05/26/1998 Council Packet - Laserfiche WebLink

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AGENDA ITEM No. 9C STAFF ORIGINATOR DAVE PECCHIA, INTERIM CITY ADMINISTRATOR /CHIEF OF POLICE DATE MAY 26, 1998 TOPIC BACKGROUND CITY OF SHOREVIEW CONNECTION CHARGES AND JOINT POWERS AGREEMENT At the May 6, 1998 Council worksession, the City Council discussed the delinquent utility connection and area charges the City owed the City of Shoreview. The charges were owed through a 1987 agreement the City entered into with the City of Shoreview for both water and sewer service for a portion of Lino Lakes just north of Co. Rd. J. The agreement required the City of Lino Lakes to pay connection charges, as well as use charges for both water and sanitary sewer service. Although the use charges have been collected since the date of the agreement, the connection and area charges were never paid. At the May 11, 1998, Council meeting the City Council approved a tentative agreement proposed by the staff members from Lino Lakes and Shoreview that would result in a payment to the City of Shoreview for connection charges, less sewer use charges and additional investment interest in the amount of $303,641.62. At the May 11, 1998 Shoreview City Council workshop the Shoreview City Council met and reviewed this matter. They requested staff to continue to negotiate this matter and to include a portion of the penalty option. At the May 18, 1998 Shoreview City Council meeting they adopted resolution number 98-45 authorizing the acceptance of unpaid utility connection and area charges from the City of Lino Lakes for the amount of $390,682.62. This figure represents $87,041 in penalty charges. OPTIONS 1. Accept proposal from Shoreview, authorize payment of $390,682.62 and direct staff to redraft the 1987 agreement with the City of Shoreview. 2. Return to staff for further negotiation. RECOMMENDATION 1. Option 1