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HomeMy WebLinkAbout03-20-2018 Council Work Session PacketOrono City Council Work Session Tuesday, March 20, 2018 Council Chambers 5:00 p.m. AGENDA 1. Planning Commission Interviews 2. Purchasing and Land Acquisition Policy Discussion 3. Met Council Overreach Discussion 4. Street Improvement District Discussion Annual: • Budget: Part of June, All of July, August and October. • City Administrator & Police Chief Update (3 times per year for 15 minutes) Previous Work Session Topics February 26, 2018 • Orono Schools Event Update • Hiring & Training Standards • Trails — Maintenance of Dakota Trail January 22, 2018 • Short Term Rental Regulation CITY OF ORONO MEMORANDUM DATE: March 20, 2018 TO: City Council FROM: Jeremy Barnhart, AICD, Community Development Director RE: Planning Commission Interviews The City has received 5 applications to fill the vacancies resulting from three Planning Commissioners serving their maximum terms. The five applicants are: Dennis Libby, James Seals, Mark McCutcheon, Bob Erickson, and Jon Ressler. A short questionnaire has been sent to the applicants with the 6 questions below, requesting responses by noon on Monday, March 191h. Once received, these responses will be forwarded to Council members. 1. What is your understanding of the role of a planning commissioner? 2. What interests you most about this position? What do you think will be your biggest challenge in this position? What is your biggest concern? 4. How do you feel about regulating your neighbors? 5. Describe your understanding of the City's Comprehensive Plan and zoning regulations. 6. Describe your experience with the zoning review process —variance, CUP, site plan review, or writing code amendments. From the responses, the Council is asked to ask a few follow up questions of the Commissioners and score the applicants based on the following table. Ultimately, the Council will be asked to vote on the new membership at their regular meeting on March 20tH Evaluation: Criteria Excellent Good Fair Poor Interest in serving on the Planning Commission Knowledge, skills, abilities, and experience I I Familiarity with the following items: a. The City's Community Management Plan b. The City's rural development philosophy c. Protection of Lake Minnetonka Support of current Programs/Policies and Philosophy of City Perspective on Council/Planning Commission responsibilities and relationship Perspective on ways to develop or maintain good Planning Commission/applicant/staff relations I Perspective on key issues facing the Planning Commission The newly appointed Planning Commissioners first meeting would be the joint workshop on April 9'. Their first regular PC meeting will be April 16tH CITY OF ORONO MEMORANDUM DATE: March 20, 2018 TO: City Council FROM: Dustin Rief, City Administrator RE: Purchasing and Land Acquisition Policy Discussion The purpose of this Work Session Item is to initiate discussion of a Purchasing and Land Acquisition Policy. CITY OF ORONO MEMORANDUM DATE: March 20, 2018 TO: City Council FROM: Dustin Rief, City Administrator RE: Met Council Overreach Discussion The purpose of this Work Session Item is to initiate discussion of Met Council Overreach. Exhibits Exhibit A. Item 3 of Council Work Session Packet 08-22-16 MEMORANDUM TO: ORONO CITY COUNCIL FROM: JEREMY BARNHART, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: METROPOLITAIN COUNCIL REFORM DISCUSSION DATE: AUGUST 22, 2016 There has been discussion over the past few years regarding the need for reform on how the Metropolitan Council operates. More recently, a coalition of counties and some communities, mainly from suburbs and suburban counties all serviced by the Met Council, have established goals and objectives, a primary one being a goal to expand local government representation on the Metropolitan Council. A coalition has been formed, and local governments have been asked to sign a resolution supporting their goals and objectives, outlined in Exhibit B. Their update letter is Exhibit A. Communities that have signed on do not represent a majority of the metro area but are listed in Exhibit C. The Citizen League is a non-profit policy organization that recommends and advances creative solutions to problems facing Minnesotans. They convened a task force to study the issue and provided additional viewpoint. Their executive summary is attached as Exhibit D. Their complete, final report may be found by following the following link: http://cidzensleagLie.org/the-citizens-league-metropolitan-council- task-force/ Staff requests direction or discussion on the topic. Having our Met Council representative, Jennifer Munt, attend a Council meeting in the future could be a next step in the analysis of this issue. Attachments Exhibit A. Coalition update letter Exhibit B. Coalition goals and objectives Exhibit C. List of Communities Exhibit D. Citizens League executive summary and related news article. July 11, 2016 Mayors and Council Members: For many years, both cities and counties have been working toward reform of the Metropolitan Council. In 2010 and 2011, all seven metropolitan counties, as well as Metro Cities, put together working groups to make recommendations regarding regional governance. While the approaches and recommendations of these two groups have differed, there has been a very persistent and consistent message that reform of the Metropolitan Council is both needed and appropriate. Over the past year, the suburban counties have been working toward establishing a more inclusive group representing cities and counties who reflect the growing consensus that change is overdue. This group has taken a strong position that local control must be a key element of any reform. Towards that