Agenda - Council - 10/09/2018 - Laserfiche WebLink

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$61,454.80, will be applied to offset a portion of the bond payments. Special Assessments Construction of this project is complete, and the Contractor and City project inspector have agreed upon final construction costs in the amount of $199,853.23. Final project costs, which include final construction costs plus 23% indirect costs to cover administrative (6%), engineering (15%), finance (1%), and legal (1%) costs, were used to calculate the final proposed assessments. The final proposed assessment amount for this project is $1,396.70 per each of the forty-four (44) benefiting properties, resulting in a total project assessment of $61,454.80. Each of the properties proposed to be assessed has their primary access onto an improved street section. The preliminarily assessment amount adopted by Council as found in the attached Feasibility Report was $1,714.42 per benefiting property. Attached are copies of the final assessment map and roll for this project. The City's Special Assessments Policy calls for special assessments to recover 25% of eligible street reconstruction and overlay improvement costs. On this project, all project costs are eligible for assessments. The final assessments as proposed recover 25% of eligible 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; adjusted front footage, area, and per lot. Because each assessable property generally received the same benefit from the project improvements, assessments are proposed to be spread equally among benefiting properties using the "per lot" method. The proposed final assessments conform to the requirements set forth in Minnesota Statutes Chapter 429, Chapter 8 of the City Charter, applicable City code, and the City's adopted Special Assessments Policy. Attached are copies of Minnesota Statutes Chapter 429, the City's adopted Special Assessments Policy, and Chapter 8 of the City Charter that provides additional controls on the use of special assessments for public improvements within the City of Ramsey. Final assessments for this project are proposed to carry a 10-year term at an interest rate of 5.22%. A schedule of payments showing annual payments including principal and interest is included on page 3 of the attached Assessment Hearing Notice. No assessment deferral requests were received for this project. The Special Benefit Consultation report completed for this project by the firm of Patchin Messner Dodd & Brumm anticipates that all benefiting properties will be enhanced in value between $7,000 and $7,500 per property. A copy of the report is not attached to this case but will be available at the Assessment Hearing. Recommendation: Staff recommends Alternative #1. Action: Motion to adopt Resolution #18-213 adopting the final assessment roll certifying assessments for Improvement Project #17-02, River's Bend Street Reconstructions. Attachments