Agenda Packets - 1999/07/12 - Laserfiche WebLink

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UNAPPROVED She noted that Realife and Minnegasco had entered into their agreement in the beginning of June, and the Council was just discussing the matter at that time. She stated that no opinions had yet been formulated by the Council, and Reliant Energy Minnegasco did not know whether the Council would approve or disapprove the matter at that time. She stated that she believed Realife and Reliant Energy Minnegasco had entered into their agreement in good faith, and she had reservations regarding not granting the limited use because of this. Council Member Stigney stated that he could understand Mayor Coughlin's opinion as a contractor, however, the questions and concerns regarding legal and safety issues had not yet been answered to his satisfaction. He stated that he was not prepared to vote at this time. Mayor Coughlin stated that Council Member Stigney still had time left, and asked if he would care to yield the floor. Mr. Mayerchak stated that both Reliant Energy Minnegasco and Northern States Power were good companies, and he did not believe that was a matter of dispute. He stated that both companies had served their communities well. He stated, however, that he would like to provide clarification regarding the present issue. He stated that Northern States Power had recently received a request for gas availability at Norwest Bank on Washington Avenue in Minneapolis, traditionally a Reliant Energy Minnegasco service area. He stated that, because he was an aggressive salesman, he decided to look into the matter. He determined that Northern States Power would have had to run more than a quarter mile of main to provide service to that building, and determined that in order to follow the proper steps, they would be unable to serve that location. He stated that, in this case, Reliant Energy Minnegasco was aware that in order to get a signed agreement with Realife Cooperative, they needed a Franchise Agreement first. He stated that they were aware of this a long time ago, noting that six weeks prior, Mr. Melander had stated that they were serving Zep Manufacturing by permit only. He stated that to enter into a contractual agreement prior to a Franchise Agreement would create an invalid transaction, and having a signed agreement does not necessarily supersede a Franchise Agreement. He stated that, in this case, the process had been somewhat violated. Mayor Coughlin asked Council Member Stigney if he would care to yield the floor for rebuttal. Mr. Swintek stated that Reliant Energy Minnegasco was aware of how the permitting and Franchise Agreement processes work. He stated that in this particular case, there was no reason for them to think that a Franchise Agreement would not be granted. He stated that it is a common practice in other cities. He stated that they were of the opinion that a Franchise Agreement would be granted, and this and the Minneapolis situation were not the same. City Attorney Long stated that he had spoken with Public Works Director Ulrich regarding the term of the Northern States Power Franchise Agreement, which was a twenty year period. He stated that in the interest of providing an equal term for Reliant Energy Minnegasco, the date of expiration of the term should be July 1, 2019. He stated that procedurally, and in order to prevent the need to re -draft the ordinance in the event of a split vote, the Council could request that the blank space in Section 2.1 of Ordinance 625 contain the date July 1, 2019, and could request the addition of Item 2 to indicate "City owned property receiving service from Reliant Energy Minnegasco from the date of enactment of Ordinance 625." He stated that the legal description of the golf course could be added at a later date. He stated that this clause would be sufficient to cover the golf course property if it was determined that Reliant Energy Minnegasco was the service provider at that location. I1 C:\ADMIN\MINUTES\CC\6-28-99.CC