1978.10.02 CC Minutes - Laserfiche WebLink

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5.2 John Moore - Liquor License Matter scratched from agenda. 5.3 Grace Development - Water and Sewer Agreement A preliminary draft of the agreement was given Grace Development at a prior meeting for their review. It was returned to the city's attorney with some suggested changes. Mr. Johnson stated that it has been the policy of the city to reduce the letter of credit after partial comple- tion of a project. Schletty stated that he would like to see a certain amount of money held after the completion of the project to make sure there are no problems. The public hearing to consider Revenue Sharing was opened at 7:32 PM. LaValle stated that Hugo has been allocated $18,600.009 and this money will be used exclusively in the roads budget for 1979. There were no residents present to ask questions regarding this matter. MOTION: Spitzer made motion, seconded by LaValle, to close the public hearing at 7:33 PM. VOTING FOR: LaValle, Spitzer, Schletty, Irsfeld and Vail MOTION CARRIED Water and Sewer Agreement - cont. Irsfeld asked if the city had any liability by approving payments between parties. Johnson stated that there was always a possibility, but the city would not be approving bills. The plans for construction are drawn by the city's engineer, and would be inspected by the city. LaValle stated that he would like to require Grace Development to have their developer and their contractor obtain a performance bond to either the city or Grace Development for one year after completion of the project. MOTION: Spitzer made motion, seconded by Irsfeld, to approve the Water and Sewer Agreement as outlined by Mr. Johnson, provided that a performance bond is made in favor of both the city and the developer, and it is understood by all parties that release of the letter of credit is a negotiable item. The letter of credit will not neces- sarily be completely released until proof of all pay- ment.of bills is submitted. The City Council authorizes the Mayor and City Clerk to sign this agreement. VOTING FOR: LaValle, Spitzer, Schletty, Irsfeld and Vail MOTION CARRIED Mr. Johnson will reqrite the contract and have ready for signature by October 5, 1978.