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1 <br />COUNCIL MEETING <br />August 26, 1985 <br />Page Seven <br />Mr. Schumacher explained he had met with Mr. Ron Langness, <br />the City's bond consultant last week. Mr. Langness had <br />told him the difference between a 35% letter of credit and <br />a 50% letter of credit is that the 35% letter of credit <br />gives the City five full years to pay the bond payment where <br />the 50% letter of credit allows seven and one -half years <br />to do the same. <br />Mr. Langness did have a concern with the delay in collecting <br />the assessment. He suggested that the City collect the <br />assessments from the property owner rather than the County <br />collect the assessment with the property taxes. He felt <br />this was the best way to eliminate delinquency. <br />Mr. Marier said he could agree with a 35% letter of credit <br />provided that a temporary three and one -half year bond be <br />sold to finance the project. If the bonds were to be sold <br />for more than that period of time he would require a 50% <br />letter of credit. <br />When the three and one -half years of the temporary bond <br />expires and if there is still unpaid assessments a permanent <br />bond will have to be sold for a ten or fifteen year period. <br />Mr. Marier would require a 50% letter of credit for the <br />remaining assessments. <br />Mr. Reinert asked what would this do to the developer's <br />agreement. Mr. Schumacher said nothing. Mr. Reinert felt <br />this would allow the developers to get a good start on their <br />project. <br />Mr. Kulaszewicz moved to proceed with Resolution #85 -09 <br />and authorize Springsted to issue a temporary three year <br />or three and one -half year bond with a 35% developers agreement <br />from Rice Lake Estates, A. T. Gearman. This project will <br />include service to Maudies and the Darrell Shaw residence. <br />Mr. Reinert seconded the motion. <br />Mr. Marier said that the people who do not want sewer will <br />not be assessed until they hook up to the facility. <br />The vote on the motion, motion carried unanimously. <br />ENGINEER'S REPORT <br />Mr. Davidson introduced Mr. Bob Toddie and explained his <br />background in the engineering field. Mr. Davidson said <br />he has some commitments that will take a great deal of his <br />time in the coming year and Mr. Toddie will assist him in <br />providing engineering services to this City. Mr. Davidson <br />will still be available to this City whenever he is required. <br />TKDA will not charge the City for updating Mr. Toddie and <br />as Mr. Davidson explained, this City will get two engineers <br />for the price of one engineer. <br />079 <br />