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ir> <br />j .> <br />MIXUTES OF THE REGULAR ORONO COUNCIL MEETING - SEPTEMBER 23. 1991 <br />(#19) POLICE SERVICE CONTRACT WITH LONG LAKE <br />Moorse Gxpldlned ^■hat aftor the last meeting, he wrote a <br />letter to Long Lake requesting payment for past due contract <br />police service fees.He noted that he did gat a response from <br />their City Attorney and had received payment for the third <br />quarter service that very day.He explained that this payment <br />did not Include the 1989 disputed amount.Moorse explained that <br />we did not get the full amount for 1991 services as Long Lake <br />failed to budget the full amount of the contract.They have <br />asked Orono to change the schedule to make up for the difference. <br />•He noted they have a credit from 1990 that offsets most of the <br />difference, and at the end of the year, will produce a zero balance <br />Jabbour asked the City Attorney to clarify how often Orono <br />Is allowed to review the contract. <br />Barrett advised that both cities can mutually agree to <br />change the terms of the contract, but unilaterally it can only be <br />changed once a year. <br />Jabbour noted that If the City of Long Lake chose not to pay <br />for the next year. It would put the City in a negative cash flow. <br />Barrett noted that Orono could consider Long <br />Inability to pay as broach of contract and discontinue <br />because of that breach. <br />Lake's <br />service <br />Butler noted that the language of the contract needs to be <br />revised to reflect late payments.She felt that a deadline must <br />be set. and If payment has not b<jen received by that date, <br />service would be discontinued.She felt a provision that set an <br />escalating late fee might help the situation. <br />Jabbour stated that staff should bill for the next quarter <br />Immediately, and If payment is not received on time, the contract <br />should be cancelled. <br />Goetten felt that this Is a very disturbing situation, but <br />noted that the Council has no choice but to cancel due to lack of <br />payment. <br />It was moved by Jabbour, seconded by Butler, to cancel the <br />police protection service contract with Long Lake if the fourth <br />quarter payment Is not In—housa by October 10, 1991. If payment <br />Is received by that date, staff should proceed with 1992 budget <br />negotiations. <br />Butler remarked that she had checked into past payments and <br />1 ,••' <br />found the following* <br />i <br />*\ <br />¥ <br />i'r* ■ <br />Qua <br />January 1. 1991 <br />April 1, 1991 <br />July 1. 1991 <br />B11 led <br />End of January <br />Late In March <br />July 11. 1991 <br />Paid <br />Late Apri1 <br />June 21. 1991 <br />September 23, 1991 <br />: 1 -: <br />•^ <br />/;■%13 <br />(t-4i. <br />r..:.iTTk •i*