01-26-09 Council Special Minutes

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MINUTES CITY COUNCIL JANUARY 26, 2009 The foregoing resolution was duly seconded by Boss. Ayes (5). Nays (0). Resolution declared adopted. IMP. NO.2009-09 Blesener opened the public hearing to consider the improvement of & 2009-IO - Westwind Drive and Windrow Drive by mill and overlay of bituminous WESTWIND surface as well as concrete curb and gutter repairh•eplacement. AND WINDROW The City Engineer reviewed the existing road conditions and noted that DRIVES based on those conditions a mill and overlay of both streets is being proposed to re-establish the crown. Approximately 1" of the edges of the street will be milled off tapering toward the center of the street. The street will then be overlaid with bituminous. Some street patching may be necessary in areas of worst deterioration. There will be minor curb repair and replacement of badly damaged curb sections to improve curb drainage. The Engineer noted that given the level of oil prices as well as the bidding environment, it is felt that very favorable bids will be received for this work. The Engineer then reviewed the City's Assessment Policy relative to mill and overlay projects, noting that 50% of the cost is assessed to benefitting properties with the City paying the remaining 50% of the project. The Engineer noted that the total estimated cost of the project is $271,000.00. The residential assessment rate is $18.98 per front foot. The Engineer then reviewed the proposed project schedule should the project move forward. He noted that the proposed assessment roll is also included for property owners' review. The Engineer then reviewed an issues list supporting why City staff feels that the project should move forward. That listing included information on the competitive bidding environment, oil prices, the fact that the City is maintaining the assessment rate at 20081evels, the fact that this assessment rate has been artificially suppressed for a number of years given it has been inflated by 3% annually when the market increases have been over 6% from 1996-2006, and that interest rates are at a very favorable level. The City Administrator noted the interest rates that the City has utilized over the past five year period. He pointed out that if bonds were sold today, the City would utilize an interest rate of 4.75% for a ten year assessment, which is below the rates charged for the past five years. The Administrator presented a sample assessment calculation comparing a 6% interest rate and a 4.75% interest rate, noting an approximately $130 savings in interest over a 10 year assessment period. Another option