Minutes - Council Work Session - 04/10/2012

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Councilmember Tossey noted the City cannot bond for a project unless it is 20% assessed. He expressed concern that funding road projects only from franchise fees would limit the City because it would not have the ability to bond should there be a critical road project. Councilmember McGlone stated what the counter petition process costs the City. Public Works Director Olson estimated $150,000 for Andrie Street. Councilmember McGlone noted residents that are selling their house would not want their property assessed. Mayor Ramsey advised that staff has made some progress on the counter petition process. City Administrator Ulrich reported staff had conversation with the Charter Commission and Commissioners indicated they were open to setting a higher percentage requirement, from 35% to 50% or greater, for residents to be able to overturn a project. Councilmember Backous stated the assessment for Andrie Street was to be $1,500. Public Works Director Olson explained that Andrie Street was originally proposed as an overlay but members of the association that came forward said they wanted a reconstruct. Since it is an MSA road, it had to be built larger so that was done and an overlay assessment considered. The City went forward with project design with anticipation that assessment rates would be about $1,800 to $2,000 with the rest funded with MSA. He estimated that assessment may have equaled 20% of the total project cost. Councilmember McGlone noted the residents would not support paying it. Public Works Director Olson agreed the vast majority of residents were opposed at that time, not because of the assessment, but because of the sidewalk. Councilmember Wise stated he believes strongly in the franchise fee because of the equity it brings; a person living in an apartment generates the same wear and tear on the roads as someone on a 20 -acre parcel. He stated he understands the suggestion to reduce the franchise fee but noted it would be a "band aid" and not fix the problem of funding road projects. Councilmember Wise stated Councilmember Tossey makes a good point about not being able to bond for a project, which may involve a considerable project to overcome. Public Works Director Olson noted that in January the Council had discussed a 50% assessment and scaled it back to 25% with a franchise fee. He indicated if there are no assessments or franchise fees, internal borrowing or a reserve would need to be built so the City can afford larger projects. Mayor Ramsey stated the City had not put away funds for streets for years and he would not support asking for a "raise" from residents to meet that need. City Council Work Session / April 10, 2012 Page 4 of 13