Agenda - Council - 09/24/2019 - Laserfiche WebLink

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City Engineer Westby explained that part of the reason for the significant difference in the estimated cost and actual cost is due to subgrade corrections and the cul-de-sac, which are not assessable. He noted that the items that came in lower on the bids were items that were not assessable while the assessable items had higher costs. Councilmember Riley stated that while the overall project increased by 32 percent, the assessable portion increased by 68 percent. He suggested averaging out those costs to increase the assessment from the estimated amount by 32 percent rather than the 68 percent. He agreed that it would seem unfair to charge the full assessment of $6,600. Councilmember Heinrich asked for additional information on the City covering the cost of the improvements to the cul-de-sac. City Engineer Westby reported that the expansion of the cul-de-sac was roughly $12,000 and was funded 100 percent by the City and therefore is not a part of the assessment calculations. Councilmember Kuzma reiterated that it would not be fair to those that have paid assessments at 25 percent to lower this assessment and would prefer to remain consistent. He stated that the City does not have the extra money. Councilmember Riley stated that the overall cost of the project increased by 32 percent and therefore proposed to increase the estimated assessment by 32 percent, rather than breaking out the specific line items that could be assessed or not assessed. He noted that the assessment would still be 25 percent of the overall project cost. City Administrator Ulrich stated that the concern of staff would be the ability to follow a process that could be applied consistently. He agreed that the process suggested by Councilmember Riley could be duplicated in the future if necessary. He stated that all the estimates prior to this project have been fairly close in their projections. He agreed that there should also be a consistent and fair policy that could be applied consistently should this happen again. Mayor LeTourneau stated that there is a policy in place today, but that policy is set to expire at the end of the year, and therefore this is a discussion on exceptions to a policy that will soon not exist. City Engineer Westby stated that the special assessment policy does not expire and explained that the five-year street reconstruction and overlay program sunsets at the end of the year. Councilmember Kuzma noted that the Andre Street project had an original assessment estimate of $8,000 but the bids came in lower, which lowered the assessment. Mayor LeTourneau asked when the special benefit report would be prepared. City Engineer Westby stated that the special benefit report was not prepared for this project or the next, as the reports would have had a cost of $6,500 each and staff felt that these projects were similar to other previously completed projects. City Council / September 10, 2019 Page 11 of 16