Agenda - Public Works Committee - 03/21/2006

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October 28, 2003 Page 1 of 2 CITY OF ST. MICHAEL STREET RECONSTRUCTION ASSESSMENT POLICY Street Reconstruction — The City of St. Michael has a long-range plan providing for the periodic reconstruction of all paved city streets when determined necessary by the City based on pavement condition. The City Council intends to ensure the orderly and fiscally responsible implementation of this these reconstruction projects on a community -wide basis in order to maintain safe and low maintenance paved streets. The following is the general Street Reconstruction Policy for special assessments to benefiting property. 1. It is the policy of the City to special assess abutting benefiting property for street reconstruction costs, but not in excess of the special benefit to the property. This policy applies to all streets that are the responsibility of the City. 2. The assessment rate for the reconstruction of previously paved streets shall be determined annually by the City Council. The assessment rate is based on the following: a) It is the goal of this policy that benefited properties be assessed 40% of the cost of the Street Reconstruction Cost. The percentage of the project assessed in any individual year will vary depending upon construction requirements and the construction market. b) Assessments shall not exceed any of the following: i) The special benefit to the property being assessed; ii) The total assessment for a project may not exceed the project cost. Project cost includes both direct construction costs and all indirect costs such as engineering and administration. c) Assessments shall normally be levied for a period not to exceed ten (10) years. Longer assessment periods will be considered when other assessable public improvements are being constructed at the same time. d) Assessments for all single family parcels shall be made on a per parcel (unit) basis. The unit assessment rate for 2004 is $1,900. The rate shall be adjusted annually based on the percent change in the "Construction Cost Index" as published in the American City and County magazine, with the rate of $1,900 for January 2004 used as the base index. e) All multi -family housing parcels shall be converted into an equivalent number of parcel units by dividing the area of the multi -family parcel by 11,250 (the City's established minimum lot size). The number of equivalent units are then multiplied by the single family assessment rate to determine the assessment for the property. f) All Commercial/industrial/institutional parcels shall be on a front footage or area basis based on actual project costs. 15