Agenda - Council - 10/08/2019 - Laserfiche WebLink

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Committee would consider whether special assessments should be used to pay for a portion of project costs at a later date. On September 10, 2019, Staff received City Council authorization for Hakanson Anderson to complete topographic survey work, and for Northern Technologies, Inc. to prepare a geotechnical report, including the completion of 61 soil borings and pavement corings. Staff is now requesting that the Public Works Committee discuss whether special assessments should be used to pay for a portion of the project costs, and then provide a recommendation to the City Council on whether special assessments should be part of the funding program and, if so, in what amount. If assessments are to be included in the funding program for this project, Staff will need to start working on the Feasibility Report as soon as possible. Timeframe: Staff estimates 20 minutes will be required to present this case and address questions. Observations/Alternatives: Observations: Staff is requesting a recommendation from the Public Works Committee to the City Council regarding whether special assessments should be included as a funding source for the reconstruction of Variolite Street in 2020 and, if so, in what amount. Alternatives: Alternative # 1: Motion recommending City Council approval of a funding program for the Variolite Street Reconstruction project, Improvement Project #20-01, including special assessments in the amount of $5,000 per benefiting property. Alternative #2: Motion recommending City Council approval of a funding program for the Variolite Street Reconstruction project, Improvement Project #20-01, including special assessments in the amount of $ per benefiting property. Alternative #3: Motion recommending City Council approval of a funding program for the Variolite Street Reconstruction project, Improvement Project #20-01, not including special assessments. Funding Source: Staff proposes the following funding program for this project: • Municipal State Aid (MSA) funds — MSA funds are proposed to pay for the majority of project costs, and will pay for the portion of project costs ultimately proposed to be recovered from special assessment payments. • Stormwater Management/Utility Funds — SWM/SWU funds are proposed to pay for all stormwater related project costs using a 50/50 split. • Special Assessments — Assessments are proposed to be levied at a flat rate of $5,000 per benefiting property. Recommendation: Staff recommends Alternative # 1. Levying special assessments on the 13 properties with direct access to Variolite Street will ensure that the City does not set a precedent whereby benefiting property owners on future street reconstruction and overlay projects could object to being specially assessed. Based on the results of Special Benefit Consultation Reports completed on past projects, Staff proposes to levy assessments in the amount of $5,000 per benefiting property. Staff believes this amount is reasonable, and that it can be legally defended, if needed. Staff would support Alternative #2 if an assessment amount is chosen that is reasonable and can be legally defended. Action: Motion recommending City Council approval of a funding program for the Variolite Street Reconstruction project, Improvement Project #20-01, including special assessments in the amount of $5,000 per benefiting property.