Agenda - Council Work Session - 10/14/2014

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the minimum rate of 20% as required for bonding may exceed $10,000 for larger benefiting properties, especially for properties an acre or more in size which comprises a large percentage of residential properties throughout the City. An amount this large would likely be hard to defend if challenged. In fact, some cities perform appraisals on one or more representative properties at the front end of projects to determine if the proposed assessments are defendable, but this in turn then increases project costs, as well as assessments. Staff is also seeking Council approval of the identified assessment methods for single and multi -family residential, commercial and industrial properties. For example, multi -family residential, commercial and industrial properties often vary greatly in size and shape so staff is proposing to follow the lead of most other cities by using the front footage method for assessing improvements against these properties, and to assess single-family residential properties based on either the per unit or the area method. Per Public Works Committee direction on May 20th, Staff obtained assessment policies from numerous cities that apply special assessments to fund their public improvement projects. Attached are copies of assessment policies from Andover, Blaine and Champlin. These contain many of the considerations included in the attached draft Policy. Assessment policies from numerous other cities have also been obtained and will be available for review at the meeting. Attached for reference is a tabulation of the more pertinent information from the other cities assessment policies. The draft Policy includes numerous revisions intended to reference and ensure compliance with our City Charter language. The City Attorney is currently reviewing the draft Policy to ensure it has the proper legal form and that is conforms to City Charter requirements for the use of assessments. Chapter 8 of the City Charter addresses assessment requirements and is attached for reference. Also attached 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 can assist in developing the City of Ramsey's Special Assessment Policy. Property owners in the City of Ramsey have previously been assessed primarily for seal -coat and overlay projects in the amount of $2,000 or less for residential properties, and $7,000 or less for commercial/industrial properties. Attached is Appendix B as attached to the January 19, 2010 Public Works Committee case which lists the City's previous Street Maintenance Program assessment practices, including several of the effective dates. Council should be aware that Staff is waiting to finalize the Garnet Street/168th Avenue Feasibility Report pending approval of the draft Special Assessments Policy as this project is included in the CIP for construction in 2015. The Andrie Street/164th Lane Feasibility Report will be finalized at a later date as this project is included in the CIP for construction in 2016, which will pair nicely with Elk River's proposed reconstruction of Jarvis Street in 2015. Lastly, several provisions for City utility assessments are included in the draft Policy. Staff is seeking Council direction on whether such language should remain in the Policy, or whether this language should be removed and addressed at a later date. Timeframe: Approximately 30 minutes for presentation and discussion. Funding Source: The draft Policy is being developed in-house as part of Staffs normal duties. The City Attorney is reviewing the draft Policy, particularly to ensure it conforms to all applicable City Charter provisions related to assessments. Costs for the City Attorney to review the Policy will be paid from the general budget. Responsible Party(ies):