10-21-09 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOER 21, 2009 overlay projects are assessed, with the City paying the other 50% of costs. The Engineer noted that based on the assessment policy, the residential rate is $9.78 per front foot with a frontage minimum of 75 feet and maximum of 125 foot maxinmm. Side lots are assessed at 20% of frontage. The commercial assessment rate is $19.56 per fi•ont foot with commercial frontages assessed on total length. The Engineer then reviewed assessment payment methods available to property owners. Assessments can be paid in full or part at the City within the first 30 days with no interest. Unpaid balances will be certified to Ramsey County for collection with property taxes over a 10 year period at ate interest rate of 5.25%. Once an assessment is certified to the County, property owners have the option of payuzg off their assessment balance any time during the 10 year collection period. The Engineer pointed out however, that balances paid after November 15°i in any given year will be charged the next year's interest. Therefore, he suggested that property owners be aware of that date, and should they plan to pay their assessment, they should do so prior to November 15°i to save the next year's interest. The Engineer reviewed other related issues noting that senior citizens or disabled individuals on a fixed income can make application for an assessment deferral. He noted, however, that interest does accrue on deferred assessments. With regard to the interest on assessments, the City Engineer suggested that property owners consult with their tax advisors on whether or not this interest is tax deductible. He indicated that there is conflicting information on this issue. The Engineer then reviewed the proposed Assessment Roll pointing out that the Assessment Roll has been corrected from what was previously available. The Engineer then reported on the deterioration of some of the asphalt primarily on Costa Lane. He noted that a letter was sent to property owners explaining the deterioration and that the City will be addressing this situation. The Engineer reported that it appears there may have been a problem during the production of the bituminous or that some foreign material got into the bituminous. T'he exact cause has not yet been determined. The City has put the contractor on notice about this problem. The plan at this time it to go through the winter a~~d spring and see if the deterioration gets worse. In the spring additional analysis will be done and the City will take corrective action next summer. Retainage will be held on this project, so that the contractor will not be paid in full until the situation is corrected. 7