Minutes - Council - 09/22/2020 - Laserfiche WebLink

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Mr. Bebo replied that he would find a 50 percent cost-share feasible. Councilmember Musgrove asked what would happen if this is approved and the developer than feels that he cannot do the project, specifically whether there is a purpose to the vote if the developer does not feel this could go forward. Deputy City Administrator Gladhill replied that the City is still under the 60-day review timeline and if no action is taken, the request would automatically receive approval under the original request of the developer. He recommended that the Council take action on the motion as proposed. He stated that the developer will run a better proforma as these numbers are based on the engineer’s estimate. He noted that if the cost-share does not work, the development agreement can be amended in the future if desired. Motion carried. Voting Yes: Mayor LeTourneau, Councilmembers Menth, Kuzma, Riley, and Specht. Voting No: Councilmember Musgrove. 7.03: Adopt Resolution #20-218 Approving Settlement Offer for Water and Sewer Cost st Contribution and Reimbursement Agreement; Case of 21 Century Bank Deputy City Administrator Gladhill reviewed the staff report and recommendation from the Public Works Committee to approve the settlement agreement. Staff acknowledges that there is some st risk in accepting this offer. It is possible that there are no fees to reimburse 21 Century Bank due to lack of development between now and 2026, although that is unlikely. Staff believes the risk tolerance is low of having a higher reimbursement amount by waiting to see if the Harmony Farms area develops after 2026. It is more likely that the level of development that will occur will result in a reimbursement amount higher than the current settlement amount. Additionally, the settlement amount itself appears to be fairly low. While there is some risk involved, staff believes this to be a fair offer and take a potentially significant liability off the books. Councilmember Musgrove asked for details on the trunk fees. Deputy City Administrator Gladhill stated that there is a lot that goes into the trunk fee formula and provided details on the settlement calculation. He noted that there have been other variables than just the trunk fee in the overall project. Councilmember Riley stated that in his history on the Council he is all too often disappointed in agreements of the past. He stated that this would be the opposite, explaining that years ago the City did not see the benefit in extended the water and sewer lines further than needed and came to the agreement that the bank could do that and reimburse the bank with those funds collected. He stated that if nothing is done the City would neither gain nor lose, but if the future obligation is bought out, the City is able to recoup the trunk fees collected in the future. He stated that the settlement paid will not be a loss, but more of an issue of timing on when those funds will be collected. Motion by Councilmember Riley, seconded by Councilmember Musgrove, to Adopt Resolution st #20-218 Approving Settlement Agreement with 21 Century Bank Related to Brookfield Watermain and Sanitary Sewer Cost Contribution/Reimbursement Agreement in an amount not to exceed $70,000. City Council / September 22, 2020 Page 11 of 14