07-09-2001 Council Minutes - Laserfiche WebLink

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ORONO CITY COUNCIL MEETING MONDAY, JULY 9, 2001 CITY ADMINISTRATOR'S REPORT • 10. Long Lake Fire Station Agreements Moorse stated that the Settlement Agreement and Contract for Joint Ownership before them showed some minor revisions to correct typos or clarify issues. Nygard asked why they had considered approving giving Long Lake the interest for $680,000 when it wasn't in the bank on time when Long Lake did not seem concerned with finalizing the deal in a timely manner so that the money could begin accruing interest. Sansevere stated that on June 1St Orono submitted a final offer to Long Lake that was returned. Because Long Lake will only deal with the issue at regular council meetings, while Orono is holding special work sessions, he felt that both cities should pay the interest that would have been earned on the account had it been funded on June 1St. He stated that they had lost about $15,000 in interest since June 1St. Nygard stated that their final offer had been made a while ago, and questioned when Orono would stand by their "final" offer. Sansevere stated that the word "forthwith" had been used in regard to when Orono would have to deposit funds. On page 7 of the Settlement Agreement it states that "Orono agrees that upon receipt of evidence that the MnDOT settlement check has been deposited in the joint escrow account that it shall forthwith deposit an additional $680,000.00 into the same escrow account. In lieu thereof, Orono may defer depositing its 5680,000.00 to a subsequent date which is on or before February 1, 2002, so long as it also deposits the additional interest that would have accrued on that amount had it been deposited on the same date as the MnDOT check." Mr. Jabbour stated that they should not change the words of the settlement. and should wait until the final MnDOT check is deposited. Sansevere suggested changing the wording to "the final MnDOT settlement check." Mr. Jabbour stated that MnDOT wants the total settlement amount and will not deal with them item by item. He stated that the negotiating team had left 6% on the table with MnDOT because they were going to earn interest that had never materialized. He suggested approving the agreements «-ith no changes. Moorse stated they should not add "final" to the document because all throughout the negotiations they had agreed the trigger would be when the $2.4 million dollars was deposited. Flint stated that adding the word "final" increased the ambiguity of the language. He also stated that they have already agreed to split any surplus or any deficit in funds. Moorse stated that Long Lake can't come back to them with changes because MnDOT declared that July 17th was the end date. Forthwith means that they would have a few days • 14