise. The Grantee's option to terminate the franchise shall be exercised by the Grantee giving the City, at least 18 months prior to the proposed date of termination, written notice of -6- 1 1 1 •Grantee's intent to terminate the franchise, which notice shall set forth the proposed date of termination. After Grantee gives notice of its intent to terminate the franchise, either the parties shall negotiate a new franchise on terms and conditions mutually acceptable to the parties, or the City may purchase, on the date of termination proposed by Grantee, all, but not less than all, of the real property, utilities plant, meters, regulators and any other property used exclusively by the Grantee in Grantee's gas distribution system in the City and physically located in the City. If, by the proposed date of termination contained in the Grantee's notice of termination, the Grantee and the City have not adopted a mutually acceptable new franchise and the City has not closed on a purchase of Grantee's gas distribution system in the City, unless such failure to close is the result of arbitration or court proceedings arising out of this agreement, Grantee shall have the right to sell its gas distribution system in the City to a third party, which third party shall have the right to operate said gas distribution system pursuant to the terms of this franchise. The terms and conditions of any purchase by the City pursuant to this Section 5.3 shall be as set forth in Section 5.4 hereof. 5.4. Terms and Conditions of Purchase. The Grantee and the City shall negotiate all terms and conditions of any purchase by the City of the gas distribution system in the City pursuant to this Section 5 or otherwise. The price to be paid for the property to be acquired pursuant to any purchase of the gas -7- 051 052 distribution system in the City shall be the total of the following: (a) As to the Grantee's gas distribution system in the City as it existed on July 1, 1986, the amount paid shall be the actual cost of construction of said portion of the system, including without limitation the pro rata share of any reasonable construction, financing, adminis- trative, legal or engineering costs incurred in connection with such construction, less depreciation, all of the foregoing as determined by generally accepted accounting principles. (b) As to any portion of Grantee's gas distribution system in the City constructed after July 1, 1986, including any reconstruction of or improvements to the system as it existed on July 1, 1986, the amount paid shall be the greater of the following: (i) 125% of the actual cost of construction of said portion of the system, including without limita- tion the pro rata share of any reasonable construction, financing, administrative, legal or engineering costs incurred in connection with such construction, less depreciation, all of the . foregoing as determined by generally accepted accounting principles; or (ii) The actual cost of construction of said portion of the system, including without limitation the pro rata share of any reasonable construction, financing, administrative, legal or engineering costs incurred in connection with such construc- tion, but not including depreciation, all of the foregoing as determined by generally accepted accounting principles. In no event, however, shall the price for the entire system be less than the cost of retiring all outstanding bonds or other obligations issued by the Grantee attributable to the gas distribution system in the City, plus the amount of any contract demand costs allocable to the Grantee's gas distribution system in the City that Grantee is unable to eliminate. The entire purchase price shall be paid at the time of closing. If the Grantee and the City cannot agree on the terms and conditions of -8- 1 1 1 1 any purchase by the City pursuant to this Section 5, either the Grantee or the City may proceed to arbitration pursuant to Section 13 of this ordinance. 5.5. Eminent Domain. The provisions of this Section 5 are intended to supersede any right or authority possessed by the City .under statutory, constitutional, common or other law to acquire any part or all of Grantee's gas distribution system in the City, and are intended to supersede any method of determining the terms and conditions of any such acquisition. The City hereby waives any such right or authority of eminent domain with respect to the gas distribution system of the Grantee within the City. 5.6. Right of First Refusal. In the event that, at any time after any purchase by the City of all or any part of the Grantee's gas distribution system in the.City, the City desires to sell or transfer all or any part of the gas distribution system formerly owned by the Grantee, and the City receives an offer to purchase all or any part of any gas distribution system then owned by the City, which offer includes all or any part of the gas distribution system formerly owned by the Grantee, the City shall, within ten days after receipt of said offer, offer in writing to sell the entire gas distribution system for which the City received an offer to the Grantee on terms identical to those contained in the offer made to the City. Said offer shall include a statement of the intention to transfer, the name and address of the prospective purchaser, the portion of the gas distribution system formerly owned by the Grantee to be -9- 053 054 transferred, a description of the entire gas distribution system to be transferred, and the terms of the transfer. Within 120 days after receipt of the offer, the Grantee may, at its option, elect to purchase all, but not less than all, of the gas distribution system offered to the