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STAFF REPORT <br />DATE: April 4, 2023 <br /> PUBLIC HEARING <br /> <br />AGENDA ITEM: Old Village Phase 7 Street and Utility Improvements – Final Assessment Hearing <br />and Adopt the Final Assessments <br /> <br />SUBMITTED BY: Jack Griffin, City Engineer <br />REVIEWED BY: Kristina Handt, City Administrator <br /> Sarah Sonsalla, City Attorney Marty Powers, Public Works Director <br /> Chad Isakson, Project Engineer <br /> <br /> <br />ISSUE BEFORE COUNCIL: The City Council is respectfully requested to conduct the final assessment <br />hearing for the Old Village Phase 7 Street and Utility Improvements. Following the hearing, should the <br />City Council adopt the final assessment roll for the Project? <br /> <br />BACKGROUND: On March 7, 2023 the City Council called for a final assessment hearing for the Old <br />Village Phase 7 Street and Utility Improvements. Mailed notice has been provided to each assessed property <br />and notice of the public hearing has been published in the local paper in accordance with Minnesota <br />Statutes, Section 429 (attached for reference). <br /> <br />The Preliminary Assessment Roll for the Old Village Phase 7 Street and Utility Improvements was adopted <br />on December 6, 2022 following the Public Improvement Hearing for the Project. The preliminary <br />assessment roll was based on the estimated total project costs as published in the Feasibility Report adopted <br />November 1, 2022. <br /> <br />PROPOSAL DETAILS/ANALYSIS: Pursuant to Minnesota Statutes, Section 429, the Council must <br />declare the amount to be assessed against the benefiting properties and hold a hearing on the proposed <br />assessments. Staff has enclosed a proposed final assessment roll which is consistent with the amounts <br />presented in in the feasibility report and is consistent with the city’s Special Assessment Policy. <br /> <br />The sanitary sewer assessment is proposed in the amount of $13,100 per residential property for 22 <br />benefiting properties. The street and drainage improvement assessment is proposed in the amount of $9,800 <br />per residential property for 29 benefitting properties. The sanitary sewer assessment is levied over 20-years <br />and the street and drainage improvements are levied over 15 years. Assessments will be charged an interest <br />rate of 4.5%. <br /> <br />FISCAL IMPACT: The post-bid estimated total project cost is $3,023,000 with the city cost share <br />estimated to be $2,450,559, including $701,118 for the street and drainage improvements, $1,292,895 for <br />sanitary sewer system improvements, and $456,546 for the water system improvements. The remaining <br />costs are proposed to be assessed against the benefitting properties consistent with the city’s Special <br />Assessment Policy including proposed assessments in the amount of $284,200 for the street and drainage <br />improvements and $288,200 for the sanitary sewer improvements. <br /> <br />Bids were received on March 23, 2023 and the updated total estimated project costs are attached for <br />reference. The post-bid estimated total costs are summarized by infrastructure component and can be <br />compared to the estimated project costs at the time of the feasibility report presentation.