Minutes - Council Work Session - 03/19/2013

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Councilmember Elvig pointed out that assessments can be charged by PIN instead of front footage. He felt it may not be as big of a problem at the 40 -year mark as it has been made out to be because Ramsey has a good sand base and maintenance processes are better. He stated he had checked with other cities and learned they do not tear out a road until there is a water or utility problem. Then they use their Water Fund or Sewer Fund to cover the costs. Councilmember Elvig stated the City needs to hire additional engineering staff to generate revenue through charges for plan review and engineering of projects, which can be a significant amount of $1.2 million to $2 million/year from developers and road projects. Finance Director Lund explained that if it is a sewer project, water project, or MSA road project, the percentage of engineering costs provided by the City helps to offset General Fund costs. Councilmember Elvig pointed out that as population increases, growth can be part of the equation. In addition, the Council needs to address whether to improve road standards. He noted that some of the 40 -year roads are located between two sewer pipes and if there will be growth in that area, sewer and water utilities should be included when the road is reconstructed. Councilmember Elvig asked if the City can identify redevelopment zones such as that, noting growth will take care of the road cost. He suggested the City bring Legislative pressure to get a Road Improvement District approved. Interim Engineer Nelson stated that issue is again being considered by the Legislature this year. Councilmember Elvig stated if the Legislature approves the use of a Road Improvement District, the City can then charge a road fee to all in the City to cover the road costs. He felt a franchise fee was the fairest way to go, noting the resident survey showed that 73 -75% supported that option. He stated he would propose a $14 /month franchise fee. Councilmember Kuzma stated the question is that at the $1.3 million, it deals with roads only and not sewer and water utilities, which would be assessed. Interim Engineer Nelson confirmed it does not include sewer and water, and that those costs could be paid from respective Enterprise Funds. He explained that the City has a unique Charter. Rather than assessing the cost at the time of utility construction, the City charges a connection fee that is about equivalent. In this way, the City fronts the money and then when the property connects, the owner pays a connection fee that is about equivalent. Councilmember Elvig stated the cost to bring a sewer pipe to the house is $12,000 compared to a cost of $20,000 to install a new septic system. Councilmember Riley stated every city has to deal with this issue and asked whether staff has looked at how it was resolved by other cities that are 15 years old. He stated he would like to hear what other cities have done to address this issue. He asked when the Municipal Center will be paid off. Finance Director Lund stated it is 2032 -2033. City Council Work Session / March 19, 2013 Page 6of16