Agenda - Council - 10/09/2018 - 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 2018 construction costs for the proposed improvements, plus 5-percent contingency costs and 23-percent indirect costs for administrative, engineering, financing and legal costs. City staff prepared the Feasibility Report in-house as part of staffs normal duties. WSB and Associates, Inc. prepared their Pavement Evaluations and Recommendations report, which is included in Appendix D, at a not -to -exceed cost of $3,290. 5.2 Funding 5.2.1 Assessments The City's adopted Special Assessments Policy allows special assessments in an amount not to exceed 25-percent of eligible street reconstruction project costs to be levied against benefiting properties. 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 parcel that has their primary access onto any of the street segments being reconstructed. A total of 44 benefitting properties have been identified for this project. The Preliminary Assessment Map and Roll are included in Appendix C. The engineer's opinion of probable costs for eligible assessment costs totals $301,738.31. Assessable residential parcels are preliminarily proposed to be assessed for 25-percent of eligible project costs, which totals $75,434.58 and equals $1,714.42 per parcel. Assessment terms are proposed at ten years. Interest rates are proposed at two percent above the bond interest rate. The "per lot" method of assessment identified in the City of Ramsey's Special Assessments Policy is proposed to be used to calculate assessments for this project considering that all parcels are roughly equivalent in size and will benefit equally. All properties having their primary access onto any of the reconstructed streets are considered to benefit and are proposed to be assessed. The City is still in the early years of applying special assessments on street reconstruction projects. In addition, State Statute and the City Charter do not allow assessments to exceed the benefit to the property. Therefore, Staff is requesting 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. Feasibility Report River's Bend Street Reconstructions City of Ramsey Project No. 17-02 Page 9