07-27-09 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 27, 2009 The Engineer reviewed the proposed improvements noting that a 28-foot urban section road is proposed with barrier concrete curb and gutter. Storm drainage will also be provided to serve the curbed roadway, and rainwater gardens would be installed where practical for storm water treatment. Estimated total project costs are $333,000. The Engineer noted that the City received eight bids on its origina12009 street projects, and the low bidder unit prices were used for determining the estimated project costs. The Engineer again noted that the original 2009 project was approximately 37% lower than 2006 prices projected forward at the MN DOT construction index of 6.42%. Gas prices have increased $.50 per gallon since the 2009 project was bid this spring. The City Engineer reviewed in detail the City's assessment policy for both residential and commercial properties. Residential assessments are based on assessable front footage with a 75-foot minimum frontage used for each property up to a maximum of feet. There is a 20% assessment for back and side lot feontages. The assessment rate is frozen at the 2008 maximum assessment rate of $57.97 per foot. However, for the Arkwright/Brooks project, a per unit assessment is proposed given the similar lot sizes and use. The Engineer then explained the commercial assessment rate of $118.18 per foot, again frozen at the 2008 rate. "1'he commercial rate applies to the St. Paul Regional Water Services property. That assessment is estimated at $72,213.89. Blesener asked if the St. Paul Regional Water property frontage was used in the calculation of the residential assessments. The Engineer replied that it was not. 'I"hat property was calculated at the commercial rate and its frontage was not used to compound the residential portion of the assessment. The Engineer then explained assessment payment methods. An assessment hearing would be held in late October. Once the assessment is adopted, property owners would have the ability to pay their assessment in full or part within 30 days without interest. After the 30 day period, the unpaid portion is certified to Ramsey County for collection with property taxes. A ten-year assessment period will be utilized with an interest rate estimated at 5.5%. Assessment balances can be paid at the County anytime durin~ the 10 year period, but payments should be made prior to November 15" to avoid the following year's interest. The City Engineer pointed out that there is a deferment option available for property owners on a fixed income due to age or disability. Interest continues to accrue on the deferred amount until it is paid. The City Engineer then reviewed the proposed project schedule as well as pertinent construction issues. He also reviewed the preliminary assessment roll and aii estimated amortization scheduled for a residential lot assessment.