2023-02-22 CC Packet - REVISED - Laserfiche WebLink

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City of Centerville WS, City Council & Closed Exec. Meeting Minutes January 25, 2023 Council Member King stated what the actual cost to the City versus bonding for it. Administrator Statz stated costs associated with certifying annually, mailings and are those tied to the debt service not necessarily. Attorney Glaser stated that the current rate is 3% and add additional for administrative fees. He stated that this is not a commercial loan where the rate is approximately 5.8-6% at the present time and actual cost to the City, we are not buying a bond but we are loaning City funds. Council Member King stated that he did not understand the City's process and did not have a percentage in mind, but felt he did not want the City to make money. His intent was to recoup the City administrative costs and know for the future. Council Member Koski requested a process each time that we have assessments/thin mill overlays. Mayor Love stated that his understanding was we do not loaning out money over a three year term and the percentage is to buffer the loan versus collecting it. Council Member King stated that his understanding may be confusing but he wants to ensure that the City is whole along with residents are treated fair. Council Member Mosher had concern for whether cracking and the project was completed differently. Administrator Statz stated that we have neighborhood examples with other project, timing was different but specification should have been the same. Council Member Mosher stated that this would not be pushed under the rug and he wanted someone out there in the spring. City Administrator Statz reiterated that the City would continue to look at. Council Member Koski stated that it is not just those being assessed but every citizen of the citizen who bares the taxes paid. Council Member Mosher would like to know the procedures going forward (i.e., same results with cracks, streets maybe not needing the mill and overlay for maintenance on the schedule or needed, etc.). Mayor Love stated that we have several years without projects because they were not needed. Junior Council Member Shaw stated that he would like to see that the City follow through in the Spring. Ms. Ghiloni wanted to apologize if she made a mistake regarding the amount stated in her letter. Administrator Statz apologized that he was unable to see her specific letter to ensure the proper amount. Motion by Council Member King, seconded by Council Member Koski to Table the Item. All in favor. Motion carried. 3. Res. #23-OXX — Approving the Escrow Agreement for 1801 Main Street, CenterMart Attorney Glaser he apologized for the abrupt placement of the items on the agenda. He explained that the City will hold $18,000 in escrow for the municipal connection that is required per Code. He explained that there is a 150% overage for any issues. He stated that there was also a resolution that adopts the Escrow Agreement and authorizes the City Attorney to make minor modification. He stated that the City was informed that they were closing next week which is before the next meeting. Discussion ensued regarding the new buyer who will continue to run as a gas station and nothing that says they need to come to us to ask for a sale. Attorney Glaser stated that he was told that it would continue to be operational as is. Attorney Glaser stated that with the agreement the current owner is responsible for connection and the triggering event is the sale. Attorney Glaser stated that the code was derived from drain field language from state statute. Attorney Glaser stated that currently the ground is frozen and the connection cannot be completed. Administrator Statz stated that there is a Conditional Use Permit that runs with the land and a tobacco license. Administrator Statz stated that anything allowed by the Commercial Zoning can be sold/operation on the parcel. Page 7 of 9