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ARDEN HILLS CITY COUNCIL—MAY 13, 2024 5 MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried (5_0). 9. PULLED CONSENT ITEMS None. 10. PUBLIC HEARINGS A. Special Assessment Hearing — 1570 McClung Drive — 2024 PMP Street And Utility Improvements Project Public Works Director/City Engineer Swearingen stated on February 12, 2024, the City Council adopted Resolution 2024-008 Approving the Plans and Specifications and Ordering the Advertisement for Bids for the 2024 PMP Street & Utility Improvement Project. Bids were solicited and opened on March 6, 2024. A portion of the costs for the 2024 PMP Street & 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 11, 2024, after the bids were opened, the City Council adopted Resolution 2024-012 Declaring Costs to be Assessed and the Assessment Hearing was held on April 8, 2024. Public Works Director/City Engineer Swearingen reported the Assessment Roll related to Resolution 2024-012 was then amended to remove the property at 1570 McClung Drive. City staff was notified of an error with the property owner information from the Ramsey County recorder's office. Per advice from the City Attorney, the assessment process must be redone for the actual property owner. On April 8, 2024 City Council adopted Resolution 2024-023 Declaring Costs to be Assessed and Ordering the Preparation of the Proposed Assessments and Calling for a Public Hearing on the Proposed Assessments for the 2024 PMP Street & Utility Improvement Project related to 1570 McClung Dr. A public hearing prior to adopting the assessments is a requirement of State Statute 429. Public Works Director/City Engineer Swearingen 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 is summarized below. The current assessment policy states that the typical overhead rate for a public improvement project is 37% of the construction costs. Staff believes this percentage is higher than necessary and recommends that approximately 27% of the construction costs be used as overhead when calculating the assessment rates. Staff has made this recommendation on the past PMPs since 2021 and was applied to the 2024 PMP assessments on April 8, 2024. Public Works Director/City Engineer Swearingen stated also, the Council must establish the interest rate at tonight's Council Meeting. He noted the assessment rate had been set at 4.75% at the April 8, 2024 meeting.