08-26-2002 CC MIN - Laserfiche WebLink

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Cit3~ Council Minutes Page 3 August 26, 2002 COUNCILMEMBER TVEITE MOVED TO RATIFY THE DECISION OF HRA TO SELECT METROPLAINS AS THE DEVEOPER FOR THE DOWNTOWN REVITALIZATION PROJECT. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.2. Consider Bengston Sewer Backup Payment Request Finance Director Lori Johnson indicated that Insurance Adjuster Randy Loebrick has again denied the sewer backup claim made by Ross and Kay Bengston. She noted that the facts of the claim have not changed. Lori Johnson indicated that it would be a policy decision of the Council if they decide to pay claims that have been denied. Ross Bentston - 374 Baldwin Avenue - Mr. Bengston requested the city to pay one-half of the payment and to put other half on the taxes for repayment in five years. Mayor Kl/nzing indicated that if the Bengston's had got through the emergency number, clean up would have been much faster and the insurance company would have reacted differently. She indicated that payment by the City of one-half of the cost is fair. Councilmember Kuester stated that she does not feel this was the City's fault or the homeowners fault. She indicated that she is willing to consider putting the entire amount on the taxes with payment over five years. Councilmember Motin indicated that this was not the City's fault, however he would be willing to pay $500, which would have been the deductible, and then to put the rest on the taxes with interest. Councilmember Dietz indicated that he sympathizes with the Bengstons but is concerned with setting a precedent if the City paid the bill. He indicated that he concurred with Councilmember Motin. Finance Director Lori Johnson indicated that she would have to see if it is legal to assess this type of issue/expenditure. MAYOR KLINZING MOVED THAT THE CITY PAY $500 TOWARD THE BENGSTON'S BILL BECAUSE IT IS THE AMOUNT THAT WOULD HAVE BEEN DEDUCTIBLE IN A CLAIM AND TO FINANCE THE REMAINING AMOUNT OF ABOUT $4,300 AS AN ASSESSMENT OVER 5 YEARS AT 5.5% PROVIDED THAT STAFF DETERMINES THIS TYPE OF ASSESSMENT IS LEGAL. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.3. Consider Resolution Accepting Trunk Watermain Bid and Authorizing Adding to the Contract in the Matter of 175th Avenue Improvements City Administrator Pat Klaers indicated that the Elk River Municipal Utilities have agreed to fund the watermain along 175th Avenue from Tyler Street to the Park Pointe Addition. Councilmember Dietz indicated the Municipal Utilities General Manager recommended that that the Utilities pay about $95,000 with about $75,000 being assessed at some time in the future which would result in a net cost of $15,000 to the Util/ties.