Loading...
1977-03-2250 MINUTES OF THE COUNCIL MEETING OF MARCH 22, 1977 at 7:30 P. M. AT THE MOUND COUNCIL CHAMBERS Present were: Mayor Tim Lovaasen, Councilmen Gordon Swenson, Orval Fenstad, Ben Withhart and Bob Polston; City Manager Leonard Kopp; Attorney Curt Pearson; Prosecuting Attorney Gary Pfleger and. Lyle Swanson, engineer. PLANNING COMMISSION RECOMMENDATIONS Item 1 Oswin Pflug Lots 7 to 11, inclusive and part of Lots 6, 14, 15, 16, 17 and 18 including vacated alley, Shirley Hills Unit A Request Parking Variance Mr Pflug was present a.nd. stated that he had been told he did not need more parking some time ago by the Building Inspector. A motion to table was defeated. Polston moved. and. Withhart seconded a motion RESOLUTION 77-138 RESOLUTION REFERRING REQUEST FOR A PARKING AREA VARIANCE BACK TO PLANNING COMMISSION FOR ADVICE AND RECOMMENDATION REGARDING THE ADVISABILITY OF REZONING -Lots 7-11, Incl. and. Part of Lots 6, 14, 15, 16, 17 and 18, Block 1, Shirley Hills Unit A Roll Call Vote Fenstad Nay Polston Aye Swenson Aye Withhart ~ Aye Lovaas e.n Aye So resolved Item 2 Owner wishes to sell Lots 26, 27 and 28, Block 24 Seto.n No action LYNWOOD BLVD DRAINAGE Lyle Swanson outlined the project and. stated that Hennepin County would partic~te with 11% of MSA Fu.nd.s a.nd the City would participate with 11% of MSA Funds, the usual city pickup for storm drainage a.nd the remainder to be assessed. Swenson moved a.nd Withhart seconded a motion RESOLUTION 77-139 RESOLUTION RECEIVING REPORT AND CALLING FORA PUBLIC HEARING ON PROJECT 76-65 LYNWOOD & GRANDVIEW BLVD STORM DRAINAGE - April 26, 1977, 7:30 P.M. The vote was u.na.nimously in favor PROSECUTING ATTORNEY Swenson moved. a.nd Withhart seconded a motion to remove this matter from the table. The vote was Fenstad -Nay and all others -aye. ~,. Speaking for the Prosecuting Attorney was: Ray Thara.lso.n and Don Ulrick from the audience and Councilman Fenstad. Withhart moved a.nd Polston seconded a motion 51 RESOLUTION 77-140 RESOLUTION REQUESTING REPORT AND RECOMMEND; ATION FROM THE STAFF ON PROSECUTING ATTORNEY POSITION AT APRIL 12, 1977 MEETING QUESTIONS TO BE ANSWERED: i 1. Why was a polygraph test taken? 2. Could the case have been dropped before before going to court? 3. What did the Judge say in his chambers? Roll Call Vote Swenson Nay Withhart Aye Fenstad Aye Pots ton Aye Lovaas e.n Aye So resolved. NOTE' Check Managers recommendation when last prosecuting attorney was terminated. ANNUAL RA®IO LEASE Swenson moved a.nd Fenstad seconded a motion RESOLUTION 77-141 RESOLUTION AUTHORIZING THE MAYOR AND THE MANAGER TO SIGN AN AGREEMENT FOR 1977 WITH HENNEPIN COUNTY FOR LEASE AND MAINTENANCE FOR RADIO EQUIPMENT Withhart was temporarily absent a.nd did not vote, alt others voted i.n favor. COMMENTS AND SUGGESTIONS BY CITIZENS PRESENT Oswin Pflug - He said that the mayor had stated that the Planning Commission did their job -and he would. come to the council when he rented. the property; he did not want to wait for his building permit .now. No action. Information Memos : Shorewood. Policing SIDEWALKS Withhart moved a.nd Swenson seconded a motion RESOLUTION 77-142 RESOLUTION DIRECTING ENGINEER AND PUBLIC WORKS DIRECTOR TO INSPECT AND REPORT ON SIDEWALKS IN THE DOWNTOWN COMMERCIAL AREA AND ESTIMATE APPROXIMATE COST FOR NEE~ESSARY WORK. The vote was unanimously i.n favor COVER THE CLOCK Fenstad moved and Polston seconded amotion to waive the requirements of Resolution 77-16 and ignore the time. The vote was unanimously in favor TELEPHONE CASE 52 Swenson moved and Fenstad seconded. a motion RESOLUTION 77-143 R~so.LUTIO?V IdO. 77-143 A P.ESOLUTIO'J ACCEPTITJG PETITIOIS r~~0''I RL'SIDEiITS OF THE CITY 2EG~!P.DI'JG TI;LEPIIO?JE IZ~mES A?ID '.PELEPFIO:JE SEI;VICE, AND DIR°CTIt•IG TfIL `~L~Y7R, CI`1'Y ;'IA?JAGEr. A'ID CITX ATiOn~:1EY TO FIJJ A PE`i'ITIOTJ AND CO.-.'~!PLAI~IT [•IITF-i THE III?I\ESOTA PUF3LIC SERVICE COr•2.MISSIOV REQUESTING A REDUCTION I:'I ^ET~EPIiOVE RATES AND/OR A R VOCATIO'.•: OF THE CERTIFICATE OF TERRITORIAL AL i i£ORITY HE:.,D BY CO::TI'rIE~~T^tAL TELEPuO:~Il?, COP~IP:~~IY FOR ?'FIE '~4JU~dD EXCrIAdGE t•,iiERF:AS, in the sp. ing of 1975 Continental Telephone Company filed a petition with the T.'ublic Service Co+*~ission for authority to change its schedule of rates and charges, and WHEREAS, the City of ~4ound and its residents were very con- cerned about the proposed =aLe chances for telephone service and this Council did decide to intervene in the case in an effort to protect the public interest and the welfare of its citizens and the City of Mound became the only intervenor in the rate case, and tVHEREAS, a public hearing was held in the City of Mound on August 15, 1975 and this Council and citizens ca*_ns out en masse anc: presented evidence and testimony regarding service and rates, and t~TF3EREAS, the transcript of hearings throughout the state was 1210 pages long and the exar.