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CHA 04/02/2018 TO: Charter Commission Members FROM: Deb Skogen, City Clerk and Staff Liaison Date: February 20, 2018 Re: Charter Commission Meeting of March 5, 2018 April2,2018 This is a reminder to you that the next Charter Commission meeting will be held on Monday, March 5th at 7:00 p.m. in Conference Room A on the Upper Level. In order to ensure a quorum, please remember, the Charter Commission policy requires each member to call or e-mail staff before 10:00 a.m. MONDAY, March 5th. Please contact me by phone at (763) 572-3523 or e-mail me at deb.skogen@fridleymn.gov about your attendance. If we do not have a quorum by 10:00 am, I will send out an e-mail to see if additional members will attend. If by Noon there will not be a quorum, I will send out a follow-up e-mail to all members of cancellation of the meeting and post a cancellation notice on the door for those Commissioners who did not contact me, but came to the meeting. I have enclosed a copy of Chapter 8 showing the proposed amendments the Commission made from the last meeting. In addition, I have provided the information you requested during the meeting about altering the comprehensive plan (in Section 8.01) and the constitutional requirements (in Section 8.04) and whether there is a contract limitation (in Section 8.05). I have provided the information from the State Statute for the comprehensive plan and information from the League of Minnesota Cities defining the constitutional requirements. I have highlighted information in the reference materials so that you can see how I came to my determination. Based on that information, I did recommend some changes and have attached them, again shown by highlighting, for your reference. A list of the membership and their terms is referenced per your request. A welcome to Kelli B recommending the appointment of Kelli and the reappointment of Bruce Nelson. Commissioner at the meeting. If you have any other questions or concerns pertaining to this meeting, please contact me. CITY OF FRIDLEY CHARTER COMMISSION AGENDA MONDAY, MARCH 5, 2018 APRIL2,2018 7:00 P.M. LOCATION: FRIDLEY MUNICIPAL CENTER CONFERENCE ROOM A UPPER LEVEL 1.CALL TO ORDER: 2.ROLL CALL: 3. APPROVAL OF AGENDA: Motion approving the March 5, 2018 meeting agenda 4. APPROVAL OF MINUTES Motion approving the February 5, 2018 meeting minutes 5. ADMINISTRATIVE MATTERS A. Reappointment of Commissioner Kranz B. Election of Officers C. Review of Bylaws 6. OLD BUSINESS A. Continued Discussion of Chapter 8 7. NEW BUSINESS A. 8. FUTURE MEETING TOPICS/COMMUNICATIONS A. 9. ADJOURNMENT Motion to adjourn the meeting Next Regular Commission Meeting Date: APRIL 2, 2018 MAY7,2018 CITY OF FRIDLEY CHARTER COMMISSION MEETING FEBRUARY 5, 2018 CALL TO ORDER: Chairperson Ostwald called the Charter Commission meeting to order at 7:00 p.m. ROLL CALL: Members Present: Commissioners Gary Braam, Don Findell, Richard Johnston, Ted Kranz, Bruce Nelson, Rick Nelson, David Ostwald, Barb Reiland, Pam Reynolds, Valerie Rolstad, Cindy Soule Members Absent: Commissioners Zach Crandall, Manny Granroos, and Avonna Starck Others Present: Deb Skogen, City Clerk/Staff Liaison Jim Kosluchar, Public Works Director Kelli Brillhart APPROVAL OF AGENDA Commissioner Rolstad MOVED and Commissioner Braam seconded a motion approving the meeting agenda. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. APPROVAL OF MINUTES Commissioner Reynolds request the following corrections to the minutes: rd Page 3, 3 that what th Page 3, 10 was th Page 4, 6 Reynolds a th Page 4, 7 er th Page 4, 9 Soule seconded a motion that staff provide l requirem Commissioner Braam MOVED and Commissioner Rolstad seconded a motion approving the Charter Commission meeting minutes as corrected of January 2, 2018. DRAFT CHARTER COMMISSION MEETING OF FEBRUARY 5, 2018 PAGE 2 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. ADMINISTRATIVE MATTERS A.Vacancy Interview of Ms. Kelli Brillhart Chairperson Ostwald said thank you to Ms. Kelli Brillhart for applying to the position and asked if anyone had any questions. Hearing no questions, Mr. Ostwald asked if Ms. Brillhart had any questions. Ms. Brillhart expressed her thanks. She had read the charter and it was a great educational experience. She wondered how issues were brought to the table for discussion. Chairperson Ostwald said the Commission reviewed the charter by chapters, and reviewed issues that are brought to the Commission from staff or the public. Ms. Skogen stated sometimes new legislation is adopted that is more restrictive than the charter and amendments may be necessary. Commissioner Findell said the charter should be a document that the public understands so their mission is to try to make changes without changing the intent of the charter to make it more understandable. Commissioner Soule said some sentences are too long so they have numbered or bulleted some of the items. After further discussion, Commissioner Rolstad MOVED and Commissioner Reiland seconded a motion recommending staff to send a letter to the Chief Judge recommending the appointment of Kelli Brillhart to the vacant term left by Commissioner Walch. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. B.Update on Chapter 7 Ms. Skogen reported the amendment by ordinance to Chapter 7 had received a second nd reading and was published on February 2. The ordinance becomes effective the first week of May. C.Nominating Committee Report Chairperson Ostwald reviewed the Nominating Committee Report with the Commissioners. The Nominating Committee is recommending the nomination of the following individuals as DRAFT CHARTER COMMISSION MEETING OF FEBRUARY 5, 2018 PAGE 3 officers for 2018-19: David Ostwald for Chair, Valerie Rolstad for Vice Chair and Bruce Nelson for Secretary. Commissioner Findell MOVED and Commissioner Johnston seconded a motion accepting the Nominating Committee report. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. OLD BUSINESS A, Discussion of Chapter 8 Chairperson Ostwald explained Jim Kosluchar, Public Works Director, was present to answer any questions the Commissioners may have about this section of the charter. Ms. Skogen provided workers/laborers and supplies. She said it is common contract language. Mr. Kosluchar said it was old terminology that was removed from state law. They now reference was often in contracts. Material man was unique in that workers would bring labor to the location and this language was in the contract to ensure they got paid. After some discussion about terminology of material man, Commissioner Nelson MOVED and Commissioner Rolstad seconded a motion that in Section 8.05.2 last sentence be amended to ity shall require contractors to furnish proper bonds for the protection of the City in accordance with Minnesota state law. , the employees and material person. