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Minutes of the Regular Meeting of May 2, 2005 Page 2 of 3 10. First Reading and Order Public Hearing-Ordinance Amendment #2005-17: Shoreland Ordinance Impervious Surface Coverage. 11. First Reading and Order Public Hearing-Rezoning #2005-25: 1-1 to DC for Block 1 (HRAlSherman) 12. First Reading and Order Public Hearing to Amend City Code Section 2.18: Heritage Preservation Commission-moved to Planning for discussion 13. Approve Dedication of City Property for Canine Training Area 14. Resolution-Supporting and Participating in Dakota County Traffic Safety Project 15. Approve Joint Powers Agreement for Dakota County Traffic Safety Project 16. Resolution-Home Occupation Permit #2005-20 at 118 Farm Street (David Doffing) 17. Resolution-Supporting Transportation Copies of resolutions on file. Presentation of Water Quality and Production Study Results and Request for Authorization to Drill Two Test Wells Public Works Director Montgomery stated that rising nitrate levels in Wells #3 and #5 and the need to drill a new well to meet growing water supply needs has prompted staff to research and recommend that test wells be drilled at Conzemius Park and Vermillion Falls Park. Staff is also requesting authorization to seal off Well #1 , including demolition of the pump house. Staff will also research whether additional water conservation methods should be implemented. Councilmember Moratzka requested that a presentation on the Hastings Area Nitrate Study be done before the City Council. Moved by Councilmember Hicks, seconded by Councilmember Schultz to approve the test drilling for two wells, to authorize sealing Well #1, to research whether additional water conservation methods should be implemented. 7 Ayes; Nays, none. Presentation of Low System Water Modeling Results and Outline of Water Trunk Main Capital Improvement Plan Public Works Director Montgomery stated that staff is recommending construction of additional looping trunk watermains on the low system over the next five to seven years in conjunction with street reconstruction activities. Moved by Councilmember Hicks, seconded by Councilmember Riveness to approve the watermain looping concept as presented. 7 Ayes; Nays, none. Review of Proposed Terms for Sherman Agreement Jessica Cook of Ehlers & Associates provided some background on the proposed terms for a development agreement with Sherman. The City Council Finance Committee reviewed the proposed terms and recommend support of the terms presented. Moved by Council member Hicks, seconded by Councilmember Moratzka to accept the preliminary terms and direct staff to prepare a development agreement based on the proposal presented. 7 Ayes; Nays, none. Resolution-Site Plan/SUP #2005-07: Three Rivers Place Phase 1 at Block 2 Downtown Planning Director Hinzman stated the City Council Planning Committee has met with the applicant and is recommending approval of the site plan and special use permit for Phase I. Mayor Werner stated disappointment that the City still does not have any financial assurances that Phase II of the project will go forward. Councilmember Alongi stated that he was pleased with the improvements that have been made and that the project meets the Heart of Hastings plan. Council member Hicks stated that the developer has made a significant investment in the