CCP 03-16-1998 - Laserfiche WebLink

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CITY OF ARDEN HILLS . MEMORANDUM DATE: March 11, 1998 TO: Brian Fritsinger, City Administrator FROM: Terrance Post, City Accountant @ SUBJECT: 1998 PMP Reconstruction Assessment Rate Background As early as last fall, Council had expressed concern about the proposed reconstmction rate of $51.18 per assessable front foot when it received the engineer's Feasibility Study for 1998 street reconstruction and maintenance improvements. Throughout the next several months, the project scope was reduced, and overhead assumptions lowered (i.e., from 32% to 26%). These actions resulted in a reduction of the proposed rate to $48.85. It is this rate that was used to generate proposed assessment amounts in the Assessment Public Hearing Notice letters mailed this week. The following table summarizes the current analysis of reconstruction activity: . Description Edgewater Fairview S1lllYl: Total/A. verage Number Parcels 28 23 14 65 Hard (Contractor) Cost* $188,687 $152,509 $112,451 $453,647 Assessable Footage 2189.18 2390.21 1190.00 5769.39 Hard CostIFoot $ 86.19 $ 63.81 S 94.50 S 78.63 Est. Overhead @ 26% 2241 .L6...5.2 2.4...5.1 2.Q.A4 Total Est. CostlFoot $ 10860 S ~$ 11907 $ 2.2.Q1 50% Assessment per Policy $ 5410 S :IQ.2.Q $ ~ S :l:2..i:1 *Less 50% of Stowe to City of New Brighton It should be noted that the 1998 hard costs per foot (i.e., $78.63/2 = $39.32) exceeds the 1997 assessment rate (hard cost + overhead) of$37.96 by 3.6% Iillu: The balance of this memorandum will explore alternative means of achieving an objective of reducing the reconstruction rate per foot, while maintaining the integrity of the existing Assessment Policy. .