end, we wanted to update you on the progress that has been made and the work that remains, and to encourage you to stay engaged in this very important topic. A coalition of local (city and county) government leaders developed a draft resolution, eventually passed by 41 cities and four suburban counties (list attached), supporting reform of the Council. These resolutions set forth principles to guide the process of moving away from our current state-agency/governor-controlled Council to one that provides for local control. Despite the rather chaotic end to the Legislative Session there has been progress regarding the reform movement. Local governments and other stakeholders, working with Legislators, have finally managed to move reform of the Metropolitan Council from the back burner; reform is now being considered and debated seriously within the region, the media, and at the capital. The idea that some type of modification is absolutely necessary is now an accepted and consensus position of nearly every group. Even Governor Dayton and Metropolitan Council Chair Adam Duininck have indicated that they are open to suggestions regarding reform. Now that there is consensus that change is needed, we must begin the more difficult process of finding consensus on exactly what this change will look like. While there is agreement that change is needed, the changes being proposed by others differ substantially from ours— we argue that meaningful reform can only come with local control (local elected officials), while others advocate for minor adjustments that continue the status quo state agency model of governance. It is imperative that over the coming months we expand the coalition of local governments to include business groups, civic organizations, governmental associations, environmental and parks advocates, good government organizations, and others to build consensus in defining a new structure for the Metropolitan Council. We thank all of you for your continued attention to this issue, and we strongly encourage you to continue to be engaged in this important initiative through the coalition of local governments and the various other organizations that are pursuing Council reform. We will be in touch soon with more information and further updates on our efforts. Sincerely, e� 61'ceca""l Rhonda Sivarajah Anoka County Board of Commissioners S t Schulte Anoka County Board of Commissioners Tom Workman Carver County Board of Commissioners . d&4u Liz or kmann Dakota County Board of Commissioners 4� Mike Beard Scott County Board of Commissioners Enclosures: 2 • Anoka County Board of Commissioners Randy Maluchnik Carver County Board of Commissioners Nancy S uweiler Dakota County Board of Commissioners Chris Gerlach Dakota County Board of Commissioners ---, &L, Jon hich Scott County Board of Commissioners Metropolitan Governance Reform Twin Cities' Local Government Coalition -Statement of Objectives - A coalition of local governments throughout the metropolitan area has joined together to develop a position statement and a set of principles for improving metropolitan governance in the Twin Cities. The Coalition supports the need for regional planning, collaboration and coordination, but seeks to expand local government representation on the Metropolitan Council. The Coalition's objectives for its collective effort to improved governance are: To articulate a vision of responsive and effective metropolitan governance—as represented by a Statement of Belief and Principles for Reform of the Metropolitan Council i. To align local government interests behind a reform effort—through formation of a broad coalition of metropolitan Cities and Counties —and a common position. 3. To be prepared for any efforts—legislative and otherwise—to reform the governance structure and functioning of the Metropolitan Council. Attached is the Coalition's Statement of Belief and Principles for Reform. Twin Cities' Local Government Coalition Principles for Metropolitan Council Reform The following principles were developed by a coalition of cities and counties in the metropolitan area, a coalition created to advocate for reform of the Metropolitan Council. The group believes that an effective Metropolitan Council should reflect the following principles, which were developed based on the group's core Statement of Belief (printed below). STATEMENT OF BELIEF: The Metropolitan Council, due to its taxing and policy authority, should be accountable to a regional constituency of those impacted by its decisions. It should not operate as a state agency—as it does in its current form—answerable to only one person, the Governor. Principles for Metropolitan Council Reform: A majority of the members of the Metropolitan Council shall be elected officials, appointed from cities and counties within the region. II. Metropolitan cities shall directly control the appointment process for city representatives to the Metropolitan Council. III. Metropolitan counties shall directly appoint their own representatives to the Metropolitan Council. IV. The terms of office for any Metropolitan Council members appointed by the Governor shall be staggered and not coterminous with the Governor. V. Membership on the Metropolitan Council shall include representation from every metropolitan county government. VI. The Metropolitan Council shall represent the entire region, therefore voting shall be structured based on population and incorporate a system of checks and balances. K Background and Justification of Position The Metropolitan Council was created to provide for the orderly and economic development of the Twin Cities metropolitan area. It has the responsibility and authority to guide the region's growth and to provide important regional services. The