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. Ms. Skogen asked Mr. Kosluchar if there were any glaring issues he saw with the language in this Section. Mr. Kosluchar wondered what constitutional requirements meant and what it might reference in Section 8.04. Commissioner Reynolds thought it might be the Minnesota Constitution. Ms. Skogen was asked to research the issue and provide more information at the next meeting. Mr. Kosluchar also questioned sentence 3 in Section 8.05.1, amounting to more than what is allowable statute that limited the amount of a contract. DRAFT CHARTER COMMISSION MEETING OF FEBRUARY 5, 2018 PAGE 4 After a brief discussion Ms. Skogen was asked to research this issue to provide additional information at the next meeting. Commissioner Reynolds asked about the petition process in Section 8.04. Mr. Kosluchar said there appeared to be two procedures to initiate a special assessment in this section. One procedure would allow the City Council to initiate and proceed with a project with a 4/5 vote and is consistent with Chapter 429. The second procedure may not be consistent with Chapter 429 but may set a higher bar for the citizens. This section would allow for citizens to petition for a project with a majority in favor of the project, but state law does not mandate a majority in a petition. But, if you had a majority of petitioners request the project, the City Council needs to hold a public hearing on the project. After the Council received the petition they could subsequently deny the request, if less than a majority, or initiate the project with a simple majority. Commissioner Reynolds said historically that was how projects were initiated when the city was young. Mr. Kosluchar said developers could also do this by petition, as they would be the only owner and would consist of a majority. Commissioner Findell asked Mr. Kosluchar about the Roadway Policy. Mr. Kosluchar said the City is looking at updating the Roadway Major Maintenance Financing Policy. He said the policy helps outline how calculations for special assessments for roadways are made. Roadways are the projects the City has been consistently assessing for. He said the City could, and has in the past, assess for storm water and sanitary sewer extensions as well. He said at this time when rehabilitation of water and sewer is completed, it is not assessed. After further discussion Commissioner Rolstad MOVED and Commissioner Reiland seconded a motion requesting staff to draft changes to clarify the language in Section 8.04 on how special assessment projects are initiated. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED. The Commissioners discussed the changes to the Charter as to how many votes were needed for a special assessment and how it had changed over the years from five to 4/5. It was most likely changed due to changes in state legislation. Section 6.06 of the charter was amended allowing for best value bidding. In this section of the Charter, state law is referenced, therefore best value bidding would be allowed. DRAFT CHARTER COMMISSION MEETING OF FEBRUARY 5, 2018 PAGE 5 Commissioner Reiland asked questions about punctuation. Based on that discussion, Commissioner Reiland MOVED and Commission Rolstad seconded a motion to remove the , may . UPON A VOICE VOTE, ALL VOTING AYE, CHAPIRPERSON OSTWALD DECLARED THE MOTION CARRIED. The Commissioners thanked Mr. Kosluchar for attending and answering their questions. Commissioner Reynolds was concerned there was no direction on how to alter the comprehensive plan. After further review, the Commissioners determined they would discuss this issue at the next meeting. The Commissioners briefly discussed the differences between the comprehensive plan and zoning and what was included in Section 8.01. Ms. Skogen asked if they would like to have staff prepare language for them to review at the next meeting. The Commissioners said no they would review and discuss it at the next meeting. Ms. Skogen said if anyone had any suggested changes or comments, they should provide them to her prior to the next meeting. FUTURE AGENDA ITEMS Administrative Matters Reappointment of Commissioner Kranz Election of officers Bylaws review Old Business Continued discussion of Chapter 8 ADJOURNMENT: Commissioner Kranz MOVED and Commissioner Soule seconded a motion to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON OSTWALD DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:22 P.M. Respectfully submitted, Debra A. Skogen, MMC City Clerk/Staff Liaison DRAFT CHARTER COMMISSION MEETING OF FEBRUARY 5, 2018 PAGE 6 Commissioner Manuel Granroos Secretary DRAFT January 10, 2018 Fridley Charter Commission Nominating Committee Report The Nominating Committee consisted of Commissioners David Ostwald, Valerie Rolstad and Avonna Starck. The Nominating Committee met on January 2nd after the Charter Commission meeting. After discussion, the Nominating Commission offered the following nominations to serve as the 2018- 2019 Charter Commission Officers: Chair David Ostwald Vice Chair Valerie Rolstad Secretary Bruce Nelson All three members have agreed to serve if elected. TH MONDAY MARCH 5 The annual election will be held on at 7 pm in Conference Room A in the Upper Level. FRIDLEY HOME RULE CHARTER COMMISSION BY-LAWS Approved 05/02/16 I. NAME -- the name of the organization shall be the Fridley Home Rule Charter Commission. II. PURPOSE -- the purpose of this organization shall be to frame and amend the Charter to meet the needs of the residents of Fridley. III. MEETINGS A. Commission meetings will be held in the Fridley Municipal Center; or a designated public location upon proper notice. B. The annual meeting shall be held in March of each year. The election of officers shall take place at the annual meeting. C. Special meetings may be called by the Chair; or, the Chair, upon receipt of a written request signed by five (5) members, shall, within ten (10) days, call a special meeting upon proper notice. D. A quorum to conduct business shall be determined according to the following schedule: Number of Appointed Charter Commission Members Quorum 15, 14, 13 7 12 or 11 6 10 or fewer 5 E.Except as provided in these by-laws, all meetings shall be governed in accordance with F.The time of the meeting shall be called by the chair. If there is not a quorum within ten minutes after the meeting time is to commence, the members shall be dismissed. However, if the chair felt there was important business to be addressed, the chair would have the discretion to ask members to stay longer, but may not exceed an additional 10 minutes past the specified time. IV. MEMBERSHIP -- The membership of this organization shall be 15 members. A. All members shall be expected to attend all meetings. If unable to attend, the member shall inform either the Chair or the Secretary as to the reason. Approved Bylaws 05/02/2016 Page 2 B. Any member missing four (4) consecutive meetings without an adequate excuse, or failing to perform the duties of the office shall be subject to a discharge from the Commission upon a written request to the Court, supporting by two-thirds (2/3) of the Commission members present and voting. V. OFFICERS A. Election of Officers. 1. The officers of this organization shall be a Chair, Vice Chair and a Secretary. 2. The Chair, Vice Chair and Secretary shall be elected from the membership of the Commission. 3. The Chair, Vice Chair and Secretary shall be elected at the annual meeting. No officer shall serve more than two consecutive terms in the same office. 4. All officers shall begin their terms of office upon election to that office. 5. Election to vacant offices shall be made from the floor at the next meeting following the meeting at which the vacancy is declared. 6. Officers of this organization shall be declared duly elected by a simple majority vote of those present and voting. Any contested race for an office shall be done by a written ballot. The Acting Chair will ask for a teller committee of two (2) to count the ballots. B. Duties of Officers and City Staff Liaison. 1.The Chair shall have the following responsibilities: a.to call all regular and special meetings; b.preside at all meetings; c.set the agenda; d.implement the decisions of this Commission; and e.participate in all Commission decisions as a voting member. 2. The Vice Chair shall assist the Chair in the performance of these duties. In the event the Chair is unable to perform these duties, the Vice Chair shall discharge such duties. 3.The Secretary shall be responsible for: a.keeping an accurate record of attendance; b.recording of minutes at all meetings; c.distributing minutes to members within a reasonable time Approved Bylaws 05/02/2016 Page 3 d.giving notice to members who have missed three (3) consecutive meetings pursuant to Article IV, Section B, of the By-Laws; e.transmitting all correspondence and related resource material concerning this Commission to the City Clerk for retention; and f.presiding at meetings in the absence of the Chair and Vice Chair. 