Agenda - Council - 03/24/2015 - Laserfiche WebLink

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5. FINANCING 5.1 Opinion of Cost The lump sum engineer's opinion of probable costs for this project is $634,880. Estimated costs include 10% contingency costs, plus 25% indirect costs for administrative, engineering, and legal costs. 5.2 Funding 5.2.1 Assessments Assessments are proposed to be levied against 124 properties that have direct access to each of the improved street segments. In accordance with the City's Special Assessments Policy, each property is proposed to be assessed based on the "per lot" method as each property will receive approximately the same benefit due to the proposed improvements. Preliminary assessments are proposed in the amount of $1,280 per lot over each project area, resulting in a total assessment amount of $158,720. This represents 25% of the total eligible project costs in accordance with the adopted Special Assessments Policy. Each of the assessable properties is preliminarily proposed to be assessed for the improvements in accordance with the recently adopted Special Assessments Policy, chapter 8 of the City Charter, and applicable City codes. The preliminary assessment map and roll are included in Appendix C. 5.2.2 City Contribution The City contribution to the project includes all funding in excess of the amount collected through special assessments to benefiting properties which totals $476,160. No funds were budgeted for this project in 2015. However, the City recently adopted a five-year street reconstruction overlay plan that will allow the City to issue street reconstruction bonds to cover all costs required to pay for the improvements proposed within this report, of which a portion will be repaid through special assessments. This improvement project is included in the City's current 5 -year Capital Improvement Plan. Feasibility Report 2015 Street Maintenance Program, Division B: Overlay Improvements City of Ramsey Project No. 15-00 Page 7