04-14-1997 Council Packet - Laserfiche WebLink

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«W’ "" -• Long Lak Sewer Project April 11, .997 Page 2 The 1992 Stubbs Bay Project had unit costs ranging from $12,630 to $23,360 prior to City contribution. Most vacant lots were assessed at the full rate, since they gained buildability by having sewer available. The City participated for developed homestead lots at a rate of 30 %. This lowered the range for developed lots to $8,840-16,352. The high end of the range was further lowered by crediting the excess payments for vacant lots to the high-end assessments. This resulted in an actual lowering of assessments for various project areas by 30-36 %. The Engineer's estimated costs for the Long Lake project are as follows: North Long Lake Sanitary Sewer Laterals Trunk Facilities Dakota Avenue Surfacing $ 296,746 176,304 19,284 Long Lake Countr}’ Club Sanitary Sewer Laterals $319,368 Trunk Facilities 237.853 Total Project Costs $ 1,049,555 The total estimate of $1,049,555 includes 5% contingency, 15% allowance for design, inspection, legal and administration costs, and a 5% allowance for capitalized interest and bonding costs during construction. Staff recommends that all 55 units in the NLL/LLCC project be assessed equally based on the estimate, with the pre-contribution unit cost being $1,049,555 / 55 ,inits = $19,083 per unit. City contribution of 25% lowers this to $14312 per unit to be assessed over 15 years. The only e.xception to this would be the Maresh property. Council has previously indicated that the Maresh property should be assessed the full amount rather than a reduced amount, given that sewering his homestead will allow future use of the unsewered vacant parcel for building purposes. Staff recommends that the costs for paving of Dakota Avenue be included as part of the entire assessment project. Staff recommends that the City not assess the cost of surfacing Dakota Avenue as a separate item. That surfacing is a minor cost in relation to the total project costs, and should be considered part of the entire project. The City should take over maintenance of Dakota Avenue, which is a platted public right-of-way that will now contain municipal sewer. While the lateral and trunk costs attributable to each neighborhood could be assessed separately, staff recommends against this because it would have the following negative impact: North Long Lake: Lateral + trunk + Dakota = $492,334 / 31 = $15,882 Long Lake CC: Laterals + trunk = $557,221 / 24 = $23,217 T-.Ufflrrrin;