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~2ASE #/~ STREET MAINTENANCE PROGRAM ASSESSMENTS By: Steve Jankowski, City Engineer Background: At the Tuesday, September 22, 1998 Council meeting, public hearings will be held on eleven individual projects which comprise the 1998 Street Maintenance Program. Seven of these projects are crack fill/sealcoat projects which have all been completed. Because of some very favorable bid prices this year, the actual project assessments are considerably lower than the estimate given in the February feasibility study. Attached is a comparison between the estimated and actual assessments. One project, #98-01, had sufficient escrow funds, such that the assessment has been eliminated entirely. On two sealcoat projects, #98-05 and #98-07, the North Forty and the North Forty 2nd Addition Subdivisions, developer escrow's were located after the public hearing. These two projects have a substantially reduced assessment over the feasibility study, however, it might be anticipated that residents may object to any assessment amount arguing that the City should have collected a sufficient amount to cover the work. It should be noted that when escrows were collected from the developments in 1989, it was the policy to collect only for the sealcoating. Beginning in 1991, the cost of crack filling and patching was added to the project costs. Previously, these costs were picked up by the City when the residents were paying 100% of the cost of the sealcoating. It should also be noted that, in the past, whenever escrows fell short of the actual costs, the escrow was applied toward the project costs and 50% of that difference was assessed to the benefited properties. This was done in the 1992, 1994, 1995 and 1996 programs. Five projects are scheduled for a one-and-one/half inch bituminous overlay, projects #98- 08 through #98-12. This overlay work consists of four subdivision projects and Project #98-12 which involves MSA streets. Project #98-12 is a large project which includes the overlaying of over half of the 7.8 mile 1998 overlay program. The overlay work is beginning on Monday, September 14. Three of the four residential projects are anticipated to be completed before the September 22 assessment heating, however, #98- 10 Rodeo Hills and #98-12 the MSA project will probably not be completed until mid- October. The amount of assessments for these projects sent out in the assessment hearing notices is the amount estimated in the feasibility study. The actual amount will be known at the time of the public hearing for projects #98-08, #98-09, and #98-11. It will be necessary to determine what the assessment should be for the projects will-not have been completed at the time of the public hearing. Several options may be: (1) Assess #98-12 the average cost of the completed projects. This particular project was proposed to be assessed for the average cost of other overlay projects in the 1998 program.