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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 484 -2177 / FAX: (651) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: November 6, 1998 <br />RE: 1999 Capitation Rates for Street and Water Main Projects <br />MAYOR <br />Michael I. Fahey <br />COUNC /L <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />In 1999, we are proposing the construction of water main along Viking Drive between <br />McMenemy and Edgerton. This constitutes a single frontage water main project. Therefore, we <br />need to set a capitation rate for purposes of assessments. While the final rate will not be set until <br />the time of the assessment, I wanted the Council's authority to use $4,900 as the estimate for the <br />capitation amount. This information is needed to assist us with the neighborhood meetings that <br />will be conducted in approximately two weeks. <br />In 1995, our single frontage assessment rate was $4,510. In 1997, we assessed the Centerville <br />Road water main project at $4,117.75. I arrived at the $4,900 figure pursuant to our water main <br />assessment policy whereby the capitation rate was set at $4,400 per lot based on 1994 costs. <br />That amount has been adjusted by the consumer price index using estimates for the fourth <br />quarter of 1998 and all of 1999. That process yielded an amount of $4,886. I then rounded up to <br />the $4,900 figure. <br />For street assessments, we have used a capitation rate of $45 per lineal foot. Using the same <br />process described above, that rate would be estimated at $46.41 per lineal foot. Given the fact <br />that our assessments tend to be on the high side of neighboring cities, it is my recommendation <br />(and that of our City Engineer) that we maintain the $45 rate for the 1999 project cycle. It <br />should be noted that the Engineer has informed me that initial estimates indicate that all projects <br />would likely be at that capitated rate given the information he currently possesses. <br />Your direction is needed on these matters in order that we can have the appropriate information <br />for the neighborhood meetings. Should you have any comments or questions before Tuesday's <br />meeting, please let me know. <br />JRH:kpp <br />Page 20 <br />