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LAKE ELMO CITY CQUNCTL.TgI.NUTES APRIJ 21, 1987 PAGE 7 be received by the end of May. Construction is anticipated to begin about July 1 and be completed by late fall. City Engineer Bohrer reported that Mrs. Alfred Haseley, 3604 Layton Avenue wishes to withdraw from the 201 Program. This system was originally placed in the program because the previous building inspector stated it had a need, but Mrs. Haseley cites financial concerns and feels the system has no operational problems. The Twin Point Tavern, 11199 Stillwater Boulevard, was originally placed in the program because it had a deep old system too close to the groundwater table and occasionally backed up into the basement. That system has since been abandoned and a shallower holding tank system was placed in the parking lot. This system does not seem to be a problem from a pollution standpoint because all of the waste is hauled away. It does have an operational problem, being expensive to pump. Dennis LaCroix, the tavern's owner, had hoped to buy a strip of land on the vacant lot to the south, but was unable to negotiate a purchase. Land cannot be purchased with grant funds if only one property is benefitted. Bohrer requested that these two parties be removed from the program. M/S/P Graves/Armstrong - to delete Mrs. Alfred Haseley, 3604 Layton Avenue and the Twin Point Tavern at 11199 Stillwater Boulevard from the 201 Program. (Motion carried (4-1<Moe: Even if they are taken off I the 201 Program, the problem exists>). Mike Severin asked what happens when Mrs. Haseley moves out of her house and a family moves in? City Engineer Bohrer responded that they would probably have to upgrade their septic system. The original grant awarded the City in 1983 was based on estimates made in 1982. The rules stated that the grant will be amended upwards when all construction bids have been received and all land costs are known. Construction bids for the last part of the work will be known in six weeks but the final land costs may not be known until August. These delays could cause a severe cash flow problem for the City, even for the work already under contract with Widmer. The City has been paying Widmer out of the original grant funds and a temporary bond sold by Washington County. The project is approaching the limit of temporary funds set aside by the County for the City. The temporary shortfall for Widmer could be $264,700. Bohrer recommended that the City should take the following course of action: 1. The City should request that the MPCA amend the grant up to the limits of the work already under contract to Widmer. The grant would be amended again after Part D bids are opened and land costs are known. Present MPCA rules only provide for a one-time amendment.