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LAKE ELMO CITY COUNCIL MINUTES APRIL 15, 2014 Page 5 of 6 Council Member Bloyer stated that he needs more information as well. He is not prepared to approve the awarding of the project, but will vote to move it forward. Council Member Nelson pointed out that there is still opportunity to stop the project if the cash flow needs are not met. Council Member Smith would like the Finance Committee to discuss it at the next finance meeting scheduled in three days. The Council discussed the impact of postponing the project. It could impact the system operational date. The Mayor believes that the amount of pre-work done by staff has been aggressive and adequate. Council Member Reeves wants to keep the project moving, but wants more assurance on the financial scenarios. The potential activity for the area was discussed. Mr. Bloyer asked about the Dan Regan security. City Administrator Zuleger explained it was a drawable Letter of Credit and would not be impacted if the TIF District was not provided. Mr. Nelson wants to move it forward, but will not be voting for the project if it is not financially viable. Mr. Nelson wants the residents who want water to be charged the stub assessments, but if they do not want water, no stub. Mr. Griffin noted that that approach poses challenges and the County will not want the road torn up after they redo it. The Council discussed the applicable lateral benefit charge and whether there is an actual benefit. Council Members Bloyer and Nelson want the residents to have the option to not connect and then pay full amount later. Council Member Smith wants to have the benefit charge policy discussion separately. MOTION: Council Member Nelson moved TO AMEND MOTION TO REQUIRE EVERY PARCEL RECEIVE A STUB AND CHARGE EACH PARCEL $2,900 LATERAL BENEFIT CHARGE. Mayor Pearson seconded the motion. The Council discussed the amendment. It was noted that the lateral benefit charge policy will need to be changed if the motion to amend passes. Mr. Nelson withdrew his amendment. ORIGINAL MOTION PASSED 3-2 (Smith and Bloyer – Nay). Council Member Bloyer will not support project if residents not given option to install stub. Council Member Smith reiterated that she wants the financial information resolved. Council Member Smith left room at 10:28 pm. Council asked staff to place the lateral benefit charge discussion on the next meeting agenda. ITEM 11: INWOOD TRUNK WATERMAIN IMPROVEMENTS – APPROVE PLANS AND SPECIFICATIONS AND ORDER ADVERTISEMENT FOR BIDS. RES. NO. 2014-26 City Engineer Griffin provided overview of the project. Includes installation of watermain along Inwood Avenue connecting. Will serve new development in the I94 Corridor through connections to the Eagle Point Business Park watermain system and a future 5th Street extension. Project does not include water service to the Parkview Estates neighborhood. The Inwood Booster station is being done as a separate project. Total estimated project costs: $2,200,000. Estimated Post‐design construction cost is $1,800,000. The project will be paid through a combination of funds as follows: 1. Special Assessments – $11,600; 2. Water Enterprise Fund – $2,188,400. Staff recommending project be placed on hold and bid date be delayed until City Administrator has determined project funding. State bonding is the funding source. It was explained that if the bonding is awarded the project can be amended and Parkview Estates can be added back in. MOTION: Council Member Bloyer moved TO APPROVE RESOLUTION NO. 2014-26, APPROVING THE PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT FOR BIDS FOR THE INWOOD TRUNK WATERMAIN IMPROVEMENTS AS DIRECTED BY THE CITY ADMINISTRATOR. Council Member Reeves seconded the motion. MOTION PASSED 5-0.