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LAKE ELMO CITY COUNCIL MINUTES AUGUST 21, 2012 Page 6 of 15 anticipated benefit received from the suit would not be enough to offset the cost of the trunk watermain system improvements. Council Member Emmons asked Mr. Griffin if he has any experience in delaying the incurred cost assessments. Mr. Griffin explained that the two assessment plans are either the split way proposed or to charge all costs at the time of connection. The risk of collecting at the time of connection is that those costs may never be recouped. Mayor Johnson also reiterated the benefit to the value of the affected properties regardless of connection to the system. Council Member Pearson noted that the City Assessor Frank Langer attested to the improved values realized by the properties with this improvement. Council Member Emmons asked why increasing utility rates were not being discussed to help pay for these projects. Administrator Zuleger stated that the current rates were actually high in comparison to the area rates. By factoring future growth, potential litigation settlements, and system connectivity charges, the water and sewer access charges should go down as more users help share the burden of supporting the system and possibly affect the monthly usage rates as well. Council Member Park asked if the Lateral Benefit charge was comparable. Mr. Griffin said that it is actually based on a 2006 figure that the City of Lake Elmo determined and has not been increased since then. Council Member Pearson asked if the assessment charge was inflated because some savings, such as using smaller pipes, could be realized. Mr. Griffin explained that the assessment charge can go down if savings are found later during the project, but it cannot go up, so the figure is the maximum. Council Member Emmons stated that he sympathizes with the affected residents and feels that the City is possibly taking on too much with the water project. Council Member Pearson responded by stating he believes this is a solution for the problem that the City has found itself in. Council Member Park wanted to make sure everyone knows that the assessment charge payments can be made over time. Mr. Griffin stated that the Road Improvement bond can be over 10 years and the Water can be over 15 years. Council Member Pearson also pointed out that there are hardship provisions available. MOTION: Council Member Pearson moved to approve Resolution 2012-41 accepting the Amended Feasibility Report. Mayor Johnston seconded the motion. Motion passed 3-1, Emmons nay. ITEM 12(B): APPROVAL OF RESOLUTION 2012-42 AUTHORIZING PLANS AND SPECIFICATIONS FOR KEATS AVENUE NORTH STREET AND WATER MAIN IMPROVEMENTS Council Member Emmons again asked the council if it was willing to entertain the discussion of adjusting water rates. Administrator Zuleger confirmed that as soon as the Pro Forma is completed, it will be brought to the Council and rates and charges will be discussed.