05-06-1997 Council Packet - Laserfiche WebLink

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TO:Mayor and City Council FROM: DATE: Ron Moorse, City Administrator May 2, 1997 SUBJECT: North Long Lake/Long Lake Country Club Sewer Project Bids and Assessments The bids for the North Long Lake/Long Lake Country Club sewer project have been received and reviewed. The low bid is approximately $93,000 under the Engineer's estimate. Although this is good news for the city, the property owners in the project may request that this lower project cost be reflected in lower assessment amounts. In considering this issue, it is important the Council take into account several items. 1.The proposed assessment amount was based on a determination of the amount of benefit provided to the properties rather than on a specific portion or percentage of the project cost. Although the project cost has been reduced, this has not reduced the amount of benefit. 2.The assessment amounts were substantially reduced from the actual project cost to reflect the level of benefit to the properties in order to avoid assessment appeals and the costs of the appeal process both to the city and to the property owners. If the Council decides to reduce the assessments based on the lower bid costs, it should do so only if all property owners agree not to appeal the assessment amounts. J.The project costs included in the low bid amount do not include the cost of easements needed for the project. In past projects, the city has relied on the property owners to provide easements at no cost to the city. If the Council decides to reduce the assessments it should do so only if all property owners agree to provide all necessary easements at no cost to the city. 1 i