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Mr. Randall Schumacher <br />February 29, 1988 <br />Page 5 <br />(c) The bids on a petitioned project could <br />conceivably not come in until 30 days (for <br />engineer preparation of estimates) plus 14 <br />days (notice) plus 60 days (petition period) <br />plus 21 days (bidding time) after the origi- <br />nal estimates were made. Engineers are good <br />at estimates, but few will think theirs will <br />hold within 10% for such an extended period. <br />There is nothing in the charter permitting <br />the City, as in state law, to advertise for <br />bids prior to the hearing to get a sense of <br />costs. The rebidding provision probably <br />would help only if the project were scaled <br />back but there is no procedure for this in <br />the charter. <br />5. Section 8.04, Subd. 4. Does "disallowed" <br />mean (i) prohibited by petition, (ii) exceeding the <br />cost by 10%, (iii) voted down or (iv) all of the above? <br />What does "vote on the same improvement" mean - <br />initiate the improvement, order the improvement, let a <br />contract? May the Council consider a petition for the <br />same improvement in the one year period? What does <br />"same improvement" mean - the exact proposal or <br />something like it? <br />6. Section 8.06. 100% petition. Why is a <br />public hearing with notice required if all of the <br />owners of property to be assessed have no objection? <br />What is the purpose of the ten day waiting period? <br />Does the 10% over -estimate rule apply? Does "order the <br />proposed project" mean let a contract? Does the one <br />year rule about proceeding with the contract apply? <br />7. Ordinance, Section 303.08, Procedures and <br />financing. Why is not Minn. Stat., Section 429.041, <br />Subdivision 7 adopted by reference? This is most <br />useful and cost saving and the competitive bidding <br />process has been complied with. <br />'In summary, let me state why these ambiguities <br />cause a bond lawyer (and the bond market) concern. The <br />improvement bonds sold to finance the project pledge <br />the special assessments to payment of principal and <br />interest on the bonds. If the improvement procedure is <br />defective and successfully challenged, the assessments <br />and the bonds are invalid. Although Section 429.071 <br />