~ir_er who heard all of thQ testimony filed a Proposal for Decision which refused to authorize any rate increase because Continental Telephonz Company was in violation of state statutes and PSC regulations and had failed to provide the type of service required by PSC rules and policies, and I^IHEREAS, a hearing was held before the Public Service Commission on January 8, 1976 and only the City of ~•4ound supported the hearing examiner while the Company and the. participating departrlent staff of the PSC argued against the examiner's proposal; and on~April 16, 1976 the PSC issued its final order which increased average rates for telephone service in t?~e City of Mound from $8.65 to $15.05 , which amounted to a:~ increase of approxi.;,ately 74~, and WHEREAS, this rate increase or approximately $6.50 per tele- phone per month for over 4,000 telephone subscribers is approximately $26,000 per month or $312,000 per year for subscribers to the t•2ound exchange, and ...~.... ~vHERSAS, the appro:{imate increase of $336,000 per year for telephone service has been revie~,ec? by this Council anc~ we are shocked to find that the increase is more than the ad valore"l tax levy in this com*nunity for fire, police, streets, sr_ow removal and all other 53 govern:*.~ent services, and ~IHEP.EAS, residents of the co^~*-!unity carte to tra City Council ar_d deraande3 that the City seek =. revie~•~ of this increase or petition the Public Service Cor.~*nission to ~evo:<.e tha ~ertiLica~e of Territorial Authority granted to Continental and further to grant said Certificate to *7orth~~estern Bell Telephone Conoany, and ~VHERyAS, our neighbors to the east in the City of Spring Park are served by .Northwestern B~11 and the comparative rates are approximately as follows: $ 15.05 per month for t4ound; $ 8.45 .per month for Spring Park, and residents of the City of Mound can not ur_derstand why the same service should cost 78 ~ more in Mound, since the City has had EAS since 1958 and no riajor new equipment has been required or installed to serve residents of the. City of Mound, and WHEREAS, the Public Service Commission in the Continental case broke out and charged Mound customers for Extended Area Service-and Metro Extended Area Service, and that case and one later case decided by the PSC (Benton Telephone Company) are the only cases in the state establishing a specif is charge for EAS, and this r:-anner of establishing rates has been rejected by the PSC in the following cases decided since Continental: Park P.egion Alutual Telephone Company 12/30/76 .Wikstrom Telephone Company Sherburne Telephone Company ~ . Albany rZutual Telephone Co::t?~any Peoples Telephone Corapany Clara City Telephone Company Citizer_s Telephone Company Consolidated Telephone Corlnary A review of PSC records and decisions ravea is the confusion of the PSC in establishing telephone rates and in a memorandum attached to the Park Region case the Commission acknowledged that the Benton Telephone case was: :'approved with little or no discussion and the Commissioners had neither read the order nor read the transcript, even though the exariiner was reversecl. " 54 Later in the same -_newiorandum Con~.^.?issioner Ronald L. Anderson said: "But even if the decision on Continental and Benton were to be ta;:en as Commission statements of policy for telephone rate makinc; in ~Zinnesota (which they clearly are not) they state only that, where the company either proposed. or agreed to "cost based" charges for EAS and itemizing those charges on the monthly bill, the Commission had no objection in those cases." However, designing rates based solel upon management prerogative has been recognized tv result in "an unlawful delegation of this Commission's rate making authority to the industry Ethey] are supposed to regulate~~(Park Region Mutual Telephone Company, Sasseville dissent) and results in discrimination against 2gound residents as compared to the customers in the aforementioned cases and the customers of North- western Bell which appears to oppose EAS charges being broken out, and P7E~iEREAS, in the conclusions as set forth in the Park Region case the PSC said: "The Commission further concludes