10-17-05 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 17, 2005 The City Engineer reviewed the project costs reporting that estimated actual costs are $500,000.00 for street improvements and $153,436.64 for the water main improvement. Actual assessable costs are $154,626.43 for the sheet portion of the improvement and $153,436.64 for the water main. The Engineer noted tihaC the estimated actual for the street is below estimate while the estimated actual for the water main is slightly above estimate. The reason for the overage in the water main costs is due to steel shortages and resulting price increases. The Engineer reviewed the City's residential assessment policy for both street and water main improvements. The street assessment is based on the standard urban section street to equalize assessments among residential properties in the City. Due to the poor soils in the Carla Lane area, a thicker street section was constructed. A per unit street assessment is proposed for Carla Lane properties given the unique nature of the area and varying lot sizes. That rate is proposed at $5,479.88 per lot. Water main is assessed at 100% of the cost with a maximum assessment of $5,768.00 per lot. The Engineer then reviewed assessment payment methods noting that property owners can pay their assessment in full or in part, with no interest accruing, at the City within 30 days of adoption of the assessment roll. Unpaid assessments will be certified to Ramsey County after the initia130 day period for collection with property taxes. The assessments will be spread over 10 years at 5.75% interest per year. The Engineer also noted that any time after certification, property owners can pay their assessment off in full to Ramsey County. If at some point property owners intend to pay their assessment off prior to the 10 year term, payment should be made prior to November I S°' of the year in which paid. Otherwise, State Statute requires that the next year's interest be charged against the assessment balance. At this point, the public hearing was opened for comments from the general public. One of the Carla Lane property owners asked about the imposition of penalties against the contractor for late performance. The City Engineer reported that there are provisions in the contract for damages, and the contractor has been notified that the City may impose them. The property owner asked if there would be a reduction in the assessment amounC if the City collects damages. The City Engineer pointed that while property owners are being assessed for improvements up to the City's cap amount, the majority of improvemenC costs are paid for by all taxpayers in the City. A property owner asked if any funds are withheld from payment to the contractor. The Engineer replied that the contractor is paid for work 9