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PROPOSED UNIT COSTS AND ASSESSMENTS The following narrative provides information and definitions of the properties affectcd by the proposed improvements as stated in the City's Assessment Policy. The 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 prices; 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. Ifbids 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. The policy states that "all residentially zoned properties with frontage abutting a street 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. Corner lots are assessed on the street used for the mailing address; this has been factored into the proposed preliminary assessment roll. This project is unique in that five parcels are divided by the City limits. Each ofthese lots has two separate tax PlDs, one in Arden Hills, the other in Roseville. Property taxes for these parcels are paid to the respective City in which that portion of lot is located; these taxes are based on the size of the lot. The following table provides the proposed number and type of units to be included in the preliminary assessment roll. The second table lists information about the lots split by City limits and a proposed assessment unit for each lot. Residential Partial lots with Total Assessable Street equivalent units (REU) Roseville Units Asbury A venue 3 0.64 3.64 - Ridgewood Road 3 2.53 5.53 Total 6 3.17 9.17 2]