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LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 3 of 7 ITEM 9: RESOLUTION 2012-28 APPROVE ISSUANCE AND SALE OF G. O. IMPROVEMENT BONDS; SERIES 2012 B DEMONTREVILLE HIGHLANDS AREA STREET IMPROVEMENT PROJECT Finance Director Bendel presented the proposal for approval for the issuance of a new bond to cover the Demontreville Highlands Area Street Improvement Project. Due to the stringent competitive bidding on the 2011 Street Improvement projects, the City now has excess funding of $185,000 available to be used to minimize the funding level necessary for the current project. Council Member Smith inquired about whether partial credit would go to the City and partial credit would be refunded to residents who have already paid and adjustments made to homeowners property taxes. Finance Director Bendel responded in the affirmative. Council Member Pearson applauded both staff and Northland Securities for their work on these bonds. MOTION: Council Member Emmons moved to approve Resolution 2012–28 Authorizing Issuance and Sale of $865,000 General Obligation Improvement Bonds, Series 2012B. Council Member Pearson seconded the motion. Motion passed 5-0. ITEM 10: FINANCIAL PLANNING SERVICES AGREEMENT WITH NORTHLAND SECURITIES FOR THE PURPOSE OF ANALYZING WATER, SANITARY SEWER, AND STORM WATER SYSTEMS IN PREPARATION OF WATER MAIN AND SEWER MAIN EXTENSION PROJECTS. City Administrator Zuleger explained the need and reasoning for the original approach to put together a financial plan to recover costs associated with water and other utilities. Council Member Park inquired whether this would include the complete water loop. City Administrator Zuleger clarified that all recommendations would be examined and would include all grants and settlements. Council Member Smith inquired about recovering the design costs of the AUAR, assessing the new developers, and the cost of an Environmental Impact Study (EIS) that would be needed for the I-94 Corridor. City Engineer Griffin reiterated the proposal would address all aspects of the project. Mayor Johnston stated our expectations were that the costs would be recovered as development occurred. City Attorney Snyder added that the costs would need to be recovered in an indirect manner. Council Member Emmons stated whether the goal was to understand how many costs are out there or how we would recover them, why we would not anticipate the infrastructure costs and include those in our developer’s fees. Council Member Pearson questioned whether AUAR costs would be so easy to pass on as indirect costs. City Administrator Zuleger responded that he and City Engineer Griffin will work closely with Northland Securities on this matter. Council Member Park thanked staff for their work on the project.