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STAFF REPORT DATE: March 7, 2023 CONSENT AGENDA ITEM: Old Village Phase 7: Street and Utility Improvements – Resolution Declaring Costs to be Assessed and Calling for Hearing on Proposed Assessment SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sarah Sonsalla, City Attorney Marty Powers, Public Works Director Chad Isakson, Project Engineer ISSUE BEFORE COUNCIL: Should the City Council declare costs to be assessed and call a final assessment hearing for the Old Village Phase 7 Street and Utility Improvements project to be held on April 4, 2023? BACKGROUND: The final phase of the Old Village Capital Improvement Plan, Phase 7, is programmed for construction in 2023. Plans and Specifications were approved at the February 21, 2023 City Council meeting and the project has been advertised to receive contractor bids on March 23, 2023. The City of Lake Elmo is extending sanitary sewer to serve the existing properties in the Old Village MUSA area to replace the use of private on-site sewage treatment systems. The Old Village Capital Improvement projects also include drainage improvements to continue addressing historic flooding issues in the Downtown area, the replacement of aged watermain pipes and reconstructing the public streets that are disturbed during the work. PROPOSAL DETAILS/ANALYSIS: Consistent with previous project phases, the Old Village Phase 7 Street and Utility Improvements will be partially financed by imposing special assessments against the benefiting properties. Special assessments are levied in accordance with Minnesota Statutes Chapter 429 and consistent with the City’s Special Assessment Policy and the Old Village Sewer Assessment Policy. As part of the assessment procedures, the Council must declare the amount to be assessed against the benefitting properties and Call the Hearing on the Proposed Assessment for these improvements. The Assessment Hearing is proposed for April 4, 2023. The Final Assessment Roll must be certified to the County Auditor by November 30, 2023. The final assessment roll for the project is attached as part of the council packet. The proposed final assessments are consistent with the adopted preliminary assessment roll and were determined in accordance with the City’s Special Assessment Policies. The street and storm sewer improvements will be levied over a 15-year period and the sanitary sewer improvements will be levied over a 20-year period. Assessments will be charged an interest rate of 4.5% (1% over the anticipated bond rate for the Project). The unit assessment for sanitary sewer improvements is $13,100. There are 22 existing properties that will be provided new sanitary sewer service by the project. The property at 2749 Legion Avenue is outside the MUSA boundary and cannot gain sewer access without a Comprehensive Plan Amendment. The properties at 2998 and 2995 Legion Avenue are connected to city sewer along 30th Street North as part of the Old Village Phase 2 Improvements. The watermain improvements will not be assessed since all impacted properties are current water customers.