Agenda - Council - 08/12/2003 - Laserfiche WebLink

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-242- 6.0 The summary of estimated Oost of construction plus overhead and easements are shown below in Tabte 1. TABLE 1 SUMIVlARY OF ESTIMATED TOTAL PROJECT COST Street Construction Cost Storm Drainage Construction Cost Water Construction Cost Sanitary Sewer Construction Cost Total Estimated Construction Cost Construction Overhead Cost (33%) Total Project Construction Cost Easement Cost (0.1 Acres $40,000/Acre) Total Project Cost $ 83,881 $ 39,42O $ 65,046 $ 48,653 $237,000 $78,210 $315,210 $ 4,000 $319,210 In projecting the estimated costs of construction, data from projects constructed in the metropolitan area over the last several years and a working knowledge of the construction activity in the area were used. These costs are expressed in current dollars. METHOD OF PAYMENT The preferred method for financing the proposed improvements is to assess the benefited properties on a front footage basis or on another equitable measurable basis for the immediate area in accordance with Minnesota Statutes 429. Under this method, the cost of the project would be assessed annually on the property within the subdivision for a period of ten (10) years. Section 7.0 of this report discusses the cost allocation. Only the street improvements , excluding the storm drainage, will be paid for by assessments. The storm drainage cost will be paid by the City's Storm Water Utility Fund. The cost of the water and sanitary sewer will be paid with hookup fees at the time of hookup per the City schedule of Rates and Charges. He time of hookup is voluntary for lots that are already developed with a house upon. it with an operational septic system. However, the City has an ordinance that requires immediate hookup for newly created or subdivided lots. Upon sale of existing lots with an existing residence, there is an additional ordinance that requires connection to city services, if they are available. The sixty day waiting period Page 5 G:\M unicipalb~,RAMS E¥\632\RA632FSR 1 .doc I I I I I I I I, I I I I' I I I I I I