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February 27, 1978 Page 4 Margaret Helch, 5091 Rainbow Lane asked why the residents were not notified when the feasibility study was first authorized. Acting Mayor Baumgartner replied that all Council meetings are open to the public, and that the feasibility study was discussed during the Council meetings, and that the Council authorized the study since they felt it was very necessary. Councilmember Rowley added that public hearings were held on the matter in January and November of 1976 and that the hearings were advertised and also published in the New Brighton Bulletin with articles in past city newsletters. Mr. Wills asked what the source of funds would be for the project. Acting Mayor Baumgartner replied that an application was made for a HUD grant but was denied, and that the front end of the project would be bonded and the property owners would be assessed approximately 3.79 cents per square foot for the project. Administrator Achen added that the bond would be financed at 5 to 535 percent interest, dependent upon the market at the time, and that the residents would be assessed at 8 percent interest, with the difference going for administrative costs, but that the residents who pay it in full when assessed would not pay any interest costs. Acting Mayor Baumgartner also pointed out that the residents would have the option of taking out a bank loan for two or three years, at a lower interest rate, to pay off the assessment. Acting Mayor Baumgartner stated that a request had been made at the public hearing that the March 27 meeting also be held at Bel Rae when the decision would be announced, and directed the City Admini- strator to set the meeting place at Bel Rae, if it was available or Edgewood Junior High. Bill Werner, 2765 Sherwood asked if the Council would consider the group at the public hearing a representative sampling of the City. Acting Mayor Baumgartner replied that he would but that it must also be remembered that there were at least 12,000 residents who were not at the meeting and that the City is waiting to hear from them before March 15. Councilmember Ziebarth stated that he felt $6,500,000 was a great deal of money to be spent but that he did not feel he could vote against the project based on just a percentage of the residents. Councilmember Rowley stated that at this point she was weighing the pros and cons and would be taking all comments, letters and phone calls into consideration before making a decision. She added that she felt the system would have to be put into the City eventually. Jules Wold, 2616 Hillview stated that the storm sewer system could not guarantee 100 percent that there would not be water problems and asked what guarantee the residents would have that ten years from now the system would not be obsolete. Acting Mayor Baumgartner replied that at some point in time, everyone was going to have to trust someone, and that the City has a great deal of respect and trust for Short, Elliott and Hendrickson, who is a very professional and reputable firm, and that the City must be able to accept a