that in view of this customer confusion and dissatisfaction from EAS itemization as .ordered in the Continental Telephone Company case earlier this year, it is in the best interest of all parties to allow the - petitioner in this case to continue its past billing practices, and therefore, not to require the Company to show EAS charges as separate items on the customer's monthly bills," all of which indicates that without directly adz~itting error in the Continental Case decision, the PSC ~lo~s not intend to make the same mistake again, all of which is discriminatory to Continental's Mound customers. Co:nmissior_er Sasseville in a dissenting opinion in the Park Region case made reference to this fact whin she snit?: "It is understandable that the Commission should wish to retrent from its ill-advised position in the recent Continental Telephone case which resulted in widespread customer confusion and dissatisfaction as the COII'~''Tl1SSion points out. IIocaever, it is a misccnception to believe that customer unhappiness resulted from. itemization - of EAS charges per se. It resulted instead from a complex of interrelated difficulties .f_unda- . mentally arising fro*~^. th~~ross disparities and high increases inposed by the Order. Ctxsto*~ar_s with 100 rate increases were unhappy. Their uul-~appiness cans e:cacerbated by the concurrent itemmization of EAS charges, and their perception that the quality of their basic phone service was erratic and unreliable', and VJFiLREAS, this Council cites the afore=~er.tioned confusion and the unfairness of the current rates and complains that the rates .... w ., . ,...... .... .. , for telephone service to I~lound custo~ers are not fair and reasonable 55 as required by M.S.A. 237.06 and 237.08, treat in excess of 82g of the customers of the A~iound exchange have filed *r~ith this. Council a petition directed to the i~2innesota Public Service Coy, fission re- questing a reduction in rates and requesting that reasonable rates be established and/or in the alternative they petition the PSC to revoke Continental's Certificate of Terx'itorial Authority pursuant to M.S.A. 237.16, Subd. 5, and WHEREAS, rates that are fair and reasonable should and must be judged by a standard of reasonableness and our residents do not believe that it is reasonable or fair that a customer living in Mound pay $ more for poorer telephone service than his neighbor across the street who lives in Spring Park. NOPJ, THEREFORE, BE IT RESOLVED by the City Council of the City of _~Iound 1. The petitions of residents of the r?o~and exchange directed to the Minnesota Public Service Commission regarding Continental Telephone Company are hereby accepted. The Clerk is directed to note in the official records of this City that ir_ excess of 82~ of the telephone subscribers have filed written corzplaints and have requested action by the Minnesota Public Service Cor.1*nission to reduce telephone rates or authorize Moun~? to become a part of the North- western Bell Telephone system. 2. This Council finds and determines that current telephone rates being charged in the City are not fair and reasonable and violate Sections 237.06 and 237.08 of the ~-iinnesota Statutes. 3. This Council further finds and determiners that its residents are being discriminated against by Continental Telephone Company and the Minnesota Public-Service Cor.2mission, in that the current rates and charges for EAS and ?`fietro EAS are not based on substantial evidence, are contrary to Commission oolicies and decisions in recent telephone cases and should not be allowed to continue merely because the Company requests or c?~sires these rates and agrees to EAS. and Metro EAS charges. 4. The Mayor, City ?tanager and City Attorney are authorized and directed to deliver the residents' petitions on file to the Minnesota Public Service Commission and to file the attached Petition and Complaint (Exhibit A attached hereto anti made a part of this 56 resolution}, complaining, pursuant to M.S.A. 237.08, that telephone rates being charged in PZound are unreasonable. They are further authorized and directed to request a hearing for the revocation of Continental Telephone Company's Certificate of Authority because the holder has failed to furnish reasonably adequate telephone. service within the City. 5. The Mayor, City Manager and City Attorney are further authorized and directed to solicit the aid and participation of other persons and com*nunities in a joint venture to oppose the i unfair and unreasonable rates being charged to all .'Continental' ,, customers in the metropolitan area. ~ ;' , The vote was unanimously in favor. S`T'ATE OF r1I?d`dL SOTA BEFORt. THE P•II\~•JESOTP. PUBLIC SERVICE COM:~ZISSIO~? In the 'flatter of Continental Telephone Co*~tpany's Telephone Rates and Service for the Exchange of Mound, 'Minnesota CO'"_Pi-AI:3T A~:D PETITInr1 FO'? A IiEARI:r'r OF THE CITX OF ti10U=•.D, 1~IIi~I_IESO'~'A - 1. This Petition is *nade pursuant to Minnesota Statutes, Section 237.08 and Public Service Commission ("Cor.