Minutes - Charter Commission - 09/25/1986

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some time in the future, is consistent with the charter intent; in other words, the assessment is for the total system and not just the immediate improvements that are being constructed. Commissioner Lichter stated that he thinks the procedure is totally appropriate as long as the future costs and what they are for are noted at the hearing. Also, Chapter 11 of the charter requires that the city assess all costs of utilities to the user; to do that, the city has to take into account all costs necessary to have the system complete and operating. Commission consensus is that the current process for systems costs meets the intent of the charter. The discussion again focused on the 10% over estimate requirement for a one year postponement or cancellation of project and Mr. Hartley noted that the State statute estimate override limit is set at 20%. Mr. Hartley stated that with the changing market climate, the price of materials and construction conditions, it is very difficult to present an estimate that will be within 10% of the actual cost. Mr. Hartley inquired if the Commission feels that 10% is essential to assure the public and those being assessed that nobody gives false information. Mr. Raatikka noted that construction market and conditions can vary greatly in that interim between when estimates are made and the project is bid. Commissioner Lichter agreed that 10% is a very narrow margin to stay within; suggested that the estimate override be tied to the assessed cost of the project. Commission directed staff to draft appropriate language, for Commission review, that would amend the estimate overried factor to be based on assessed cost rather than project cost. COMMISSION INPUT Commissioner Gamec stated that he is not aware that the operational budget submitted in 1985 was approved. The Commission scheduled their next meeting date for Thursday, October 23, 1986. It was noted that the meeting minutes of April 25, 1985 and May 30, 1985 should also be on the October 23 agenda for approval. ADJOURNMENT Motion by Commissioner Data and seconded by Commissioner Lichter to adjourn the Charter Commission meeting. Motion carried. Voting Yes: Chairman Sieber, Commissioners Gamec, Data, Lictoer, Greenberg and Bauerkemper. Voting No: None. Absent: Commissioners Buchanan and Titterud. The meeting adjourned at 11:15 p.m. Respectfully submitted, Syl¥~a Frol~k Secretary September 25, 1986 Page 6 of 6