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August 14, 1978 Page 9 BONO SALE CONCEPT APPROVAL Seegar Swenson explained that the bond interest rate has been raising the past year until just the past few weeks and that the financial world is not sure if the interest rates will continue to go up or come down. He added that he feels this is a good time to set a bond sale. Mr. Swanson explained that the bored issue is for $1,400,000, to include Projects 1975 -4, 1977 -2, 1978 -3 and 1978 -4, with total construction costs amounting to $972,372, land acquisition amounting to $125,000, engineering, legal and fiscal fees $161,295, contingency $5,845, capital interest $125,541, and bond discount- $24,947, totaling the $1,400,000. Mr. Swanson also presented the planned maturity of the bond. Administrator Achen reported that the bond sale in addition to financing Projects 1978 -3 and 1978 -4 will provide permanent financing for Projects 1975 -4 and 1977 -2 which have already been completed. MSP (Baumgartner Rowley) to adopt Resolution No. 921 authorizing the sale of $1,410,000 improvement bonds and setting a bid opening date of 8:00 PM, September 11, 1978. Administrator Achen recommended that the City take the necessary steps to continue their bond rating, and that Moody's provides a rating for all bonds that are sold and that the rating is used by the bidders to rate how safe the bonds are. Mr. Swanson added that the fee for the rating by Moody's would be approximately $1,000, which would be assessed back to the project. MSP (Baumgartner Rowley) to authorize the Clerk /Administrator to sign a contract with Moody's Investor Service to continue the bond rating for the comrunity. GALE ADDITION APPEAL OF FAIRCHILD EXTENSION DENIAL Mr. Gale, 8227 Groveland Road stated he was protesting the City's decision to deny the extension of Fairchild and stated that he and his neighbor now have land that is considered dead. Councilmember Rowley pointed out that the extension was denied because the cost of the improvements to the two lots made it prohibitive. Councilmember Baumgartner stated that the matter had been discussed at the Planning Commission meeting and that there was an existing easement running between LaPort and Ardan, of 30', and that Ken Sjodin had suggested a 30' easement to the west of the property line but that Bill Werner and others present had objected to having a read put through for esthetic reasons and so forth. He added that the cost of a cul -de -sac and utilities would probably be close to the cost of putting the road through, and that either would be prohibitive to the two property owners. He added that Mr. Gale should have been present at the public hearing to voice his opinion then. Mr. Gale stated that he had never received notice of the hearing, nor had his neighbor. Administrator Achen checked the records and reported that notices had been sent to both Mr. Gale and his neighbor and that neither notice had been returned. Mr. Gale stated that he would like to grant a 30' easement to put in a dead end street for the two lots, coming in from LaPort. Administrator Achen recommended that the property owners check into the cost and feasibility of putting in a Ueda end street and then come up with a plan and present it to the Council. 3 ayes 3 ayes