CCP 03-30-1998 - Laserfiche WebLink

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CITY OF ARDEN HILLS . MEMORANDUM DATE: March 27, 1998 TO: Brian Fritsinger, City Administrator FROM: Terrance Post, City Accountant (.tV SUBJECT: 1998 PMP Assessment Hearing In conjunction with the Assessment Hearing for the 1998 Street Improvements, Council will be asked to consider several resolutions related to the project. This memorandum shall attempt to put these actions into context. Assessment Public Hearing Notification A legal notice of the March 30,1998 Assessment Hearing appeared in the March II, 1998 and March 18, 1998 editions of the Arden Hills/Shoreview Bulletin, the City's Official Newspaper. Additionally, "Assessment Notices" (Exhibit A) and "Assessment Notice Supplements" (Exhibit B) were mailed to benefitting property owners on March 12, 1998. The preliminary . dollar assessment amounts were based upon an assessment roll (Exhibit C) prepared by the City Engineer. This preliminary assessment roll utilized assessment rates ($5.20/foot overlay, and $48.85/foot reconstruction) adopted by the City Council in Resolution No. 98-27 on February 23, 1998. March 16, 1998 Council Worksession Assessment Issues At the March 16, 1998 Worksession, Council gave staff direction in two areas: assessment interest ra.te factor and reconstruction assessment rate per foot. With regards to the interest rate factor, there was general consensus to have the factor more reflective of current market conditions rather than a standard eight percent (8%) rate. When this issue was presented to the Finance Committee at their March 19, 1998 meeting, they unanimously recommended the City maintain the eight percent (8%) interest rate factor, based upon consistency and fairness issues. Resolution No.'s 98-34, 98-35, and 98-36 reflect an interest rate factor of six and three-fourths percent (6.75%). With regards to the reconstruction assessment rate per foot, Council direction was to identifY the "street" versus "system oversizing" surface water management (SWM) cost elements. The City Engineer has estimated that approximately $5,500 of the $113,705 non-curb SWM costs would relate to system oversizing. Therefore, excluding just the $5,500 in oversizing costs would result in an assessment rate of$52.71 ((($113,705 - $5,500) + $339,942) x 1.261 5,356.37 feet x 50% = $52.71) per foot. Council should note that the total reconstruction assessable footage has . decreased from 5,769.39 to 5,356.57 feet with the incorporation of unusual lot situations- recommendations from the March Worksession (Exhibit D).