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Commissioner Dehen stated he disagrees -the performance bond is there -it's part of the insurance. We did not have anything to do with this. Commissioner Elvig stated he didn't feel the issue here is whether we take it out of the bond or not -the issue is do we do it now. RTC, LLC is responsible for the failure of this project - Rehbein is not. Motion by Commissioner Elvig, seconded by Commissioner Ramsey to authorize the use of up to $80,000 to complete the existing permit. Further discussion: Commissioner Elvig stated that we can continue discussion about using the Letter of Credit. Mr. Himmer stated that once the permit is done, that bond is gone. Mr. Himmer clarified that the $80,000 is for $55,000 credit to buy and $15,000 for the work. Commissioner McGlone asked again why not just mitigate on our own property. Mr. Olson responded that's not part of the original permit. Mr. Himmer added we can do that if we revise the permit. Commissioner Dehen stated he would not vote in favor of this unless we consider use of the performance bond. He feels it's irresponsible without figuring what we will do with the performance bond. Commissioner Jeffrey stated the performance bond makes us do work we may have to take back -and he wasn't sure he was interested in that either. Mr. Lazan stated that this is a contractor bond. The actual developer never paid the contractor. To go back and get that surety now is a little different. Commissioner Dehen reiterated he wanted to use a portion of that bond -maybe we get at least two areas. Commissioner Look commented on the fact that the land was modified after the fact and wondered how accurate the wetland boundaries were. Mr. Olson stated the reason they were re-done is that the TEC panel said they will be the same wetland lines. Mr. Himmer echoed these are the original delineations. URS proposes to contract to reevaluate the permit and provide options to the Council. Commissioner Wise asked if we have to create more wetlands and stated that he is not interested in negatively impacting the contract to perform. Commissioner Elvig stated he is not interested in "sticking" Rehbein for $200,000. Commissioner Dehen stated this is an insurance issue. If you use 50% for wetland mitigation and not touching the WNW area, the insurance company will do what's best for them. Motion by Commissioner Ramsey, seconded by Commissioner Elvig to call the questions. Motion carried. All present voted in favor. Vote on original motion: Voting Yes: Vice-Chair Jeffrey, Commissioners Elvig, Ramsey, Look, and McGlone. Voting No: Commissioners Dehen, McGlone and Wise. Motion carried Commissioner Elvig stated he would recommend staff look into this bond issue -find out the impact it has to the contractor and bring forward to a subsequent meeting as to how we can use it. Vice-Chair Jeffrey expressed agreement and suggested the information could be put in the Weekly Update. Housing and Redevelopment Authority /June 1, 2010 Page 5 of 6