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1 <br />1 <br />COUNCIL MEETING <br />October 9, 1984 <br />Page -24- <br />Mr. Juleen from the audience asked if contractors or builders could <br />get permits when using the road. The permits would cover the cost <br />of the breakup. Mr. Schumacher said this would create a full -time <br />clerical position. <br />Mr. Reinert felt he needed more information on this matter before he <br />could make any decisions. He would like input from Mr. Volk. <br />This is a policy issue that will have to be dealt with. <br />Mr. Davidson suggested all letters of credit be written so they <br />expire on July 1 of each year. This would allow time for the City <br />to pull the letter of credit and go in and complete the project. <br />Mr. Ross from the audience asked Mr. Hawkins if the 35% letter of <br />credit is adequate to protect the City. Mr. Hawkins said this was <br />a fiscal decision and recommended by the City fiscal agent, Mr. <br />Langness. Mr. Davidson said this is a common policy and felt 35% <br />was adequate when default occurs. <br />There was discussion of the Jandric default with Mr. Davidson stating <br />there was no financial loss to this City because of Mr. Jandric's <br />bond held by the City. <br />Mr. Ross asked if the City was familiar with the situation in <br />Wyoming, Minnesota. Mr. Davidson said the work there was completed <br />under a bond and paid for by the bond. The City had no out -of- pocket <br />loss.. <br />Mr. Reinert moved to adjourn at 9:35 P.M. Mr. Bohjanen seconded the <br />motion. Aye. <br />035 <br />