Grantee. The Grantee shall exercise its election to purchase by giving written notice to the City of its intention to purchase the gas distribution system offered on the terms set forth in the offer. The closing for the purchase and sale to the Grantee pursuant to this Section 5.6 shall take place no later than 30 days after the City received notice of Grantee's intent to purchase. In the event of any purchase by the Grantee pursuant to this Section 5.6, the City shall enact an ordinance granting a franchise to the Grantee on terms identical to those contained in this ordinance, for a period of at least ten years. The provisions of this Section 5.6 shall survive any expiration, forfeiture, revocation, or termination of this franchise for any reason whatsoever, and shall survive any repeal or amendment of this ordinance. Section 6: Service and Standards. 6.1. Supply of Gas. The Grantee agrees to provide and to maintain its entire plant and system in the City in condition to furnish safe, adequate and continuous service, subject, however, to the further provisions of this section. 6.1.1. Failure to Deliver or Receive Gas. The Grantee is not liable to any of its customers or to the City for its failure to deliver gas, and said customers and the City are not liable to the Grantee for their failure to receive gas when such failure is -10- 1 1 1 1 1 1 due to any of the following causes: accident to or breakage of pipelines, machinery or equipment; fires or floods, weather conditions; strikes; riots; inability of the Grantee's pipeline supplier to furnish an adequate supply; legal impediments, acts of God or public enemy; shutdowns for necessary repairs or maintenance; or without limitation by enumeration, any other cause beyond the reasonable control of the parties failing to deliver or receive gas. If gas service by the Grantee is temporarily suspended for any of said causes, occurring through no fault or negligence of the Grantee, such suspension shall not form the basis for any action or proceeding to terminate this franchise. 6.1.2. Negligence Not Excused. Section 6.1.1 is not intended to relieve any person of liability for damages or expenses caused or contributed to by his .own negligence which is the proximate cause of his failure to deliver or receive gas. 6.1.3. Remedial Action. A party failing to deliver or receive gas for any of the causes enumerated in Section 6.1.1 shall promptly and diligently take such action as may be reasonably necessary and practicable under the then existing circumstances to remove the cause of failure and resume the delivery or receipt of gas. 6.2. Rules and Regulations. The Grantee shall have the right to promulgate such rules, regulations, terms and conditions governing its distribution of gas pursuant to this franchise, not in conflict with this franchise, as shall be reasonably necessary to enable the Grantee to exercise its rights and perform its 055 056 obligations under this franchise, and to assure safe, adequate and continuous service to its customers. Section 7: Conditions of Street Use. 7.1. Use of Streets. In order to effect the rights granted pursuant to this franchise, the Grantee is authorized subject to the City's underground permit requirements to make all necessary excavations in the street and public ways of the City. All mains, service and utility facilities shall be located, constructed, installed and maintained so as not to endanger or unnecessarily interfere with the usual and customary traffic and travel upon the streets and public ways of the City. The City may inspect and examine at reasonable times the Grantee's facilities used and useful in furnishing gas service in the City. 7.2. Restoration of Streets. The. Grantee shall, upon the completion of any work requiring an opening or disturbance of the surface of any street or public way in the City, restore the street or public way, including the paving or permanent resurfacing and foundations, to the same order and conditions as before the opening or disturbance was made insofar as reasonably possible. Section 8:- Indemnification. The Grantee shall indemnify and hold the City free and harmless from all liability and out -of- pocket expenses, except attorneys' fees, on account of injury or damage to persons or property caused by the Grantee's construction, maintenance, repair or operations in the City during the term of this franchise, unless such injury or damage is the result of the -12- 1 1 1 negligence of the City, its elected officials, its employees, officers, agents or inhabitants. Section 9: Assignment. Except as otherwise provided in Section 5.3 of this Ordinance, this franchise, and the rights and privileges granted pursuant to it, may not be assigned by Grantee without the prior written consent of the City. Consent by the City shall not be unreasonably withheld. The assignee of such rights, including any assignee pursuant to Section 5.3, by accepting the assignment, shall be deemed to have accepted the terms of this franchise, and shall be subject to all the terms and conditions of this franchise. Section 10: Default. If the Grantee is in default in the performance of any material part of this franchise for more than 90 days after receiving written notice from the City of such default, the Council may, by ordinance, terminate all rights granted to the Grantee pursuant to this franchise. A notice of default must specify the provision of this franchise under which the default is claimed and state the bases therefor. Such notice shall be served on the Grantee by personally delivering it to the city administrator of the Grantee. The reasonableness of any ordinance declaring a termination of the