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<br /> MINUTES <br /> CITY COUNCIL <br /> <br /> JANUARY 25, 2010 <br /> reported that he would prepare that schedule, and noted that the estimated <br /> interest rate is overstated. <br /> "fed Bergstrom, 51 Iona Lane, asked if the City will bond for the cost of <br /> the improvement and if the interest rate will be determined at the time of <br /> bond sale. The City Administrator reported that the City would finance <br /> the improvement internally, and the interest rate will be based on what it <br /> would cost to bond for the improvement costs. I-Ie estimated the rate at <br /> closer to 5% or 5 That interest rate will not be known until the fall at <br /> the time of the assessment hearing. <br /> Keis pointed out that property owners would have an opportunity to pay <br /> there assessment for the first 30 days following the assessment hearing. <br /> There would be no interest charged during that initia130 day period. Once <br /> certified to Ramsey County, interest charges come into play. <br /> Bergsri•om asked if the only option was a full reconstruction, suggesting <br /> that a mill and overlay would be adequate. The City Engineer indicated <br /> that given the subbase contamination that has begun, a reconstruction is <br /> necessary. He noted that a street begins to lose strength as this subbase <br /> contamination begins. The Administrator noted that during the <br /> fi•eeze/thaw cycle, base is pumped into the underlying material. 'fhe City <br /> Engineer pointed out that this is why the addition of fabric is being <br /> proposed to act as a barrier between the base and subbase. <br /> Keis responded to Mr. Bergstrom's question of whether a full reconstruct <br /> is the only option. I Ie noted that the project would not have to proceed for <br /> 2010, but pointed out that as the street continues to deteriorate, the City <br /> will invite the property owners back to consider the improvement. <br /> Bergstrom noted that Iona Lane has lasted for about 50 years and felt that <br /> a mill and overlay was not too bad of an idea. <br /> Montour pointed out that the Council defers to the City Engineer on these <br /> issues, noting that this is not the first time the Council has discussed <br /> whether a full reconstruct or a mill and overlay was the preferable <br /> solution. Montour indicated that it is the Council's job to protect the <br /> City's infrastructure. He noted that flee general taxpayers pay a good share <br /> of the cost of these improvements, and as much as the Council does not <br /> want to spend people's money, it must do so in the most prudent manner it <br /> can. Montour noted the hungry bidding market, noting that low bids last <br /> year were $660,000 under the City Engineer's estimate. He also pointed <br /> out that assessment caps are being set at essentially 2009 levels, but given <br /> the caps, the estimated assessments will likely remain the same. If bids <br /> come in favorably as expected, the savings will be realized by the general <br /> taxpayer. If bids come in higher than expected, the project would likely <br /> not proceed. <br /> 8 <br /> <br />