Agenda - Public Works Committee - 05/17/2016

Home

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 2017 construction costs for the proposed improvements, as well as 10% construction contingencies plus 23%indirect costs for administrative, engineering, financing and legal costs. The total estimated project cost for the proposed improvements is $325,000. City staff prepared the Feasibility Report in-house as part of staff's normal duties. A Geotechnical Evaluation Report was not completed as part of this report, but would need to be completed as part of the final design process if the City were to move forward with the project by ordering the preparation of plans and specifications. This information would be needed to properly design the storm sewer system, and to assign benefit if special assessments are utilized as a funding source. 5.2 Funding Potential funding sources for the proposed improvements include Stormwater Management Funds, Stormwater Utility Funds, Special Assessments, and/or external funding sources such as grants. Information on each of these funding sources is included below. 5.2.1 Storm water Management/Utility Funds A portion of the proposed improvements could be funded using Stormwater Management and/or Stormwater Utility Funds. If these funds are utilized, staff would recommend using a cost-split of one-third Stormwater Management Funds (Fund 9292), and two- thirds Storm Water Utility Funds (Fund 9605). The proposed cost-split would ultimately be applied to actual project costs following the completion of the improvements. 5.2.2 Special Assessments The City's adopted Special Assessments Policy allows for the use of special assessments to fund a portion of storm sewer improvement projects. 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 properties that receive direct benefit due to the proposed improvements. This Feasibility Report does not include a preliminary assessment roll. If Council wishes to pursue this project at this time, and directs staff to utilize special assessments to fund all or a portion of the improvements using special assessments, additional information in the form of soil boring logs and property records would be needed to adequately identify benefiting properties. This would incur additional expenses that were not previously identified. Feasibility Report Gibbon Street and 173rd Avenue Drainage Improvements City of Ramsey Project No.16-88 Page 8