Agenda Packets - 1999/07/12 - Laserfiche WebLink

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UNAPPROVED management and permitting processes. He stated that there are, at present, two customers who meet that criteria. One, he stated, was Zep Manufacturing, and the other, located directly across the street, was the Realife Cooperative. He stated that Minnegasco has an agreement with the Realife Cooperative, executed June 14, 1999 with Fran and Sons, the contractor who is constructing the project. He provided the Council with a copy of the agreement. He stated that he appreciated the responsibility of the Council in considering this request. He noted, however, that the Council has the authority to manage the rights-of- way and, in their opinion, if a customer meets the criteria and desires service from their company, they should be allowed to provide that service. He stated that Minnegasco was aware that the ordinance under consideration was drafted to include the Zep Manufacturing location only. He added that it was hoped the Council would reconsider this and permit them to provide service to the second location, in light of the signed agreement, and their following the right-of-way management agreement and ordinances that the City has underway. Michael Mayerchak, representing Northern States Power, stated that they were concerned with the recent request to add the second location. He stated that Northern States Power felt very strongly that this was a completely different situation that the first location, in that the Zep Manufacturing property had two gas mains in front of the property, one belonging to Minnegasco and the other belonging to Northern States Power. He stated that Minnegasco was able to provide service to Zep Manufacturing without running any new main. He noted, however, that in order to provide service to the Realife Cooperative, Minnegasco would have to run 2100 feet of main to the location. He stated that Northern States Power has an existing main at that location. He stated that they did not believe any benefit to the City existed due to the de -regulation which would occur in the future. He stated that the de -regulation would allow customers at residential and commercial levels to chose their providers but, at present, only wholesale customers could make that choice. Mayor Coughlin offered Minnegasco the opportunity for rebuttal. Mr. Swintek stated that this should not be a question of which company is better, and he did not want to place the burden of that decision upon the Council. He stated that as long as both companies have the ability to serve the customer, the customer so desires, and the service does not adversely affect the right- of-way, they should be allowed to provide the service. Mayor Coughlin closed the Public Hearing at 7:57 p.m. Council Member Marty commented that the question of which company was a better company was not an issue with the Council. He stated that, in his opinion, they were equals in quality and service. City Attorney Long noted that Section 2.1 of the ordinance regarding the term of the agreement, was incomplete. He stated that he was attempting to determine the term of the Franchise Agreement with Northern States Power, in order to provide a parallel time frame for Minnegasco. Council Member Stigney stated that the Just Claims of the City included a large billing from Minnegasco, which he assumed was for service to the Golf Course. He asked if Minnegasco was presently providing that service, and added if that was the case, and the Council decided to approve the Franchise Agreement, the City Golf Course should be included on Exhibit A of the ordinance as a second location. Mayor Coughlin stated that he was in favor of open competition between equals, noting that both Minnegasco and Northern States Power were reputable companies, longstanding within their various 8 C:\ADMIN\MINUTES\CC\6-28-99.CC