HomeMy WebLinkAbout1983.06.23 CC Minutes - Special meeting 57
MINUTES OF THE SPECIAL MEETING OF THE HUGO CITY COUNCIL
June 23, 1983
Pursuant to due call and notice thereof, the City Council of Hugo held a special
meeting on Thursday, June 23, 1983 in City Hall. Purpose of meeting was to
discuss the financial guarantees for the Shamrock Glen Subdivision and any other
appropriate city business. Copy of notice is attached to and made a part of these
minutes. Mayor McAllister called the meeting to order at 7:30 PM.
PRESENT: McAllister, Atkinson, Peltier, Schwab, Vail
Also - Richard Vail, Ronnie Bowman, Walt Williams, Charles Johnson and Howard Kuusisto
Mayor McAllister stated items to be bought out before the development contract
is discussed. He questioned the voting ability of Deane Vail since it involves
his bother's subdivision. McAllister wanted to go on record that he feels Deane
Vail's participation and discussion on this matter in voting is a over the
integrity of this Council. Mayor asked for comments from Council: Schwab, no
comment; Peltier, every Councilman for himself; Atkinson, cannot really comment
because he is not familiar with what is entirely right.
Mayor advised a portion of the sanitary sewer has been installed without City
of Hugo inspection - RIGHT? Mayor asked for convents from Council: Vail, no
comment; Schwab, agree; Peltier, agree; Atkinson, agree.
Engineer recommended that in so far as Carley & Associates has been doing the
staking and inspections up until this time, that all inspections would be done
by the City of Hugo from this date forward (6/23/83) .
Mayor McAllister stated there were thought to be errors in first development
agreement; there were not. First, the bonding company would not bond for
NSP work; now bonding company will bond for the full $90,000; Mr. Vail would
provide the City with $25,000 performance bond; this has not been done so City
will issue a cease order on project June 24, 1983 unless these items are cor-
rected. Council members Atkinson, Peltier, Schwab all agreed; Vail, no convent.
Meeting recessed at 7:45 PM, to await Mr. Bowman's arrival. Meeting reconvened
at 8:00 PM. Mr. Bowman was in attendance whose firm is now doing the sanitary
sewer construction, and Mayor McAllister advised Mr. Bowman of the problems with
development agreement.
City Attorney Johnson advised Council of recitals in first amendment to development
agreement between Vail Builders and the City of Hugo.
Mr. Richard Vail advised Council at this time a $25,000 bond is not available, but
a letter of credit from the First STate Bank of Hugo would be drawn up to cover
project which would be in effect for one year or after 10 homes are built.
Walt Williams of Carley & Associates gave a brief resume of what their firm has done
so far in project.
Discussion on City accepting a bond from Ronnie Bowman Excavating for $90,000,
which is 125% of engineer's estimate, less the bond described in #3, page 3, of
58 June 23, 1983
original development agreement for construction and installation of sanitary
sewer, storm sewer, watermain, and the street in the area within City known
as Shamrock Glen. Mr. Johnson concurred. Council: Peltier, Atkinson, Schwab,
agreed - Vail, no objection.
Mayor McAllister stated a perpetual letter of credit from Mr. Richard Vail,
in the amount of $2,000, be received by the City to cover inspection by City
Engineer i n lieu of bond; all Council members agreed.
MOTION: McAllister made motion, Peltier seconded, that Mayor and City Clerk
be authorized to execute the amended development agreement, subject
to the following:
1. Receipt from Mr. Richard Vail for letter of credit, in the amount
of $25,000, to replace the bond requirement in paragraph 3, page
3, of the original agreement dated October 14, 1982;
2. Letter of credit, in the amount of $2,000, specifically covering
onsite inpsections of all public utilities by the City Engineer
(one letter of credit for $27,000 to cover the above is suffi-
cient) ;
3. Letter of credit(s) to meet the satisfaction of City Attorney,
and should have a guarantee renewal by request of the City
Council Cr a sixty day notic of cancellation.
VOTING FOR: McAllister, Peltier, Atkinson, Schwab
ABSTAINED: Vail
Motion Carried.
MOTION: Peltier made motion, Atkinson seconded, to adjourn at 8:57 PM.
All aye. Motion Carried.
LuAnn Prachar, Acting Secretary
City of Hugo