Agenda - Council - 09/27/2016 - Laserfiche WebLink

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Notification: Anoka County requires that assessments be certified to the County Auditor by November 30th for collection on next year's taxes. This deadline will be met by conducting the Assessment Hearing at the October 25th City Council meeting, which will also allow adequate time for the publication and mailing of notices. Following Council approval, an Assessment Hearing Notice will be published in the City's official newspaper on Friday, September 30th, and Assessment Hearing Notices will be mailed to all benefiting property owners as required per Minnesota State Statute Chapter 429. Observations/Alternatives: Observations: Construction is still in progress but Staff anticipates the project will be substantially complete by the time the Assessment Hearing is held on October 25 th. Alternatives: Alternative Action #1 — Motion to adopt Resolution #16-09-175 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Andrie Street and 164th Lane Reconstruction; Improvement Project 16-00 Division C on October 25th, 2016. Alternative Action #2 — Motion to deny adoption of Resolution #16-09-175 at this time. Funding Source: This improvement project is included in the City's 5-year Capital Improvement Plan for construction in 2016. Funding is proposed to include a combination of street reconstruction bond funds, special assessments to benefiting properties, and stormwater utility funds. The contract amount for this project (Douglas -Kerr Underground, LLC) is $1,568,162.65 which is $421,712.45 below the engineer's construction cost estimate of $1,989,875.10. Final project costs, which include actual construction costs and indirect costs covering administrative, engineering, finance and legal fees, are estimated to be $1,928,840.06 using 23% of construction costs for an indirect cost estimate. This estimated cost assumes no significant quantity revisions or change orders will occur before construction is complete. A detailed breakout of project costs will be presented during the Assessment Hearing. Special assessments for this project are based solely on eligible project costs which do not include costs related to oversizing the existing street, either in width or pavement thickness as required to meet MnDOT State Aid standards. Estimated costs required for oversizing the streets to meet State Aid standards, which includes costs to widen the street by 2 feet and to increase the pavement section to a 10-ton design, total $203,358.75 based on bid prices. The estimated assessable project cost per bid prices is therefore $1,725,481.31. This results in a total project assessment amount of $431,370.33 based on 25% of eligible project costs, and individual assessments of $6,636.47 per parcel based on 65 benefiting properties. This assumes final project costs will be equal to bid prices and that assessments are approved by Council at 25% of final eligible construction costs. The preliminarily approved assessment amount was $9,150 per parcel. Recommendation: Staff recommends Alternative Action # 1. Action: Motion to adopt Resolution #16-09-175 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Andrie Street and 164th Lane Reconstruction; Improvement Project 16-00 Division C on October 25th, 2016. Attachments