6A, 2010 Pavement Management Program - Special Assessment Hearing

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The assessment policy states that the assessment shall be based on the total estimated construction cost, plus associated overhead costs. The policy also states that the City Council shall retain the right to review each proj ect on its own merit and to deviate from any portion of the Assessment Policy Manual as it deems proper. As discussed at the public hearing and as was prepared in the feasibility report, the proposed assessments were based on the contractor's bid prices. At the June 28, 2010, City Council meeting, the City Council directed staff to set the payment period of the assessment to 10 years for the reconstruction portion of the project and 5 years for the mill and overlay portion of the proj ect, as written in the assessment policy. The interest rate was set at 4.50%, which is 2% over the current annualized rate of return on the City's portfolio. This is a deviation from the assessment policy, which states the �nterest rate shall be prime rate plus 2%; this would mean a rate of 5.25%. Staff received direction from the City Council on how to proceed with assessments on several parcels within the proj ect at the June 14, 2010, City Council meeting. 1645 Valentine Avenue and 4093 Valentine Crest Road: These two properties have been identified as sub-dividable, according to current City Code; therefore have been counted as two residential equivalent units (REU.) The City Attorney provided several suggestions on how to proceed with these parcels. The City Council directed staff to move forward an agreement, signed by both the City and the property owner, which would be recorded against the property, indicating the second assessment would not be charged until such time as the property was subdivided. At the City Council's direction, the a�reement was revised to include that if subdivision does not occur within 3 0 years, the agreement will become null and void. The City has received a signed copy of the agreement from the property owner at 4093 Valentine Crest Road. The property owner at 1645 Valentine Avenue has requested some minor changes; staff is working with the City Attorney to review and incorporate these changes. Copies of both agreements are attached. 3 317 Katie Lane This lot is vacant and owned by the residents living on the adj acent lot. This vacant lot is an approved platted lot and is considered buildable. The City Council directed staff to proceed with this lot in the assessment roll. The property owners provided the attached letter, requesting reconsideration of the assessment for the vacant parcel. The City Attorney reviewed the property owner's letter, and referred to the response he provided to the City on June 10, 2010 for options on how to proceed. The City Attorney's letter is attached. City Council Meeting \�Metro-inet\ardenhills�Admin\Council\Agendas & Packet Information�2010\8-9-10 Regular�.Packet Information\6A 8-9- l OMemo_201 OPMP_AssessmentHearing.doc Page 2 of 3