Agenda - Council - 10/10/2017 - Laserfiche WebLink

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Drive Reconstruction assessments for 2018 payable tax year, Improvement Project #17-00. Alternative #2 — Motion to deny adoption of Resolution # 17-10-252 at this time. Funding Source: The construction contract amount for this project is $409,385.03, which is $51,742.21 or 11.2% less than the engineer's estimate of $461,127.24. Final project costs totaled $507,244.26 and include; • Final construction costs = $407,523.06 • Bituminous base course incentive = $2,476.89 • Bituminous wear course incentive = $2,393.76 • Indirect costs (6% admin., 15% engineering, 1% finance, 1% legal) = $94,850.55 Funding sources include a combination of Street Reconstruction and Overlay Program (SROP) bond funds, special assessments to benefiting properties, and stormwater utility funds. Special Assessments The City's adopted Special Assessments Policy, which is attached to this case, calls for special assessments to pay for 25% of eligible street reconstruction improvement costs. Final assessments as proposed total $118,940.00, which equals 23.45% of eligible final project costs. Special assessments are calculated using methods resulting in reasonable and equitable distribution of assessments that are uniform upon the same class of properties within the assessable area. The test for determining the validity of a special assessment is whether the improvement for which the assessment was levied has increased the market value of the property against which the assessment was levied in at least the amount of the assessment. The City's Special Assessments Policy identifies three optional methods for calculating assessments. A total of 9 benefiting properties were identified along this segment of Sunwood Drive. All properties are zoned El or E2 (industrial) so only two assessment methods are recommended; the "adjusted front footage" method and the "area" method. Staff originally considered impacts of both methods as they would be applied in the current context of the policy. The adjusted front footage method resulted in less variability between assessments ($9K - $40K), while the area method resulted in greater variability ($3K - $42K). Staff initially recommended using the area method since it appeared to better assign benefit based on lot geometry, which seemed to make sense for this project considering the significant differences in lot depths along the corridor. Based on input from the City's consultant appraisal firm, Patchin, Messner, Dodd and Brumm, who prepared a benefit appraisal consultation report for this project, as well as the benefit appraisal consultation reports for all street reconstruction projects in Ramsey since 2015, and per input received from other cities that have assessed industrial parcels for street reconstruction improvements, the adjusted front footage method was used to calculate preliminary and final assessments. Patchin, Messner, Dodd and Brumm calculated estimated special benefits for each assessable property. The lesser of this amount versus the adjusted front foot amount was used to determine the final assessment for each property as shown in the attached final assessment roll (with minor rounding for finance purposes). This is the same methodology followed in the attached Feasibility Report to determine preliminary assessments. All project costs are eligible for special assessments since the street was reconstructed to its pre-existing width, and since the old and new pavement sections both meet 10-ton design standards. As previously noted, Connexus Energy has concerns with their final assessment because the assessed property is undeveloped. Staff met with Connexus Energy representatives on several occasions to discuss their assessment and