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V. NECESSITY AND COST-EFFECTIVENESS <br /> <br />VI. <br /> <br />VII. <br /> <br />The streets being reviewed are in need of repair. The project is necessary to <br />provide the residents of this area with a safe and adequate public transportation <br />system. If the overlay is not done in a timely fashion, the roads will continue to <br />deteriorate and reach a point where an overlay will not be a feasible alternative. <br />The project will minimize future maintenance costs and increase traffic safety. <br />The size of the project will ensure competitive bidding; from this standpoint, the <br />project is cost-effective. <br /> <br />ESTIMATED PROJECT COST <br /> <br />The estimated construction and project cost for the proposed improvements is <br />provided below: <br /> <br />Estimated Total Construction Cost <br /> <br />$ 540,900 <br /> <br />Overhead (15%) <br /> <br />81,100 <br /> <br />Total Overall Project Cost <br /> <br />$ 622,000 <br /> <br />The project cost includes both construction and overhead costs. In accordance <br />with the City's assessment manual, the overhead costs are estimated as 28 <br />percent of the total construction cost. The overhead cost includes City <br />administration, engineering design, construction staking and inspection, and <br />fiscal and legal costs. Since this project will not require detailed plans and <br />specifications, the overhead has been reduced to 15 percent. <br /> <br />PROJECT FINANCING <br /> <br />As has been the City's practice on past overlay projects, it is proposed that 100 <br />percent of the cost of the improvements be financed by assessments to the <br />benefiting properties. As outlined in the City's Assessment Manual, all properties <br />with frontage abutting the roads or properties dependant on the road to be <br />overlaid shall be assessed on a per unit basis. Each residential property is <br />considered one unit. <br /> <br />In the Brentwood Addition, all of Block 9 is owned by Solid Rock Church. The <br />original plat indicates Block 9 consists of eight lots; therefore, Solid Rock Church <br />is proposed to be assessed eight units. Likewise, Outlot A of Brentwood Addition <br />is approximately 29 percent larger than Block 9, so it is proposed to be assessed <br />ten units. <br /> <br />The total number of assessable units in the residential areas of the project is 286. <br />Dividing 286 by the total project cost of $622,000, the cost per unit is $2,175. <br /> <br />3 <br /> <br /> <br />