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Howard R, Green Company <br /> May 25, 2001 <br /> File: 230000M-0325 <br /> <br />Honorable Mayor and City Council <br />City of Elk River <br />13065 Orono Parkway <br />P.O. Box 490 <br />Elk River, MN 55330-0490 <br /> <br />RE: STREET RECONSTRUCTION ASSESSMENT RATES <br /> <br />Dear Council Members: <br /> <br />The City's assessment manual, which was last revised in 1989, states that the City Council will <br />by resolution from time to time establish street reconstruction assessment rates. The last time <br />this was done was January 1997. At that time, the street assessment rate for residentially <br />zoned property was set at $36.00 per assessable front foot. Commercial, industrial, and all <br />other zonings were set at $42.00 per assessable front foot. Although there is no immediate <br />street reconstruction assessment project moving forward, staff feels it would be good to have <br />this rate updated, especially with the rise in oil and bituminous costs since the last institution of <br />these rates. Also, it is possible that an assessment of 175th Avenue Improvements may be <br />considered if the necessary fight-of-way is not given by the abutting properties. <br /> <br />Therefore, we have taken a look at the construction cost index in the Twin Cities area from the <br />time that the rate was last established. It appears that when oil and oil-related products are <br />factored into the construction cost index history, the rise in construction cost would be between <br />15% and 17%. This percentage would bdng the residential rate to $42.00 per assessable foot <br />and the commercial/industrial rate to $48.00 per assessable foot. It should be noted that other <br />amenities such as storm sewer, sidewalk/trail, and street lighting have been in addition to these <br />rates on a project-by-project basis. <br /> <br />Attached for City Council's consideration is a draft resolution which would establish the rates for <br />street reconstruction projects at $42.00 per assessable front foot and $48.00 per assessable <br />front foot for all other zoned properties. Staff would recommend adoption of this resolution. <br /> <br />If you have any questions regarding this topic, I will be in attendance at your June 4, 2001, City <br />Council meeting. <br /> <br />Sincerely, <br /> <br />Howard R. Green Company <br />Terry J. I~ff'~urer, P.E. <br /> <br />TJM:tw <br /> <br />O:~PROJ~230000M~0325~r 05-25-01 Council.doc <br /> 1326 Energy Park Drive · St. Paul, MN 55108 · 651/644-4389 fax 651/644-9446 toll free 888/368-4389 <br /> <br /> <br />