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Mayor Ramsey suggested this is all the more reason to have an assessment. He noted storm <br />water utility money is also going into the projects to cover part of the costs. <br />Councilmember Wise stated he spoke with a Coon Rapids engineer and learned they are doing <br />larger projects to take advantage of economy of scale. He asked whether it would make sense <br />for Ramsey to do reconstructs only once in three years or once in two years and then do a larger <br />or multiple project. He stated Ramsey could set aside money on an annual basis but instead of <br />reconstructing only a mile or two, it could construct a larger project and realize those savings. <br />Councilmember Backous asked if Coon Rapids had kept up with their roads. <br />Councilmember Wise stated Coon Rapids has not and some roads are older. He clarified that <br />annual maintenance would be needed, he was just addressing reconstructs. <br />Finance Director Lund asked how Coon Rapids funds reconstruct projects. <br />City Engineer Himmer described Coon Rapids' assessment policy, noting it has a standard rate <br />for all residential lots, regardless of size, and other property was assessed on a front footage <br />basis. Coon Rapids handles all assessment hearings before starting the project so savings are <br />realized in meeting time and staff time. <br />Mayor Ramsey noted the lots in Coon Rapids are similar in size, unlike the lots in Ramsey that <br />vary greatly in size. <br />City Engineer Himmer explained that Maplewood is similar and uses the justification that each <br />single - family lot puts the same volume of traffic on the road, regardless of lot size, so each pays <br />its fair share into the system. He noted in Ramsey it is different because the improvement <br />received may be different. <br />Mayor Ramsey stated he would like staff to prepare 5, 10 and 20 year plans for how to finance <br />reconstruction projects. He stated concern with the $750,000 coming back to engineering for <br />these projects. <br />City Engineer Himmer stated the $750,000 comes from 15% overhead on $5 million worth of <br />projects: road reconstruction at $1 5 million; Riverdale extension with sewer and water to Hope <br />Fellowship and the Diamond Site at $2.5 million; and, Riverdale reconstruct with the Mississippi <br />Trail at $1.5 million. He noted, however, that none of those projects have been approved to <br />move forward. <br />Mayor Ramsey asked how to justify $750,000 in overhead. <br />City Engineer Himmer stated the Engineering Technician position needs to stay in the budget to <br />handle the anticipated projects. He noted in -house administration of the four projects he <br />mentioned results in covering costs for engineering staff. <br />City Council Work Session / June 19, 2012 <br />Page 6 of 15 <br />