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MINUTES OF THE <br />ORONO CITY COUNCIL MEETING <br />MONDAY, JULY 24,2000 <br />PUBLIC SERVICE DIRECTOR’S REPORT <br />(US) PURCHASE OF NEW FURNACE FOR CRYSTAL BAY POST OFFICE <br />Kelley inquired whether the City has a profit and loss statement on this building and whether the <br />amount of money the City puts into the building exeeeds the amount of rent revenue reeeived. <br />Moorse indieated the City receives $5,400 a year in rent. <br />Mayor Jabbour commented it was his understanding it was approximately S11,000 a year or <br />$800.00 a month. <br />Moorse stated the City did some significant wosk -U'proximatcly eight years ago, which amounted <br />to a year's worth of rent, and has not performed an\ improvements since that time. <br />Gappa stated this project has been prompted as a result of a concern regarding the fuel tanks <br />located on this property. Gappa stated the fuel tanks arc to be removed following installation of <br />the gas furnace. <br />Kelley commented he is not opposed to the project, but that he would like to be assured that <br />ta.xpaycr money is not being used to improve this project. <br />Moorse stated the City is not losing money on the rental of this building. <br />Kelley inquired whether the soil will be tested following removal of the tanks. <br />Gappa stated the tanks arc located above ground and that he was not planning on having the <br />soil in this area tested since there is no evidence that the tanks have ever leaked. <br />Kelley recommended th? soil in this area be tested. <br />Mayor Jabbour stated if there is obvious signs of contamination, the City docs have an obligation <br />to take appropriate steps to correct the problem <br />Peterson moved, Flint seconded, to approve the quotation for installation of a new <br />furnace and air conditioner for the Crystal Bay Post Office building from Vogt Heating <br />And Air Conditioning, St. Louis Park, Minnesota, in the amount of $3,975.00 to be funded <br />from the 2000 Capital Outlay Budget. <br />Flint inquired whether the amount included the costs for hookup. <br />Gappa stated it was his understanding the utility pa> s for the cost of bringing the gas to the <br />building and meter, with the City paying the other costs associated w ith hookup, which is included <br />in the bid. <br />Page 11