02-19-2013 Council Special Meeting

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MINUTES CITY COUNCIL FEBRUARY 19, 2013 has many more and heavier trucks and equipment to and from their site. Gilroy also felt that Frattalone Companies had a strong incentive to see the road improvement move forward. He also stated that the Fulcrum business did not contribute a lot in terms of wear and tear on the road. Montour indicated that Gilroy raised some good points, but noted the condition of Spruce Street and the fact that it will continue to deteriorate. Delaying the project will result in increased costs in the future. Montour also noted the proposed assessment of the St. Paul Regional Water Services and the railroad properties, each of which accesses Spruce Street on a limited basis. With regard to Frattalone Companies, Montour noted that the City utilizes a fair and equitable bidding process for its projects. Montour noted that Frattalone Companies have bid a number of Little Canada projects, but have not always been awarded the bid. The City Administrator did not recall that Frattalone bid the last number of road projects. He indicated, however, that he believes Frattalone Companies is interested in seeing the road redone. The City Administrator reported that State Statutes provides for a benefits received test in assessing properties, which means that the level of assessment must increase the property value by at least the amount of the assessment. He noted that one rational for utilizing a per unit assessment is the fact that St. Paul Water has extensive frontage on Spruce Street, and assessing based on footage would result in an extremely high assessment. The Administrator was not certain whether St. Paul Water would then object to the assessment. He did, however, acknowledge that assessing on a front foot basis would decrease the level of assessment to the other abutting properties. The Administrator reported that given the level of assessments and the potential for objections, City staff is proposing that the assessment hearing be held before bids for the project are awarded. The Administrator also suggested that staff would review the assessment methodology to determine if some changes could be made. He indicated that if the Fulcrum assessment were based on front footage, at the commercial rate of $126.70, the assessment would be approximately $43,000. The Administrator stated that he can appreciate the comments made by Gilroy and the Fulcrum business situation, but noted that the City must take care of its streets. He pointed out that given the condition of the street, the subbase has deteriorated, therefore, the street no longer warrants patching or a mill and overlay. The Administrator noted that to delay the improvement only increases the cost and pointed out that the City share of the cost is borne by all the taxpayers in Little Canada. The Administrator again suggested that City staff review the assessments to determine if there is a better way to handle the apportionment of cost. 4