Agenda - Public Works Committee - 04/20/2010

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The cost of this project including overhead is estimated to be $672,911. Details of the project construction cost are presented in Appendix A. The project overhead, which adds an additiona130 % of the construction cost include the following: • Engineering design 8% • Project administration 5% • Bonding and legal 2% • Inspection and testing 5% • Contingencies. 10% FINANCING The City's Municipal State Aid fund shall finance $568,304, or 84% of this total amount which includes; new curb and gutter, sidewalk, storm sewer, 50% of the new pavement, and miscellaneous improvements including street lights and boulevard trees. The remaining $104,606 shall be funded through special assessments which are intended to cover 50% of the cost of the new pavement up to a width of 32 feet which is the maximum width of a typical residential street. In cases where a property fronts on two city streets (ie. corner and double frontage lots) that lot will be assessed for half of the frontage on each street at the time it receives an improvement. In cases where single frontage lots in which the rear lot width varies more than 25% from the lotfrontage, the assessable frontage shall be the average width of the lot. There are a number of lots which have access to Dysprosium Street via common drive through a lot fronting on the street (quad lots). In such cases it is proposed that the frontage along Dysprosium be divided equally between the fronting and rear lot. The assessed portion of the project cost is distributed among the properties listed in the preliminary assessment role contained in Appendix B. The project will have a final tabulation made on actual project costs consistent with the methodology described in this report. Subsequent to the improvements being installed a public hearing will be held identifying the actual costs to be recovered by special assessment. Property owners will have the option of paying the full cost of the assessment without interest at the conclusion of the project or could elect to have this assessment collected annually with their tax payment over a ten year period. Property owners electing to have the project cost specially assessed shall have their cost reported to Anoka County and collected over a period of up to ten years with interest at a rate of two percent (2%) above the U.S. Treasury rate at the time of the special assessment hearing which is estimated to be 6.8%. PROJECT SCHEDULE This project is anticipated to proceed under the regulations of Chapter 4 of City Code and State Statutes 429 which regulate special assessment public improvement projects. A schedule for the progress of this project is anticipated as follows: Page 4