Agenda - Council - 09/24/2013 - Laserfiche WebLink

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Councilmember Kuzma stated he prefers to keep the levy down or the same and would strongly consider the franchise fee since most residents who have spoken prefer to pay a small amount. He stated the franchise fee can be identified for road funding and would provide a constant stream of revenue that is dedicated to roads. Councilmember Johns stated the people she talked with in general prefer to have a steady amount instead of a special assessment. She stated she prefers that herself and since the City is trying to do a maintenance program, consistent funding is needed. With assessments, should there be a stumbling block, the maintenance project would not be completed when scheduled and would impact the rest of the 60-year plan. She felt franchise fees were the best method to fund that program as long as the City is open and honest about what the franchise fee entails. Councilmember Kuzma stated he thinks franchise fees are fair because all pay the same since it is not based on property valuation. Councilmember Riley asked how much can be dedicated from different funds for the SMP. Finance Director Lund explained that if the use of franchise fees is approved, a Capital Project Fund would be created for road reconstruction. When franchise fees come in, they would be deposited straight into that Fund and offsetting expenditures would be taken from it. She stated when property taxes come in, it is a lump sum and not everyone pays taxes so then a percentage is transferred into such a Fund. Finance Director Lund stated with the last franchise fee, she had to prepare quarterly reports on franchise fees collected and expenses from that Fund. Councilmember LeTourneau agreed that franchise fees are a revenue source and he does not want it to look like the City is "hiding behind" a certain size levy but instead is finding a solution for a significant funding need and that must be transparent to the public. William Kingston, 15760 Andrie Street NW, stated he is a 20-year resident of Ramsey and thanked staff for all of the information presented in the staff report. With regard to the cost estimates, he asked how many miles of road were ranked at PACER 7 in 2009 and how many miles of road were ranked at PACER 7 in 2013. That will indicate the degradation of the roads since there has not been street maintenance during that time period. Mr. Kingston stated the bulk of the roads were constructed in the 1970s and asked if the City has inspection reports so the underlying soils are known. He stated he does not think the City has that type of information so while the City Council is trying to move from a 40-year road to a 60-year road, the roads may be in worse shape than the City thinks He questioned how that can occur without first getting the roads up to spec. City Engineer Westby stated Andrie Street is at a PACER 3, which means it would be reconstructed. When reconstructed, it would be to City standards for 60 years with a good sub- base constructed and a maintenance program followed. Mayor Strommen explained staffs 2013 estimates are based on the actual PACER ratings. Mr. Kingston stated he did not think there was an add -on if the road is at PACER 3. City Council Work Session / September 3, 2013 Page 6 of 12