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CR 2014-088 Adopt Resolution 2014-043, Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment; and Resolution 2014-044, for Hearing on Proposed Assessments, 2014 Pavement and Drainage Improvements, City Project 2013-14)August 19, 2014 Council Report 2014-088 DECLARE COST TO BE ASSESSED AND ORDER ASSESSMENT HEARING 2014 PAVEMENT AND DRAINAGE IMPROVEMENTS CITY PROJECT No. 2013-14 Proposed Action Staff recommends approval of the following motion: adopt Resolution 2014-043, Declaring Cost to be Assessed and Ordering Preparation of Proposed Assessment; and Resolution 2014-044, Resolution for Hearing on Proposed Assessments, 2014 Pavement and DrainageImprovements, Imp Improvements, City Project 2013-14. This action continues an assessable project for utility improvements. Overview The contract for the 2014 Pavement and Drainage Improvements in the Hobby Acres neighborhood was awarded April 1, 2014. The project has reached substantial completion, and staff anticipates all work will be completed by the end of this month. The only assessable component of this project was the replacement of water services for eight (8) properties. The water service work has been completed and the final assessment amount has been determined. Primary Issues To Consider • Project costs and assessments • Schedule • Recommendation ,r Z�.� ,.�� � � Nate Stanley, P.E. City Engineer Supporting Information • Resolutions: 2014-043, 2014-044 Financial Impact: N/A Budgeted Y/N _ Source: N/A Related Documents (CIP, ERP, etc.): Notes: • Project costs and assessment interest rate The only assessments associated with this project are for water service replacements in the Hobby Acres neighborhood. The assessable amount is calculated based on 50% of the costs for water service replacements. The following table shows the preliminary and current assessment costs: Utility Service Type Preliminary Assessed Cost Current Assessed Cost Water $850 - $1540 per Unit $696 - $1308 per Unit The final cost assessed for the water service work came in under the initial estimate based on the contract quantities. The cost went down because the actual materials needed to complete the water service installation was less than estimated in the construction plans. The total amount to be assessed is $7,205.36. The interest rate will be 2 percentage points about the Total Interest Cost of the bonds to be sold for the project. We anticipate the rate to be between 3.5% and 5% for this project. Property owners can prepay without interest through November 6, 2014. To avoid the assessment being certified on property taxes, owner must make payment prior to November 29, 2014. • Schedule Order Assessment Hearing August 19, 2014 Assessment Hearing/Adopt Assessment Roll October 7, 2014 • Recommendation Staff recommends that council order preparation of the proposed assessment and schedule a public hearing for the assessment for October 7, 2014.