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Page 2 of 2 <br /> <br /> <br />• $3,103,300.00 Total Project Cost for the Reconstruction Neighborhood <br />• $237,100.00 Total Project Cost for the Reclamation Neighborhood <br /> <br />Each of these total project costs were then analyzed for the assessable cost which as described in <br />the City’s Assessment Policy is half of the street project cost. The results of this analysis is as <br />follows: <br /> <br />• Reconstruction Assessment Rate of $10,219.52 per unit as compared to the Feasibility <br />Report estimate of $10,300. <br />• Reclamation Assessment Rate of $1,816.52 per unit as compared to the Feasibility Report <br />estimate of $2,000. <br /> <br />In the past, the City Council has set the interest rate for unpaid assessments with the resolution <br />declaring costs to be assessed. The current assessment policy states: <br /> <br />“H. Interest Rate on Unpaid Balance <br />The interest rate used for the assessment shall be designated at the prime rate plus two (2) <br />percentage points, fixed for the duration of the outstanding balance. The effective date of the <br />interest shall be the date the Council approval of the assessment role.” <br /> <br />Two items have been identified upon review of the City’s 2004 Assessment Policy and past <br />practice: <br /> <br />1. The attached resolution reflects the current assessment policy language. Staff would <br />recommend setting the interest rate at 2% over the City’s bond interest rate which is <br />approximately 3%, resulting in an assessment interest rate of 5%. <br /> <br />2. The City’s current assessment policy allows for property owners to pay the entire <br />assessment in full within thirty days without an interest charge. In addition, the <br />assessment policy states that “a property owner may pay the total assessment against their <br />property with accrued interest at any time during the life of the project assessment <br />period”. In 2015, property owners were allowed to make partial payments. It is staff’s <br />recommendation that the policy language regarding payment of the total assessment <br />amount be followed and that partial payments would not be allowed. <br /> <br />In order to move both of these projects forward, it would be appropriate for the Council to <br />consider adopting the attached resolution with a potential amendment to the interest rate <br />language. <br /> <br />Attachments <br /> <br />• Attachment A: Bid Tabulation <br />• Attachment B: Resolution 2018-027