10-19-10 Council Special Minutes

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MINUTES CITY COUNCIL OCTOB}uR 19, 2010 cannot be removed until grass is established. The Engineer also indicated that he is satisfied with the way grass is coming in, and will continue to monitor that progress. F~Ie reviewed the watering spec with Mr. Pierce, and indicated that a 5% retainage will be held for this work. The Engineer indicated that the boulevards will be inspected in the spring. Pierce questioned why the project is being assessed at this time, rather than after completion. The City Administrator explained that the City could assess the project once it is ordered. He indicated that to wait wail the project is completed would just add carrying costs that would be passed on to the property owners and all taxpayers in the City. Robert Sternal, 61 Iona Lane, asked about the availability of State or Federal dollars to help defray project costs. The City Administrator reported that there are no County, State, or Federal monies available for local road improvement projects such as this. He noted that the State used the Federal stimulus monies that were available for their projects. The City Administrator also noted if there were dollars available for this type of project, there would be a long line of cities pursuing the funding. Pierce asked about the deferral of assessments. The City Administrator reported that property owners meeting HUD low/moderate income guidelines could apply for the deferral of their assessments. He noted, however, that interest does accrue on deferred assessments. Deferred assessments would become due at the time of sale of the property, the death of the property owner, a change in income status, etc. The City Administrator further explained that it has been the City's practice to assess improvement projects at the time they are substantially complete. The City Engineer further noted that the assessments proposed this evening are essentially what was estimated at the time of neighborhood meetings and the improvement hearing for this project, as they are at the City's assessment cap. "1 he City Engineer then reviewed project costs noting that they are under estimate at $232,864.72, of which $99,118.60 is proposed to be assessed. The Engineer then reviewed assessment payment options noting that property owners can pay their assessment in full or part to the City within 30 days of adoption of the assessment (through November 18, 2010) with no interest. After that 30-day period, the unpaid assessment balance will be certified to Ramsey County and spread for collection with property taxes fora 10 year period at 5% interest. The Engineer noted that once an assessment balance is certified to the County, the property owner can pay it in full during the 10-year period. However, that payment should be paid by November 15~~' of any given year in order to avoid the next year's interest being added to the pay-off amount. Property owners on a 14