Minutes - Council - 12/08/2020 - Laserfiche WebLink

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not want to set precedent of this nature. Councilmember Menth commented that he also disagrees with the majority of the Council. He stated that he was married in 1987 and borrowed money from his father at a rate of eight percent. He stated that in 1979 the interest rate was 19 percent. He stated that the City deferred the payment for 30 years and therefore charged interest on that service. He stated that any place someone borrows money or defers payments will charge interest. He believed that this would set a bad precedent moving forward. He stated that he would not support this action. Councilmember Specht asked for input on the timeline of the family. Mr. Krekelberg replied that there are funds in escrow being held for this purpose. He stated that if additional interest is being charged, he would not want to postpone this decision, but would be okay with the th postponement until December 15 if additional interest would not accrue. Lisa Hamilton, 6825 Riverdale Drive, stated that she understands the comments and positions of the Council. She stated that there was an assessment but through the research of their records and the understanding of her mother, the understanding was that there was not interest accruing on the deferred assessment. She stated that is why questions were not asked about the deferred assessment. She stated that in good faith they are coming back and taking ownership on the 8.1 percent interest for the ten-year period. She stated that they would have gladly paid the assessment off within the ten years if the terms had been communicated and if there was documentation supporting that. She stated that City staff could not provide any documentation showing the 8.1 percent interest was being charged to them. She asked the Council to meet them part way. She stated that they connected with Connections Church because staff reached out and made that connection. She stated that the family will gladly pay the interest for the ten-year period as proposed. Councilmember Menth asked what type of documentation the City would have related to the deferred assessment and interest rate. City Administrator Ulrich commented that the adopted resolution would be the primary documentation related to the interest rate. He stated that if the Council is inclined to support this proposal, it could authorize staff to enter into a settlement agreement subject to the approval of the City Attorney. Councilmember Specht stated that he would be amenable to amending the motion as such or tabling it to the first meeting in January. Councilmember Specht withdrew his motion. Motion by Councilmember Specht to table consideration of this request to the first Council meeting in January 2021. Motion failed for lack of second. Motion by Councilmember Musgrove, seconded by Councilmember Specht, to authorize staff to enter into a settlement agreement with the Hamilton/Holasek family consistent with their proposal in the letter dated October 26, 2020, subject to approval of the City Attorney. Further discussion: Councilmember Kuzma stated that he cannot support the proposed action as he feels that this would set precedent. Councilmember Menth noted that he also cannot support the action for the reasons stated by Councilmember Kuzma. Motion carried. Voting Yes: Mayor LeTourneau, Councilmembers Musgrove, Specht, and Riley. Voting No: Councilmembers Kuzma and Menth. City Council / December 8, 2020 Page 13 of 17