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t,. hy bV- ‘1 ■'.U u.- REQUEST FOR COUNCIL ACTION I ^ mo C»Ty Or DATE: June 12, 2000^ ITEM NO.: Department Approval: Name Gregory A. Gappa Title Director of Public Services Administrator Reviewed:Agenda Section: Engineer's Report Item Description: Schedule Assessment Hearing for Fox Ridge Sanitary’ Sewer Project The bid opening for this project was held on June 6th. Four bids were received for this project. The Fox Ridge and East Long Lake projects were bid together. The lowest responsible bidder was Minneomm Utility Construction Inc., Mora Minnesota with a bid of $127,970 for the Fox Ridge portion of the project. A bid tabulation is attached for your information. Award of the contract will not be completed until after the assessment hearing. The proposed project assessment is $16,000 per unit. This assessment is based on nine units in the Fox Ridge MUSA expansion project area and two additional properties along South Brown Road. Only two of the ten South Brown road property owners were interested in participating in the project. The property owners can also request to receive a $5,000 allowance for the purchase and installation of their residential grinder pump station. This allowance will then be included in the project assessment resulting in a total assessment of $21,000. This is the maximum amount that can be assessed. After construction is complete, and final costs are known the actual assessment may be reduced, in a revised assessment roll, before submission to Hennepin County in December. This assessment roll lists an 8% interest rate, past practice has been to lower the interest rate dependant on the interest rate received on the project bonds. Eight percent is the maximum interest rate that can be charged. The actual interest rate on recently completed projects has been 6.25%. We are reconunending that the assessment hearing for this project be held at 7:00 p.m. during the regularly scheduled Council meeting on July 10th. If no assessment appeals are received, the contract could then be awarded on July 10th. We are recommending Council approval of the attached resolutions ordering the costs to be assessed and scheduling an assessment hearing for 7:00 p.m. on July 10th. COUNCIL ACTION REQUESTED: Motion to approve resolution declaring cost to be assessed and ordering preparation of proposed assessment for the Fox Ridge Sanitary Sewer Project. Motion to approve resolution for hearing on proposed assessment for the Fox Sanitary Sewer Project. I----------