4.3. SR 02-17-1998 - Laserfiche WebLink

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Cay of River TO: FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City '~~rator February 9, 1998 Lake Orono Update On December 15, 1997, a presentation was made to the City Council regarding options for a Lake Orono sedimentation improvement project. Based on available disposal sites and area of land for material, the minimum type of sedimentation removal project that would be necessary to do any long term good for the river/lake, and an acceptable range of assessments to benefited property owners, everyone seemed to agree with the Task Force recommendation of moving forward with a 1998 project that was in the $750,000 range. At the February 2, 1998, capital improvement meeting, discussion took place on a Lake Orono improvement project. Questions were raised regarding the overhead expenses for the project, the total cost of the project, the disposal areas, the assessment amounts, and the total number of assessment units. Some of the land owners along the lake will receive more than one assessment unit based on the amount of frontage which they own and based on whether or not the property can be subdivided and part of the property sold off for another home site. At this time, it appears that we will end up with a total of about 186 assessment units. This total includes 26 assessment units for city property. The 186 total units is less than the amount shown in Steve Rohlfs memo as we both believe his estimate of 201 will be reduced after additional analysis. A $750,000 project will require city participation in addition to any assessments which the city receives. The city participation or contribution will either increase or decrease slightly depending on if the overhead is less than 28 percent and if the project comes in above or below the preliminary estimate. The City Council, at a later date, can discuss how the city will finance its participation in the project. It is assumed that whatever units are assessed to the city will be paid back over a five to seven year assessment schedule. However, a contribution of $200,000 to $400,000 above and beyond the assessments can be funded by the city over time either within or outside of the levy limit. Nonetheless, all the city participation will come from tax dollars. · 441-7425 1.,06~ Orono Parkway P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 Fax: (612)