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(4) <br /> <br />Equivalent Unit - Large lots on M.S.A. streets are assessed <br />a cost equivalent to the cost of a typical residential <br />street in an area with eighty foot (80') lots. <br /> <br />(5) Variable Costs - Driveways and special services. <br /> <br />(6) <br /> <br />Residential Equivalent Connection (REC) - A residential <br />equivalent connection is a unit of measure to compare <br />residential with commercial and industrial development. <br />Based on the 1980 census, an REC is equal to 3.6 persons <br />per residential unit. Therefore, the number of REC's <br />charged per acre of con~ercial and industrial land shall be <br />5.5. <br /> <br />D) Terms Used in Determining Assessable Costs: <br /> <br />(1) <br /> <br />Contract Cost - Amount paid to contractors (construction <br />costs {amount paid to contractors for constructing the <br />improvements and cost of first time sealcoating as estimated <br />in new developments}) for constructing the improvements and <br />engineering, legal, right-of-way and condemnation costs. <br /> <br />(2) <br /> <br />Construction Interest - Cost of financing during the time <br />period of the improvement process, starting when the amount <br />paid the contractor equals the amount paid as escrow (if <br />any) until the assessment roll is approved by the City <br />Council. The interest rate will be at the expected <br />assessment rate. <br /> <br />(3) <br /> <br />Expenses to be Assessed - Cost incurred by the City in <br />addition to the contract costs, including advertising, <br />financing charges, administration and assessing. <br /> <br />(4) <br /> <br />Project Cost (Total Cost of Improvement) - Total of contract <br />costs, interest and expenses and work previously done but <br />not assessed. <br /> <br />E) Procedures Relating to Special Assessments: <br /> <br />(1) <br /> <br />Sanitary Sewer Trunk - Sanitary sewer trunk costs are <br />apportioned to the net area that is benefited by the trunk <br />facility constructed. The costs are then apportioned to <br />each parcel by the rate/REC as determined by dividing the <br />costs by the total REC's in the net area of benefit, then <br />multiplying that cost/REC by the net number of the REC's in <br />the parcel. In a plat, the net area of the plat is <br />multiplied by the REC/acre and the total RECs in the plat <br />are multiplied by the cost per REC. <br /> <br />For residential develo~ent, the minimum nUmber of REC/acre <br />shall be three and the maximum nUmber shall be 7.5. The <br />actual number of RECs shall be used up to a density of five <br />per acre. Densities exceeding five per acre shall be <br />assessed at a rate of five RECs plus 0.25 REC/unit exceeding <br />five. <br /> <br />Resolution # 85-89 <br />Page 5 of 12 <br /> <br /> <br />