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ARDEN HILLS CITY COUNCIL—APRIL 12, 2021 4 Nick Amatuccio, Bolton & Menk, stated on January 25, 2021, the City Council adopted Resolution 2021-004 Approving the Plans and Specifications and Ordering the Advertisement for Bids. Bids were solicited during February and opened on Wednesday, February 24, 2021. A portion of the costs for the 2021 PMP Street and Utility Improvement 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 8, 2021, after the bids were opened, the City Council adopted Resolution 2021-013 Declaring Costs 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 State Statute 429. Mr. Amatuccio reviewed the total projects costs and explained 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 practice and was further summarized. The project costs include 27% engineering and overhead costs. He commented further on the assessment payment process and recommended the City Council hold a public hearing. Councilmember Holden asked when interest would begin to accrue and questioned what the interest rate would be. Mr. Amatuccio explained the interest would begin tonight, noting there was a 30 day grace period when interest was not applied. He noted the interest rate would be 3.15%. Finance Director Bauman reported the interest rate was set at 2% over the current bond rate. Mayor Grant stated street reconstruction assessments were for a 10 year period. He inquired if street reclamation was also over a 10 year period. Finance Director Bauman stated this was the case. Mayor Grant opened the public hearing at 7:31 p.m. Scott Prihoda, 1977 Jerrold Avenue, thanked Interim Public Works Director Swearingen for answering his questions. He thanked staff for clarifying some of the payment information. He asked if residents wanted to pay in full prior to accruing interest, if notification would be sent on how to accomplish this. City Clerk Hanson explained a secondary bill was not sent to residents but rather this notification was on the official notice of the assessment. Mr. Prihoda questioned how he would make his assessment payment. City Clerk Hanson reported residents could mail a check or stop by City Hall to make payment on their assessment.