Agenda - Public Works Committee - 10/16/2018

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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 2019 construction costs for the proposed improvements with 10-percent contingency costs, plus 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. 5.2 Funding 5.2.1 Assessments The City's adopted Special Assessments Policy allows special assessments to be levied against all benefitting properties in an amount not to exceed 25% of eligible street reconstruction costs. Eligible costs include costs required to reconstruct the street at its current width, and to reconstruct the pavement without increasing its structural capacity. Benefitting properties are considered to be any developable parcel that has, or has the ability to create, one or more direct accesses onto the segment of 146th Avenue, 147th Avenue or Ferret Street being reconstructed. A total of 9 benefitting properties have been identified for this project. The Preliminary Assessment Map and Roll are included in Appendix B. The engineer's opinion of probable costs for eligible assessment costs totals $245,985.56. Assessable industrial parcels are preliminarily proposed to be assessed for up to 25 percent of eligible project costs, which totals $61,496.39. Assessment terms are proposed at ten years. Interest rates are proposed at two percent above the bond interest rate. The "area" method of assessment as identified in the City of Ramsey's Special Assessments Policy was applied to assign preliminary assessment amounts for this project. State Statute and the City Charter do not allow for assessments to exceed benefit to the property. Therefore, Staff wants to ensure all assessments applied with this project will not exceed the benefit to assessed properties. Staff therefore recuiiiiiiends ordering 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. 5.2.2 City Contribution The City contribution to the project would include all funding in excess of the amount collected through special assessments to benefiting properties. No funds have been budgeted for this project. The City's share of eligible project costs related to surface (street) improvements is proposed to come from the previously encumbered 5-year Street Reconstruction and Overlay Program bonds. Water and Stormwater Utility Funds are proposed to pay for all utility improvements. Feasibility Report HY-10 Ramsey Street Reconstructions City of Ramsey Project No. 18-02 Page 11