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LAKE ELMO CITY COUNCIL MINUTES OCTOBER 2, 2012 Page 4 of 8 City Engineer Jack Griffin presented information on the Keats Avenue North MSA Street and Trunk Watermain Improvement project. He provided a summary of the feasibility report that was previously received by the Council. He explained the alternatives of maintaining the Rural Road as proposed, as well as the Urban Road option with curb and gutter, which allows the city to maintain the existing footprint and avoid the excessive costs of other plans. Mr. Griffin also explained the need for closing the critical water system loop to support the system up in the north. This will need to be done at some point regardless. He explained the findings of the hydraulics study, explained the well system structure, and the water stubs for future connectivity. The proposal would include assessments on 22 properties benefiting from the improvements. He explained street and water cost breakdowns. The city would pay 94% of the street improvements. The owners would pay 6% of the project. Mr. Griffin explained the proposed timeline. Should the project be approved this evening, the selection proposal would be brought back to Council November 6, 2012 for approval and a spring 2013 start date. Council Member Park inquired about the critical loop and whether it would be required if we were not going to move ahead with the I-94 corridor project loop. Mr. Griffin responded the Keats section is still part of a critical loop for the original water system. Council Member Park inquired whether not including stubs initially would save money. Mr. Griffin responded the cost to re-tear up the road later to connect would be greater than the cost of installing the stubs initially. A discussion was had over what properties would be affected. The properties that have direct access to Keats Avenue would be the properties assessed. Council Member Emmons inquired about potential issues with the projected service area according to the map provided. City Engineer Griffin assured him it would not be an issue and stated the map used was more of a planning map. Mr. Griffin briefly explained the process for setting the assessments and determining the project service area. City Attorney Snyder clarified that the purpose of the motion at this time was to approve the order of plans and specifications, which will give direction to the Engineer and set a maximum assessment amount. Later an assessment hearing will be held to specifically determine the details of the assessments. OPEN PUBLIC HEARING AT 8:19 P.M. PUBLIC COMMENTS: George Dege, 5193 Keats Avenue North, raised concerns about the project but supports the need for the project. His concern was the cost of the project. He understands the need for the street assessment, but the he felt the water portion should be the responsibility of the city, not the property owners, since he knows of only one owner who would like to connect to date. Therefore, you are charging 22 property owners who have septic systems, some relatively new, and he recommended the city charge only those wishing to hook up. Robert Meyer, 5220 Keats Avenue North, explained he spoke with both the county assessor and some realtors regarding the claim that this will improve the property whether they hook up or not and he found the answer was no. He does not feel it will increase the value of their homes. He