01-08-07 Full Agenda Packet - Laserfiche WebLink

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PROPOSED UNIT COSTS AND ASSESSMENTS . The following narrative provides information and definitions of the various types of properties affected by the proposed improvements, as stated in the Assessment Policy revised and adopted by the City Council in 2004. The assessment policy states that the assessment is based on the total project cost, or estimated construction cost and associated overhead costs. City Council may choose to base the assessment on contract priees~ deviation from the assessment policy is allowed as deemed appropriate. Estimated construction costs are estimates only; we can only anticipate factors affecting construction costs, but have no control over them. If the assessment is based on estimated construction costs, there is a possibility of over-assessing residents if the actual bids come in low. If bids come in higher than estimated, this would result in the City paying for a larger portion of the project. Staff recommends that costs for project financing should be based upon actual, competitive bid prices with reasonable contingencies. The proposed schedule of the project would allow for the assessment hearing to take place prior to construction if contract prices are used. Residential properties The policy states that "all residentially zoned properties with frontage abutting a strcet that is overlaid with bituminous shall be assessed on a per unit basis at the residential equivalent assessment rate." The residential equivalent assessment rate shall be based on 50% of the cost of the bituminous overlay, plus associated overhead costs. A lot unit is defined in the assessment policy as a platted single-family residential lot or equivalent. . which cannot be further subdivided for R-l and R-2 residential use according to the current City Code. Comer lots are assessed on the street used for the mailing address; this has been factored into the proposed preliminary assessment roll. Commercial properties The assessment policy states that commercial/industrial properties are to be assesscd a commercial equivalent as.sessment based on 70% of the cost of the bituminous overlay, plus associated overhead costs. Tax-exempt properties The assessment policy states that tax-exempt properties are to be assessed based on 100% of thc bituminous overlay, plus associated overhcad costs. The tax-exempt equivalent assessment rate shall be set by the City Council. For the purposes of detemlining this rate, staff has converted tax-exempt equivalent units (TED) to residential equivalent units (RED) as described below. The following table provides the proposed number and type of units to be included in the preliminary assessment roll. A narrative explanation follows for streets with atypical proposed assessments. . 29