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ARDEN HILLS SPECIAL CITY COUNCIL – MAY 4, 2015 2 Assistant City Engineer Anderson indicated that a portion of the costs for the 2015 PMP project are proposed to be assessed against the benefitting properties according to the City’s Assessment Policy. In order to assess these costs, the City must follow the process outlined in State Statute 429. On March 30, 2015, after the bids were opened, the City Council adopted Resolution 2015- 017 Declaring the Amount of the Cost to be Assessed and set today as the date for the assessment hearing. A public hearing prior to adopting the assessments is a requirement of the State Statute 429. Assistant City Engineer Anderson reported that the project is proposed to be assessed consistent with the City’s Assessment Policy and past practices, which states that 50% of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by City funds. Financing for the project is consistent with City policy and past practices and is summarized in the table below. The project costs include engineering and overhead costs as outlined in the Assessment Policy. Also, the Council established that the interest rate would be 4.30% and the term would be 10 years. Item Calculation Result Half of Construction Cost $657,823.19/2 $328,911.60 Add 37% Overhead $328,911.60 x 1.37 $450,608.88 Divide by Assessable Units $450,608.88/81 $ 5,563.07 Assistant City Engineer Anderson stated that as provided for in State Statute, no appeal may be taken as to the amount of any assessment adopted unless a written objection signed by the affected property owner is filed with the City at or prior to the assessment hearing. After the adoption of the assessment roll, property owners who have submitted an objection in writing have 30 days to serve notice of an appeal to the City and, within 10 days after serving notice, to file with the District Court. Assistant City Engineer Anderson recommended that the Council hold the Assessment Hearing and adopt Resolution 2015-029 Adopting the Assessment Roll for the 2015 Pavement Management Program-Grant/Noble Neighborhood with any changes they deem appropriate. Councilmember Holden clarified that the original estimate for assessments was $6,600 per unit but this amount has been reduced to $5,560. Assistant City Engineer Anderson stated that this was the case due to the fact the City received favorable bids for the street reconstruction project. Mayor Grant opened the public hearing at 7:08 p.m. Paul Prehatney, 3459 Lake Johanna Boulevard, discussed the layout of his home noting that he shared a driveway with four properties. He feared that he would not be receiving the same benefit from the road reconstruction as other properties in his neighborhood. Brad Huckle, 3453 Lake Johanna Boulevard, explained he lived next to Paul Prehatney. He understood that the streets were in need of repair. He had an issue with how his property would