4.The City Staff Liaison shall be designated by the City Clerk and serve as a recording secretary at all meetings of the Charter Commission. The Liaison, with the direction of the Secretary, will have the following responsibilities. a.serve in an advisory capacity at all meetings as a non-voting member; b.assist the commission by providing research information as requested by Officers; c.accurately record attendance and minutes of all meetings; d.distribute minutes and notices of upcoming meetings with proposed agenda in a timely manner; e.prepare proposed Charter changes for submission to the City Council; and f.submit records of proceedings to the City Clerk for retention. VI. COMMITTEES A.The Chair shall have the power to create committees, appoint members and designate chairs of those committees. B. In January of each year the Chair shall appoint a nominating committee of three (3) or more members who shall report the nomination of one (1) or more candidates for each office. A written report of such nominations shall be mailed to each member at least ten (10) days before the annual meeting. VII. VOTING A. A majority vote of members present shall be sufficient to pass motions and resolutions except as provided elsewhere. B. There shall be no secret votes, other than contested election(s) of officers. VIII. ORDER OF BUSINESS 1. Call to Order by the Chair. 2. Roll Call. 3. Approval of Agenda 4. Approval of Minutes. 5. Administrative Matters. Approved Bylaws 05/02/2016 Page 4 6. Old Business. 7. New Business. 8. Future Meeting Topics 9. Adjournment. IX. AMENDMENT A. These by-laws can be amended at any regular meeting of the Commission by a two- thirds (2/3) vote of those present, provided that the amendment has been submitted in writing to the members at least two (2) weeks before the vote on the amendment. FRIDLEY CITY CHARTER CHAPTER 8. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS Section 8.01. THE CITY PLAN. The present zoning and comprehensive plans shall be the plans for future physical development of the City. Plans may be altered from time to time. To alter a zoning plan, the City Council shall hold a public hearing and notice published fourteen (14) days prior to hearing with notices sent to affected property owners. (add a sentence re how to alter comprehensive plan) It may include provisions for: (Ref Ord 1310) Zoning; Platting and development of new areas; Planning and location of public works of art; Public buildings; Parks; Playgrounds; Bridges; Public transportation services and facilities; Other public facilities; Designing and improving streets; Designing and improving public places; and Other matters which may seem essential to the City plan. Section 8.02. ENFORCEMENT OF CITY PLAN. The Council shall have all necessary power full authority, acting through the City Manager, to enforce complete adherence by all persons to the plans adopted as provided above, and to adopt and enforce a comprehensive zoning ordinance. The Council shall have power to pass ordinances to regulate: the use of private property,; the height of buildings,; and the proportion of the area of any lot which may be built upon; and to establish building lines. Such power authority shall be exercised to promote public health, safety, morals, welfare and convenience. Section 8.03. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS. The City shall have the power authority to make any and every type of public improvement not forbidden by the laws of the State and to levy special assessments to pay for all such improvements as are of a local character, in accordance with Minnesota State Statute Chapter 429, Local Improvements, Special Assessments. The amounts assessed to benefited property to pay for such Draft from 2/5/18 meeting Fridley City Charter Section 8.05.2 local improvements may equal the cost of the improvements, including all costs and expenses connected therewith, with interest, until paid, but shall not exceed the benefits to the property. Section 8.04. LOCAL IMPROVEMENT REGULATIONS. The City Council may prepare and adopt a comprehensive ordinance, prescribing the procedure which shall determine all matters pertaining to the making of local improvements thereafter, and such ordinance shall supplant supercede all other provisions of law on the same subject and may be amended only by an affirmative vote of at least four (4) members of the City Council. Such ordinance shall provide for such notice and hearing in the ordering of improvements and the making of assessments therefore as shall be necessary to meet constitutional requirements (define what constitution is referenced). (rewrite the following section) Such ordinance shall also require a petition of a majority in number and interest of the owners of property to be assessed for such improvement, or improvements, for the initiation thereof; provided that the City Council may proceed upon its own initiative hereunder and under such ordinance by resolution adopted by four/fifths (4/5) affirmative votes of the City Council after a proper notice and hearing. (Ref. Ord. 776) Section 8.05. PUBLIC WORKS HOW PERFORMED. 1. Public works including all local improvements, may be constructed, extended, repaired or maintained either by contract or directly by day labor. Before receiving bids the City Manager shall, under the direction of the City Council, have suitable plans and specifications prepared for the proposed material or project and estimate of the cost thereof in detail. The award of any contract amounting to more than what is allowable under Minnesota state statutes shall require an affirmative vote of at least four (4) members of the City Council. (is there a contract limit under MN Statute?) When the best interest of the City will be served thereby, the City Council may organize a public works department and provide the department with suitable equipment. (Ref. Ord. 1310) 2. The right is reserved to the City Council, upon the recommendation of an engineer, acting through the public works department, to bid on any work to be let by contract. All contracts shall be let to the lowest responsible bidder who is qualified in accordance with Minnesota State Statutes. The term "lowest responsible bidder" shall be interpreted as giving the City Council the right to accept any bid which it determines to be most advantageous to the City. The City Council shall reserve the right to reject any or all bids in accordance with Minnesota State Statute Chapter 429. The City shall require contractors to furnish proper bonds for the protection of the City, the employees and material person.in accordance with Minnesota state law. (Ref. Ord. 776) Draft from 2/5/18 meeting INFORMATIONMEMO Special Assessment Toolkit Discusses city authority to levy special assessments for local improvements likestreets, waterworks, sanitary sewer and more. Itdefines special assessments, gives a synopsis of the procedure, discusses challenges by property owners, levying and collecting assessments, borrowing, making corrections, and applicability to tax exempt and railroad properties. Red toolkit icons mark linksto model forms. Take action with Information Memo toolkits. They contain the forms, samples or models a city can use to take action on a process or project. Look for the toolkit icon so you can download that tool to use or modify itfor This toolbox icon marks the your city. link to a downloadable tool. All tools are listed and available inAppendix B, Index of forms for special assessments. I.What are specialassessments? RELEVANT LINKS: Special assessments are a charge imposed on properties for a particular Special assessments are a charge imposed on properties for a particular improvement that benefits the owners of those selected properties. The of those selected properties. The improvement that benefits the owners of those selected properties. The authority to use special assessments originates in the state constitution which authority to use special assessments originates in the state constitution which authority to use special assessments originates in the state constitution which allows the state legislature to give cities and other governmental units the allows the state legislature to give cities and other governmental units the allows the state legislature