09/05/1984 Council Minutes - Laserfiche WebLink

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Special Council Meting September 5, 1984 293 A special meeting of the Lino Lakes City Council was called to order by Mayor Benson at 6:30 P.M. on Wednesday, September 5. The purpose of the meeting was to discuss the proposed sewer issue with the con - tractors involved. Also present councilmembers were Mr. Kulaszewicz, Mr. Bohjanen, and Mr. Marier. Mr. Reinert entered the meeting at 6:50 P.M. Others present were Mr. Schumacher, Mr. Wetzel (engineer), and Mr. Langness (fiscal agent from Springstad), and Mrs. Anderson Representative for contractors were present as follows: Harvey Gearman . and Jim Shafer for Rice Lake Estates, Roy Stanley for Tilsen Properties, Allan and Dennis Ulmer for Ulmer Construction, Harvey Karth for Rehbein Excavating. Shilling Construction was not represented. RESOLUTION 84 -25 Mayor Benson referred to Resolution 84 -25 wherein it is noted that the City and the contractors involved are required to enter into a developers agreement in order to continue with the proposed sewer project. Mr. Schumacher pointed out that there seems to be four basic points that need to be discussed and hashed out, those being: 1. The developers have expressed a desire for a long repayment sched- ule. The past policy of the City has been a five -year repayment schedule. 2. Developers request a one year capitalized interest in bond issue (one year to start paying). 3. Developers are supportive of a letter of credit for internal systems only and feel it is unfair for the City to require them to submit letter of credit for trunk line or anything other than internal systems. 4. Developers feel the City should take into consideration their past tax payment record of no delinquencies in making a decision on this matter. Mr. Langness outlined some letter of credit alternatives which the Council proceeded to discuss. He stated that from the City's stand- point capitalized interest should not present a problem. Several items such as - -35% versus 100% letters of credit, temporary improvement bonds, five year versus 15 year payment schedule, risks and benefits of each- -were brought up and discussed at length. Mr. Hawkins wanted to remind all involved that a sewer project of this cost has significant impact upon a City the size of Lino Lakes and the importance of making a mutually agreeable decision was great. Mr. Marier moved to ajourn the meeting, seconded by Mr. Kulaszewicz. Mr. Marier and Mr. Kulaszewicz voted aye, others nay; thus motion failed. Ulmer Construction voiced that they were anxious to have the Council make a decision on this issue.