08-19-2014 CCM - Laserfiche WebLink

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LAKE ELMO CITY COUNCIL MINUTES AUGUST 19, 2014 Page 3 of 8 Council Member Nelson offered a friendly amendment to add “ASSESS THE PROPERTIES AS PROPOSED BY THE CITY ENGINEER.” Council Member Smith seconded the friendly amendment. MOTION: Council Member Bloyer moved TO CLOSE THE PUBLIC HEARING. Mayor Pearson seconded the motion. MOTION PASSED 4-0. PUBLIC HEARING CLOSED AT 7:17 PM. MOTION: Council Member Bloyer moved TO ADOPT RESOLUTION NO. 2014-62, ACCEPTING THE AMENDED FEASIBILITY REPORT AND ORDERING THE VILLAGE EAST TRUNK SANITARY SEWER IMPROVEMENTS: TRUNK HIGHWAY 5 TO SOUTH OF THE UNION PACIFIC RAILROAD ADOPTING AND ASSESSING THE PROPERTY OWNERS PER THE CITY ENGINEER. Mayor Pearson seconded the motion. MOTION PASSED 4-0. ITEM 11: 39TH STREET NORTH: STREET AND SANITARY SEWER IMPROVEMENTS (VILLAGE EAST) – ACCEPT BIDS AND AWARD CONTRACT; RESOLUTION NO. 2014-63. City Engineer Jack Griffin presented on this item. This item now includes the Village East Trunk Sewer. Mr. Griffin reviewed the proposed improvements. There will be sidewalk put in on the south side of 39th Street and bituminous trail put in on the north side. There are 11 properties that are impacted and being assessed. Waiver of Appeal and Assessment Agreements were sought and received for the original amount. When the bids came in higher, amended Agreements were sent out. City Administrator Zuleger stated that we have 10 of 11 waiver agreement signs. Missing is one property owner who signed the original agreement, but would not sign the updated agreement. The increased price is $367. Council Member Nelson asked if that property owner will pay the original amount. City Engineer Griffin responded that he will still be assessed the full amount. The waiver agreement is to waive his right to appeal. The one property owner can still appeal on the $367. Council Member Bloyer asked if the property owner could appeal on the entire amount and what the entire amount was. City Administrator Zuleger responded that the property owner waived the first portion. He could still appeal the entire amount. City Engineer Griffin stated that the entire amount was roughly $2,300. It is now roughly $2,667. City Engineer Griffin touched on where the cost increases were. The City cost was previously $1,247,000. It is now $1,711,300. Mr. Griffin went over the breakdown of where the costs go to. Street and Storm Sewer saw an increase of $145,100. Eighty percent is assessable so the increased cost to the City is $29,020. For the Bituminous Trail there was a decrease of $8,300 coming out of the park funds. The Water System saw an increase of $120,300. Trunk Sanitary Sewer saw an increase of $207,200. The Village Trunk Sanitary Sewer Improvements total project cost is $412,600. City Administrator Zuleger stated that the City has already borrowed for this project at the previous estimate. Finance Director Bendel went over the spreadsheet that shows the differences. General fund would be impacted up to $29,000. Water fund would be impacted up to $120,000. Sewer fund would be impacted up to $163,000. The key shift was that some of the amount the City thought would be picked up by the developer shifted over to the assessed costs. Mayor Pearson asked about the total bonding increase. Finance Director Bendel responded that it would be $487,000 in total. Council Member Nelson asked if that would then be added to 2015 bonding. Finance Director Bendel answered yes. Council Member Nelson asked if the City had the cash to make up the amount coming from the general levy if the City would still need to bond for it. Finance Director Bendel responded if the City had the funds in reserve the City would propose withdrawing that amount. Same with the water fund.