to give cities and other governmental units the authority “to levy and collect assessments for local improvements upon authority “to levy and collect assessments for local improvements upon authority “to levy and collect assessments for local improvements upon property benefited thereby.” The legislature confers that authority to cities in property benefited thereby.” The legislature confers that authority to cities in property benefited thereby.” The legislature confers that authority to cities in Minn. Stat. ch. 429. Minnesota Statutes Chapter 429. Court decisions and attorney general Minnesota Statutes Chapter 429. Cour opinions interpreting the statute add complexity to the issue. Charter See Section VIII: A charter city may choose to use either Chapter 429 or provisions of the A charter city may choose to use either Chapter 429 or provisions of the cities. A charter city may choose to use either Chapter 429 or provisions of the charter to assess for local improvements but even so state law requires that charter to assess for local improvements but even so state law requires that charter to assess for local improvements but even so state law requires that charter cities follow state law in certain steps of the proceedings, as charter cities follow state law in certain steps of the proceedings, as charter cities follow state law in certain steps of the proceedings, as discussed subsequently. discussed subsequently. To ensure full protection for property owners, state law and courts applying that law insist on strict compliance with complex procedural requirements. Because these requirements have legal implications, city councils should have the city attorney guide assessment proceedings. Special assessments have three distinct characteristics: They are a levy a city uses to finance, or partially finance, a particular public improvement program. The city levies the charge only against those particular parcels of property that receive some special benefit from the program. The amount of the charge bears a direct relationship to the value of the benefits the property receives. This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. Westwww.lmc.org8/18/2017 Saint Paul, MN 55103-2044(651) 281-1200 or (800) 925-1122© 2017All Rights Reserved RELEVANT LINKS: A.What do special assessments pay for? Special assessments have a number of important uses: The most typical use is to pay for infrastructure in undeveloped areas of a city, particularly when the city is converting new tracts of land to urban or residential use. Special assessments frequently pay for opening and surfacing streets; installing utility lines and constructing curbs, gutters, and sidewalks. Special assessments may partially underwrite the cost of major maintenance programs.Cities often finance large scale repairs and maintenance operations on streets, sidewalks, sewers, and similar facilities in part with special assessments. Another use of special assessments is the redevelopment of existing neighborhoods. Cities use special assessments when areas age and the infrastructure needs updating. B.The special benefit test B.The special benefit test Special assessments reflect the influence of a specific local improvement on the value of selected property. No matter what method the city uses to matter what method the city uses to establish the amount of the assessment, the real measure of benefit is the the real measure of benefit is the establish the amount of the assessment, increase in the market value of the land because of the improvement. increase in the market value of the land because of the improvement. Buzick v. City of Blaine, 505 Under the special benefit test, special assessments are presumptively valid N.W.2d 51(Minn. 1993). if: EHW Properties v. City of The land receives a special benefit from the improvement. Eagan, 503 N.W.2d 135 The assessment does not exceed the special benefit measured by the (Minn. Ct. App. 1993). Schumacher v. City of increase in market value due to the improvement. Excelsior, 427 N.W.2d 235 The assessment is uniform as applied to the same class of property, in Tri-State Land (Minn. 1988). Co. v. City of Shoreview, 290 the assessed area. N.W.2d 775 (Minn. 1980). Because special assessments are appealable to district court, it is important Because special assessments are appealable to district court, it is important that thecity considers the benefit to the property as a result of the specific that thecity considers the benefit to the property as a result of the specific that thecity considers the benefit to the property as a result of the specific improvement. Councils can and sometimes do this by retaining a qualified, improvement. Councils can licensed appraiser. At the hearings on the assessments, the council may choose to havethe appraiser present awritten or oral report on the increase in market value as a result of the improvement. Buettner v. City of St. Cloud, A special assessment that exceeds the special benefit is a taking of property A special assessment that exceeds the special benefit is a taking of property 277 N.W.2d 199 (Minn. A special assessment that exceeds the special benefit is a taking of property without fair compensation and violates both the Fourteenth Amendment of without fair compensation and violates both the Fourteenth Amendment of 1979). without fair compensation and violates Southview County Club. v. the United States Constitution and the Minnesota Constitution. Property the United States Constitution and the Minnesota Constitution. Property City of Inver Grove Heights, the Minnesota Constitution. Property assessed must enjoy a corresponding benefit from the local improvement. assessed must enjoy a corresponding benefit from the local improvement. 263 N.W. 2d 385 (Minn. 1978). This is a different concept than property tax valuation.The Minnesota Minn. Const. art X, § 1. Constitution states: League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 2 RELEVANT LINKS: “The Legislature may authorize municipal corporations to levy and collect assessments for local improvements upon property benefited thereby without regard to cash valuation.”As the courts have made clear, the special benefit is the increase in marketvalue of the land as a result of the improvement. Ewert v. City of Winthrop, If a city’s assessment is challenged in district court, the assessment roll 278 N.W.2d 545 (Minn. constitutes prima facie(or initial) proof that an assessment does not exceed 1979). the special benefit. The party contesting the assessment must introduce evidence sufficient to overcome that presumption. If the evidence as to the special benefit is conflicting it is the responsibility of the district court to determine whether the assessment exceeds the market value increase and, if so, by what amount. Bisbee v. City of Fairmont, For this reason, the city’s assessment method should at least approximate 593 N.W.2d 714 (Minn. Ct. market-valueanalysis. A formula that does not consider an analysis of the Quality Homes, App. 1999). Inc. v. Village of New increase in market value of each parcel may be invalid. For instance, a Brighton, 289 Minn. 274, method that bases assessment amounts on the average costs of street 193 N.W.2d 555 (1971). Anderson v. City of Bemidji, improvement projects from previous years and doesn’t take into 295 N.W.2d 555 (Minn. consideration the cost of the currently proposed project has been found Village of Edina v. 1980). Joseph, 264 Minn. 84, 119 arbitrary and invalid on its face. N.W.2d 809 (Minn. 1962). Roberts v. City of Crystal Courts often uphold special assessments based on evidence from a city’s Lake, No.A03-172 (Minn. qualified and licensed appraiser that the assessment did not exceed the Ct. App. Nov. 4, 2003) Allen (unpublished decision). increase in market value as a result of the improvement. v. City of Minneapolis, No. C1-02-1506 (Minn. Ct. App. April 23, 2003)(unpublished Haverberg v. City decision). of Madison ,No.C8-02-1146 (Minn. Ct. App. Jan. 28, 2003)(unpublished decision). Eagle Creek Townhomes v. However, in many published and unpublished opinions, the appellate courts City of Shakopee, 614 N.W. have routinely upheld decisions that went against the city because the 2d 246 (Minn. Ct. App. Shorma Family Trust 2000). district court found a lack of adequate evidence of a market value increase v. Maine Township, No.C9- equal to or exceeding the amount of the special assessment. 