07/14/1969 Council Minutes - Laserfiche WebLink

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202 At 8:55 Mr. Busch was asked to give the Company's opinion on the matter. Mr. Busch stated that the reason he had asked to be present at this meeting was the question of a or the franchise; that he had left the 17th meeting with the belief that their franchise had been granted on the amended motion; that the reason for the cost estimates was to help Jandric as well and that was why Mr. Jenson, Eng. had offered to give his estimated costs to Mr. Gotwald. Since he had understood that the specific franchise had been granted, he had sent Xeroxed copies to be signed by the Mayor, etc. In fact, on the 18th he had talked with a representative of the PCA and came away with a favorable impression; he had found no resistance to their proposed systems. Mr. Busch proceeded to elaborate on why the Company could not go ahead on the water system unless they had their original franchise agreement. No finance company will grant funds on something that they do not own or plan to give away. As far as Mr. Busch was concerned unless they had a definite franchise, the agreement was non - existent. He also stated that of course the pipes would be appropriately sized. Mr. Busch made several statements, mentioning that the development needs a community plant regardless of who owns or constructs it; that until the plans are approved, the Village must decide who will do the construction and should consider the franchise in that light. Mr. L'Allier stated that the crux of the matter was that the Council - ?:ould agree on the intent of the motion on June 17th. There was a difference of inter- pretation, that there was no meeting of the minds on the franchise, and consequently no contract. Mr. Locher thought that the minutes should be amended to refer to our opinion as to what occured, reminding that Mr. Bohjanen had wanted to wait for a decision until the 28th of July. It was agreed that the third paragraph on page 8 would be deleted as well as the second and third lines of the motion in paragraph 4. It was understood that the motion is the original motion and specifics are to be left to the July 28 meeting. Mr. Cardinal moved to accept the minutes of the June 17 meeting as thus corrected. Seconded by Mr. Jaworski. Carried unanimously. Mr. L'Allier reiterated that we thus granted one segment of a two -part deal. He requested that our fiscal agents meet with us to see about the financing of a water system and to give us their opinion on the Jandric franchises. Mr. Busch stated that Mr. Jensen estimated that for 300 houses to be built, it would cost some $350,000 to build the core water system, this figuring close to $1100 per house. His figures would be made convenient to Mr. Gotwald. Also, Company has to know for the next plat whether there will be a franchise or individual wells.:. He felt that by the 28th they would have an opinipn from PCA. There was considerable discussion on the matter of financing the system, in particular the lack of financing if the system is to be turned over to the Village in a few years, as well as on the charging the buyers for the system on the front end. Mr. Busch stated that the system would have to be paid for out of the profits of the whole development and they can't charge the customer enought to pay for the system as the market will not stand the cost of the assessment. The matter was left to be taken up on the 28th.