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Page 5 <br />January 22, 1996 <br />Mounds Vtew Crty Counctl <br />Mr. Zauner stated. they would only be looking at a return on the investment of their down payment on the <br />project. <br />Ms. Trade asked if the state has contracted with their company for a set rate of return on that investment. <br />Mr. Zauner stated this would be a part of the negotiation as well. They would need to establish a maximum. <br />Furthermore if the traffic was greater than what was anticipated, that would also be subject to negotiation as far <br />as how it would be split up. He stated communities such as Mounds View could certainly be a part of that. <br />Ms. Trade asked if the state would be able to limit fee increases. <br />Mr. Zauner stated that would be regulated by the rate of return. <br />Mayor Linke stated he could see potential camera imaging problems in reading license plates during winter <br />months due to snow cover. He wonders if it would even work in an area such as this. <br />Mr. Zauner stated they are presently installing a system like this in Toronto. That road will be open in the Fall <br />and they will provide guarantees on the readability of the plates and the collections of the fees for the <br />• transponders. <br />Ms. Hankner asked what Mr. Zauner feels the payback time frame would be for this project, estimating <br />$200,000,000. <br />Mr. Zauner stated the payback would be on the invested capital, not on the $200,000,000. <br />The amount financed would be approximately 20% of the total cost. They will not be able to determine the <br />time frame until they see how the project is finally envisioned in its final forn~ and agreed to. <br />Ms. Trade stated generally toll ways have fewer entry points and she wondered if this proposal has fewer than <br />what the federal government has been working with. <br />Mr. Zauner stated their proposal is the same work plan as far an entrances and exits are concerned as they were <br />envisioned by MNDOT. He noted that"toll roads generally have a better safety record than other roads <br />primarily because they provide a high level of service and they are better maintained than traditionally funded <br />roadways. <br />Ms. Trade stated she is concerned that many of the occasional users the area roads (in particular many vehicles <br />pulling Recreational Vehicles) may not find the tolls reasonable. Their charges may seem high because they <br />have many axles or they are pulling a heavy load. Additionally there is much semi traffic. She feels many of <br />these types of vehicles will not use the toll roads but will rather use the free roads. <br />Mr. Zauner stated they feel they can provide a higher level of service such that the fee that they pay to use that <br />road will actually be a savings in comparison to the time that is saved. <br />Mayor Linke asked how the fee schedule works for those vehicles who have a transponder. <br />• <br />