01-1548 (Minn. Ct. App. April 16, 2002)( unpublished Belanger v. City of ). decision Long Lake, No.C1-99-1347 (Minn. Ct. App. May 9, 2000) Reiling (). unpublished decision v. City of Lino Lakes, No.C7- 99-1594 (Minn. Ct. App. Apr. 11, 2000) unpublished ( Anderson v. City of ). decisio n Buffalo, No.C7-99-641 (Minn. Ct. App. Jan. 18, 2000)( ). unpublished decision Rohling v. City of Champlin, No.C3-98-1209 (Minn. Ct. App. Feb. 16, 1999) In re (). unpublished decision Appeal by Eastside Development, C4-01-582; (Minn. Ct. App. 2001) (). unpublished decision League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 3 RELEVANT LINKS: In re Appeal by Eastside Especially with regard to street improvements, it can be difficult to Development, No.C4-01-582 demonstrate that there is an increase in market value as a result of the (Minn. Ct. App. Sept. 11, 2001). resurfacing or reconstruction, though not impossible, depending on the Blomquist v. City of Eagan, circumstances. No.C2-00-1591 (Minn. Ct. App. May 1, 2001). Johnson v. City of Eagan, When a court disallows a portion of an assessment because it was in excess 584 N.W.2d 770 (Minn. of the benefit to the specific property, the city may not try to recoup the 1998). In re Village of Burnsville, disallowed amount through another method–such as by imposing a charge 310 Minn. 32, 245 N.W.2d for a utility line on only that property and not on the other properties 445 (Minn. 1976). involved in the assessment. When the cost of an improvement exceeds the benefit, the difference must not be borne by a particular property, but instead by the city as a whole. Nordgren v. City of The Minnesota Supreme Court has held that connection charges,based on a Maplewood, 326 N.W.2d 640 different state law, are not assessments and may be imposed on top of prior (Minn. 1982). Minn. Stat. § 444.075. assessments. One unpublished Court of Appeals decision, however, held that Smith v. Spring Lake the cost of the connection charges should be included with the amount of Township, No.C0-01-370 (Minn. Ct.App. Nov. 20, special assessments in determining the special benefit to the property. 2001). Farmers Ins. Grp. v. Comm’r Applicability of the special benefit test to a given assessment relies on of Taxation ,153 N.W.2d 236 whether it arises out of regulation of conduct. TheMinnesota Court of (Minn. 1967) (Only those caseswhere regulation is the Appeals has heldthat the special benefit test does not apply to unpaid primary purpose of a special charges collected in the form of special assessments when defraying revenue-raising lawcan be speciallyreferred to the the cost of providing “police power” services such as removal of public police power.) nuisances. However, the Minnesota Supreme Court has held a right-of-way Am. Bank v. City of Minneapolis, 802 N.W.2d assessmentlargely collected to address“standard wear and tear on the 781 (Minn. Ct. App. 2011). streets, caused largely by Minnesota weather and use by the general public” First Baptist Church v. St. Paul , 884 N.W.2d 355 (Minn. with services such assnow plowing and ice control,is not a regulation of 2016). landowner conduct. An assessment such as this, the Court held, that is Id. at 365. “annually recurring, imposed nearly city wide, benefiting largely the general public traveling the rights-of-way, with diverse services largely provided on an ‘as needed’ basis,”is charged under the taxing power and is subject to the special benefit test. C.Practical points to consider The following three strategies help avoid the problem of proceeding on estimates that do not equal actual revenue. 1.Coordinatingprocedures Chapter 429 allows coordinating the timelines of the special assessment and competitive bidding processes in a way that may protect the city from successful appeals and ensuing budget shortfalls. The city may determine the assessment amount and prepare the assessment roll before work on the local improvement even begins. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 4 RELEVANT LINKS: Minn. Stat. § 471.345. The competitive bidding threshold for all cities, regardless of size, is Minn. Stat. § 429.041, The competitive bidding threshold for all cities, regardless of size, is $100,000. Thus, special assessment projects must be bid if the estimated cost $100,000. Thus, special assessment projects must be bid if the estimated cost subd.1. $100,000. Thus, special assessment projects exceeds $100,000. If needed, the city may advertise for bids and allow exceeds $100,000. If needed, the city may advertise for bids and allow exceeds $100,000. If needed, the city may advertise for bids and allow sufficient time after the bid closing date to permit the city to prepare the sufficient time after the bid closing date to permit the city to prepare the sufficient time after the bid closing date to permit the city to prepare the assessment roll based on the lowest responsible bid the city receives and to assessment roll based on the lowest responsible bid the city receives and to lowest responsible bid the city receives and to hold the assessment hearing (the second hearing) based on that low bid. The hold the assessment hearing (the second hearing) based on that low bid. The city then proceeds with the actual work of the project after certification of the assessment roll and the 30-day appeal period is over. Using this “coordinated procedure” means the city knows both important numbers up front --how much money will be available through special assessments and the cost of the local improvement. Because the time for appeals is over before the contract is issued, the citywill not need to cover potential budget shortfalls that may occur if a property owner successfully challenges a special assessment or the lowest bid comes in higher than expected. This Guide and the forms attached track this coordinated procedural format. For larger projects in particular, city councils should seriously consider having provisions in the specifications that give the city more time to accept or reject bids. Either the city can make the improvement contract conditional on the absence of objections filed within 30 days after the assessment hearing, or the city may specify (in the bid documents, or specifications) that the improvement work will not begin until 90 days after the city receives bids. Under both strategies, the council would not enter into a binding contract, nor would any improvement work start until after the improvement and assessment hearings and the time for appeals elapses. 2.Specially assessing less of the cost By See Section II-A-2: The city can also avoid appeals by paying a substantial portion of the cost of council. all improvements out of general funds. The larger the portion of cost the city assumes, the less the chances that any individual assessment would exceed the benefit from the improvement as measured by the increase in market value. Indeed, the council can proceed with the proposed assessment based on estimates --and plan to use monies from a reserve fund from general taxes and other uncommitted sources of revenue making up any difference between the assessments and the project cost. 3.Waivers Ruzic v. City of Eden Prairie, The council might obtain, under certain circumstances, waivers of rights to 479 N.W.2d 417 (Minn. Ct. appeal before entering into the contract and ordering the improvement. Any App. 1991). Minn. Stat. § 429.081. waiver of rights is effective only for the amount of assessment agreed on by Minn. Stat. § 462.3531. the city and property owners or developers. