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MINUTES <br />CITY COUNCIL <br />OCTOBER 13, 1992 <br />For the project area south of LaBore, where water main <br />frontage is on one side of the street, the estimated <br />assessment rate would be $3,813.45 as well. The City's <br />costs include the cost difference to place an 8" trunk <br />main in lieu of a 6" lateral water main, and costs to <br />subsidize lots where the trunk water main would serve <br />only one side of the street. There are a total of 82 <br />lots that will be served by the improvement at a per <br />lot assessment rate of $3,813.45. <br />John Schwalbach, 2680 Edgerton, questioned why the <br />proposal is to run water main up a portion of Keller <br />Parkway feeling the route would be more direct up <br />Edgerton Street. Schwalbach also questioned the side <br />of the street that water main is proposed. Schwalbach <br />pointed out that it would be much closer for his <br />property to connect to watermain from Edgerton Street <br />than from Keller Parkway. <br />The City Engineer replied that water main is proposed <br />for a section of Keller Parkway in anticipation of a <br />future water main project along that street. The <br />Engineer pointed out that there is sanitary sewer on <br />the east side of the street, therefore, insufficient <br />room for water main on that side. The Engineer <br />reported that whether water main is run on Keller <br />Parkway or solely along Edgerton can be addressed in <br />the design phase of the project. <br />Schwalbach felt that there were other alternatives to <br />providing future water main to the Keller Parkway area. <br />Gene Erickson, 585 Keller Parkway, reported that he has <br />a double-fronting lot and asked if he would be assessed <br />for only one side of his property. Erickson also asked <br />the term and interest rate for assessment repayment. <br />The Engineer pointed out that the proposal is to assess <br />on a per lot basis. <br />The City Administrator reported that he has run some <br />preliminary numbers on the assessments. It is hoped <br />that combining this improvement with others would <br />provide some economy of scale and decrease the cost of <br />the project. Interest rates will depend on the rate in <br />place at the time the bonds are sold. Using that rate, <br />cities typically increase the rate one or two <br />percentage points based on the advice of the fiscal <br />agent. Assuming a 10 year assessment at 7 1/2% <br />interest with equal principle payments and declining <br />interest payments, the first year payment in 1994 would <br />be 5667.35 and the final payment in 2003 would be <br />$409.95. Interest paid over the 10 year assessment <br />Page 9 <br />