10-23-07 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 23, 2007 IMP. NO. Mayor Blesener opened the Public Hearing to consider adoption of the 2007-O1- assessment for Improvement No. 2007-01, Viking Drive from Rice VIKING Street to County Road B-2 East by road reconstruction, cold-in-place DRIVE recycling, concrete curb and gutter, and drainage enhancements. The City Engineer indicated that project costs for the portion of Viking Drive that consisted of full reconstruction were estimated actual $2,275,000 and the actual assessable amount is $293,382.61. The portion that consisted of cold-in-plane recycling has estimated actual costs of $255,698.73 with actual assessable at $127,849.36. The Engineer noted that assessments for the cold-in-place portion of the project are higher than estimated given the County's final costs for doing this work came in higher than they estimated. The Engineer noted that the cost of the Gold- in-place recycling is being assessed at 50% to the property owners. The Engineer revised the City's Residential Assessment Policy noting that 85% of street reconstruction costs are assessed based on a 30-foot wide urban section street. The City has set a maximum assessment rate of $56.28 per front foot. He noted that Viking Drive was actually reconstructed to a 32-foot width. The Engineer next reviewed the Commercial Assessment Policy, noting that 80% of street reconstruction costs are assessed, as well as 100% of curb and gutter costs. The maximum commercial assessment rate has been set at $114.74 per front foot. The Engineer again noted that the cold-in-place recycling portion of the project is being assessed at 50% of the cost, with the City picking up the other half. Residential properties are being assessed at half the rate of commercial properties for this portion of the project. The Engineer reviewed assessment payment methods which include payment of the full assessment to the City with no interest within 30 days of adoption of the assessment roll. Property owners also have the option to have their assessment certified to Ramsey County for collection with property taxes. In that case, the assessment would be spread over a ten year period and would accrue interest at a rate of 6.25%. The Engineer noted that senior citizens and disabled individuals have the option to require a deferment of their assessment provided that they meet low income guidelines. Rick Thul, 165 Viking Drive, expressed concern with the increased cost for the cold-in-place recycling. The Engineer repor•Ced that the City relied on the County's initial estimate of their costs in doing the mill and overlay. The County underestimated by about $45,000. Thul pointed out that the millings are still on the boulevard area. He also noted that had property owners known what the cost was for the mill and overlay, they