Agenda - Council - 12/12/2017 - Laserfiche WebLink

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Motion carried. Voting Yes: Acting Chairperson Kuzma, Councilmembers Johns and Shryock. Voting No: None. 5. COMMITTEE BUSINESS 5.01: Consider Recommendation to City Council Regarding Connexus Energy's Special Assessment for Sunwood Drive Reconstruction City Engineer Westby reviewed the staff report and stated that up to 25% of costs of the Sunwood Drive Reconstruction project is proposed to come from special assessments to benefiting properties. Connexus Energy is one of nine properties that are proposed to be assessed for this project. Connexus uses Sunwood Drive as the primary access for their fleet of service vehicles. Connexus Energy has not formally objected to their preliminary assessment, and City Staff's meetings with representatives of Connexus have been cordial and productive. When the Special Assessment policy was adopted, the City used the League of Minnesota Cities' model ordinance template that could be amended at any time during the process. City Engineer Westby stated traffic volumes and/or vehicle types were not considered in calculating assessments for any of the benefiting properties. Based on vehicle impacts of all existing benefiting properties, Connexus Energy's service vehicle fleet likely has the greatest negative long-term impact on the service life of Sunwood Drive. Each parcel in this corridor is being assessed based on its highest and best use. This is the first business corridor that the City has attempted to calculate assessments, and the City's consultant has advised that each parcel in the corridor should be assessed based on its highest and best use, rather than its current status. City Engineer Westby stated the Committee is requested to review two alternatives. Alternative #1 is to recommend that the City Council adopt special assessments consistent with the calculations outlined within the Feasibility Report. Alternative #2 is to recommend that the City Council adopt adjusted special assessments based on Committee recommendations. He added staff does not recommend that assessments be adjusted, and if Connexus Energy's assessment is reduced, all other assessment amounts will need to be reviewed and adjusted which could delay the Assessment Hearing and increase the City's overall contribution to the project. City Engineer Westby introduced Mike Bash, VP and CFO, Connexus Energy. Mr. Bash gave a presentation regarding Connexus Energy's position on the special assessment issue. Mr. Bash stated he has served in City Government in Long Lake, Minnesota, in the past, and addressed similar issues. He added Connexus and the City of Ramsey are involved in a number of partnerships, including a proposed solar farm, and it is a good working relationship. Public Works Committee / September 19, 2017 Page 2 of 11