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ARDEN HILLS CITY COUNCIL—April 25, 2011 8 6.A. 2011 PMP Special Assessment Hearing, Resolution 2011-021 and Resolution 2011-022 (continued) which states that 50% of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by various City funds. Single-family units are proposed to be _ assessed $2,813.86 per unit and multi-family units are proposed to be assessed $592.21 per unit. As discussed at the public hearing and as was prepared in the feasibility report, the proposed assessments were based on the contractor's bid prices. At the March 14, 2011, City Council meeting, the Council directed staff to set the payment period of the assessment to 7 years. The interest rate was set at 4.4%, which is 2% over the current annualized rate of return on the City's portfolio. This is a deviation from the assessment policy which states the interest rate shall be prime rate plus 2%; this would mean a rate of 5.25%. To date, no formal objections have been submitted in writing to City Staff. As stated in Minnesota State Statute, no appeal may be taken as to the amount of any assessment adopted unless a written objection signed by the affected property owners is filed with the City at or prior to the assessment hearing. After the adoption of - the assessment roll, property owners have 30 days to serve notice of an appeal to the City, and 10 days after serving notice to file with the district court. Staff did receive a request to extend the interest free period to allow property owners some additional time to plan and budget their payment. The City Attorney indicated that the 30-day payment period is the minimum period that - is required by State Statute for interest free payments and can be extended at the City Council's direction. The City Attorney recommended that if extended, the interest free period should end - prior to the certification of the assessment roll to the County in October. Mayor Grant asked why the amount for the surface water improvements was so much higher than the estimates. Civil Engineer Giga stated this project needs to have a Rice Creek Watershed permit. The rules are not clear in all aspects and when working with Rice Creek Watershed, their intent with the rules has increased the requirements the City needs to meet. The City has applied for cost-sharing dollars with Rice Creek Watershed District but the City has not heard back regarding this application. Mayor Grant stated that water improvements are needed for this project. He stated the City is replacing gate valves. He asked if the City uses gate valves or ball valves. Public Works Director Terry Maurer stated the gate valves are used and have been dependable. The City has not had significant failure with the valve itself but rather with the weakening of the bolts and leaking of the joints. Mayor Grant stated he had also received the e-mail regarding the prepayment period. He asked when the City would be expected to start making payments for this project. Civil Engineer Giga stated if the bid were awarded at this meeting, construction would start in June. The City would start making payments 30 days after the start of the project and this would be mid-July to late July.