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• <br />WS — Item 1 <br />WORK SESSION STAFF REPORT <br />Work Session Item 1 <br />Date: February 27, 2012 <br />To: City Council <br />From: Michael Grochala <br />Re: Otter Lake Road Extension <br />Background <br />The public hearing on improvements for the Otter Lake Road Improvements project was held on <br />February 13, 2012 City Council meeting. Testimony was received by both property owners <br />proposed to be assessed as part of the project. Comments were also received from neighboring <br />property owners. The council held off on any action until further discussion at the February 27, <br />2012 meeting. <br />As previously discussed the proposed project is located within a Charter exempt area therefore <br />the improvement process follows Minnesota Statutes, Chapter 429. Accordingly the council <br />may take the following steps: <br />1. Take no action <br />2. Request additional information <br />3. Authorize preparation of plans and specifications <br />The project will likely be funded through the issuance of general obligation improvement bonds <br />and specially assessed against two benefitting property owners. One of the property owners has <br />previously indicated their opposition to the proposed improvement. Accordingly the council <br />may wish to obtain additional information such as land appraisals and or a special benefit <br />analysis prior to moving forward with the more costly preparation of plans and specifications. <br />This information may assist the council in assessing the potential financial risk in moving <br />forward with the project. The project is reliant on special assessments for repayment of any <br />bonds issued to support the project. If the specials cannot be substantiated then any short falls <br />would need to be covered by property tax levy. Staff has included authorization to retain the <br />services of BRKW Appraisals Inc., for consideration 011 the regular agenda. <br />To move the project forward the council would need to order the preparation of plans and <br />specifications. This involves detailed design of improvements, determination of construction <br />impacts, and development of detailed cost estimates. The right -of -way acquisition process <br />would also be commenced during the plan development. Estimated costs for preparation of <br />plans and specifications are $40,000 to $60,000. <br />Requested Council Direction <br />Staff is requesting council direction regarding preferred action. <br />P1 <br />