1987-12-22 - Laserfiche WebLink

Home Browse Search

I I I Council Meeting Minutes December 22, 1987 Benke stated at one time we discussed a two-and-one-half year pay- back; Proper stated we initially talked about two percent (2%) of gross revenues; then discussed a rate classification base (shorter time with less interest) but believed council wished it to be ex- tended at a lesser rate. In response to Benke's question regarding the extra $50,000, LeFevere indicated NSP originally provided for accumulation of $5 million so future projects could be advance-funded. As New Brighton only wants to fund one project at a time, $50,000 is a nominal amount which provides seed money for the next project without going through a new franchise fee ordinance amendment, and indicated the $50,000 amount could be adjusted; Benke asked that it be reduced to $25,000. In response to Benke's concern, right to collect a franchise fee gross revenues, and indicated the or prerogatives under state law. LeFevere stated the city has the of up to four percent (4%) of City will not forfeit any rights Gunderman asked about a service fee; Sinda stated there is none; LeFevere stated there are fees that offset the amount they pay us. Gunderman asked for a breakdown of the $600,000; Proper indicated, if the ordinance is approved, there would be an agreement between the City of New Brighton and Northern States Power for the Long Lake Road project and that agreement would provide the information Gunderman requested. Joe Schwartz, NSP, stated, by law, there are no pay backs to NSP, however, NSP may collect for annual audits; Sinda indicated the maximum for an audit of this type would be about $500 to $1,000. Schwartz continued that the $650,000 for the project was based on 1986 dollars and the project would now be approximately $800,000; noted, although the underground system is more safe, if a tornado touched in the Long Lake Road area, it would tear down the adja- cent aerial wires; and reported NSP may not be able to collect $2.00 per month from the residents because the residents have not requested the service. Proper indicated additional poles would be required near the 1-694 bridge and he ;s checking with the state about constructing con- duits in the bridge. Schwartz pointed out that underground service will have overhead lines on adjacent roads, and, from a safety standpoint, NSP has no documentation that undergrounding is safer. Benke stated that is an issue that would have been resolved before the final contract is signed. Schwartz stated $50,000 of undergrounding would be required to hire electricians to adapt homes to undergrounding. Danny Dahms, 675 Fourth Avenue N.W., asked if the city had a study to see what underground utilities would cost the tax payers. Page 5