Agenda - Council - 01/26/2016 - Laserfiche WebLink

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5. FINANCING 5.1 Opinion of Cost A detailed opinion of probable costs for the proposed improvements can be found in Appendix B of this report. The opinion of probable costs incorporates anticipated 2016 construction costs for the proposed improvements, as well as 10% construction contingencies plus 23% indirect costs for administrative, engineering, financing and legal costs. City staff prepared the Feasibility Report in-house as part of staff's normal duties. NTI prepared the attached Geotechnical Evaluation Report at a cost of $5,650. 5.2 Funding 5.2.1 Assessments The City's adopted Special Assessments Policy allows assessing up to 25% of eligible project costs for street reconstruction projects. As such, 25% of eligible project costs are proposed to be recovered through special assessments levied against benefiting properties which are considered to be all properties having direct access to the improved segments of Andrie Street and 164th Lane as described below. Residential Assessments Up to 25% of eligible project costs for this street reconstruction project can be assessed to benefitting properties, of which 65 have been identified. Eligible project costs include those costs required to reconstruct the streets at their current width and to accommodate residential traffic only. Assessments are proposed to be levied against the residential properties using the "per lot" method identified in the Special Assessments Policy. The engineer's opinion of probable costs for eligible assessment costs totals $2,379,000. Single-family residential property owners are therefore preliminarily proposed to be assessed at the rate of $9,150 per lot. This rate will not change regardless of whether the proposed or the alternate design is constructed. Assessments for this project are proposed to be assessed over a term of fifteen years with interest at two percent above the U.S. Treasury Rate. Since special assessments have not been widely utilized in recent years for street reconstruction projects in Ramsey, and since State Statute and the City Charter do not allow for assessments to exceed the benefit to the property, staff wants to ensure that any assessments applied with this project will not exceed the benefit to assessed properties. Staff will therefore request Council authorization to order a benefit appraisal consultation for this project in accordance with the City's Special Assessments Policy at the time a construction contract is awarded. The Preliminary Assessment Map and Roll are included in Appendix C. Feasibility Report Andrie Street and 164th Lane Reconstruction City of Ramsey Project No. 16-00 Division C Page 14