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March 1, 1977 <br />. . <br />t <br />TO: The Honorable Mayor and Members of the Council <br />FROM: Thomas F. Lewcock, City Manager <br />SUBJECT: Comprehensive Street Improvement Program <br />At the meeting of February 8, the Council directed that a.report be <br />prepared regarding a comprehensive street improvement program, such <br />report to include the guidelines of the Council made atthe February 8 <br />meeting. A management team consisting of the Director of Public Works, <br />City Attorney, Finance Director and City Manager was organized to <br />develop the report. <br />The report is divided into four primary sections: Street Overlays, <br />Curb Replacement, Road Reconstruction, and New Improvements. <br />Because the Council action of February, 8 laid out the basic guidelines <br />we have.not in this report generated alternatives but have rather <br />developed recommendations around how the Council guidelines can be <br />implemented. <br />Section I —Street Overlays <br />Past capital improvement plans have discussed the need for <br />street overlays at length. Within the past year the questions of <br />what should the assessable percentage be and how should the City's share <br />be financed have been raised. The Council has gone on record as <br />supporting a minimal assessment program, with the City's share paid <br />with general obligation debt. <br />Discussion and Recommendations: <br />1. Overlays be assessed at the rate of 25%: <br />If bonding is to be utilized°:under M.S.A. 429, at <br />least 20% of a project must be assessed. Because of the small <br />number of dollars per lot involved in overlays, it would be <br />quite difficult to establish whether the improvement cost <br />did or did not equal benefit. When a 20%-25% assessment is <br />considered, it would seem that a benefit in this amount <br />certainly would exist. At any rate only in the most unusual <br />circumstances (such as huge frontage) would it make sense for <br />anyone to challenge the assessment. Nevertheless, a 25% <br />assessment is proposed in that a 5% "buffer" is created so <br />that if challenge does occur, the minimum 200/. overall <br />assessment can be maintained. The 25% assessment method provides <br />the council with flexibility, provides latitude for future <br />changes of law, and does not obviate the hearing process. <br />(This last point reflects the fact that if a 2(% method is <br />selected, the Council cannot legally drop below the 20% ceiling, <br />and, therefore, a person subject to the hearing might wonder <br />what the purpose of the hearing was.) <br />