Agenda - Public Works Committee - 05/20/2014

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Public Works Committee 5. 2. Meeting Date: 05/20/2014 By: Bruce Westby, Engineering /Public Works Title: Consideration of developing a draft Special Assessments Policy. Purpose /Background: At the April 15th Public Works Committee (PWC) meeting, updates were provided on the status of both the Garnet Street and the Andrie Street Feasibility Reports. While progress is being made on both reports, the largest hurdle to completing the reports is in identifying funding programs for these projects given the fact that a dedicated and stable funding source is not yet available. More specifically, the implementation of Franchise Fees for funding street reconstruction projects has not occurred to date, and the use of special assessments has not proven to be a reliable, long -term funding source for street reconstruction projects due to existing Charter provisions which allow property owners to relatively easily petition against assessments on such projects. Staff discussed the fact that special assessments for street reconstruction projects can approach or exceed $10,000, which is significantly more that property owners in Ramsey have been used to paying for seal -coat and overlay project assessments which have been $2,000 or less on average. Staff also noted that the City does not have an assessment policy for street reconstruction projects therefore direction is needed from the PWC and the City Council to allow staff to better understand what amount to target while completing the Feasibility Reports for these two projects. Per the consensus of the Committee, staff was directed to present information for developing a draft Special Assessments Policy at the May 20, 2014 PWC meeting. Staff was also directed to provide a reasonable range of potential assessment amounts within the Feasibility Report for the reconstruction of Andrie Street. Attached to this case is a model Special Assessments Policy prepared by Ehlers and Associates, Inc. at the request of the League of Minnesota Cities (LMC). LMC has this model policy posted on their web site for any city to use as a template in developing their own Special Assessments Policy. Staff recommends starting the process by reviewing this model policy as it addresses most of the special considerations that need to be discussed while developing our own policy. Staff has also obtained copies of other cities special assessments policies, which will be available for review and discussion at the meeting if the Committee has questions on how certain other cities address specific situations. Also attached to this case is a Special Assessments Guide developed and distributed by LMC. This guide defines special assessments, discusses a cities authority to levy special assessments for certain improvements and the process that must be followed, and provides other relevant information and web site links that would aid in developing a policy for the City of Ramsey. Timeframe: 25 minutes Observations /Alternatives: