1998-07-08 Packet - Laserfiche WebLink

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were in attendance to give a presentation to request authorization to install NSP (Northern States Power) gaslelectric lines. Mr. Wettish said Mr. Gerald Rehbein and Mr. Rick Carlson requested NSP to service their developments and then offered a thumbnail sketch of the proposed lines along 20th Avenue and Centerville Road. Furthermore, it is NSP's hope to provide customers with the choice of service. In any case, the existing lines are east of 3 5E, south of the movie theater and west of County Road I. The Council noted the city presently is serviced by Minnegasco. Also, neither the City Engineer nor the Public Works Director foresee the benefit two gas companies will provide the city. Mayor Wilharber inquired about franchise fees. Mr. Wettish replied NSP would like to be competitive with Minnegasco's rates and franchise fees would take them out of contention. Councilmember Buckbee questioned why Mr. Rehbein and Mr. Carlson requested NSP to serve the industrial area and the Parkview development. Ms. Tierney explained NSP offers different programs than does Minnegasco. NSP offers dual lines which are on both sides of the street, and winter construction options for developers. Mr. Wertish commented NSP would provide a benefit to the city by way of paying property tax on the lines within the right -of -way. Councilmember Powers questioned NSP representatives about a gas leak complaint and the confusion two servers present when responding. Councilmember Powers was mindful of competition but emphasized the safety factors. The following major points emerged from the Council's analysis of the request. In sum, the safety factor, the competence of Minnegasco, and that there is no benefit for the city. Mr. Wettish explained the reasoning for deregulation was to allow property owners their choice of service with the option to choose, such as, Mr. Carlson's and Mr. Rehbein's request to utilize NSP. Ms. Schmidt spoke on behalf of NSP and Minnegasco, as she explained their procedures when responding to a gas leak complaint. Foremost, whichever company responds to a gas leak complaint, the first thing both companies will do is to mitigate the situation regardless of whose gas line it belongs to. Then identify the owner of the gas line and precede as needed. Mayor Wilharber moved and it was seconded to deny the NSP service franchise into Centerville Motion carried unanimously. NEW BUSINESS Local Performance Aid (LPA) Mr. March briefed the Council on the state program "Local Performance Aid" and its qualifying factors. In fact, there are several ways Centerville can qualify for the funds. Accordingly, the City will receive approximately $3,000 for complying with the state regulations. Mr. March recommended the Council approve the LPA application. 4