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B. Livable Communities Act Lake Elmo began LCA participation in 1996, mostly to qualify for a Metro Council Local Planning Assistance Grant. The grant was approved at slightly over $10,000 for use in the Old Village planning program. The bulk of the grant funds will be applied to the graphic consultant services contract recently approved by the City Council for the Village Commission. Planner Dillerud recommended participation renewal for 1998 based on the City may discontinue LCA participation whenever it chooses. Some of Lake Elmo's LCA goals are being accomplished, and we will not complete the Planning Assistance Grant work until March 1999. Council members Armstrong and Siedow indicated, if there is an opportunity, the City should opt out now because if we don't believe in their policies, why should we adopt the program and take their money. Mayor Hunt and Councilor DeLapp felt continuing with participation is a benefit to the City. We are moving toward the goal of affordable senior housing. Councilor Dunn asked if we do not participate, could they take the planning grant for the Village Commission away? M/S/P Dunn/Siedow - to postpone action on this agenda item until the City Planner can find out if the Met Council could take the Village Commission planning grant away if the City did not participate and report back to the Council. (Motion passed 5-0). C. Escrow Reduction — Parkview Estates City Engineer Prew reported the majority of work on this development is complete. The only remaining items are some erosion repair in the spring, and construction of a turnaround at the east -end of 16`h Street The trees have been installed and appear to be in accordance with the landscape plan. There remains a small amount in escrow to cover some tree loss that may occur over the winter. Prow recommended the escrow reduction for this project to $25,000. No prior reductions of the Letter of Credit have been requested. Councilor DeLapp suggested money be kept in for trails because the trails don't have Class 5 on them and are washing out. M/S/P DeLapp/Siedow — to leave the $17,000 designated for trails in the Original Escrow. (Motion passed 5-0). M/S/P Armstrong/Dunn - to authorize reduction of CMIC Letter of Credit#29804-1 held as security for Developer Agreement improvements for Parkview Estates from $459,375 to $45,000 based on the recommendations of the City Engineer and the question about the trail system. (Motion passed 5-0). 10. CITY COUNCIL REPORTS: Mayor Hunt reminded everyone of the Planning Training Seminar with Gunnar Isberg on January 9, at 9 a.m. Hunt will be attending the conference for the newly elected officials at the Holiday Inn on January 22, 23, 1999. If other Council members wish to attend, they should contact Cindy. Council member Dunn attended the Village Commission meeting where it was questioned if the City has designated routes for natural preservation roads. Tom Prew responded this road designation is by Washington County. A request was made to review speed limits on Hwy 5 for possible lowering because there is more traffic going in and out through the City. Councilor DeLapp attended the Lake Elmo/Baytown Consolidation Steering Committee meeting and reported the consolidation process is on tract with the vote for approval by both cities, individually, scheduled for the end of April. LAKE ELMO CITY COUNCIL MINUTES JANUARY 5, 1999 6