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A detailed project calf estimate has been prepared for the Scheuneman Road Reconstruction Project and is included in the report appendix: These costs include the engineer's opinion of probable construction costs along with 10 percent for contingencies. Legal, administrative, fiscal and engineering costs have also been included in this project cost estimatewith a 20 percent allowance. Funding for this project will came from special assessments; capital improvement funds and possible reserves., 8.1 Cost Recovery 8,1 Benefits and Assessments The City intends to levy special assessments to the. benefitting properties in accordance with Minnesota Statute 429. This state. law allows the City to assess adjacent properties for the costs associated with the project.improvements. The City -Council will be responsible for establishing the policies and assessments for this project. Per the Statute.a minimum of 20 percent of the project casts must be assessed to the benefitting properties should the City choose to bond. for the project costs.. Following the 429 Statute, once the feasibility report is received by the City Couricil, a. Public Improvement Hearing will need to be ordered.and held. Within six months of the Public Improvement Hearing, a Council vote to adopt a resolution ordering the improvement will need to be taken or another hearing will. need to be held. "Ordering" the improvement means authorizing the preparation of the plans and specifications and moving ahead towards: bidding and constrLIGbon. 82 Potential Assessments There are. two methods commonly used to apply special assessments to the benefitting properties of a. project: 1 j .Front Foot Method or 2) .U.riit/Area Method. 8.2.1 Front Foot Method The front foot method is typically used on street reconstruction projects where total fronting footage of the ben efittin.9 parcels along an improved road is used:. The total amount of the. project cost that is to be assessed .is divided by the total front footage. along the. project. Then the frontage of a given parcel is multip11ed by the fro nt.foot rate of assessment: 8.2.2 Area Method The area method is typically used when the improvement benefits a larger area than just a linear project like a street reconstruction. Area method is often used on drainage projects or system improvement projects that serve/benefit a larger area than just the properties that directly front or border the improvement. The Area Method'.was used on last year's water. main extension project. For this project we would recommend the City. consider use a combination of both the Area . Method and Front Foot Method. Using the. online GIS data from Ramsey County, thereappears to be nine parcels covering 12.03 acres that would benefit from the extension of municipal water main in Scheuneman. Road. north of its current ending point. There also appears to be four parcels covering 8.89 acres. that would be served by`the extension of the sanitarysewer in Scheuneman Road north of its current ending point. The extension of water main north from its current ending point in Scheuneman Road as studied in this report is estimated to cost $163,280, Assessing 100% of this cost (as FEASIBILITY STUDY GEPALK 143669 Rage 4