Counties of Anoka, Carver, Dakota, and Scott support the concept of a regional approach, and have no wish to abolish the Council or diminish the importance of regional collaboration. However, the Council's management of growth, and in particular the coordination and delivery of regional services has changed dramatically. At the same time, the role of counties has evolved. Increasingly, Counties have undertaken direct provision of regional services including: hazardous and solid waste management, transit funding and transitway development, regional parks, regional highways, water resources planning and watershed management, greenway and bikeway development, farmland and open space preservation, the regional library system, fiber communications networks, and the 800 MHz radio network. The Council's recent focus on reducing poverty and disparities makes it even more essential that within the governance structure there is understanding and improved coordination with county programs --- which exclusively provide economic assistance, social services, workforce development/employment, counseling, public health, nutrition and family "home visiting" services, workforce and specialized housing programs and many other anti -poverty and human services. In these and many other circumstances, the State, Metropolitan Council and city governments have all looked to counties to provide both the financial and political leadership needed to address key regional issues. Thus, while a strong regional approach is necessary for many issues, it is necessary for the regional governing body to feature strong county representation, as well as representation from other local elected officials. Currently, the members of the Council are non -elected individuals answerable only to the Governor, an office that has often been elected without majority support from metropolitan -area voters. The Council, which has the ability to levy taxes on metropolitan -area residents, should be answerable to the citizens and taxpayers of the area it represents rather than a single officeholder. The best way to ensure that the interests of citizens of the metropolitan -area are represented is to have a preponderance of locally elected officials on the Council --individuals that do not serve exclusively at the pleasure of the Governor. This will have the added benefit of allowing the Council to meet federal guidelines to serve as the region's Metropolitan Planning Organization, a move encouraged by Federal Transit Administration (FTA) and Federal Highway Administration (FHA) to make the Council "more directly accountable to its public'." Regional governance is vital to the metropolitan area's continued success. However, in order for a regional body to be effective it must be credible, meaning that regional citizens must feel that the body effectively represents their goals and values. Citizens currently feel disconnected from the Metropolitan Council, preventing it from functioning as an effective regional governance body. The coalition of suburban counties is working to join the Metropolitan Council with the people it represents, so the region as a whole can unite for continued growth and prosperity. ' Letter from representatives of FTA and FHA to Ann R. Goering of Ratwik, Roszak, & Maloney, P.A., Aug. 3 2015 Principles on Metropolitan Council Reform: List of Adoptees (as of July 11, 2016) Cities Andover Lino Lakes Bethel Loretto Blaine Mayer Centerville Mendota Heights Chanhassen Mound Chaska New Germany Coates New Prague Cologne Norwood Young America Columbus Nowthen Crystal** Oak Grove Elko New Market Plymouth* Farmington Prior Lake Forest Lake Ramsey* Greenwood Shakopee Ham Lake St. Bonifacius Hamburg St. Francis Hampton Victoria Jordan Watertown Counties Anoka Dakota Carver Scott *Modified Principles adopted **No official resolution was passed, but a letter supporting the Principles was signed by the majority of City Councilmembers and the Mayor Citizens League COMMOagm od.C'OMMan$ood EXECUTIVE SUMMARY From September 2015 to March 2016, the Citizens League convened a special task force to consider possible Metropolitan Council reforms in response to growing questions and concerns. With the belief that the importance of the region is larger than just the sum of the interests of individuals, cities, counties, and even beyond the seven counties in the Metropolitan Council's formal jurisdiction, the task force reviewed the Metropolitan Council's performance against its goals; learned from a variety of stakeholders about the concerns raised; examined the tensions between the Metropolitan Council and counties, cities and individual Minnesotans; and discussed possible changes from the starting place of preserving and strengthening the Metropolitan Council's regional effectiveness. Citizens League Key Findings and Conclusions 1. Because the Chair and members of the Metropolitan Council are appointed by and serve at the pleasure of the Governor, Council members are perceived by some as primarily accountable to the Governor and not to the districts from which they were appointed or to the region as a whole. This structure is viewed by some as preventing members from acting as an independent advocate for their district or the region. 2. With Metropolitan Council member term(s) being coterminous with the Governor's term(s), this results in the possibility of a complete turnover of members with each new Governor. This works against the Metropolitan Council's charge of long-term planning for the orderly and economical development of the region. 3. There is growing poverty, both concentrated and dispersed, throughout the region, and this should inform decision-making under the current authority of the Metropolitan Council. 