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Council ~1inutes September 12, 1984 I 7. Consideration of final payment of 1984 street seal coating and curb repair contract 4 Ayes - 0 Nayes, Motion Carried Public Hearing Harcus indicated to the audience that each of them should have received a letter concerning the Lake Diane Improvement Public Hearing. Proper explained the three notices the residents had received: Improvement Hearing (giving authority to authorize the project); option if project is selected to go by special assessment (enables council to hold a special assessment hearing so that assessments could be levied this fall and included on next year's tax roles); alternate financing option (city would estab- lish a special taxing district of lakeshore owners). A special assessment would equally divide the tax; a special taxing dis- trict would tax homes based on value which can be deducted on state and federal tax. I Proper reviewed the estimated cost of the improvement: contract with Clean Flo Laboratories, $11,402.62 (would be less as city does not pay sales tax charge); electrical service $500; electric power for one year. $523; administration, $400; liability insur- ance, $200; interest, $1,000; contingencies, $1,500 for a 'grand total of $15,525.62. Equal assessment would be $646.90 per each of the 23 lots; special taxing district assessment would vary. The Improvement is set up as a one year proj ect; i nsta 11 equ i p- ment this fall, next summer things would start to happen. After the year, there would be a possibility that the equipment would be in good condition and perhaps the city could enter into an agreement with Clean-Flo and continue the project for a year, or possibly two. Another option would be that the lakeshore resi- dents could operate the equipment until the equipment wears out and then decide if they would like to go through the process again. I Special assessing would be over a three-year period ($213.00 per year); interest would be charged on the unpaid balance. Since we haven't sold bonds for this improvement project, the City is only allowed to charge up to eight percent (8%) interest. City Attorney stated that if this project proves to have value and the City wishes to continue it by incurring additional expenses of electricity. maintenance. etc. for the future. it would be easier to do that and assess against the special taxing district than it would be to reassess every year. or every two years. on the basis of the projected costs. Special assessing maintenance costs would have to have the consent of all of the people involved. Page Two Final Payment - Seal Coating and Curb Repair Report 84-248 Public Hearing Lake Diane Improve- ments Report 84-243