Agenda - Council - 02/14/2017 - 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 2017 construction costs for the proposed improvements plus 23% indirect costs for administrative, engineering, financing and legal costs. No construction contingency costs are included in the estimated costs. City staff prepared the Feasibility Report in-house as part of staff's normal duties. NTI prepared the Geotechnical Exploration and Engineering Review, included in Appendix D, at a cost of $4,400. WSB and Associates, Inc. prepared the Pavement Evaluations and Recommendations included in Appendix D, at the not -to -exceed cost of $2,687.50. 5.2 Funding 5.2.1 Assessments The City's adopted Special Assessments Policy allows special assessments in an amount not to exceed 25% of eligible street reconstruction project costs to be levied against all benefiting properties. Eligible project costs include all costs required to reconstruct the street at its current width of 40 feet. Benefiting properties include any properties that either currently have, or have the ability to create, one or more direct accesses onto the segment of Sunwood Drive being reconstructed. A total of 9 benefitting properties have been identified for this project. The engineer's opinion of probable costs for eligible assessment costs totals $607,000. Assessable commercial/industrial parcels are preliminarily proposed to be assessed a total of $151,750. Staff is proposing to use the "area" method of assessment as identified in the City of Ramsey's Special Assessments Policy. 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. Special assessments have not been utilized widely in recent years for street reconstruction projects in Ramsey, and special assessments for commercial and industrial properties have never been applied using the new Special Assessments Policy. In addition, State Statute and the City Charter do not allow for assessments to exceed the benefit to the property. Therefore, Staff wants to ensure that all assessments applied with this project will not exceed the benefit to assessed properties and will therefore request Council authorization to order a benefit appraisal consultation report 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 Sunwood Drive Reconstruction City of Ramsey Project No. 17-00 Page 9