Agenda Packets - 2008/11/08 - Laserfiche WebLink

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November 10, 2008 Item No. 7C Page 4 Cost Estimate A cost estimate for the improvements to Lake Court Drive and Lake Court Circle was included in Exhibit B of the Street Transfer Agreement. The cost estimate was developed by inflating the cost estimate from the 2003 Street Improvement Project to current prices. In addition to construction costs, the estimated total includes the standard allowance for project development costs including legal, administrative, and engineering. The estimated total of the legal fees incurred to date on the development of the Agreement were also included in the project cost estimate. Finally, an additional 25% contingency was applied to the project cost for conservatism, since Exhibit B notes that the estimated project cost is a “not to exceed” amount. The total estimated project cost included in Exhibit B of the Agreement is $415,000. The actual cost of the project will need to be determined based on the bids received for the construction contract, as well as the associated project development costs. It should be noted that based on the 2003 RCWD permit, no costs for any stormwater improvements have been included in the current project estimate. If RCWD does require stormwater improvements as part of the new permit for this work, the costs for those improvements will need to be determined and be included in the costs for the project. Financing The costs for the improvements to Lake Court Drive and Lake Court Circle are to be financed completely by the Silver Lake Woods Condominium Association. The Agreement between the Association and the City allows the City to assess 100% of the public improvement project, including the costs associated with developing the Agreement. Staff, legal, and engineering costs are all recoverable under the Agreement. Terms of the assessment are described in Exhibit B of the Street Transfer Agreement. A copy of Exhibit B is included with this Staff Report for reference. The Association has requested that the assessment be assigned for collection with its property taxes for a period of up to 10 years. It has agreed to pay interest on the payment period of the assessment. Through the Agreement, the Association has waived the requirement of a public hearing for the proposed assessment. However, the City Council will still need to adopt a resolution to identify the amount to be assessed and to assign the assessment to the Association. The City Council will have the ability to set both the interest rate and repayment schedule for the assessment as part of that resolution. It is noted that the current annual interest rate being assigned by the City for assessments is 5.5%.