4. Water quality and supply is a critical long-term regional asset and is currently perceived to be complicated by numerous overlapping, governmental entities with planning, operational, and regulatory authority. The Council has certain authorities for water planning in the region. 5. There are important questions and valid concerns about the region's transit and transportation finance and delivery systems related to accountability and transparency, efficiency and effectiveness, and equity. Citizens League Recommendations to the Governor and Legislature 1. Adopt fixed four-year, staggered terms for Metropolitan Council members. Members would still be appointed by the Governor and would serve fixed, four-year terms. The Chair would be appointed by the Governor and continue to serve at the pleasure of the Governor per statute 473.123, Subd. 4. 2. The Metropolitan Council member selection process should include more input by citizens and local officials, strengthening the credibility of the Metropolitan Council, and further encouraging the appointment of well-qualified members. To achieve this, the Citizens League proposes: a. Expanding the current Metropolitan Council nominations committee from seven to 13 members. Of these 13 members, seven should represent citizens -at -large and six should represent local governments: three appointed by counties and three appointed by cities. Exe Summary Only. Final 04.04.2016 b. Adding additional public announcements to the current selection process: i. Detailed position description with required skills, time commitment, and connection to district to be clearly articulated and posted in advance of the call for nominees. ii. Requiring that the nominations committee recommend three finalists for each Metropolitan Council seat. The names of these finalists and their qualifications should be made public at least 14 days prior to final selection by the Governor. c. Adding to the current Metropolitan Council member qualifications: i. Experience in local government and/or experience in such areas including but not limited to transportation, housing, environment, and regional development. ii. The need/ability to represent both the demographic diversity of each district and the region as a whole. iii. Ability to meet the time commitment required to attend Council and community meetings, as specified in the position description. Citizens League Recommendations to the Metropolitan Council Fully deploy the Met Council's current authority to reduce concentrations of poverty in the region and foster increased connections to social and economic opportunities. Full utilization of Met Council authority includes but is not limited to: a. The creation of an equity policy plan to reduce concentrations of poverty in the region; b. The evaluation of existing transit routes to ensure the best means to more directly connect areas of concentrated poverty with job centers and high-growth industry clusters; and c. Using its research and convening authority to align regional stakeholders in pursuing strategies that will reduce poverty and its concentration, increase economic and social opportunity to advance future economic growth and mitigate the impact of demographic changes in the region related to aging. Recommendations for Further Study by the Citizens League Water Supply 4. The Citizens League task force acknowledges the importance of water supply in the region, as well as the many government agencies involved in its management. However, the task force did not study this issue in sufficient detail to provide a recommendation on such an important, regional issue. As such, the task force recommends that this issue be further studied by the Citizens League to ensure that water supply remains adequate and sustainable across the region, including all entities involved in its management and regulation. Transportation Planning and Governance 5. Experts who met with the Citizens League task force maintained that the region's system of transit governance, planning, funding and operation works well despite its seemingly fragmented but definitely complex nature. Still, there are important questions related to accountability and transparency, efficiency and effectiveness, and equity. Given the limited time the task force had to review these issues, it recommends that the Citizens League undertake a study of the region's system of governance, planning, funding and operation of all forms of transportation. Exe Summary Only. Final 04.04.2016 8/16/2016 Citizens League plan would bring more transparency to Met Council appointments - StarTribune.com NORTH METRO Citizens League offers compromise proposal for Met Council reforms Governor would still appoint members, but counties and cities gain voice in nominating them. By Shannon Prather (http://Www.startribune.com/shannon-prather/188067161/) Star Tribune APRIL 8, 2016 — 9:41PM The Metropolitan Council was born out of crisis. Confronted with a patchwork of failing sanitary sewers, the Citizens League proposed creating a regional council whose power would cut across city and county lines to manage a metrowide sewer system. Now, nearly 50 years later, the Citizens League says it has the best solution to revamp the Met Council, now a powerful — some believe too powerful — planning agency for the Twin Cities metro area. "We are asking for greater accountability and more involvement," said Sean Kershaw, the Citizens League's executive director. Leaders with the Citizens League, a nonprofit policy group, say their plan will shine light on the entire Met Council selection process and hold the governor more publicly accountable for appointments. They say it offers a better compromise than other reform plans that have pitted some city leaders against county commissioners. And