7.5 SR 06-01-2020 - Laserfiche WebLink

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City of Elk River May 15, 2020 Page 3 3.0 FINANCING 3.1 Estimated Cost The estimated cost for the project is $3,250,000 as documented in Appendix B of this report. This cost estimate incorporates estimated 2020 construction costs and includes a ten percent (10%) contingency factor. Indirect costs are projected at eight percent (8%) of the construction cost and include engineering, legal, financing and administrative costs. Table 1 below provides a summary of the estimated cost for the Lake Orono Restoration and Enhancement Project: Table 1 — 2020 Lake Orono Restoration and Enhancement Project Opinion of Probable Cost Summary Area Schedule Amount Lake Excavation and Grading $ 1,760,000 Dewatering and Ice Removal $ 500,000 LORE Project Habitat Improvements and Materials $ 200,000 Area Erosion Control and Materials $ 269,050 8% Indirect Costs $260,000 10% Contingency $ 260,950 TOTAL $ 3,250,000 * - Total Funding Available for Project $3,250,000 3.2 Funding and Assessments Financing for the Lake Orono Restoration and Enhancement project will come from State of Minnesota Bonding Dollars, Local Option Sales Tax Dollars, City Funds and Special Assessments. Special Assessments to benefitting properties are proposed to fund twenty percent (20%) of the project, with the remaining eighty percent (80%) funded using bonding dollars, sales tax dollars and City Funds. The estimated cost of the project is $3.25M. Of those total project costs, $1.5M will be funded using State bonding dollars; $1 M will be funded using local option sales tax dollars as a part of Active Elk River, $100K will be funded using other City of Elk River funds and $650K of the project costs will be funded by special assessments to benefiting property owners. Special Assessments to benefitting properties are proposed to fund $650K or twenty percent (20%) of the Lake Orono Restoration and Enhancement project. The methodology used to calculate individual assessments will be consistent with the methodology used for the 1998 sediment removal project. Typical developed or buildable single-family residential lakeshore properties will be assessed one Residential Equivalent Unit (REU). Residential properties in excess of 10 acres will be assessed two REUs. Multi -family residential properties with common access to the lake will be assessed 0.50 REUs per residential unit. Vacant commercial properties will be assessed one REU per two acres of property. Assessments for the project will be calculated on a per parcel (unit) basis consistent with the assessment methodology used for the 1998 sediment removal project. Residential Equivalent Units (REU) have been assigned to