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 5 RELEVANT LINKS: An effective waiverof rights of appeal is essentially a contract and may contain additional conditions providing for the increases in assessments that will not be subject to appeal; consult the city attorney for specific advice on Agreement SeeLMC model, effective waivers. of Assessment and Waiver (Form 2). D.Pros and cons of special assessments Following is a summary of the advantages and disadvantages of special assessment financing. The council can avoid many of the disadvantages with adequate plans and a long-range capital improvement program. Advantages of special assessment financing include: Special assessments are generally a dependable source of revenue. Special assessments are a means of raising money outside city debt and general property taxes. (Special assessment bonds do not count toward statutory debt limitations). Special assessments provide a means of levying charges for public services against property otherwise exempt from taxation. Special assessments lower the cost to the community of bringing undeveloped land into urban use. Charging the property owner for the benefit received prevents or minimizes the possibility that a property owner will reap a financial profit from the improvement at the expense of the general taxpayer. Disadvantages of special assessment financing include: The difficulty and expense in establishing the special benefit to the property. The difficulties in special assessment administration. The administrative procedures require careful execution in order to avoid litigation. Cities have at times used special assessments to pay for premature public improvements. Because the city generally bears some of the cost of every public improvement, land speculators sometimes urge councils to do unjustifiable special assessment programs. The availability of special assessment financingoften tempts city officials to underwrite the cost of governmental programs that should be an obligation of the entire city. Unless special assessments conform to a city’s long-term financial and capital improvement plans, they can subject a city to two serious financial dangers. First, if a city frequently undertakes special assessment bond issues backed by the full faith and credit of a city in an unplanned manner, city credit might be overextended. This leads to higher interest charges on all city and school district borrowing and increases the possibility of default. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 6 RELEVANT LINKS: Second, placing too heavy a burden on individual property owners (with special assessments and regular property taxes) runs the risk of increasing tax delinquencies and potentially jeopardizes a city’s credit and borrowing position. From the council’s point of view, the public’s reaction to a proposed special assessment might be the most important determinative factor. While taxpayer resistance is usually minimal, this is not true in every instance. Special assessment programs receive much greater public support if the council adequately informs people of its intentions to make the improvement, the benefit the improvements will provide, and the necessary financial demands. E.Special assessment policies The special See Section I-B: Some cities have attempted to minimize the controversy over special benefit test. Some cities have attempted to minimize the controversy over special assessment financing by adopting a special assessment policy (not an assessment financing by adopting a special assessment policy (not an assessment financing by adopting a special assessment policy (not an assessment financing by adopting a special assessment policy (not an assessment financing by adopting a special assessment policy (not an ordinance). Whatever the policy provides it must adhere to the rule that the ordinance). Whatever the policy provides ordinance). Whatever the policy provides ordinance). Whatever the policy provides it must adhere to the rule that the ordinance). Whatever the policy provides ordinance). Whatever the policy provides amount of a special assessment cannot exceed the special benefit to the exceed the special benefit to the amount of a special assessment cannot amount of a special assessment cannot exceed the special benefit to the property as measured by increase in market value due to the improvement. property as measured by increase in market value due to the improvement. With frequent turnover on the council a policy may increase consistency in the use of financing improvements with special assessments. Justifying council decisions in a particular case may also be easier with a policy in place. An updated and current special assessment policy may also facilitate the development of a long-range capital program for public improvements. A policy should reflect basic procedural decisions on financing local improvements --decisions that the council must think through carefully, taking into account past practice, equity, revenue productivity, political acceptability, and the rest of the city’s revenue system. Practically speaking, many city special assessment policies provide procedures for city-specific issues, suchassessing oddly shaped lots, corner lots, lots with septic systems and what method of assessment the city uses. (E.g. including but not limited to the area method of assessment, unit method or a per lot assessment). Cities may wish to work with citizens, appraisers, an attorney and city engineers to develop a special assessment policy that fits the unique needs of their city. F.Programs cities may finance with special assessments Generally, cities use special assessments to at least partially finance a variety of public improvements. Cities may also use special assessments to collect certain unpaid service charges, discussed in the next section. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 7 RELEVANT LINKS: 1.Local improvements Minn. Stat. § 429.021. Cities are statutorily authorized to finance the following public improvements at least partially through special assessments: Minn. Stat. § 429.021, subd. Streets, sidewalks, alleys, curbs and gutters: Acquiring, opening, and 1(1). widening streets and alleys; constructing, reconstructing, and maintaining sidewalks, streets, gutters, curbs, and vehicle parking strips. (These projects may include charges for beautification, storm sewers, or other street drainage systems, and installation of connections from utilities to curb lines). Minn. Stat. § 429.021, subd. Storm and sanitary sewer systems: Acquisition, development, 1(2). construction, reconstruction, extension, and maintenance of storm and sanitary sewer systems including outlets, treatment plants, pumps, lift stations, and storm water holding areas and ponds. Minn. Stat. § 429.021, subd Steam heating mains: Construction, reconstruction, extension, and 1(3). maintenance. Minn. Stat. § 429.021, subd. Street lighting systems: Installation, replacement, extension, and 1(4). maintenance. Minn. Stat. § 429.021, subd. Waterworks systems: Construction, reconstruction, extension, and 1(5). maintenance. (This includes all appurtenances of a waterworks system, Minn. Stat. § 444.075. A.G. Op. 387-B-10 (Mar. 8, even the treatment plant). Special assessments may also pay for the 1993). infrastructure necessary to maintain water, sewer, and storm sewer Minn. Stat. § 429.091, subd. 7a. systems; and for the payment of any obligations issued to pay the costs of the waterworks facilities and systems or to refund bonds issued for those purposes. Minn. Stat. § 429.021, subd. Parks, playgrounds, and recreational facilities: To acquire, improve 1(6). and equip parks, open space areas, playgrounds, and recreational facilities within or without the corporate limits. Minn. Stat. § 429.021, subd Street trees: Planting, trimming, care, and removal. 1(7). Minn. Stat. § 429.021, subd Abating nuisances: Includes,but not limited to, draining and filling 1(8). swamps, marshes, and ponds on public or private property. Minn. Stat. § 429.021, subd. Dikes and other flood control works: Construction, reconstruction, 1(9). extension, and maintenance. Minn. Stat. § 429.021, subd. Retaining and area walls, including highway noise barriers: 1(10). Construction, reconstruction, extension, and maintenance. