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MINUTES <br />CITY COUNCIL <br />MAY 24, 1995 <br />Fahey asked if the rate should be higher. <br />Morelan felt if an assessment is contested in court, <br />and the City's policy has a maximum assessment rate of <br />$45.00, the court would see the concern the City has <br />for meeting the benefits received test. <br />Fahey agreed that setting a maximum assessment rate <br />makes the improvement hearing process easier. Fahey <br />also pointed out that even one assessment appeal can <br />cost the City substantial dollars to defend. Fahey <br />asked if the $45.00 was approximately 85% of the actual <br />cost per lineal foot. Fahey noted that the policy <br />states that the assessment for a project will be 85% of <br />project costs to a maximum of $45.00 per lineal foot. <br />The City Administrator reported that the $45.00 rate is <br />approximately 50% of the cost of most street projects. <br />The 50% paid by the City includes storm sewer and <br />additional base, fabric, etc., if necessary. Most <br />streets require more than the 8"/3" section. <br />Pedersen preferred the maximum rate to the previously <br />proposed modified rate. Pedersen pointed out that the <br />modified rate was difficult to define. <br />Morelan pointed out that some street projects are more <br />expensive to construct than others due to soil <br />conditions. These provisions equalize the rate that <br />property owners will pay, so that property owners <br />living in areas with poor soils will not pay <br />substantially more than property owners living in areas <br />having good soils. <br />Scalze pointed out that Brooks Street, for example, <br />would not be done on its own, but combined with other <br />projects. <br />Morelan pointed out that each street is assessed based <br />on individual project costs. <br />Scalze suggested if costs for a project came in at less <br />than $45.00 per lineal foot, if the City would assess <br />at the maximum rate of $45.00. <br />Fahey pointed out that would be difficult to explain to <br />property owners at an assessment hearing. Fahey felt <br />that the City should assess as much as it can that is <br />sustainable and reasonable, but not more than the <br />actual cost of a project. Fahey felt that the <br />assessment policy and maximum assessment rate made <br />4 <br />