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In accordance with Council direction, a feasibility report has been prepared that details the <br />existing infrastructure elements, the proposed improvements recommended, neighborhood <br />impacts, estimated costs and financing for the proposed project. The full Feasibility Report <br />consists of 272 pages and is posted on the City's project website <br />(https://www.cityofardenhills.org/1236/2026-PMP-Street-and-Utility-Improvements), a version <br />without the Appendices is attached (Attachment A). <br />At the June 23, 2025 Work Session, City Council was presented with and reviewed the <br />preliminary findings of the feasibility study. The final version of the feasibility report is <br />substantially the same but includes project scope to pursue the Karth Lake pumping operation <br />improvements as described within the Feasibility Report as "Option 2" but also exploring the <br />feasibility of "Option 3" through discussions with the Rice Creek Watershed District. The <br />Feasibility Report also determines the sediment removal near the storm sewer outfalls to not be <br />included. <br />Attached is Resolution 2025-047 which receives the feasibility report and orders the public <br />hearing be held on July 28, 2025. City Staff recommend adoption of the Resolution to have this <br />project proceed to a public hearing. If adopted, staff would mail notices to each property owner <br />in the proposed assessment area stating the time of the hearing, the general nature of the <br />improvements, the estimated project cost, the proposed assessment area, and a statement that a <br />reasonable estimate of the impact of the assessment will be available at the hearing <br />Budget Impact <br />Proposed project funding sources are a combination of the City's Permanent Improvement <br />Revolving (PIR) fund, utility funds, and special assessments for street improvements <br />summarized in the following tables: <br />Proposed <br />Improvements <br />Table <br />Residential <br />Mill & <br />Overlay <br />Areas <br />2 — Estimated Base Project <br />Residential Industrial <br />Reclamation Reclamation <br />Areas Areas <br />Costs <br />Trails & <br />Retaining <br />Wall <br />Karth Lake <br />Total <br />Project <br />Costs <br />Streets <br />$163,000 <br />$1,229,000 <br />$401,000 <br />- <br />- <br />$1,793,000 <br />Storm Sewer <br />$55,000 <br />$148,000 <br />$13,000 <br />- <br />- <br />$216,000 <br />Sanitary Sewer <br />$23,000 <br />$152,000 <br />$11,000 <br />- <br />- <br />$186,000 <br />Watermain <br />$49,000 <br />$344,000 <br />$74,000 <br />- <br />- <br />$467,000 <br />Trails <br />- <br />- <br />- <br />$248,000 <br />- <br />$248,000 <br />Karth Lake <br />- <br />- <br />- <br />- <br />$179,000 <br />$179,000 <br />Total Project <br />Costs <br />$290,000 <br />$1,873,000 <br />$499,000 <br />$248,000 <br />$179,000 <br />$3,089,000 <br />4 — Estimated <br />Funding Source <br />Funding <br />BreakdownTable <br />Project Total Cost <br />PIR Fund <br />$1,110,000 <br />Assessments <br />$931,000 <br />Utility Fund — Sanitary Sewer <br />$186,000 <br />Utility Fund — Water <br />$467,000 <br />Utility Fund — Surface Water Management <br />$395,000 <br />Total <br />$3,089,000 <br />Page 2 of 4 <br />