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 8 RELEVANT LINKS: Minn. Stat. § 429.021, subd. Pedestrian skyway systems: Construction, reconstruction, maintenance, 1(11). and promotion of bridges, overpasses, hallways, plazas, elevators, and Minn. Stat. § 429.031, subd. 3. escalators on public or private property. A petition for a pedestrian skyway system must meet unique statutory requirements. Minn. Stat. § 429.021, subd. Underground pedestrian concourses: Construction, reconstruction, 1(12). maintenance, and promotion of tunnels, arcades, plazas, elevators, and escalators. Minn. Stat. § 429.021, subd. Malls: Acquisition, construction, improvement, alteration, extension, 1(13). operation, maintenance, and promotion of public malls, plazas or courtyards. Minn. Stat. § 429.021, subd. District heating systems: Construction, reconstruction, extension, and 1(14). maintenance of district heating systems. Minn. Stat. § 429.021, subd. Fire protection systems: Construction in existing buildings upon 1(15).Minn. Stat. § 429.031, petition of owners. A petition for a fire protection system, on public or subd. 3. private property, must meet unique statutory requirements. Minn. Stat. § 429.021, subd. Highway sound barriers: Acquisition, construction, reconstruction, 1(16). improvement, alteration, extension, and maintenance of highway sound barriers. Minn. Stat. § 429.021, subd. Gas and electric distribution facilities: Improvement, construction, 1(17). reconstruction, extension, and maintenance of gas and electric distribution facilities owned by a municipal gas or electric utility. Minn. Stat.§ 429.021, subd. Markers relating to 911 services: Purchase, installation, and 1(18). maintenance of signs, posts, and other address markers related to the operation of enhanced 911 services. Minn. Stat. § 429.021, subd. Internet access: Improvements, construction, extension, and 1(19). maintenance of facilities for Internet access, and other communication purposes, if the council finds that the facilities: Are necessary to make Internet access (or other communications services) available that are not and will not be available through other providers or the private market in the reasonably foreseeable future. Provide services that will not compete with service provided by private entities. Minn. Stat. § 429.031, subd. On-site water contaminant systems: Installation of publicly or 3. privately owned pipes, wells, and other devices and equipment in or Minn. Stat. § 429.011, subd. 16. outside a building for the primary purpose of eliminating water contamination caused by lead or other toxic or health threatening substances in the water. A petition for an on-site water contaminant system must meet unique statutory requirements. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 9 RELEVANT LINKS: Minn. Stat. § 429.021, subd. Burying overhead utility lines within the public right-of-way: Cities 1(20). can only finance the burying of overhead utility lines with special Minn. Stat. § 429.031, subd. 3. assessments in response to a petition from all the abutting landowners. In addition, burying the lines in the public right of way must exceed the utility's design and construction standards, or those set by law, tariff, or franchise. In that situation all or a portion of the costs associated with burying the lines, or altering a new or existing distribution system, can be specially assessed as agreed to with an electric utility, telecommunications carrier, or cable system. Minn. Stat. § 459.14. Parking facilities: Acquisition and construction. Minn. Stat. §§ 216C.435- Energy improvement programs: Cities may finance cost-effective .436. energy improvements to certain (currently onlymultifamily)residential 2017 Minn. Laws Ch. 94, Art. 10, § 27, subd. 10. dwellings, or commercial or industrial buildings, through revenue bonds Minn. Stat. § 429.021, subd. funded by special assessments. Among other requirements of such a 1(21). Minn. Stat. § 429.101, subd. program is a petition by all owners of the qualifyingreal property 1(c). requesting collections of repayments as special assessments as with other unpaid charges assessable under chapter 429. Joint Indep. Sch. Dist. No. Chapter 429 defines a number of projects as local improvements that may 287 v. City of Brooklyn Park, benefit the entire city, such as a sewage disposal plant, interceptor sewer or 256 N.W.2d 512 (Minn. 1977). water treatment plant. The constitutional provision authorizing special In re Village of Burnsville, assessments for local improvements may allow these kinds of projects as 310 Minn. 32, 245 N.W.2d 445 (Minn. 1976). long as they confer a special benefit on assessed property that the improvements do not confer upon the city as a whole. 2.Assessing unpaid special service charges Minn. Stat. § 429.101, subds. Cities may, through an ordinance, require that property owners perform 1, 2. certain property-related special services --or the ordinance can allow that Minn. Stat. § 412.221, subd. 6. the city performs the special services and sends a bill to property owner for the work. If the property owner fails to pay, the city may assess for all or any Minn. Stat. § 429.101, subd. part of the unpaid charges as a special assessment against the property 2. benefitted. When assessing unpaid service charges, cities must follow some, Sykes v. Rochester, 787 N.W.2d 192 (Minn. Ct. App. but not all, of the special assessment notice, hearing and calculation 2010). procedures in Chapter 429. The law specifically lists the special services that cities can specially assess if not paid by the property owner or occupant. Statutory cities cannot add the following to this list, but charter cities may be able to add to it by charter amendment: Minn. Stat. § 429.101, subd. Snow, ice and rubbish removal from sidewalks. 1(1). Weed elimination from streets and private property. Minn. Stat. § 429.101, subd. 1(2). Removal or elimination of public health or safety hazards from private Minn. Stat. § 429.101, subd. property, excluding any hazardous or substandard buildings. 1(3). League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 10 RELEVANT LINKS: Minn. Stat. § 429.101, subd. Installation and repair of water service lines, and sprinkling and dust 1(4). treatments. Trimming and care of trees, and removal of unsound trees. Minn. Stat. § 429.101, subd. Treatment and removal of insect-infested or diseased trees on private 1(5). Minn. Stat. § 429.101, subd. property and the repair of sidewalks and alleys. 1(6). Operation of a street lighting system. Minn. Stat. § 429.101, subd. 1(7). Operation and maintenance of a fire protection or a pedestrian skyway Minn. Stat. § 429.101, subd. 1(8).system. Inspections related to a municipal housing maintenance code violation. Minn. Stat. § 429.101, subd. 1(9). Recovery of payments to rehabilitate and/or maintain safe and habitable housing conditions over the useful life of a house or land -including Minn. Stat. § 429.101, subd. 1(10). payment of utility bills and other services, even if provided by a third party in rental situations. Minn. Stat. § 429.101, subd. Painting the exterior of a structure to remedy a municipal code violation. 