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WS — Item 1 WORK SESSION STAFF REPORT Work Session Item 1 Date: March 5, 2012 To: City Council From: Michael Grochala Re: City Charter Amendment Background At the February 27, 2012 special council meeting, the council discussed a proposed amendment to the City Charter regarding the public improvement process. The amendment is based on the proposal prepared by the Citizen Charter Task Force in 2007 and considered by the council in March of 2008. Consideration of an amendment, based on the task force proposal, is scheduled for the March 12, 2012 City Council meeting. Following the February 27 discussion, staff worked with the City's legal consultant to draft a revision that includes a reverse referendum component. A similar option was previously included in the Charter Commission's 2008 amendment proposal. Rather than require an election outright, as is the case under the current charter requirements, the language allows for residents to petition for an election on the improvement. The petition would require the signatures of 12% of the voters from the last general municipal election. The reverse referendum provisions are contained in Section 8.02, Subdivisions 5 and 6 of the draft ordinance. The following is a brief summary of the major elements of the ordinance: 1. Section 8.01, Subd. 1 defines local improvements as any public improvement financed in whole or in part from special assessments. Projects that are not financed using special assessments are not subject to charter provisions and follow state law. 2. Section 8.01, Subd. 3 states that the amount of special assessments shall not exceed the cost of the local improvement and shall not exceed the benefit to the property. 3. Section 8.02, Subd. 1 specifies that local improvements will follow state requirements except as specified in this charter section. Procedural steps following state law include but are not limited to the following: • Initiation of the improvement by either petition or city council • Preparation of a report on improvements (feasibility study) • Calling for a public hearing • Published and mailed notice of the public hearing • Public hearing on improvements. 4. Section 8.02, Subd. 2 allows for a written objection to the improvements from 50% of the