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MINUTES <br /> CITY COUNCIL <br /> <br /> JANUARY 27, 2010 <br /> worsen on Allen Avenue as your move from east to west. Valento Labe <br /> shows the same signs of deterioration, however not as advanced as the <br /> west end of Allen Avenue. <br /> The Engineer then reviewed the proposed improvements which call for the <br /> mill and overlay of the entire length of these street segments. Curb and <br /> gutter will be repaired/replaced where necessary. The Engineer noted that <br /> the option of seal coating and crack sealing was reviewed. However, due <br /> to the current condition of the street a higher level of maintenance (mill <br /> and overlay) is recommended to re-establish good drainage and protect the <br /> street. <br /> The Engineer noted the estimated project costs are $71,800 for Allen <br /> Avenue and $36,500 for Valento Lane. The City received very <br /> competitive bids the last two years due to aggressive contractor <br /> competition, and bids are again expected to be very competitive. 'T'he <br /> Engineer noted that an increase is expected, however, due to higher oil <br /> prices. <br /> The Engineer then reviewed the City's Assessment Policy which provides <br /> fora 50/50 split of costs between the City and benefitted property owners. <br /> 'fhe assessment to property owners is based on assessable front footages, <br /> with corner lots being assessed at 20% of the side lot frontage. The <br /> Engineer explained that Allen Avenue is a unique situation given that <br /> most of the lots are corner lots. He explained the impact of assessing 50% <br /> of Allen Avenue costs to these corner lots, and the need to modify the <br /> formula in order to come up with an equitable assessment for these Allen <br /> Avenue corner lots. The result is that the City will be paying substantially <br /> more than 50% of the Allen Avenue project costs, reducing assessments to <br /> property owners to keep them similar to other mill and overlay projects. <br /> The Engineer then reviewed the proposed construction schedule as well as <br /> consT~•uction issues should the project move forward. He reviewed a <br /> preliminary estimated assessment roll as well as an amortization schedule <br /> example should a property owner chose to have the assessment be <br /> certified against property taxes. 'I•he City Engineer noted that once the <br /> project is completed, an assessment hearing would be held in the fall. <br /> Final assessment costs will be known at that time. When the assessment is <br /> approved, property owners will have 30 days to pay it at City IIa11 with no <br /> interest. If not paid, the assessment will be certified to Ramsey County for <br /> collection with property taxes over a ten year period. The Engineer noted <br /> that the interest rate projected on the amortization schedule is for <br /> illustration purposes only. The 2009 interest rate was 5.25%, and it is <br /> hoped that the 2010 rate will be close to that amount. The interest rate is <br /> determined by what the City could sell bonds for at the time of the <br /> assessment hearing. <br /> 2 <br /> <br />