04-09-07 Item 7E, 2007 PMP Assessment

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2007 PMP 4/4/2007 Page 2 Royal Lane, Norma Avenue to Floral Drive Karth Lake Circle, Hamline Avenue to cul-de-sac If questions come up regarding specific assessments or if amendments to the assessment rolls are necessary, hearings can be continued before final adoption. FINANCIAL IMPLICATIONS The project is proposed to be assessed consistent with the City's assessment policy, which states that 50% of the costs for roadway improvements will be assessed to residential properties, 70% of the costs for roadway improvements will be assessed to commercial properties, and the remaining portion financed using various City funds. A detailed assessment roll will be presented at the assessment hearing. The assessment policy states that the assessment shall be based on the total estimated construction cost, plus associated overhead costs. The policy also states that the City Council shall retain the right to review each project on its own merit and to deviate from any portion of the Assessment Policy Manual as it deems proper. As part of the feasibility report, staff recommended that the contractor's bid prices are used to calculate assessment rates, as opposed to the engineer's estimate, as stated in the assessment policy. Staff also recommended the overhead costs be based on 32% of the construction costs instead of37% as listed in the assessment policy. As part of the feasibility report, staff recommended that the residential assessments be based on the project cost of the level of improvement on the street. This is reflected in the proposed assessment roll. The proposed assessment roll under consideration includes 35 assessable units for streets receiving a 2" mill, 69 assessable units for streets with a full depth mill, and 8 assessable units for improvements on a commercial street. Residential Assessments The proposed residential assessment rates are as follows: . 2" mill (Lametti Lane, Lametti Circle, Karth Lake Circle): . Full depth mill (Brighton Way, Briarknoll Circle, Briarknoll Drive, Dawn Circle East, Royal Lane): $2,061.52/unit $3,068.30/unit There are properties the project that are currently identified with one parcel ID, however, according to City Code, could be further subdivided. These parcels are 1471 Lametti Lane and 1465 Floral Drive. Each of these properties is proposed to be assessed as two residential equivalent units. The City owned parcels on Royal Lane have been included in the assessment roll as 5 residential equivalent units, as discussed in the feasibility report.