rights and privileges granted by this franchise shall be subject to judicial review by a court of competent jurisdiction. The right of termination on default is the City's sole remedy. -13- 057 0'58 • Section 11: Utilities Commission Membership. The City Councils of the City and the Grantee have, by a joint resolution dated , 1987 set the number of members to serve on the Utilities Commission and the number of said members to be recommended by the Council. Any failure by the Grantee to abide by the provisions of said joint resolution, or any duly adopted.sucessor joint resolution, shall be deemed to be a default under this franchise, and shall entitle the City to exercise its rights provided for in this franchise in the event of a default by the Grantee. Section 12: Accounting Requirements. The Grantee shall provide to the City on an annual basis by June 1 the audited statement prepared by the Grantee's certified public accountant. In addition, the City shall have access at all reasonable hours to all of the Grantee's plans, contracts engineering records, accounts, financial statements, and customer and service records. The City may also cause, at its sole expense, an audit of the Grantee's gas distribution system in the City. Section 13: Arbitration. 13.1. Disputes Subject to Arbitration. In the event of a dispute pursuant to Section 5.4 of this ordinance, either the City or the Grantee may proceed to arbitration, said arbitration to take place as hereinafter provided. In the event of any other dispute between the City and the Grantee pursuant to this ordinance, the parties may, but need not, agree to proceed to -14- 1 arbitration, said arbitration to take place in the manner hereinafter provided. 13.2 Procedure. Arbitration shall commence according to applicable Minnesota law, except as follows: (a) The parties shall, within 30 days of a party's decision to proceed to arbitration, or the parties' agreement to proceed to arbitration, appoint one arbitrator each who is experienced and knowledgeable in the purchase and valuation of business property. The arbitrators so selected shall each agree upon the selection of a third arbitrator, similarly qualified, within 30 days after appointment of the second arbitrator. (b) Within 30 days after appointment of all arbitrators, and upon 10 days' written notice to the City and to the Grantee, the arbitrators shall commence a hearing on the dispute. (c) The hearing shall be recorded and may be transcribed at the request and expense of either party. All hearing proceedings, debates and deliberations shall be open to the public and shall take place at such times and places as contained in the notice or as thereafter publicly stated in the order to adjourn. (d) In the event of a dispute pursuant to Section 5.4 of this ordinance, the arbitration panel shall be required to determine the purchase price and any other terms and conditions for the purchase of the system in the City according to the standards established in this ordinance. (e) At the close of the hearings and within 30 days, the arbitrators shall prepare written findings and make a written decision agreed upon by a majority of the arbitrators, which decision shall be served by mail upon the City and the Grantee. (f) The decision of a majority of the arbitrators shall be binding upon both the City and the Grantee. (g) Either party may seek judicial relief to the extent authorized under Minnesota Statutes Sections 572.09 and 572.19 as the same may be amended, and, in addition, under the following circumstances: the party fails to select an arbitrator; the arbitrators fail to select an a third arbitrator; one or more arbitrators is unqualified; designated time limits have been exceeded; -15- 059 the arbitrators have not proceeded expeditiously; or, based upon the record, the arbitrators abused their discretion. (h) In the event a court of competent jurisdiction determines the arbitrators have abused their discretion, it may order the arbitration procedure repeated and issue findings, orders and directions, with costs of suit to be awarded to the prevailing party. (i) The costs of arbitration shall be borne equally by the City and the Grantee. Each party shall pay its own attorneys' fees. Section 14: Severability. If any section, provision or clause of this franchise is adjudged to be invalid, the same shall not affect the validity of this franchise as a whole, or any section, provision or clause other than the part declared to be invalid. Section 15: Notices. Any notice required to be sent pursuant to this ordinance shall be sent registered mail, postage prepaid, return receipt requested, to the city administrator of the municipality to which the notice is to be sent. Section 16: Binding Effect. The agreement of the City and the Grantee, as set forth in this ordinance, shall be binding on and inure to the benefit of the City and the Grantee, and their respective successors and assigns. Section 17: Ordinances Repealed. The 1961 franchise is hereby thereunder granted to the Grantee required to be surrendered. Lino -16- repealed and all rights are hereby cancelled and Lakes Gas Franchise Ordinance • 1 1 1 • No. 28, entitled "AN ORDINANCE GRANTING UNTO THE UTILITIES COMMISSION OF THE VILLAGE OF CIRCLE PINES, ETC. ", is hereby repealed. Village of Lino Lakes Ordinance No. 29, entitled "AN ORDINANCE AMENDING ORDINANCE NO. 28, ETC." is hereby repealed. -17- 061 062 Section 1R; Effective Date. This Ordinance shall be effective after its passage and pub- lication as required by Lino Lakes City Charter. Passed by the Lino Lakes City. Council this 23rd day of March, 1987. ATTEST: Marilyn`, G. Anderson, Clerk - Treasurer ti