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CITY COUNCIL AGENDA ITEM 3A(i) STAFF ORIGINATOR: Michael Grochala MEETING DATE: August 13, 2012 TOPIC: Consider 2nd Reading of Ordinance No. 05-12 Amending Chapter 8 of the Lino Lakes City Charter, Regarding Public Improvements and Special Assessments VOTE REQUIRED: 3/5 INTRODUCTION The City Council is considering the amendment of Chapter 8 of the City Charter as it relates to Public Improvements and Special Assessments. State law specifies the procedure for amendment of the charter by council recommendation. Council consideration and approval of the 2nd reading of Ordinance No. 05-12 is necessary for consideration of the proposed amendment by the voters in the November election. BACKGROUND The City Council has been discussing a proposed amendment to the City Charter regarding the public improvement process for several years. The current amendment is based on the proposal, prepared in 2007, by the Citizen's Task Force to Review Charter Provisions Pertaining to Public Improvements (the "Task Force Amendment"). The Task Force Amendment was modified by the council in 2008 to delete Section 8.07 relating to charter "exempt" areas. Following the February 27, 2012 council 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.