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LAKE ELMO CITY COUNCIL MINUTES August 06, 2013 Page 7 of 8 system. He further noted that a new system would have to be a mound system. He also explained the environmental benefits of city sewer vis-à-vis the lakes. Council Member Reeves asked about the length of the assessment. The assessment would be over 15 years. Mr. Reeves also asked if it was explained at the previous hearing that the estimated figure could go higher. Mr. Griffin stated that the figure can be lowered after the hearing, but not raised. Ms. Smith again stated she was uncomfortable with a rehearing. Project Phase II and the differing costs and payments were discussed. Mayor Pearson noted that this is also setting a precedent. He again expressed his preference for a rehearing. The project’s scope was discussed. Mr. Reeves asked about the financial impact. It was explained that funds would come out of the sewer fund. Roughly $5,000 would be left. If more emergencies occurred, additional funds would come out of the Contingency Fund and a General Fund loan. MOTION: Mayor Pearson moved TO APPROVE OPTION #4 (DIRECT STAFF TO TAKE THE FOLLOWING ACTIONS REGARDING THE OLSON LAKE TRAIL SANITARY SEWER EXTENSION PROJECT: REHEAR THE PROJECT AND CONSIDER RAISING THE ASSESSMENT AMOUNT LEVIED AGAINST THE BENEFITTING PROPERTY OWNERS TO COVER THE ADDITIONAL CONSTRUCTION COSTS). Council Member Nelson seconded the motion. MOTION FAILED 2-3 (SMITH, BLOYER, & REEVES – NAY). Mr. Reeves said he has heard that the environmental quality of the lakes is serious. He is concerned with doing anything to delay that. He wants to be consistent with their decisions. He also wants to maintain the Oakdale relationship. Pearson agrees with the environmental concerns, but he has heard other instances of the high bids. Ms. Smith wants to show the water quality is important. Mr. Pearson agreed that water quality is important. Mr. Nelson also agrees with environmental quality, but he wants the 5 residents affected to hear the new price. He does not want to set precedent of kicking in $7,000 each time a project is underestimated. Finance Director Bendel also stated that the terms could be extended beyond the 15yrs. Mr. Reeves asked if rehearing is held, can the city go to something other than $25,600. Mr. Griffin said yes and noted that after the hearing, the City can lower number, but it cannot be raised. Ms. Smith again warned that the rehearing could be contentious. She wants it to be equitable with Phase II. Mr. Nelson stated that he believes it would behoove council to hear from the residents. He is concerned with protecting the taxpayer dollars. Mr. Reeves sought clarification of the impact on Oakdale. Mr. Zuleger stated that as long as the project goes forward Oakdale is good. MOTION: Council Member Smith moved TO APPROVE OPTION #1 (DIRECT STAFF TO TAKE THE FOLLOWING ACTIONS REGARDING THE OLSON LAKE TRAIL SANITARY SEWER EXTENSION PROJECT: AWARD THE CONTRACT TO THE LOWEST RESPONSIBLE BIDDER AND ABSORB ADDITIONAL COSTS FUNDED THROUGH THE SEWER ENTERPRISE FUND. Council Member Reeves seconded the motion. MOTION PASSED 3-2 (PEARSON & NELSON – NAY) After the vote, Susan Henderson addressed the Council as one of the affected residents. When the project was initially proposed, she thought it sounded good. She noted a Star Tribune article on construction costs being high right now. Perhaps the high costs may be a temporary problem. She is concerned about fair treatment from the City of Oakdale. She does not want to be treated as a second class sewer customer.