Agenda - Public Works Committee - 09/19/2017

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5.FINANCING 5.1Opinion of Cost AppendixB A detailed opinion of probable costsfor the proposed improvements can be found in of this report.The opinion of probable costsincorporatesanticipated 2017construction costs for the proposedimprovementsplus23% indirect costsfor administrative, engineering, financing and legal costs.Construction contingency costs are not included in the estimated costs. City staff prepared the Feasibility Report in-houseas part of staff’s normal duties. Appendix D NTI prepared the Geotechnical Exploration and Engineering Review, included in ,at a cost of $4,400.WSB and Associates, Inc. prepared the Pavement Evaluations and Appendix D Recommendationsincluded in , at anot-to-exceed cost of $2,687.50. 5.2Funding 5.2.1Assessments The City’s adopted Special Assessments Policy allows special assessments to be levied against all benefiting properties in an amount not to exceed 25% of eligible street reconstruction project costs.Eligible project costs include costs required to reconstruct the street at its current width, and to reconstruct the pavement without increasing its structural capacity.Benefiting properties are considered to be any developable parcel that has,orhasthe ability tocreate, one or more direct accessesonto the segment of Sunwood Drivebeingreconstructed.A total of 9benefitting propertieshave been identifiedfor this project, including two City-owned parcels.The Preliminary Assessment Appendix C . Map and Roll are included in The engineer’s opinion of probable costs for eligible assessment costs totals $607,000. Assessable industrial parcels are preliminarily proposed to be assessed for up to 25 percent of eligible project costs, which totals$151,750.Assessmentterms are proposed atten years. Interest rates are proposed at two percent above the bond interest rate. The “adjusted front footage” method of assessment as identified in the City of Ramsey’s Special Assessments Policywasapplied to assign preliminary assessmentamounts for this project.Staff then enlisted Patchin Messner Dodd and Brumm,the firm the City has used to complete special benefit consultation reports for residential street reconstruction projects, to assign estimated special benefit amounts to allassessable parcels. Staff then applied the lesser of the two amounts to assign proposed preliminary assessmentsto each assessable propertyas shown in the Preliminary Assessment Roll. Special assessments for industrial parcels have never been developed using the recently adopted Special Assessments Policy. In addition, State Statute and the City Charter do not allow for assessments to exceed benefit to the property.Therefore, Staff wants to ensure that allassessmentsappliedwith this project willnot exceed the benefitto assessed properties. Staff therefore recommends orderinga benefit appraisal consultation report for this project in accordance withthe City’s Special Assessments Policyat the time a construction contract is awarded. Feasibility Report Sunwood Drive Reconstruction City of RamseyProject No. 17-00 Page 10