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LAKE ELMO CITY COUNCIL MINUTES DECEMBER 03, 2013 Page 4 of 9 It was explained that by adopting the preliminary assessment with the $3 million project the City can lower the assessment, but not increase it. The estimated design costs would be about $125,000 and have a roughly 2 year shelf-life. MOTION: Council Member Reeves moved TO OPEN THE PUBLIC HEARING. Council Member Nelson seconded the motion. MOTION PASSED 4-0. Public Hearing opened at 8:23pm Bruce Weeks 1446 Lake Elmo Ave attended resident meeting. He alleged that previous lots were set up to avoid having water required. He asked why a local well was not an option. Mayor Pearson explained that a local well may draw adulterated water from southwestern area of City. Mr. Weeks noted he has to replace well pump occasionally – last time was 10-15 years, but has never had any issues with actual well. George Tate 2443 Lake Elmo Ave expressed his concern about the water rate after connecting. MOTION: Council Member Nelson moved TO CLOSE THE PUBLIC HEARING. Council Member Bloyer seconded the motion. MOTION PASSED 4-0. Public Hearing closed at 8:30pm Council Member Nelson asked for a further explanation of the system hydraulics. Mr. Griffin showed map of system and explained the system. The system hydraulics were discussed. MOTION: Mayor Pearson moved TO ADOPT RESOLUTION NO. 2013-101, ORDERING THE LAKE ELMO AVENUE TRUNK WATERMAIN IMPROVEMENTS AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS. Council Member Nelson seconded the motion. Mayor Pearson would like some type of security from developers before ordering improvement. He noted that the City has decided to run water to southern area and needs to figure out a way to pay for it. That is a discussion for another day. Council Member Reeves agrees that the City owes these services to residents and the fees needs to be evaluated, but now is not the time to delay the project. Council Member Nelson wants to reassess the policy to account for future assessments. He wants the Admin to speak to developers. Mr. Nelson would like to have a commitment prior to ordering the improvement. Obtaining some type of security was discussed. City Administrator Zuleger noted that the DNR/White Bear Lake water issue will play into this at some point. Council Member Reeves said the City has a commitment to the residents to provide water and that the future may not include “free water” as has been the case. Council Member Bloyer thinks that it is a power grab and the crisis is not as severe as has been indicated. He understands that the projects needs to happen, but he wants to be responsible in approving it. He does not want to saddle residents with debt. City Attorney Snyder noted that Council can include whatever predicates in the resolution it chooses including looking at the charges and obtaining securities. Mr. Nelson clarified that he wants staff to provide time table for discussion to reevaluate the $5,800 fee. The effect of delaying the timeline for staff to try to secure a security was discussed. It was declared that the 12/10/2013 Council Workshop subject will be HOW DO WE FUND THE WATER SYSTEM?