Agenda Packets - 1999/07/12 - Laserfiche WebLink

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UNAPPROVED as to keep everyone's cost down. Mayor Coughlin stated that only the Realife Cooperative may directly benefit, the fact that they have a choice would put pressure on both Reliant Energy Minnegasco and Northern States Power to keep their prices low. He noted that Minnegasco has been consistently lower by one or two pennies for years, and that their ability to compete with another provider and still maintain a slight edge should be honored and respected. He added that the difference might not be slight to someone on a fixed income during the wintertime. Mayor Coughlin stated that competition in and of itself did not create pressure, but added to the pressure to compete to prevent an executive board from going to the Public Utilities Commission to request a rate increase. He stated that every day, week, and month that executive boards hold off was "money in the pockets of you and I." He stated that, in the spirit of free enterprise, and anti -monopoly, and as a contractor, he would encourage the Council to include the Realife Cooperative in this very limited Franchise Agreement. Council Member Stigney stated that the Council had discussed the ordinance extensively at the previous Work Session. He stated that there were still several legal issues that were not resolved, including a question regarding placing a moratorium on additional franchise agreements. He stated that City Attorney Long had been directed by the Council to pursue the matter as a limited agreement. He stated that he had received several telephone calls from residents who were concerned regarding gas service, and possible service duplication. Council Member Stigney stated that he was also in favor of competition, however, he noted, the area in question was not new but, rather, had already been developed and, therefore, the question was duplication of services. He stated that the reference to Realife Cooperative in Exhibit A had been deleted at the Work Session, and that Exhibit A was only to reflect Zep Manufacturing, pursuant to the Council's discussion at that time. He stated that the reason the issue was before the Council at this meeting was to clear up the documentation associated with the ongoing service at Zep Manufacturing, which has not yet been resolved. He stated that he was in favor of the agreement in regard to Zep Manufacturing, and if it is determined that Minnegasco is presently providing service to the Golf Course, he was in favor of that addition to Exhibit A. He stated, however, that as far as expanding to the Realife Cooperative, more information should be provided to the Council and the residents, noting the duplication of services and that some risks were involved. He stated that his main concern was that they not incorporate the Realife Cooperative into the ordinance at this time, and approve what they had agreed upon. Mayor Coughlin stated that he recognized they had discussed the subject at the Work Session, and the Council meeting provided an opportunity to add to or subtract from the ordinance as necessary. Council Member Stigney stated that, in his opinion, he would not add the Realife Cooperative at this time. He stated, however, he would go ahead with Zep Manufacturing and the possible addition of the Golf Course, if it was determined that Minnegasco was already providing that service. He stated that the Council could pursue the Realife location further, when the legal issues were resolved and more information had come forward. Council Member Thomason stated that the Realife development was presently under construction. She stated if the Council was to only allow Zep Manufacturing, and placed a moratorium until more information was available, there was a possibility that the Realife Cooperative would lose the option to have Reliant Energy Minnegasco as their service provider. She stated that the Council should add the Realife location to Exhibit A at this time, or it would be delayed so much that it would not be an issue. 10 C:\ADMIN\MINUTES\CC\6-28-99.CC