5.6. SR 06-07-2010 - Laserfiche WebLink

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Feasibility Study 2010 Street Overlay Improvements City of Elk River, MN V. ESTIMATED PROJECT COST A detailed project cost estimate is provided in the Appendix. The project costs have been broken down into the residential Areas 1, 2 and 4, and the Industrial Park Area 3 and are summarized as follows: Estimated Total Construction Cost Areas 1, 2, 4 $427,275.00 Overhead (10%) $42,727.50 Total Estimated Project Cost Areas 1, 2, 4 $470,002.50 Estimated Total Construction Cost Area 3 $244,260.00 Overhead (lOclo) $24,426.00 Total Estimated Project Cost Area 3 $268,686.00 The project cost includes both construction and overhead costs. In accordance with the City's assessment manual, the overhead costs are estimated as 28 percent of the total construction cost. The overhead cost includes City administration, engineering design, construction staking and inspection, and fiscal and legal costs. Since this project will not require detailed plans and specifications and City overhead will be less than stated in the policy, the overhead has been reduced to 10 percent. VI. PROJECT I'INANCING As has been the City's practice on past residential overlay projects, it is proposed that 100 percent of the cost of the residential street improvements (Project Location 1, 2, 4) be financed by assessments to the benefiting properties. As outlined in the City's Assessment Manual, all properties with frontage abutting the roads shall be assessed on a per unit basis. Each residential property is considered one unit. The total number of assessable units in the residential areas of the project is 180. Dividing 180 into the total residential area project cost of $470,002.50, the estimated assessment per unit is approximately $2,611.13. The assessment policy states that commercial/industrial projects be assessed to the abutting property on a front foot basis. Project Location 3 in the Industrial Park has a total front footage of 7,395 feet. Dividing the estimated project cost in the Industrial Park of $268,686.00 by the total front footage of 7,395 feet equates to an estimated assessment of$36.33 per front foot. Assessments under this policy would range from a low of $3,600 to a high of $42,800. For comparison purposes, Bolton & Monk, bic. 2010. All Ki~lltc Raceri~ed 816.102234 Page 4 June 3, 2010