03-22-2010 Ericson Memo to CC Re Chap 8

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Page 1 M EMORANDUM to: Charter Commission Members from: Jim Ericson, Clerk-Administrator re: Potential Amendments to Chapter 8 date: March 22, 2010 I am writing to provide a summary of issues regarding a potential revision to Chapter 8 of the Mounds View City Charter entitled PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS. A “Local Improvement” is defined as a public improvement financed partly or wholly from special assessments. A public improvement however is not defined in the Charter or in City Code. This chapter of the Charter articulates the manner in which an improvement utilizing special assessments is initiated—either through a resident petition or through independent action of the City Council. The Charter indicates that a project proposed by residents must also be approved by the City Council, which would mean that absent such Council support, the resident petition could not move forward. The Charter is silent on petitions for improvements that do NOT include special assessments. When a supported project utilizes special assessments, the Council orders the preparation of a feasibility report to ensure the project is necessary, cost effective and feasible. Upon receipt of such a report that confirms the project is needed, cost effective and feasible, the City Council schedules a public hearing by resolution. After the public improvement hearing is held, sixty days is allotted during which time no further work on the project proceeds, to provide opportunity for petitions against the project to circulate and be filed. If no petitions are filed against the project within the 60 days, the project may move forward. After two successive street projects failed due to the petition process, the City established a Taskforce to respond to the issues addressed by petitioners. The Taskforce focused their efforts on two specific areas--street design and financing. The Taskforce met in 2007 and after many well- attended meetings, a standard street design plan was adopted and a financing plan was approved which eliminated the 25% special assessment and replaced it with tax increment finance (TIF) dollars. Other funding sources were identified, including a ten-year across-the-board tax levy to support the Street and utility Improvement Program instead of a series of project specific street improvement bonds. After the work of the Taskforce was concluded, the City Council established a Streets Committee to help guide the development of the projects, to consider non-standard design issues, to hold neighborhood meetings and to address and respond to resident questions and concerns prior to City Council actions.