06-25-2001 Council Minutes - Laserfiche WebLink

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• MINUTES OF THE ORONO CITY COUNCIL MEETING October June 25, 2001 (Long Lake /Orono Fire Station, Continued) Persian also suggested the word rent be removed from the agreement, and in his opinion it is simply a matter of semantics. Persian stated his understanding of the meeting was that Long Lake felt that these two line items would be combined not to exceed $13,200. Sansevere stated that was discussed at the meeting and that Long Lake appeared to be satisfied with getting the $13,200 rather than losing the $3,000. Sansevere moved, White seconded, to approve the following language to be included in the Settlement Agreement under Item #6, "The Rental and Administration Fee for the property which includes Long Lake's administrative overhead expenses, and other expenses for Long Lake employees related to the operation of the Long Lake Fire Department, including the operation and maintenance of the fire station, shall be no more than $13,200.00 per year as set forth in the current operating budget of the Agreement and Contract for Fire Protection. The cost sharing formula for the payment of rent and administrative expenses shall be as set out in the Agreement and Contract for Fire Protection. Also, the Fire Protection Agreement shall be amended to provide that Long Lake shall be responsible for the ongoing needs to operate and maintain the Replacement Fire Station. Bash stated if Long Lake's administration fees exceed $13,200, they would be unable to increase that fee. • Flint stated that cost could be out - sourced and that there are a number of ways around that limit. Moorse stated if administration fees exceed the $13,200, that item could be discussed at the time the budget is being prepared. Flint stated he would not be in favor of approving an automatic increase in the administration fee. Sansevere noted the City of Orono is agreeable to paying the $13,200. VOTE ON THE ABOVE MOTION: Ayes 5, Nays 0. Interest on $680,000 Mayor Peterson requested the Council discuss Item #3, Interest on the $680,000. Sansevere stated in his view the City should not bond for this money and would request that within a month of Mn/DOT putting the money into an escrow account, that Orono deposit the $680,000 into the account. White stated due to Orono's budget cycle, they would need until February 1, 2002. Mayor Peterson agreed that Orono should have until February 2, 2002, to deposit the money into the joint escrow account. PAGE 19