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LAKE ELMO CITY COUNCIL MINUTES SEPTEMBER 17, 2013 Page 2 of 4 of utility infrastructure, b) transmission of utilities c) improvement of roadways, and d) any other benefits outside of development area; calls out escrow agreement; and states release of funds criteria. Council Member Smith asked if a development falls short of its target, who is responsible for paying off debt? City Engineer Griffin said it depends on the part of the project that is defaulted on. Each development will have a development agreement. All development specific infrastructure projects will be backed and secured by the agreement and its letter of credit. On petitioned projects, the petition and waiver agreements are part of the security. If developer comes to Lake Elmo, they will pay 100%. Assessments run with the land. Ms. Smith asked if the petitioned type projects have been done before. Mr. Griffin was not sure as he was not here. Allowing developers “off the hook” if a failure occurs was discussed. Mr. Griffin explained that this was one more layer on top of the statutory authority. Ms. Smith thought Open Space developments were done this way. Mr. Griffin explained that almost all the infrastructure in an OP development is typically built for that development, whereas, this policy covers projects like the Section 34 developments where the infrastructure benefits the entire area. The terms of the letter of credit requirement were explained and discussed. Mr. Zuleger asked Northland Securities’ Paul Donna if the policy was strong. Mr. Donna said that he has not ever seen one as strong. MOTION: Council Member Nelson moved TO ADOPT THE CITY OF LAKE ELMO INFRASTRUCTURE DEBT / COST RECOVERY POLICY FOR THE PARTICIPATION IN PRIVATE DEVELOPMENT AS A COMPONENT OF THE CITY’S OVERALL DEBT MANAGEMENT AND ASSESSMENT POLICY. Council Member Bloyer seconded the motion. Council Member Bloyer thinks this is a good policy, but is concerned future Councils not abide by the policy. He hopes that they are respectful of current policies put in place to protect the taxpayer. Council Member Nelson thanked staff for listening to council input to protect taxpayers. Thinks it is a great policy. Ms. Smith asked for Mr. Donna’s input on what other cities that already have key streets are doing in these regards. Ms. Smith wants to make sure that the City is being responsible. Mr. Zuleger reiterated that he has not seen a policy as strong as this one. Mayor Pearson explained that this type of policy is exactly what the City needs to be responsible. MOTION PASSED 4-0. ITEM 11: MOODY’S RATING FOR THE ISSUANCE OF 2013 BONDS City Administrator Zuleger provided an overview. Moody’s Lake Elmo bond rating is Aa2. Lake Elmo metrics are lower than the state and national median for cities with our rating, however, a major reason for sustaining the rating is our strong undesignated fund balance. Council Member Nelson and Mayor Pearson commended staff for their efforts. No formal action requested. ITEM 12: INITIATE THE LAKE ELMO AVENUE TRUNK WATERMAIN IMPROVEMENTS – AUTHORIZE THE PREPARATION OF A FEASIBILITY REPORT; RES. 2013-77 City Engineer Griffin gave overview of the request for the improvement and explained the project details. The Landucci/Ryland Homes development located on Lake Elmo Avenue would include approximately 51 RECS. Airlake development would include approximately 40-RECS. Pratt Homes