it's a plan that Gov. Mark Dayton may actually sign into law, they say. Three former plans to reform the Met Council were vetoed by three different governors including Dayton. Sen. Scott Dibble, DFL -Minneapolis, has agreed to cut and paste most of the Citizens League's proposal into an existing Met Council reform bill. Under the reform plan, the govemor would still appoint the entire 17 -member Met Council. But an expanded 13 -member nominating committee would vet the candidates and make its recommendations public. The nominating committee would include three city representatives, three county representatives and seven others of the governor's choosing. If the governor rejects their recommendations, the public would know, Kershaw said. The Citizens League also is recommending staggered temis for Met Council members, so the entire council doesn't turn over with each gubernatorial election. "There is this perception that the nominating process goes underground," said Pahoua Yang Hoffman, the Citizens League's policy director. "This is reaction to criticism we've heard from cities and counties that they don't have enough of a voice in the nominating process." Currently, the governor selects a seven -member nominating committee, which recommends candidates without releasing their names to the public. That process, laid out in state law, long has fueled cries of "taxation without representation," because the Met Council has taxing authority, controls a $987 million annual budget and oversees regional planning in 188 communities. Over the years, rumors have swirled that governors have quietly rejected some or even all of the recommendations and made their own appointments. Frustration with the selection process has prompted nearly annual efforts at the State Capitol to change it. "It creates this perfect storm for disagreement," Yang Hoffman said. Reaching Washington Criticism of the council's makeup has become so acrimonious that battles now are being waged on two fronts —in St. Paul and in Washington, D.C. (http://stmedia. startdbune,com/images/ows_146016811 Kershaw http:/AA ww.startribune.com/citizens-league-offers-compromise-proposal-for-met-counciI-reforms/374768531/ 1/2 8/16/2016 Citizens League plan would bring more transparency to Met Council appointments - StarTribune.com Commissioners from Anoka, Carver, Dakota and Scott counties have pooled resources and offered a plan that would require the governor to appoint elected county and city officials to the Met Council. A reform bill in the House calls for that. "Personally, I do not believe it's enough," Anoka County Board Chairwoman Rhonda Sivarajah said about the Citizens League plan. "We would encourage the House and the Senate to be bold in their reform instead of nibbling around the edges." The four counties have hired D.C. lobbyists to tell federal authorities that the Met Council lacks legitimacy and should no longer be eligible to receive federal transportation dollars. So far, the U.S. Department of Transportation has rejected that argument. And the four counties have their own critics. Metro Cities, a lobbying group that represents 91 cities, including Minneapolis and St. Paul, strongly opposes the four -county plan, fearful that it would create conflicts of interest for elected officials who would have to wear two hats. Metro Cities Executive Director Patricia Nauman said the Citizens League's position is closely aligned with that of her organization. "I would view those changes as good government," she said. Met Council Chairman Adam Duininck has met with Citizens League officials about their plan. "I think they did a great job of putting together a diverse group of people," Duininck said. "I am not surprised where they landed." Kershaw said that, with feuding over the Met Council pitting cities against counties and reaching as far as Washington, the time has come for change. "There is a lot at stake here if it goes bad," he said. Shannon.Prather@startribune.com 612-673-4804 ShannonWrather http://www.startribune.com/citizens-league-offers-com prom! se- proposal-for-met-counci I-reforms/374768531/ 212 CITY OF ORONO MEMORANDUM DATE: March 20, 2018 TO: City Council FROM: Dustin Rief, City Administrator RE: Street Improvement Districts The purpose of this Work Session Item is to initiate discussion of Street Improvement Districts. Exhibits Exhibit A. Council Action Memo & Exhibits from 04-08-18 Exhibit B. Excerpt of Council Meeting Minutes 04-08-18 Exhibit C. Resolution for Street Improvement Districts Item #10 - CC Agenda - 04108/2013 Street Imporovement District - Letter of Support [Page 1 of 51 WS 03-20-18 Item 4 Exhibit A REQUEST FOR COUNCIL ACTION DATE: April 8, 2013 ITEM NO: ! () Department Approval: Administrator Reviewed: Agenda Section: Name Jesse StruveT Public Works Director/ Title Public Works Director/City Engineer XW City Engineer's Report Item Description: Street Improvement District — of Support List of Exhibits A- Letter of Support for Legislation Authorizing the Establishment of Municipal Street Improvement Districts B- Informational Sheet Regarding Street Improvement Districts from the League of Minnesota Cities. There is current legislation working its way through the Minnesota Legislature which will allow cities to establish street improvement districts. This authority would allow cities to collect fees from property owners within a district to fund municipal street maintenance or reconstruction. Staff is supportive of this legislation because it would allow the City another potential funding source for road maintenance or reconstruction. COUNCIL ACTION REQUESTED: Motion to approve the letter of support for enabling legislation that would authorize cities the ability to establish street improvement districts to fund municipal street maintenance, construction, and reconstruction. April 8, 2013 Senator David Osmek 4933 Crestview Road Mound, MN 55364 Representative Jerry Hertaus . 