Agenda - Council - 04/12/2016 - Laserfiche WebLink

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5. FINANCING 5.1 Opinion of Cost The engineer's opinion of probable costs for this project is $301,000. Estimated costs include 5% contingency costs, plus 14% indirect costs for administrative, engineering, finance, and legal costs. 5.2 Funding 5.2.1 Assessments In accordance with the City's Special Assessments Policy, chapter 8 of the City Charter, State Statute Chapter 429, and applicable City codes, assessments are proposed to be levied against 3 properties that have direct access to the improved street segment. 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 for this project are proposed in the amount of $950 per lot, resulting in a total assessment amount of $2,850. This is less than 1% of the total eligible project costs. This amount is consistent with representative assessments previously levied against benefiting properties receiving similar overlay improvements. Final assessments will be approved by the City Council after final project costs are known and an assessment hearing is held on October 1 lth, 2016. At that time, the City Council may choose to reduce the amount of the assessment if final costs are less than costs estimated by staff. A 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 $298,150. The City's contribution will be funded using the 5-year General Obligation Street Reconstruction and Overlay Bond funds, though utility enterprise funds can be used for needed utility infrastructure improvements. No funds were budgeted for this project in 2016, but this improvement project is included in the City's current 5-year Capital Improvement Plan. Feasibility Report 2016 Street Maintenance Program, Division B: Overlay Improvements City of Ramsey Project No. 16-00 Page 7