01-27-10 Council Special Minutes

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MINUTES CITY COUNCIL JANUARY 27, 2010 will he subgrade corrections. The Engineer noted that seal coating and crack sealing of the street was reviewed. However, due to its current condition, staff is recommending a higher level of maintenance (mill and repave) to establish good drainage, eliminate cracking, and protect the street. The Engineer reviewed the estimated project costs of $62,670. He noted that the City received very competitive bids the last two years due to aggressive contractor competition. Bids this year are expected to be competitive, but somewhat higher due to higher oil costs. The Engineer noted that based on the City's Assessment Policy, a street rehabilitation is assessed at 50% of project costs excluding storm sewer repairs. Assessments are based on assessable front footage with corner lots assessed at 20% of side lot frontage. The Engineer noted that the property at 2395 Edgerton Street is potentially subdividable into three lots. This property will be assessed for three lots, with the Engineer noting that the assessment for the two future lots can be deferred until such time as the property is subdivided. If and when the property is divided, the assessment would be levied and the amount would offset the City's share of the cost of the project. The Engineer noted that deferred assessment amounts do accrue interest. The Engineer then reviewed the proposed project schedule as well as construction issues should the project move forward. He reviewed a preliminary estimated assessment roll as well as an amortization schedule example should a property owner chose to have the assessment be certified against property taxes. The City Engineer noted that once the project is completed, an assessment hearing would be held in the fall. rival assessment costs will be known at that time. When the assessment is approved, property owners will have 30 days to pay it at City Hall with no interest. If not paid, the assessment will be certified to Ramsey County for collection with property taxes over a ten year period. The Engineer noted that the interest rate projected on the amortization schedule is for illustration purposes only. The 2009 interest rate was 5.25%, and it is hoped that the 20l 0 rate will be close to that amount. The interest rate is determined by what the City could sell bonds for at the time of the assessment hearing. Bernie McCanna, 2429 Sunrise Drive, noted that at the information meeting the project estimate was $58,000. "fhe City Engineer reported that the project had to be extended another 26 feet, and the estimate increase to $62,670 reflects the additional frontage that was added. This additiona126 feet is proposed to be assessed. 6