Minutes - Charter Commission - 11/19/2013 - Joint with CC

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City Engineer Westby stated the roads constructed during the period 1976 -1985 are currently in good shape and should last for 60 years, but will deteriorate quickly as they near 75% of their life span. Commissioner Niska asked whether the calculations have been adjusted for inflation. City Engineer Westby stated the calculations for maintenance costs are appropriate for 2013 and are not adjusted. City Engineer Westby stated road projects are currently funded through the general operating levy, property taxes, obligation bonds, municipal state aid, or special assessments. He added these funding sources are not reliable for street reconstruction as they generally vary from year to year, and reconstruction costs will continue to rise. He stressed the importance of finding a reliable funding source that is dedicated to street reconstruction, and that is also transparent for taxpayers. City Engineer Westby stated that a "listserv" survey was submitted to other metropolitan municipalities to determine options for alternative funding. He added other cities pay for street maintenance programs through grant funding, franchise fees and special legislation. He added the City of Blaine uses special assessments on overlay and reconstruction projects, while Elk River recently implemented franchise fees. Commissioner S. Anderson stated the city of Lino Lakes does not have a street maintenance program, and a municipal election is necessary for street repairs of any kind. City Attorney Langel confirmed that Lino Lakes requires a referendum as there is no general fund money for road reconstruction. Commissioner Deemer stated he would support a City -wide assessment, which would be equitable for every property owner. Mayor Strommen requested clarification regarding MSAS funds being used to pay past debts. City Engineer Westby stated MSAS funds are allocated separately to maintenance and_ construction, based on need. He added MSAS funding is unrestricted once it is received by the City. Chairperson Field asked how many miles of road there are in Ham Lake, and how they fund their projects. City Engineer Westby stated he is unsure of the number of miles, but they are funding out of the general levy, and there are not as many roads as Ramsey. Public Works Superintendent Grant Riemer stated there are 140 miles of road in Ham Lake. Councilmember Riley stated MSAS funding is often misunderstood, and in the past has been pledged to bonds and not available for street maintenance. City Council Work Session / November 19, 2013 Page 3 of 15