06/17/1969 Council Minutes - Laserfiche WebLink

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191 Mr. Locher stated there are two ways to work the buy -back feature: 1) It can be billed now to the property purchasers and turned over to the Village for one dollar. 2) I can be built by the Comapny as private, not billed to buyer, at some time bought by the Village and assessed back to the buyers. Anne Bohjanen asked about the possibility of the Village putting in water now, bill the buyers and they will be paying for it. Mr. Gotwald stated that we would have to sell bonds and Mr. L'Allier said the interest rate on bonds is 6.71 per cent, the highest it has been in 25 years. Mrs. Bohjanen said yes, but at a later date it will cost much more to buy it. Mr. L'Allier answered it doesn't make that much dif- ference because all phases of money will rise at the same time. Mr. Bohjanen men- tioned in Blaine Vern Donney had donated his water system to the Village. Loyola Thiltgen thought private systems of Septic tanks would be brought to an early end because of the pollution. Glenn Rehbein stated water was not as expensive as sewer and the price of water could be added into the purchase price of the home and the system turned over to the Village for $1.00. Anne Bohjanen stated the developer would not have to put water lines all over the 700 acres but it could be built in stages. Mr. Gotwald added that the well and tanks would have to be put in right Mr. Busch stated the Company would be happy to withdraw the franchise if the Vil- lage could put in a municipal system, but he understood the Village could not bond for such an amount. He again stated that it was not possible for his company to finance asystem that is publicly owned and could not possibly contend with what some other company can do. He hoped the Council would grant the franchise and ex- pressed clearly the decision of the appraisers would be final assuming the arbitra- tors are fair and disinterested. It is their intent to express in every deed and conversation that the buyer will be assessed for water. Mr. Bohjanen felt this issue could be decided on July 28th. Mr. L'Allier questioned the cost of this system for the community to install. Mr. Jensen said the golf course would be a separate system. Mr. Gotwald figured it would take at least one month to come up with some type of cost, but they should have a request for a municipal system from the Company, to do it legally. Mr. Rosengren felt the biggest problem was the buy -back feature. He stated "Who's to say we would ever want to buy it back, . . . it could run forever by itself. . . and would not interfere with the municipal system for the rest of the Village." It is optional whether we ever buy it back or not. Mr. Jensen said there would be two or more water tanks. The one for the first ad- dition and the club house would not be elevated. There would be fire hydrants. Mr. Gotwald said an elevated storage tank would not be a temporary tank. Al Ross thought the area should be much larger for a village system. Mr. Gotwald said a system for 600 homes would not be self - supporting, as there would be additional costs such as maintenance and office work. Mr. Rosengren thought the system would be sized for their project and would service only their area, and could still be operated when a Village system is put in. Mr. Bohjanen mentioned the possibility oa another samller system. Mr. Gotwald thought we should not get involved until the Village itself is involved in a water system. Mr. Rosengren thought we should grant the franchise with no reason to buy it back but the buy -back feature could remain in the agreement for protection. Mr. Rosengren moved to grant a water franchise to U. S. Lakes Development Company.