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J 5 Section III -.Road Reconstruction While in the past discussion relative to road reconstruction has centered on non -permanent streets without curb and gutter, we believe it wise that reconstruction be expanded to include all streets under the City's jurisdiction. It is possible that streets initially improved as permanent may deteriorate to the point where overlays are not feasible. Rather than defining streets subject to reconstruction based upon their permanent or non -permanent character, it would appear more sensible to make streets subject to reconstruction based on reconstruction criteria., Doing so makes the maintenance and recon- struction program comprehensive. Discussion and Recommendation: 1. Assess based on benefit: Complete reconstruction will approximate the cost of opening a street in a new subdivision. Additionally storm sewer and utility work may be required in certain instances. For these reasons assessment practices must be very sound. The recommended elements for reconstruction should include: a) A sample appraisal to establish benefit prior to C.I.P.being developed. This sample appraisal would approximate $1,000 in cost and would be used in fiscal planning as a proxy figure. b) Prior to hearing on a specific reconstruction project an appraisal would be conducted as to that improve- ment. Benefit may vary from improvement to improve- ment because of the condition of the existing road. Variables include whether the existing road is gravel, whether it has curbs, and its general condition. The front foot appraisal benefit would then be the amount assessed. c) No assessment less than 25%. No matter what the appraisal benefit, at least 25% of the improvement cost should be assessed. This provides a 5% safety margin in meeting the 20% bonding requirement. Should benefit be substantially less than 25% (which is not likely) the improvement should probably not be ordered. 2. A modified front foot assessment method be utilized: Discussion: See Section I, 2. 3. Assessment be payable over 15 years: Since it is possible that reconstruction cost could be as large as new street costs, -which are assessed over a fifteen Year period, a fifteen -year assessment period is recommended.