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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, October 11, 2010 7:00 o’clock p.m. _____________________________________________________________________________________ Page 2 of 20 (4. NORTH FARM ROAD SANITARY SEWER PROJECT, Continued) issued. The sewer connection fee is based on the project assessment and is increased by a cost of living adjustment every year. At the present time the property owner at 1650 North Farm Road is considering exclusion from the project assessment. Two assessment rolls have been prepared showing this property included and excluded from the assessment. Mayor White opened the public hearing at 7:06 p.m. There were no public comments regarding this item. Mayor White closed the public hearing at 7:07 p.m. White noted this is the third neighborhood in Orono this year that will be able to obtain city sewer since Orono has adopted its new Comprehensive Plan. Murphy indicated the annual interest rate at 6.25 percent seemed slightly high to him and that he had a discussion today with the City Administrator concerning that. Olson indicated he did research interest rates charged by other cities and that typically cities tend to set their interest rates two percent over whatever the expected cost of bonds would be. Bonds for a 15-year bond would be in the area of 3.75 percent, and that approximately two percent above that would be the 5.25 percent. Loftus stated Staff would be comfortable recommending the interest rate be lowered to 5.25 percent. Loftus noted it is a $7,500 assessment per unit over 15 years. Bremer moved, Franchot seconded, to continue the North Farm Road Sanitary Sewer Project to the assessment hearing. VOTE: Ayes 4, Nays 0. b. Assessment Hearing White opened the assessment hearing at 7:12 pm. There were no public comments regarding this item. Chair White closed the public hearing at 7:12 p.m. Kellogg noted he did have some discussions with the one property owner that did not sign the petition and that that property owner is not present tonight. Kellogg recommended the resolution including all nine properties be adopted. Bremer moved, Murphy seconded, to adopt RESOLUTION NO. 5972, a Resolution Adopting the North Farm Road Sanitary Sewer Improvements Assessment Roll, including all nine properties, with the interest rate being lowered from 6.25 percent to 5.25 percent. VOTE: Ayes 4, Nays 0. Item #02 - CC Agenda - 10/25/2010 Approval of Council Minutes 10/11/2010 [Page 2 of 20]