80552 Davis Street Greenfield, MN 55357 Representative Cindy Pugh 260 Mountain View Court Chanhassen, MN 55317 Item #10 - CC Agenda - 04108/2013 Street Imporovement District - Letter of Support [Page 2 of 51 CITY OF ORON® StreetAddress: Mailing Address: Telephone (952) 249-4600 2750 Kelley Parkway P.O. Box 66 Fax (952) 249-4616 Orono, MN 55356 Crystal Bay, MN 55323 www.d.orono.mmus Dear Senator Osmek, Representative Hertaus, and Representative Pugh I am writing to request your support for HF 745 (Erhardt, DFL -Edina) and SF 607 (Carlson, DFL -Eagan), legislation that would allow cities to create street improvement districts. This authority would allow cities to collect fees from property owners within a district to fund municipal street maintenance, construction, reconstruction, and facility upgrades. If enacted, this legislation would provide cities with an additional tool to build and maintain city streets. Here are some answers to questions that have been raised about the legislation: • This is enabling legislation. No city would be required to create a municipal street improvement district. • The street improvement district authority legislation is modeled after Minn. Stat. 435.44, which allows cities to establish sidewalk improvement districts. • This authority would provide a funding mechanism that is fair. It establishes a clear relationship between who pays fees and where projects occur, but stops short of the benefit test that sometimes makes special assessments vulnerable to legal challenges. It also does not prohibit cities from collecting fees from tax exempt properties within a district. • This tool allows cities to perform maintenance and reconstruction on schedule. Timely maintenance is essential to preserving streets and thereby protecting taxpayer investments. Item #10 - CC Agenda - 04108/2013 Street Imporovement District - Letter of Support [Page 3 of 5] This tool would allow property owners to fund expensive projects by paying relatively small fees over time. The tool could be used to mitigate or eliminate the need for special assessments. If you have further questions on this bill, please contact me at (612) 8408484 or at lmemillankei.orono.mn.us. You may also contact Anne Finn at the League of Minnesota Cities at (651) 281-1263 or afinnglme.gM. Thank you for considering this request. Sincerely, Lili McMillan Mayor, City of Orono Item #10 - CC Agenda - 04108/2013 Street Imporovement District - Letter of Support [Page 4 of 51 AGUE vF CONNECTING &. INNOVATING MINNESOTA SINCE 1913 CITIES Briefing paper ---2013 Minnesota cities and street improvement districts League position The League supports HF 745 (Erhardt, DFL -Edina) and SF 607 (Carlson, DFL -Eagan), legislation that would allow cities to create street improvement districts. This authority would allow cities to collect fees from property owners within a district to fund municipal street maintenance, construction, reconstruction, and facility upgrades. If enacted, this legislation would provide cities with an additional tool to build and maintain city streets. Supporters HF 745/SF 607 is also supported by the following organizations: • Association of Metropolitan Municipalities • Coalition of Greater Minnesota Cities • Minnesota Association of Small Cities • North Metro Mayors • Minnesota Transportation Alliance • City Engineers Association of Minnesota • Minnesota Chapter of the American Public Works Association Background Just as the state has fallen behind in malting transportation investments, some cities faced with budget challenges have made the difficult decision in recent years to hold off on scheduled street improvement projects. Maintenance projects, such as seal coating and overlays, can prolong the lifecycle of streets to 50 to 60 years. Without ongoing maintenance, the average life expectancy of local streets is approximately 25 to 30 years. For every $1 spent on maintenance, a road authority saves $7 in repairs. But this maintenance requires a reliable dedicated funding source other than the current volatile property tax system. For the same reasons, cities are also falling behind on the reconstruction projects necessary to help peep property values stable; and, cities lath viable options for building new transportation infrastructure to attract and retain the investments by businesses that peep Minnesota's economy strong. Existing funding mechanisms for street maintenance and reconstruction are inadequate. Special assessments can be onerous to property owners and are difficult to implement for some cities. Special assessments are not always useful for funding collector streets and other streets that do not abut private property. Property tax dollars are generally not dedicated and are sometimes diverted to more pressing needs such as public safety, water quality and cost participation in state and county highway projects. Municipal state aid (MSA) is limited to cities over 5,000 population --147 145 UNIVERSITY AVE. WEST €�a-€ow; (651) 281-1200 t>f%x: (651) 281-1299 .ST. PAUL„ MN 55103-2044 To€.t HUE: (800) 925-1122 wars: www,€.MC0RG Item #10 - CC Agenda - 04108/2013 Street Imporovement District - Letter of Support [Page 5 of 5] of 853 cities in Minnesota --and cannot be applied to more than 20% of a MSA city's lane miles. Existing MSA is not keeping up with needs on the MSA system. Key messages • This is enabling legislation. No city would be required to create a municipal street improvement district. • The street improvement district authority legislation is modeled after Minn. Stat. 435.44, which allows cities to establish