01-23-1989 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO COUNCIL MEETING OF JANUARY 23, 1989 • ENGINEER'S REPORT COUNTY ROAD 15 FUNDS - STATE RESOLUTION #2574 Councilmember Peterson asked for clarification of this item. City Administrator Bernhardson explained that when MSA funds are used off of the system, there is a certain penalty. If MSA funds are used on County or State roads rather than City designated MSA roads, then there is a 5%/year penalty that runs for 10 years, which would amount to $10,000.00 /year for 10 years. However, there is an offset created if you consider the cost of money (interest that would be charged if the money were borrowed). City Engineer Cook further explained that if the $200,000.00 MSA funds were spent on Willow Drive (as an example), the City would no longer have needs for Willow Drive. If the $200,000,00 were spent elsewhere, the City would lose those needs. The City would ultimately have to spend the equivalent of the $10,000.00 penalty by using it on other streets because we do not accumulate the needs for the system. If the money were left in the State - Aid fund and not used, the City could lose twice the amount that would be lost because of the penalty. It was moved by Acting Mayor Callahan, seconded by Councilmember Goetten, to approve Resolution #2574, authorizing the use of $200,000.00 of MSA funds toward the City's share of the cost for the reconstruction of County Road 15. Motion, • Ayes =3, Peterson, Nay because she did not fully understand the ramifications of this proposal. MAYOR'S REPORT: 1989 APPOINTMENTS - RESOLUTION #2575 Councilmember Peterson inquired of City Administrator Bernhardson what questions he had concerning the Cable Commission Appointments. Bernhardson replied that he was questioning whether the 2 Councilmembers that were listed were agreeable. Councilmember Goetten commented that she did not have Cable TV. Councilmember Nettles has Cable TV and agreed to be an alternate. Councilmember Peterson suggested that the appointment of the Engineering and Legal contract be re- examined in the Fall. Acting Mayor Callahan suggested that the medical clinic may also be re- examined. Peterson asked how the Mound Clinic was ever chosen. Public Works Director Gerhardson explained that was actually the Mound Clinic in Maple Plain. Councilmember Peterson questioned why Lt. Cheswick was not the alternate for the Minnesota Police Recruiting System. City Administrator Bernhardson stated that generally the system was comprised of Police Chiefs and City Administrators. He did not see any reason why that position could not be delegated to Lt. • Cheswick, providing he was agreeable. The final revision to the 1989 appointments requested by Councilmember Peterson was that of Acting Mayor. It was her 9