#288 05-02-67 Deferred Facilities Joint Water Commission44
Resolution 288 May 2, 1967
Member Stockman introduced the following resolution and MOVED its adoption:
RESOLUTION RELATING TO PAYMENT OF COSTS AND EXPENSES
OF CONSTRUCTION OF "DEFERRED FACILITIES" OF THE
JOINT WATER COMMISSION
WHEREAS, there is an agreemtn dated November 12, 1963, providing for
the creation of the Joint Water Commission and herein -after referred to as
"the agreement". and
WHEREAS, the agreement made provision for the construction of certaiii
water facilities to be jointly owned and operated by the three parties to the
agreement throught its Joint Water Commission, and
WHEREAS, the facilities to be so constructed were designated as the
"joint facilitiesM, and
WHEREAS, some of the joint facilities were to be constructed under thee
agreement, upon execution of the agreement, while other joint facilities
were designated as "deferred facilities" and were to be constructed at a
later date, and
WHEREAS, the conditions requiring the construction of the deferred
facilities have now arisen and the three communities have ordered plans and
specifications for the construction of the deferred facilities in accordance
with the provisions of the agreement, and
WHEREAS, under the agreement each of the three communities is required
to construct the deferred facilities located within its boundaries and to
finance such construction, and
WHEREAS, the cost of such deferred facilities is to be borne by the
three communities on the basis of the percentages of such costs which are
established in the agreement, i.e. 37% by Golden Valley, 33% by Crystal and
30% by New Hope, and
WHEREAS, the preliminary cost estimates for the construction of the
deferred facilities reveal that the cost of deferred facilities to be con-
structed in Crystal will be $633,000.00, the cost of deferred facilities to
be constructed in Golden Valley will be $402,000.00 and the cost of deferred
facilities to be constructed in New Hope will be $3.5,000.00 making a total
of $1,38o,000.00, and
WHEREAS, it therefore appears likely that the cost of deferred
facilities constructed within each of the three communities will be different
from its pro rate share of the cost of all of the deferred facilities, and
WHEREAS, it would be inequitable to require a community to provide
financing for the construction cost of deferred facilities in excess of its
pro rata share of the total cost of deferred facilities, and
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Resolution 288
May 2, 1967
WHEREAS, the Commission believes that the method hereinafter set
forth would be an equitable method of dealing with this problem;
NOW THEREFORE, BE IT RESOLVED by the Council of
the of as follows:
1. Each community is requested to proceed with the construction of
the deferred facilities to be located within its boundaries.
2. Each community is requestedto provide financing for the deferred
facilities within its boundaries, up to its estimated pro rata share of the
total cost of all deferred facilities, with such estimate to be based upon
contract costs if and when available, and otherwise upon engineering estimates.
3. When a comunity has disbursed a sum equal to its pro rata share
of the total cost of all deferred facilities, for the costs and expenses of
constructing deferred facilities within its boundaries, it is requested to
notify the Joint Water Commission and the other two communities of this fact.
4. Upon receipt of such notice, the other two communities shall
promptly pay to such first community an amount equal to the balance of the
cost of constructing the deferred facilities within such first community,
on a pro rata basis.
5. The community giving such notice shall set such moneys aside and
shall use the same solely for the purpose of paying the balance of the costs
and expenses of deferred facilities. It shall also invest such sums, to the
extent possible, until needed for the payment of such costs and expenses.
Any interest earnings realized from such investment shall be credited pro
rata to the communities which have paid such moneys to it.
6. When all deferred facilities have been constructed, appropriate
adjustments promptly shall be made among the three communities so that each
community pays its pro rata share of the cost of the deferred facilities,
as provided in the agreemtn.
7. This resolution shall be effective, and the procedure herein
described shall be used, only upon approval of this resolution by the governing
bodies of each of the communities which are parties to the agreement.
ayor
Attest:
Village Clerk
The motion for the adoption of the foregoing resolution was duly seconded
by Member Garis, and upon vote being taken thereon, the following members v
voted in favor thereof: Bies, Garis, Nadasdy, Stockman, and Teresi; and
the following voted against the same: None, whereupon said resolution was
declardd fuly passed and adopted, signed by the Mayor, and his signature
attested by the Village Clerk.