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Regular City Council Meeting Monday,January 28,2013 Page 7 Nays: None. q. Approve Joint Powers Agreement with the City of Mahtomedi Willmus moved, McGehee seconded, approval of a Joint Powers Agreement (JPA) between the Cities of Roseville and Mahtomedi (Attachment A); for the purpose of the City of Roseville to provide information technology and network- related services and support to the City of Mahtomedi. Roll Call Ayes: McGehee; Willmus; Laliberte; Etten; and Roe. Nays: None. 8. Consider Items Removed from Consent m. Approve Agreement with Metropolitan Council Regarding Repayment of LCDA/TBRA Grant Funds Main Available as Loans to the Sienna Green Project At the request of Mayor Roe, City Manager Malinen briefly reviewed this item as detailed in the Request for Council Action (RCA) dated January 28, 2013. Councilmember McGehee noted that payment of this loan extended through a number of years at 3% interest; while elsewhere in tonight's agenda materials, in- terest rates for citizens choosing to have their reconstruction costs (County Road D Project) applied to property taxes as special assessments were to be assessed at 6% interest. Councilmember McGehee questioned why commercial businesses appeared to be charged a lower interest rate than that charged to residents. Finance Director Chris Miller advised that he had no knowledge of how the 3% interest rate had been derived for the Sienna Green loan proceeds. However, he noted a significant distinction between that loan, originating in 2007 and involv- ing the Metropolitan Council as grantor, and the City's upfront loan to Roseville taxpayers for construction costs, such as that for the proposed County Road D Re- construction Project. Mr. Miller advised that this represented an "opportunity cost" for those funds spent upfront by the City for actual construction costs to be unavailable for investment by the City to realize some interest, or their lack of availability for other uses by the City during that time, typically over a fifteen (15) year period. Mr. Miller advised that today's market dictated that interest rate at 6%. Mr. Miller, in addressing the Sienna Green project suggested that the low- er interest rate may have been negotiated as part of the City achieving housing goals or consistent with the Metropolitan Council grant at that time; however, he reiterated the definite distinction between the two issues. McGehee moved, Willmus seconded, approval of an agreement (Attachment A) between the City of Roseville and the Metropolitan Council entitled, "Agreement Requiring Repayment of Metropolitan Livable Communities Act Grant Funds