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. ~. ... ARDEN HILLS CITY COUNCIL - MARCH 9.1998 6 is familiar with this option and suggested the City Accountant contact them for their input. Mr. Post explained the four streets in the 1998 project generally lend themselves to the option of a unit assessment and, if done on a unit basis, there would not be much of a variance. He stated the Council has directed him to prepare an analysis of the interest rate factor to be used on the assessment roll but the resolution specifically relates to an interest rate. Mr. Post asked if the Council would like to deal with that assessment interest now or deal with it at a later meeting. Councilmember Keirn expressed her concern that the proposed interest rate of 8% may be a little high in the current market. Also, the assessment is secured against the property so the risk is low. Councilmember Malone explained that the interest rate is not meant to lessen risk, but to reimburse the City, which will be financing this project, for the lost income from investments. Mr. Fritsinger suggested that the Council address the interest rate issue at the assessment hearing. Mayor Probst noted the advertisement of the assessment hearing to the residents indicates the amount and percentage. He stated the Council can further discuss this at the upcoming worksession prior to the assessment hearing where the actual figures will be set. Councilmember Malone suggested the City Accountant research a ceiling of3.5% of market value. Mr. Post stated that as a baseline, ifhe uses the median value home in Arden Hills as being approximately $140,000 and relates what typical reconstruction assessments have been, it will equal about 2.5%. Mayor Probst suggested that research also take place on the appraisals done when assessments have been appealed. Councilmember Keirn noted the Stowe A venue area is assessed below the median for the City with, perhaps, the exception of one property which may throw off the data if a study is being conducted. MOTION: Councilmember Malone moved and Councilmember Aplikowski seconded a motion to adopt Resolution #98-31, Determining Assessed Cost ofImprovement and Ordering Preparation of Proposed Assessment Roll in the Matter of 1998 Street Improvements with the alternate roll as discussed this evening and with modifications noted by City Accountant Terry Post. The motion carried unanimously (5-0). D. Personnel, Employee Health Insurance Mr. Fritsinger explained staff has completed its review of insurance for employees and did solicit price quotes from a variety of vendors. Staff created a committee to evaluate these proposals based on different scenarios including coverage and cost. He reported that upon completion of that process, the committee recommends changing the health insurance provider from Medica to