sidewalk improvement districts. • This authority would provide a funding mechanism that is fair. It establishes a clear relationship between who pays fees and where projects occur, but stops short of the benefit test that sometimes makes special assessments vulnerable to legal challenges. It also does not prohibit cities from collecting fees from tax exempt properties within a district. • Fees paid under a street improvement district would be deductible just as property taxes are. • This tool allows cities to perform maintenance and reconstruction on schedule. Timely maintenance is essential to preserving streets and thereby protecting taxpayer investments. • This tool would allow property owners to fund expensive projects by paying relatively small fees over time. The tool could be used to mitigate or eliminate the need for special assessments. LMC Contact: Anne Finn, Assistant IGR Director, 651-281--1263, afrnnc,lrnc.org Updated March 13, 2013 MINUTES OF THE WS 03-20-I8 ORONO CITY COUNCIL MEETING Item 4 Exhibit B Monday, April 8, 2013 7:00 o'clock p.m. *8. #13-3597 JUSTIN McCOY ON BEHALF OF ORONO PUBLIC SCHOOLS -685 OLD CRYSTAL BAY ROAD NORTH — CONDITIONAL USE PERMIT — RESOLUTION NO. 6214 Levang moved, Anderson seconded, to adopt RESOLUTION NO. 6214, a Resolution Granting a Conditional Use Permit Pursuant to Section 78-418, for the property located at 685 Old Crystal Bay Road North. VOTE: Ayes 5, Nays 0. PUBLIC WORKS DIRECTOR/CITY ENGINEER'S REPORT *9. BOUNDARY SIGN COST ESTIMATE Levang moved, Anderson seconded, to approve the purchase and installation of 22 new Orono signs. VOTE: Ayes 5, Nays 0. 10. STREET IMPROVEMENT DISTRICT — LETTER OF SUPPORT Struve stated there is current legislation that is moving through the Minnesota Legislature which would allow cities such as Orono to establish street improvement districts. Essentially this would allow cities to collect fees from property owners within those districts to pay for street projects and/or maintenance. Staff feels this would give the current and future Councils opportunities for potential funding sources to fund some of these projects, and Staff would ask for a letter of support to be sent to the local legislators. McMillan noted she recently attended the monthly mayors meeting and that the League of Minnesota Cities and Metro Cities were in attendance to provide an update on this issue. The League of Minnesota Cities has been lobbying for 12 years in an attempt to get this bill through. The legislation has been pared down slightly in the last couple of weeks in the sense that this would only now apply to seal coating, mill and overlay or reclamation. The bill as it is now will not be for reconstruction projects and more for maintenance. Mattick stated his office has been asked to look and comment on the proposed legislation and that was one of the concessions made. When a reconstruction project is done or maintenance is completed, certain expenses are associated with that and many cities use special assessments to help offset the costs. Since it is difficult to prove that that property receives those specific benefits, this legislation would take those projects out of the special assessment process but would still allow the city to receive money from the properties that are receiving benefit from the project. Printup asked if any discussion was had as to whether these fees would be tax deductible. Mattick stated they typically are not but that it was not specifically discussed. Technically an assessment is not something you should be able to deduct. Mattick noted this would not be a tax but would be a fee. Printup noted one of the talking points says it could be deducted. Mattick stated if it is treated like a tax, it could be deducted, but that a fee could not be deducted. Levang noted the City is looking at being flexible going into the future. Levang noted the City has not made a formal decision to do this if the legislation is passed. Loftus stated it would simply be a tool to use and not a commitment by the Council to use this. Page 16 of 21 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 8, 2013 7:00 o'clock p.m. (10. STREET IMPROVEMENT DISTRICT —LETTER OF SUPPORT, Continued) McMillan noted there are lake improvement districts already on the books. Bremer commented there are also sidewalk districts. Printup stated his concern with it is that the City is setting themselves up on this path and that the City should have a discussion on what they want to do with special fees or assessments. Printup stated in his view one of the duties of the City is to take care of the roads, which is already included in the overall city levy. Printup stated the additional fee is his primary concern. Printup indicated he does understand if the legislation does go through, the City can establish its own parameters, but that he is totally uncomfortable with it since the citizens are already paying taxes, which should cover it. Bremer stated the point is fairness and noted that the City Council struggled with this issue relating to Casco Point. The City at that time went through an analysis of the special assessment realizing that others would have no interest in the new road but yet would end up paying for it. Bremer stated as it relates to the question of whether it increased the value of the property, it probably did, but the City made a decision not to do a special assessment and to spread the costs over all the residents. Bremer stated this legislation allows the City to use this tool only for the location that is benefitting from the work and that whether this Council or a future council makes a decision to do it or not to do it, it would require the next step of creating the districts. Bremer noted they are not making a philosophical