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<br />.. I <br />DRAFT <br />ARDEN HILLS CITY COUNCIL - MAY 28. 1996 4 _I <br />Mayor Probst explained the public hearing process to the audience. He stated that staff I <br />provided an overview of the assessment policy in the letters sent to the residents affected, and <br />noted that a resident's portion of property taxes would have to be increased by approximately I <br />20 percent if the City did not have an Assessment Policy. <br />Walter Benjamin, 1605 Oak Avenue, stated his assessment cost was based on 114.23 front I <br />feet. He inquired if a performance bond is required of the construction company, and if a <br />rebate could be applied to the assessment if the company does not complete the project on I <br />time. <br />Mr. Stonehouse stated a performance bond is required by the City for project completion, and I <br />a liquidated damage clause is included for approximately $450 per day if the project is not <br />completed on time. <br />Mr. Boyd Paulu, 3782 McCracken Lane, stated he supported the need for the project, but I <br />noted that McCracken Lane is 32 feet wide with curb and gutter, is 20 years old, and should <br />have had a longer life. He stated the rest of the neighborhood received a street overlay years I <br />ago, while McCracken Lane did not. He stated the benefit from reconstruction is a benefit to <br />the City in reduced maintenance costs, not to the individual property owners. <br />Mr. Stonehouse replied that street overlays are part of the Pavement Management Program, -- <br />and the rest of the neighborhood is paying $5.42 per front foot for this improvement. I <br />Mr. Paulu stated the City's pavement management program is costing benefiting property <br />owners 25 percent more in assessments, while it would only increase their total tax bill by I <br />three percent if included as part of a comprehensive street maintenance program. He stated <br />the City should levy for all the costs of overlay projects and should not assess for this type of <br />work. I <br />Ms. Rhonda Behr, 1401 West County Road E, stated her property front foot calculation is <br />on the side, not the front, and that she consented in 1986 to pay an assessment to avoid an I <br />eight percent interest cost. She stated that as a result of a lawsuit, the City reimbursed her for <br />the assessment cost, and therefore is contesting the current assessment. She stated she has a <br />corner lot, and an appraiser informed her that there is no increased value to her for a corner I <br />lot, but is getting assessed higher because of it. <br />Mr. Stonehouse stated Ms. Behr's home straddles both lots and subdivision is not possible. I <br />Mr. Bernard Levander, 3550 Siems Court, stated Dwayne Stafford, Public Works I <br />Superintendent, answered his question prior to the meeting regarding improved water <br />drainage. -. <br /> I <br />