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ENGINEER'S REPORT <br />Resolution No. 71 - 91 Amending Resolution No. 84 - 04 Setting <br />Administrative Costs - Mr. Schneider explained that the City <br />originally adopted a policy in 1984 which set a sliding scale for <br />charging administrative costs. This policy has been followed by <br />including these costs in the assessment rolls for improvement <br />projects. Over the years administrative costs have increased and <br />the projects have become more complicated and the developers have <br />requested a simpler system for posting letters of credit with more <br />frequent reviews and adjustments to the amount of financial <br />security. The City Staff and consultants have prepared an updated <br />version of the previous policy that would fix the percentage at 3% <br />for all values of improvements including those performed by the <br />developer. <br />Council Member Bohjanen moved to adopt Resolution 71 - 91 changing <br />the policy for charging administrative costs. Council Member <br />Kuether seconded the motion. Mr. Schneider explained that he felt <br />the new policy would not mean a loss of revenue for improvement <br />projects. Voting on the motion, motion carried unanimously. <br />Resolution No. 71 - 91 can be found at the end of these minutes. <br />Resolution No. 72 - 91 Establishing Cost Recovery Procedures for <br />Orthophoto Contour Maps - Mr. Schneider explained that in 1987 the <br />City purchased more than $20,000 of aerial mapping. A resolution <br />was passed establishing the policy for recovering these costs from <br />users of these aerial maps. The procedures have been followed in <br />the resolution and assessment rolls for the improvement projects <br />have included the aerial photo costs. The City staff and <br />consultants have considered this cost recovery policy and are <br />recommending that the "fee of 1% of the construction cost to all <br />construction projects: be replaced with a policy that would direct <br />the cost recovery to be $90.00 per residential lot which would be <br />paid by the developer up front. It is believed that this method <br />would simplify the collection of charges to be transferred. <br />Mr. Schneider explained that an aerial map costs recovery fund has <br />been established. This fund accounts for all expenditures for <br />aerial mapping and also all receipts from developers. He felt it <br />would be several years before this fund "breaks even ". When this <br />occurs, additional aerial mapping can be ordered or the fund <br />balance can be used to support other funds such as the surface <br />water drainage management fund. <br />Mr. Schneider told the Council that he has explained this new <br />procedure to some of the developers. The initial problem for them <br />will be the requirement of paying these costs up front. However, <br />PAGE 2 <br />1 <br />1 <br />1 <br />