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Charter Commission <br /> October 9, 2003 <br /> Page 2 <br /> DRAFT <br /> Chair Montain advised the open meeting laws and e-mail issue would be discussed under new <br /> business. <br /> City Clerk Blair stated there is concern regarding the statement of hard copies. She suggested <br /> that statement be revised. <br /> Commissioner Dahl stated she did not have time to review the meeting tape. She suggested the <br /> City Clerk review the tape to make necessary revisions. She stated the minutes should be tabled <br /> until the revisions are complete. <br /> MOTION by Commissioner Dahl, seconded by Commissioner Bening, to table the August 14, <br /> 2003 minutes to the January, 2004 meeting. Motion carried with Chair Montain voting no and <br /> Commissioners S. Lane and G. Lane abstaining. <br /> SPECIAL BUSINESS RELATING TO REFERENDUM <br /> Discussion Relating to Referendum —Community Development Director Grochala referred to a <br /> City map pointing out the Charter exempt areas. He stated those areas do not have to go through <br /> Section 8 of the Charter. The section indicates there is no opt out of assessments except in <br /> existing residential uses. That provision has an impact on the City's bond rating. <br /> Mr. Steve Bubul, City Legal Consultant, stated the issue comes from federal regulations. The <br /> concern is that assessments are a type of loan. The City needs to be sure that everyone is being <br /> assessed on an equal basis. The rules need to be equitable for everyone. In the Charter exempt <br /> areas the rules are not consistent. Residential uses can opt out of assessments but the commercial <br /> uses can not. Because of that the City can not use tax exempt bonds for projects. <br /> Mr. Bubul advised the options are to eliminate the exempt areas altogether. Another option is to <br /> leave the exempt areas but have those areas comply to state law-meaning residents can't opt out <br /> of the assessments. <br /> Chair Montain stated those areas have substantial acreage with multiple property owners. The <br /> City is not proposing to do projects to the entire area. It seems as though the City anticipating <br /> problems that may never arise. <br /> Mr. Bubul stated that even if a project only affects one property owner, the City is still in <br /> violation because not everyone has the same rights. A third option is to eliminate the residential <br /> opt out and eliminate all residential properties within those areas. That option is only realistic if <br /> improvements there will not benefit any residential property. <br /> Commissioner DeMotts stated the City could eliminate Subdivision 3 of the Charter, which was <br /> added in 1993. <br /> 2 <br />