12-19-2001 Council Agenda - Laserfiche WebLink

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Howard R. Green Company Project No. 815920J XI. FINANCING Feasibility Study 2002 Street Reconstruction and Utility Improvements Little Canada, Minnesota ........................... 702,500.00 260 000.00 Construction Cost City OH & Contingencies Total Project Cost A. STREET RECONSTRUCTION 962;500.00 Based on the City Assessment Policy that governs street reconstruction/ rehabilitation, the primary method of financing street improvements is to assess the adjacent property owners on a front foot basis. The actual assessable cost of a rural street reconstruction to an urban section is 85% of the cost based on an urban section consisting of concrete curb and gutter, three inches of bituminous, and eight inches of aggregate base for the actual width of the street up to 30 feet. The City also has set a cap on the assessment rate that can be charged per front foot for an urban, residential street. It is proposed that the cap be set at $48.50 for this project. This is a $1.25 increase from the 2001 maximum assessment rate due to inflation. The City has determined that seeding lawn areas disturbed by construction rather than sodding could realize a significant cost savings and provide a more effective means on restoration. On past projects sod that has been installed will last through the first season and then die during a winter, whereas grass from seed will only go dormant. It is being proposed that if seeding is used instead of sodding by decision of the property owners, the maximum assessment rate be reduced by $1.50 per front foot. This change to the policy would need to be approved by the City Council. City forces using their hydro seeder to increase the cost savings would perform the seeding operation. The actual assessable cost of a street serving commercial properties is 80% of the project cost, excluding storm sewer, and 100% of the concrete curb and gutter cost. The City has set a cap on the assessment rate that can be charged per front foot for an urban, commercial street. It is proposed that the cap be set at $86.75 for this project. This maximum rate has been increased $1.75 from 2001 due to inflation. In addition to commercial assessments, the realignment/reconstruction of Market Place Drive can be funded through the use of Municipal State Aid funds. The actual funding amounts can vary from project to project and must be approved by the Mn /DOT State Aid Office. This type of funding was used for the reconstruction of Little Canada Road. Eligible funding items typically include all street work, a portion or all of the storm sewer cost, and street lighting. B. WATERMAIN Based on the Watermain Assessment Policy, the sole method of financing the installation of a six -inch watermain and related appurtenances shall be borne by the affected property owners. The preferred method of assessment, as stated in the City's Watermain Assessment Policy, would be on a "per lot" basis. Any costs associated with over - sizing the watermain are typically borne by the City. It 9 PAGE 181