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57 <br /> MINUTES OF THE SPECIAL MEETING OF THE HUGO CITY COUNCIL <br /> June 23, 1983 <br /> Pursuant to due call and notice thereof, the City Council of Hugo held a special <br /> meeting on Thursday, June 23, 1983 in City Hall. Purpose of meeting was to <br /> discuss the financial guarantees for the Shamrock Glen Subdivision and any other <br /> appropriate city business. Copy of notice is attached to and made a part of these <br /> minutes. Mayor McAllister called the meeting to order at 7:30 PM. <br /> PRESENT: McAllister, Atkinson, Peltier, Schwab, Vail <br /> Also - Richard Vail, Ronnie Bowman, Walt Williams, Charles Johnson and Howard Kuusisto <br /> Mayor McAllister stated items to be bought out before the development contract <br /> is discussed. He questioned the voting ability of Deane Vail since it involves <br /> his bother's subdivision. McAllister wanted to go on record that he feels Deane <br /> Vail's participation and discussion on this matter in voting is a over the <br /> integrity of this Council. Mayor asked for comments from Council: Schwab, no <br /> comment; Peltier, every Councilman for himself; Atkinson, cannot really comment <br /> because he is not familiar with what is entirely right. <br /> Mayor advised a portion of the sanitary sewer has been installed without City <br /> of Hugo inspection - RIGHT? Mayor asked for convents from Council: Vail, no <br /> comment; Schwab, agree; Peltier, agree; Atkinson, agree. <br /> Engineer recommended that in so far as Carley & Associates has been doing the <br /> staking and inspections up until this time, that all inspections would be done <br /> by the City of Hugo from this date forward (6/23/83) . <br /> Mayor McAllister stated there were thought to be errors in first development <br /> agreement; there were not. First, the bonding company would not bond for <br /> NSP work; now bonding company will bond for the full $90,000; Mr. Vail would <br /> provide the City with $25,000 performance bond; this has not been done so City <br /> will issue a cease order on project June 24, 1983 unless these items are cor- <br /> rected. Council members Atkinson, Peltier, Schwab all agreed; Vail, no convent. <br /> Meeting recessed at 7:45 PM, to await Mr. Bowman's arrival. Meeting reconvened <br /> at 8:00 PM. Mr. Bowman was in attendance whose firm is now doing the sanitary <br /> sewer construction, and Mayor McAllister advised Mr. Bowman of the problems with <br /> development agreement. <br /> City Attorney Johnson advised Council of recitals in first amendment to development <br /> agreement between Vail Builders and the City of Hugo. <br /> Mr. Richard Vail advised Council at this time a $25,000 bond is not available, but <br /> a letter of credit from the First STate Bank of Hugo would be drawn up to cover <br /> project which would be in effect for one year or after 10 homes are built. <br /> Walt Williams of Carley & Associates gave a brief resume of what their firm has done <br /> so far in project. <br /> Discussion on City accepting a bond from Ronnie Bowman Excavating for $90,000, <br /> which is 125% of engineer's estimate, less the bond described in #3, page 3, of <br />