09-23-1991 Council Minutes - Laserfiche WebLink

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MINUTES OF THE REGULAR ORONO COUNCIL MEETING — SEPTEMBER 23, 1991 ( #19) POLICE SERVICE CONTRACT WITH LONG LAKE Moorse explained that after the last meeting, he wrote a letter to Long Lake requesting payment for past due contract police service fees. He noted that he did get a response from their City Attorney and had received payment for the third quarter service that very day. He explained that this payment did not include the 1989 disputed amount. Moorse explained that we did not get the full amount for 1991 services as Long Lake failed to budget the full amount of the contract. They have asked Orono to change the schedule to make up for the difference. He noted they have a credit from 1990 that offsets-most of the difference, and at the end of the year, will produce.a zero balance. Jabbour asked the City Attorney to clarify how often Orono is allowed to review the contract. Barrett advised that both cities can mutually agree to change the terms of the contract, but unilaterally it can only be changed once a year. Jabbour noted that if the City of Long Lake chose not to pay for the next year, it would put the City in a negative cash flow. Barrett noted that Orono could consider Long Lake's inability to pay as breach of contract and discontinue service because of that breach. Butler noted that the language of the contract needs to be revised to reflect late payments. She felt that a deadline must be set, and if payment has not been received by that date, service would be discontinued. She felt a provision that set an escalating late fee might help the situation. Jabbour stated that staff should bill for the next quarter immediately, and if payment is not received on time, the contract should be cancelled. Goetten felt that this is a very disturbing situation, but noted that the Council has no choice but to cancel due to lack of payment. It was moved by Jabbour, seconded by Butler, to cancel the police protection service contract with Long Lake if the fourth quarter payment is not in —house by October 10, 1991. If payment is received by that date, staff should proceed with 1992 budget negotiations. Butler remarked that she had checked into past payments and found the following: Due Billed Paid January 1, 1991 End of January Late April April 1, 1991 Late -in March June 21, 1991 July 1, 1991 July 11, 1991 September 23, 1991 13