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ARDEN HILLS CITY COUNCIL - July 28, 2008 9 Councilmember McClung stated that the Council is setting the benchmark at 150/0 assuming the risk stays the same but if something changes that reduces the risk then the rate of return is negotiable. Councilmember Holden stated that the purpose is to evaluate the performance and the City needs to provide a starting point in order to start evaluating Councilmember McClung stated that under Now, Therefore, Be it Resolved item 1 designates the rate of return as 150/0. Councilmember Holmes stated that this would be inconsistent with the third Whereas. She also stated that if the risk changes the Performa changes but this resolution states that given the Performas that the City has now then the rate of return the City agreed on is 150/0. Mayor Harpstead asked if the motion on the floor could be modified into two motions. Councilmember Grant stated that he would agree to separate these items. Councilmember McClung stated that he would agree to separate these items. MOTION: Councilmember Grant moved and Councilmember McClung seconded a motion to amend the second Whereas to insert the phrase "and continues to evaluate" after the word evaluate. Motion carried unanimously (5-0). MOTION: Councilmember Grant moved and Councilmember McClung seconded a motion to amend the third Whereas to insert the phrase '''and negotiable" after the word maximum. Mayor Harpstead stated that he would be against this motion and the Now, Therefore, Be it Resolved section of the resolution clearly sets the direction. Councilmember Holmes stated that she would agree with Mayor Harpstead and the proposed wording would make the first Whereas, the third Whereas, and the Now, Therefore inconsistent. She also stated that the wording "maximum benchmark" would work and be consistent with the first Whereas. Councilmember Holden stated that all the City is trying to do is get a financial picture based on the 15% rate of return.