Agenda - Council - 07/26/2005 - Laserfiche WebLink

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A summary of the project cost is illustrated in Table 1 below: Construction Cost Overhead 30% Total Project Cost Sanitary Sewer 106,007 31,802 137,809 War erm ai n 46,478 13,943 60,421 Storm Sewer 24,190 7,257 31,447 Total $176,675 $53,002 $229,677 In addition to the above project costs, trunk costs of $2,385 per each of the 93 units results in an additional $221,805 cost to the mobile home park. It is proposed to finance the total project cost, except for the$18,688 cost of extending the sanitary sewer to the east property line of the park, though special assessments to Oak Terrace Estates consistent with Minnesota State Statutes 429 and City of Ramsey Code Chapter 4. An assessment of $432,794 for project and trunk costs would be collected over a ten year period with interest. With interest estimated at 6.5%, the annual cost to Oak Terrace Estates would be $60,204 or $647 per unit. The actual interest rate will be two percent over the prime rate at the time of the assessment hearing. In addition to the above assessed costs, two charges which need to be paid upon connection of each unit to the sanitary sewer and water systems are the sewer availability charge (SAC) and water availability charge (WAC), respectively. The SAC charge is used to pay the Metropolitan Council for the capacity of the wastewater treatment plants and major transmission facilities. The WAC charge is similarly used to offset the cost of the additional capacity in the City's wells and elevated storage structures. The 2005 charge per WAC and SAC are $1384 and $1650 respectively for a total of $3034 per unit. Thc total cost for connecting all 93 units would be $282,162. Recommendation: Staff understands that Oak Terrace Estates will be submitting a waiver of the sixty day period between the close of the public hearing and the ordering of this project. Based upon this anticipated action it is the recommendation of staff that the City Council order the preparation of plans and specification for Improvement Project 02-40. Council Action: Motion to adopt Resolution 05-07-XXX ordering the preparation of plans and specifications for Improvement Project 02-40. Reviewed by: Public Works Director/Fire Chief Assistant Public Works Director/Principal Engineer Finance Officer City Attorney CC: 07/26/05