~nission") Rule PSC 502 (a) requesting a hearing on the reasonableness of the - - present rate structure and design of Continental Telephone Company in the State of Minnesota, and in the alternative, asking for a hearing on whether Continental Telephone Company`s certificate of - authority for the Mound exchange should be revoked pursuent to Minnesota Statutes, Section 237.16, Subd. 5. 2. This-Petition is made on behalf of the City o£ Mound, Minnesota and on behalf of the Continental Telephone Company customers who reside within Mound's corporate limits. The dissatis- faction with the present rates of Continental Telephone Company for the P2ound exchange is demonstrated. by petitions of riore than 82 ~ of Mound telephone customers requesting this Co~,+mission to either reduce telephone rates for the Mound exchange or transfer that ~' 57 exchange to the idorthwestern Bell Telephone system. Said petitions are subr,-itted and filed with the PSC in support of this Petition but are too nura~rous to photocopy or dupli.~ate . 3. The City of ~~tound states anc~ alleges as grounds for its 1 fl request for a hearing on Continental Telephone ~onpany's rate design that the present rates of said Corlpany•are unreasonable and contrary to Commission policy in light of the consistent approach talcen by this Gor:~-!iission in recent telephone rate proceeuings. In the most recent rate proceeding for said Company, this Corunission accepted a rate structure tihich attempted to reflect the costs of I;~1S and • P•Ietro .ii~S as adc:itions to the basic telephone .rate. 'In Ile Contin- ental meleohone Coronary, Docket Ito. PR--121--1, April 16, 1976. notl2JEr, ir. telephone. ratz proc2e?inns su?~seq~e*_^t to the Continental proceeding, this Co~nrlission has consistently rejected proposals for rate designs t~~nieh ~•~ould attempt to reflect the costs of EA5 and 'Ietro ~S. I•n Re Park ReSio.~ 2.2utual Telepi-i.on2 CoTMtpany, Docket DIo. P-422/GR-75-373, Dece*~-ber 3%, 1976; I:: Re S:^_eYh•~rne County Rural Telephone Company, Docket rap. P-427/GR-76-67~~, January 11, 1977; In Re ~lba_n ~~Iutual Telephone Company, Docket i~o. P-500/GR-76-691, January ll, 1977; Tn Re Peoples Telephone Corlpa::y, Docket No. P-544/GR-76-821. Jar_uary ll, 1977; In Re Wikstron Telephone Com~aiy, Docket t1o. P-432/G:t-76-608, February 2, 1977; 7n Re Chara City Telephone Company, Docket No. P-511/GR-76-874, February 24, 1977, In Re Consolidated Te lephonz Comoanr~ of Brainerd, . Docket .No: P406/GR-76-828, March 15, 1977; ~In Re Citizens Te lephone Corn~any of Maynard, Docket No. P510/GR-76-868, f4arch 15, 1977. Thus, con-- sistent line of Commission decisions requires that the Commission reexamine the propriety and reasonableness of its rate design order for Continental Telephone Company. 4. The City of Mound states and alleges as grounds for i'cs alternative request for a hearing on the revocation of Continental Telephone Company's certificate, of authority for the Mound exchange that Continental Telephone Company is unwilling or unable to provide r~asorably adequate telephone service for the :sound exchange in light of t:z~ rate which is charged. 58 YJY.ER.FORE, the City of Mound respectfully petitions, complains and requests that the Com^iission order a hearing to bP held to deter- mi^e the reasonableness of the present rate structure of Continental telephone Company, ar_d in the alterrat~;ve to date?-,iine t•~hsther Centinental telephone Company's certificate of authority for the I•Iound exchange should b? revoked pursuant to :~iinnesata Statutes, Section 237.16, Subd. 5. Respectfully submitted, Curtis A. Pearson City Attorney, City of :sound 1100 First _iational Aank Building r•Tinnea?olis, r~innesota 5502 ~lilliam E. Flynn Assistant City Attorney, ` City of 2found 3944 IDS Center • ~ Minneapolis, Minnesota 55402 Swenson moved and Withhart.seconded a motion to adjourn until the adjourned meeting of March 2y, 1977 at 7:30 P.M. The vote was unanimously in favor, so carried and adjourned. ~ ~ _-~~ Attest : _,, ,' ~--y Leonard L. Kopp, Ci y pager