11-27-1995 Council Minutes - Laserfiche WebLink

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MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING HELD O:` NOVEMBER 27, 1995 ( #7 - Septic System Conformance Agreement - Continued) • At the November 14 Special Council Meeting, Gaffron noted the Council determined that the nronerty owner should be allowed to proceed with construction after T)rovidins a letter of credit for the septic system upgrade and a signed septic system upgrade agreement. A clause has been inserted in the agreement to allow for reconsideration before the work is performed to evaluate where the sewer talks are at. The agreement has been drafted based on the standard developers aueenient with septic upp-rade to be performed by July 31, 1996. Gaffron suggested a review one month prior to this deadline to evaluate for possible sewering. The letter of credit for 150% of septic upgrade costs covers any extraneous costs should the City need to contract for and complete the work. Since this has not been done in the past, Gaffron said Staff felt it should be brought before the Council. He asked Council if the 150% letter of credit is reasonable or if the letter of credit amount should be different than that tvpically reauired of a developer. Kelley asked how Staff would determine what 100% of the costs would be for the septic urwrade. Gaffron said the Bouchard's have Gotten one bid. 150% of that bid amount is approximately $14,000. Kelley asked if there was a different charge from the bank for a 150% amount versus a 100% amount. Mrs. Bouchard said the cost was a total of $400 and did not differ between t uu" /o and 15u" /o. keney said ne felt it was important that the City work with the residents in situations such as this. • Bouchard said she was eager to proceed with construction and would appreciate a decision be made on the matter at this meeting. Bouchard said she was in agreement with the draft as written. She noted that the bank has a fax copy of the example of a letter of credit to aid in expediting the process. • Hurr asked and received confirmation that Mr. Bouchard would also sign the agreement. Hun moved, Jabbour seconded, to approve the draft Septic System Upgrade Agreement between the City and the Bouchards. Staff anticipates that a similar agreement may be used in the future for similar situations. Callahan asked Barrett is he had reviewed the agreement. Barrett said he had and the draft was taken from other examples available. It was noted that no percentage of letter was credit was noted in the draft but 150% would be used in the final agreement. Hun said she was of the opinion that the City should use the normal practice amount of 150% for the letter of credit. Vote: Ayes 4, Nays 0. MAYOR/COUNCIL REPORT Callahan reported having attended the groundbreaking ceremony for the MCWD's Long Lake Water Quality Improvement Project. Callahan noted an upcoming meeting in Independence regarding Highway 12 on November 28 from 9:00 a.m. - noon. Moorse said he would be attending this meeting. 5