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Council Meeting Minutes for July 10, 2023 <br />Page 8 of 11 <br /> <br /> <br /> <br />Klein made motion, Petryk seconded, to approve RESOLUTION NO. 2023-20 A <br />RESOLUTION ORDERING PREPARATION OF A FEASIBILITY REPORT FOR PUBLIC <br />IMPROVEMENTS TO ALL OR PORTIONS OF ROADWAYS IDENTIFIED AS THE 2024 <br />STREET IMPROVEMENT PROJECT. <br /> <br />All Ayes. Motion carried. <br /> <br />Discussion on Assessment Fees <br /> <br />City Engineer Mark Erichson explained that the City of Hugo last amended its assessment policy <br />in 2013, and occasional review of the policy to confirm or modify the assessment approach was a <br />good municipal practice. He said some communities do not assess, but many do. In Hugo, this <br />system was the way road projects were financed. He talked about different assessment types that <br />could be used. Hugo had a set rate per unit that was uniform for all properties and based on the <br />type of project being done. Rates had not been changed in ten years, and construction costs had <br />gone up. He questioned whether Council felt those rates were where the City wanted them to be. <br /> <br />Miron asked about the state statute governing assessments and what percent of the projects were <br />assessed. Erichson replied that it was Chapter 429 that provided legal guidance to the process. It <br />defined who and how much could be assessed, and he said it was related to the benefit received. <br />The percent of the project costs assessed was typically in the single digits to somewhere in the 30 <br />percent range. Last year’s project was assessed around 33 percent. The City typically funds <br />around 80 percent. Commercial and multifamily rates were different because they were <br />essentially based on 80-foot-wide lots, and there was a factor of 1.5 applied to commercial and <br />multifamily. Those assessments were often significantly less due to the density. Erichson talked <br />about unique circumstances that were not covered in the assessment policy such as the Oneka <br />Parkway project last year where most units did not have frontage but had common space and <br />outlots. He would like to include language to clarify this in the policy. <br /> <br />Weidt asked about roadway reclamations (rural). Erichson replied that most often when these <br />projects were done, the material remained in place and paved over. In areas where there was <br />curb and gutter, the material could not be reclaimed because it raised the road. Erichson said the <br />policy could be modified to include more concise language on that. <br /> <br />Petryk said she was on the Council when the current policy was drafted which involved a lot of <br />work. She said she was in favor of the policy in 2013 and thought the policy had worked well. <br /> <br />Klein agreed with Petryk saying this had worked for the City for years. The City picks up <br />approximately 80% of the costs. He felt projects turn out nice and increased property values. <br /> <br />Weidt talked about roads being a community network, and when a project comes into a <br />neighborhood, there was an expectation and requirement for property owners to pay an <br />assessment. He said this would be an opportunity to clean up the policy, and all Council <br />members agreed. <br />