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LAKE ELMO CITY COOUNCIL MINUTES OCTOBER 6, 1987 PAGE 8 standard sewer pipe. Value of this Change Order = +$1,216.80. M/S/P Moe/Graves - to approve Change Order Nos. 1 and 2 for Part D of the 201 Project. (Motion carried 5-0). C. 201 Project -- Acceptance of EPA Grant Amendment and Response to the 1986 Single Audit Finding City Administrator Overby reported that the City had received official notification from the Chicago Regional Office of EPA that the City's Grant Amendment (increase) of $1,241,850 has been approved. M/S/P Armstrong/Moe - to accept the 201 Project grant increase of $1,241,850 in federal funding and approve returning two copies of the Amendment 1, signed by the City Administrator to the Chicago office of EPA. (Motion carried 5-0) The EPA Office of Inspector General has reviewed the City of Lake Elmo's single audit for 1986. The EPA notes in its letter of 7-28-87 that one of the audit findings pointed out that the City does not maintain complete accounting controls over quantities and costs of general fixed assets. The City staff will inform EPA of the corrective action the City plans to take to resolve this audit finding. D. Section 32 & 33 Mayor Christ informed the Council that he has had some discussion with Oakdale Mayor Hudalla and City Administrator Mattson on possible provision of water service to Sections 32-33, possible trade of sewer service connection for Oakdale, and possible land trade with Oakdale if Lake Elmo decides to go along with annexation to Oakdale. Mayor Christ felt that the City Council should be the group which analyses the economic development financing options and impacts on the City, rather than allow a citizen's committe to go off and do things on their own. He added that the financial decisions to be made are so important that he asked the Council not to relegate responsibility. Councilman Johnson indicated that the subject needed public input and the committee was a good way to do that. The final decision would be the Council's responsibility. Councilman Graves would like to get some numbers and see some facts that would give the Council something concrete to discuss. The City will continue to accept applications for that committee. City Attorney Knaak had stated there was a court decision stating that annexation cannot be allowed if the City does not approve it. City of Brooklyn Park 305 Northwest Second 596 appears to preclude abutting som sewer or municipal services on a come i ive base By encouraging annexation procedures.