Agenda - Council Work Session - 11/15/2011

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HHI Draft — Nov. 2, 2011 Ramsey Long -Term Road Maintenance and Reconstruction Program Business - Focused Key Discussion Points Roads in the City of Ramsey are reaching the end of their useful life. • Nearly half of Ramsey's 178 miles of roads were constructed during the city's population boom in the 1970s- 1980s. • Even with routine maintenance by Ramsey Public Works, the maximum expected life of these roads is 40 years. • Between now and 2025, at least $90 million in road reconstruction will be necessary to repair or replace city streets. • Currently no budget exists to pay for this wave of construction, which will largely be the responsibility of local taxpayers. The level of work is far beyond the routine maintenance provided for in the city's budget. Good roads benefit local businesses and community organizations. • Businesses and community organizations need roads that sufficiently handle customer and visitor demands. • Without action, Ramsey's roads will be prone to more potholes, cracks and crumbling pavement— creating serious safety risks for pedestrians and motorists, as well as barriers to business. • Poor roads may limit Ramsey's ability to attract new businesses, jobs and employees, as well as create inconveniences for customers and clientele. • 73% of Ramsey residents agree that the city should develop a new policy -11% felt strongly (June 2011 poll) The city is developing a long -term road maintenance and reconstruction program aimed at achieving the following goals: 1. Ensure safety for pedestrians and drivers 2. Reduce project delays and avoid higher costs 3. Spread out the cost of road maintenance and reconstruction across all who will benefit from it 4. Maintain high - quality roads to attract new businesses, jobs and employees The city is considering three alternative options to pay for the program. 1. Do Nothing — Utilize Current Assessment Policy: Charge only affected property owners for the total project cost. Payable for about 10 years. 2. Citywide Property Tax Increase: Proportionally charge all city taxpayers based on their property values for the total cost of the program. Payable for 20 -40 years. 3. Citywide Franchise Fee: Charges all utility customers, including tax - exempt properties, a monthly fee regardless of property size or value. Fee would range from $xx - $xx for businesses and tax - exempt organizations. Payable for 20 -40 years. • The citywide franchise fee is the preferred option by survey respondents -49% favored this option; 5% favored it strongly. This option spreads out the cost to everyone who will benefit from better roads. Business /community leader input will help us make the best decision for the city. • We want your business or organization to thrive, and we know that maintaining access and creating minimal impact during these projects is vital to your success. We hope you will: 1. Consider the long -term benefits for your organization (predictability /ability to plan; better access; improved safety; investment in our community's future) 2. Provide us feedback — contact Public Works or your city council member 3. Continue to work with us to plan for construction, maintain access and minimize disruptions • We will keep you informed about any reconstruction and funding policy decisions.