decision at this time that the City is going to do it. McMillan stated the City has to look at getting back to assessments and discussing that. A number of cities currently use special assessments but Orono does not. Orono does have a fair amount of private roads and those people are saying that they are paying for everything. If this gets approved, this is a tool and opportunity that the City could decide to use and that further discussion should be had on this topic. McMillan stated to her recollection 40 cities have indicated they are in support of the legislation. McMillan noted there would be a public process for the residents to be involved in if the City decided to explore this further. Printup stated he would encourage the Council to maybe explore other options and perhaps look at certain restrictions being included in the bill, such as a sunset provision for a district to ensure that the work is completed within a certain time period. Printup indicated he has a concern that there is a collection of money sitting there but no project being completed. Printup noted the current legislation does not contain any language saying the money has to be spent within a certain period of time and that the City should consider putting some parameters on there. Anderson noted the Council would have the ability to place those parameters on their districts. Levang stated another question is if the City chooses to create those districts, whether they should get the money in advance or only get the money when a specific project is planned. Printup commented those are two issues that will need to be looked at. Page 17 of 21 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 8, 2013 7:00 o'clock p.m. (10. STREET IMPROVEMENT DISTRICT —LETTER OF SUPPORT, Continued) McMillan stated this might be a way to have more consistent maintenance since there would be a steady stream of revenue. Printup stated while he has some concerns, it does seem to be a fairer way to do road maintenance and be protective of the City from legalities. Bremer moved, Levang seconded, to approve the letter of support for enabling legislation that would authorize cities the ability to establish street improvement districts to fund municipal street maintenance, construction, and reconstruction. VOTE: Ayes 5, Nays 0. PUBLIC WORKS DIRECTOR/CITY ENGINEER'S UPDATE Struve reported they are currently evaluating various advertisements for the Orono Golf Course. Some of the improvements they are moving forward with include opening up the front door, painting, and various other projects yet to be determined depending on volunteer availability and funding. The front door to the club house has been evaluated and is in fairly good condition outside of some glass that needs to be replaced. Anderson asked if Struve got in contact with the lady that offered to help with the blog. Struve indicated he has not been in contact with her at this time and that they are looking at different options. Anderson commented that would be a good opportunity to create a better blog and perhaps include some graphics that would help marketing -wise. Struve reported the City was approved for a grant for Bederwood from Hennepin County. Last fall the City Council had authorized pursuing a grant but the City was not approved to receive a grant at that time. Struve indicated he did reapply for a different grant with Hennepin County this year and the City has been approved to receive $7,500 for new equipment at Bederwood. Struve indicated he will be meeting with an equipment supplier later this week or next week to get a cost estimate. Struve stated he will bring that additional information to the Council at a future meeting. Levang asked what the plans are for the current equipment. Struve indicated that would be removed and disposed of by the company that does the new work. In the past the City has explored donating different equipment but it did not gain any traction. Page 18 of 21 RESOLUTION No: A RESOLUTION SUPPORTING LEGISLATION AUTHORIZING THE ESTABLISHMENT OF MUNICIPAL STREET IMPROVEMENT DISTRICTS WHEREAS, Minnesota contains over 135,000 miles of roadway, and over 19,000 miles— or 14 percent --are owned and maintained by Minnesota's 853 cities; and WHEREAS, 84 percent of municipal streets are ineligible for dedicated Highway User Tax Distribution Fund dollars; and WHEREAS, the more than 700 Minnesota cities with populations below 5,000 are ineligible for dedicated Highway User Tax Distribution Fund dollars; and WHEREAS, city streets are a separate but integral piece of the network of roads supporting movement of people and goods; and WHEREAS, existing funding mechanisms, such as Municipal State Aid (MSA), property taxes and special assessments, have limited applications, leaving cities under -equipped to address growing needs; and WHEREAS, maintenance costs increase as road systems age, and no city --large or small—is spending enough on roadway capital improvements to maintain a 50 -year lifecycle; and WHEREAS, for every one dollar spent on maintenance, a road authority saves seven dollars in repairs; and WHEREAS, the Council of the City of finds it is difficult to develop adequate funding systems to support the City's needed street improvement and maintenance programs while complying with existing State statutes; and WHEREAS, cities need flexible policies and greater resources in order to meet growing demands for municipal street improvements and maintenance. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF supports enabling legislation that would authorize cities to establish street improvement districts to fund municipal street maintenance, construction and reconstruction. ADOPTED by the 2013. City Council this day of WS 03-20-18 Item 4 Exhibit C