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Hugo City Council Meeting Minutes for December 15, 2014 Page 8 of 11 to surface water. Cities that continue to use groundwater will be paying for cities who use surface water. Hugo may not be using the system, but will be paying into it. There were concerns about the plaintiff's and the Met Council's authority. Also, the project would send water from Hugo downstream just to be returned to Hugo, and other options need to be looked at where Hugo could be independent and self-reliant on water. Mayor Weidt noted that Hugo has been working on water conservation and even brought a plan to legislature for a program to reuse storm water, but it did not get the funding. The Council talked about the lack of common sense in the settlement agreement and hopes the legislature will not fund it. Legal fees could be better spent in other areas. The Council agreed that the City needs to keep moving forward on water conservation methods. Haas made motion, Klein seconded, to continue staff involvement and leadership in the Ground Water Management Area, work with legislators to address issues presented by the settlement agreement, encourage regulating authorities to use a more common sense approach to the use of surface water, and schedule a workshop with neighboring cities who may be in a similar situation as Hugo. All ayes. Motion carried. Update on Bald Eagle Dam Replacement City Engineer Jay Kennedy provided an update on construction plans and funding sources for the replacement of the dam at the north end of Bald Eagle Lake. Jay explained that the MN DNR agreement has been approved to access Dam Safety Funds. The RCWD funding agreement was approved on December 10, 2014 by the Board to add this project to their capital improvement plan. This item is on the St. Paul Water SPRWS Board agenda for consideration in Jan/Feb to provide some funding. Total estimated cost is $638,000. MNDOT bridge funds will provide $252,000; $160,000 will come from the DNR Dam Safety Fund; and $226,000 will be equally divided between the RCWD and City of Hugo. Next steps are to finalize the permits and plans, accept bids in Jan/Feb, and begin construction in late summer or early fall/winter of 2015. Update on the Rice Lake Meadows Neighborhood Meeting A neighborhood meeting was held on December 8, 2014 to discuss a proposed roadway improvement project. Items discussed were improvements to traffic speeds, sidewalk connections, project financing and assessments, and the potential schedule for improvements. Klein made motion, Petryk seconded, to move forward with the feasibility study including options to address traffic speeds and sidewalk options. All Ayes. Motion carried.