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Page 2 of 3 The low bid of $2,704,412.10, received from C&L Excavating, Inc., compares favorably with the construction engineer’s estimate which is $3,234,599.50. Further analysis of the low bid; adding overhead and dividing it into the cost for the reconstruction and reclamation project areas results in the following street project costs: • $1,110,790.22 Total Project Cost for the Reconstruction Streets (Glenpaul and east Jerrold) • $293,723.19 Total Project Cost for the Reclamation Streets (Edgewater and west Jerrold) Each of these total project costs were then analyzed for the assessable cost which as described in the City’s Assessment Policy is half of the street project cost. The results of this analysis are as follows: • Reconstruction Assessment Rate of $6,942.44 per unit as compared to the Feasibility Report estimate of $8,107.00. • Reclamation Assessment Rate of $2,532.10 per unit as compared to the Feasibility Report estimate of $2,984.00. Staff recommends setting the interest rate at 2% over the City’s bond interest rate which is approximately 1.15%, resulting in an assessment interest rate of 3.15%. The attached resolution is consistent with this recommended action. The current assessment policy also states that the typical overhead for a public improvement project is 37% of the construction costs. Staff believes this percentage is higher than necessary and recommends that approximately 27% (exact dollar amount below) of the construction costs is used as overhead when calculating the assessment rates. The breakdown of the overhead costs can be found below. Budget Impact The estimated total project cost and funding sources based on the final plans and specifications are summarized below. Total Estimated Expenses Construction: $ 2,704,412 Engineering Design: $ 190,000 Construction Mgmt: $ 185,000 Gen Admin & Legal: $ 85,000 Finance & Interest: $ 60,000 Material Testing: $ 40,000 Const. Contingency: $ 165,000 TOTAL ESTIMATE: $ 3,429,412