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ARDEN HILLS CITY COUNCIL - MARCH 9.1998 5 . assessed cost of the 1998 Street Improvement Project and order preparation of the proposed assessment roll. He advised that the assessed cost is based upon the low bid, plus overhead and minus other non-assessable components of the project. It was noted that the Council has ordered an assessment hearing for March 30,1998, in the matter of the 1998 Street Improvement Project. Mr. Stafford advised the bids for this project were opened on March 5th and came in at $679,356.69. He noted the following non-assessable items: Hamline Avenue culvert placement, County Road E hydrant relocation, Stowe Avenue water connection to New Brighton, and trail improvements which total $58,721.35. When these projects are deducted from the low bid, the total is reduced to $620,635.34. Overhead costs of26% would be added to that amount and sealcoating, including related overhead, would be deducted resulting in a total assessable cost of $754,822.27. The City would cover 50% of the costs leaving a total assessable amount of $377,411.13. Mr. Terry Post, City Accountant, explained that the figure of $377,41 1.13 includes the north side of Stowe Avenue and $141,688 is assessable to the City of New Brighton for their share of Stowe Avenue reconstruction costs. Mr. Post requested a correction to the last sentence in section 3 of the proposed Resolution to indicate "payable beginning for taxes payable 1999." . Councilmember Malone eXplained staff prepared a preliminary estimate and the assessment consists of benefit to the property. He stated he has noticed the City is moving towards a unit basis and asked about the option of considering a ceiling on the assessment of3.5% of the assessed value of the property. Councilmember Malone explained that a road has a finite benefit to a property and suggested the City consider an assessment based on front footage with a ceiling based on a percentage of the assessed value. Councilmember Malone suggested this option be discussed at an upcoming workshop. Mayor Probst commented that the Council struggles with this every year, especially for odd- shaped lots. He agreed with Councilmember Malone's suggestion as long as subdividable double lots are treated as an exception. Mr. Fritsinger asked if the assumption is to still send the assessment hearing notice to property owners based on the City policy as it exists today. Mayor Probst stated that given the fact there is no policy change at this point, the notices should be based on the existing policy. The Council concurred. Councilmember Hicks asked Councilmember Malone if he has considered any guidelines on what the maximum benefit would be. He asked if the ceiling would be based on the highest assessment within the project. Councilmember Malone stated he was first considering a set dollar amount. Mayor Probst suggested the City Accountant research this option but to administer the existing . policy as written until a decision is reached by the Council to change it. Councilmember Aplikowski stated the Finance Committee has been studying this issue as well and discussed using a unit assessment for cul-de-sac lots. She reported the Finance Committee