1(11). The recovery of delinquent vacant building registration fees under a Minn. Stat. § 429.101, subd. 1(12). municipal program designed to identify and register vacant buildings. Garbage collection and disposal. Minn. Stat. § 443.015. Minn. Stat. § 429.101, subd Again, a city cannot exercise this authority until passing an authorizing 1(b). ordinance providing that such matters are the responsibility of the property owner. (The ordinance cannot require that property owners perform street sprinkling or other dust treatment, alley repair, tree trimming, care, and removal or the operation of a street lighting system.) Minn. Stat. § 429.101, subd. Unpaid charges collected as special assessments are subject to the same Sykes v. 2.See also notice, hearing, and appeal requirements as any other special assessments. Rochester, 787 N.W.2d 192 (Minn. Ct. App. 2010). They are not, however, subject to the special benefit test. Am. Bank v. City of Minneapolis, 802 N.W.2d 781 (Minn. Ct. App. 2011). Minn. Stat. § 429.101, subd. Cities may issue bonds or other debt instruments to finance the cost of 3. special services in the same manner as for local improvements, with three modifications: These obligations may not run for more than two years. The amount of debt a city issues at any one time may not exceed the estimated cost of the work it will do during the next six months. The council must set up a separate fund for each of the different services financed through this procedure. II.Synopsis of procedures The following discussion is a guide, but not legal advice, as to the proper fulfillment of special assessment procedures. The council should consult an attorney familiar with the individual project to make sure the city follows all All model forms in a legal procedures. compressed file. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 11 RELEVANT LINKS: Gadey v. City of Minneapolis, If the proper procedures are not followed, a court may set the assessment 517 N.W.2d 344 (Minn. Ct. aside and order a reassessment. App. 1994). Minn. Stat. ch. 429. In general, Chapter 429 proposes the following steps. A.Initiation of proceedings Minn. Stat. § 429.031. Either a petition from affected property owners or the council initiates Chapter 429 proceedings. 1.By petition 1.By petition1.By petition Minn. Stat. § 429.031, subd. If the council chooses to proceed with an improvement based on a petition 1(f). If the council chooses to proceed with an improvement based on a petition (they are not required to do so) it must have the signatures of the owners of (they are not required to do so) it must have the signatures of the owners of (they are not required to do so) it must have the signatures of the owners of at least 35 percent in frontage of the property bordering the proposed at least 35 percent in frontage of the property bordering the proposed at least 35 percent in frontage of the property bordering the proposed improvements. Computing the35 percent is not always easy. improvements. Computing the35 percent is not always easy. Petition for LMC model, Local Improvement –more than 35% of property owners (Form 3). A.G. Op. 396g7 (June 9, The Minnesota Attorney General has opined that the 35 percent requirement The Minnesota Attorney General has opined that the 35 percent requirement 1958). The Minnesota Attorney General has opined that the 35 percent requirement applies to the entire area petitioning for the local improvement so each applies to the entire area petitioning for the local improvement so each applies to the entire area petitioning for the local improvement so each specific street need not meet it. specific street need not meet it. City of Brainerd v. Brainerd The Minnesota Supreme Court finds that the state may be an “owner” for Investments Partnership , purposes of this 35 percent petition.(The Court finds the statute (Minn. 2013). unambiguous and refuses to consider extrinsic evidence by looking at three A.G. Op. 387-B-10 (June 29, Attorney General Opinions. These Opinions suggested that neither the state 1954).A.G. Op. 408-C (October 28, 1954). nor the city is an “owner” for purposes of this 35 percent petition.) If the council relies upon the petition as its basis for proceeding, it cannot its basis for proceeding, it cannot If the council relies upon the petition as its basis for proceeding, it cannot make a substantial change in the nature of the improvement from that asked make a substantial change in the nature of the improvement from that asked make a substantial change in the nature for in the petition. For example, it may not order an improvement for water for in the petition. For example, it may not order an improvement for water and sewer when the petition has asked for water alone, or add curb and gutter to a petition for blacktop. In some cases, for example buried utility lines, 100 percent of landowners must petition for an improvement. Petition for LMC model, Local Improvement -100% of property owners (Form 1). and Agreement of LMC model, Assessment and Waiver of Irregularity and Appeal (Form 2). League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 12 RELEVANT LINKS: Minn. Stat. § 429.035. The council must pass and publish a resolution determining whether the The council must pass and publish a resolution determining whether the Minn. Stat. § 429.036. The council must pass and publish a re petition is legally sufficient or not. Any person directly affected by the petition is legally sufficient or not. Any person directly affected by the resolution may challenge the council’s determination (as to the legal sufficiency of the petition) in district court. The appeal must be made within Resolution LMC model, 30 days and include a bond of $250. Declaring Adequacy of Petition and Ordering Preparation of Report (Form 4). 2.By council 2.By council2.By council Minn. Stat. § 429.031, subd. The council certainly may act on its own initiative in proposing a local The council certainly may act on its own initiative in proposing a local 1(f). The council certainly may act on its own initiative in proposing a local The council certainly may act on its own initiative in proposing a local improvement and ordering a feasibility report. As a practical note, an improvement and ordering a feasibility report. As a practical note, an extraordinary majority vote from the council is not necessary to initiate the extraordinary majority vote from the council is not necessary to initiate the proceedings. (Later in the process, a four-fifths council vote will be required proceedings. (Later in the process, a four-fifths council vote will be required proceedings. (Later in the process, a four-fifths council vote will be required ,Alternate to pass the resolution ordering an improvement initiated by council). The LMC model to pass the resolution ordering an improvement initiate d by council). The Resolution Ordering council must calculate the cost of the improvement or direct staff to do so. Preparation of Report on Improvement (Form 4-Alt). Voting See Section II-D-1: requirements for ordering the improvement. B.Feasibility report Minn. Stat. § 429.031, subd. Whether initiated by petition or by council, Chapter 429 requires that the Whether initiated by petition or by council, Chapter 429 requires that the 1(b). Whether initiated by petition or by c ouncil, Chapter 429 requires that the city engineer, or another person with similarskills, prepare what is city engineer, or another person with similarskills, prepare what is city engineer, or another person with similarskills, prepare what is commonly called a “feasibility report.” (Bond attorneys require a certified commonly called a “feasibility report.” (Bond attorneys require a certified copy of a feasibility report before issuing bonds to finance a local Minn. Stat. § 429.031, subd. improvement.) The feasibility report must cover such factors as whether the 1(d). project isnecessary, the availability of money in the general fund to pay the city’s share of the cost, an estimate of that cost, whether the improvement is cost effective, and any other information necessary for council consideration. Resolution LMC model, Receiving Feasibility Report and Calling Hearing on Improvement (Form 5). Note: If someone other than a city employee prepares the report, the law prohibits using a percentage of the costs of the proposed improvement as a basis to pay for the report.The feasibility report must also include the estimated cost of the improvement as recommended. Since a reasonable estimate of the total amount to be assessed, and a description of the methodology used to calculate individual assessments for affected parcels, must be available at the hearing, it could be part of the commissioned report. The feasibility report is integral to the assessment process. Best practice suggests that the city council pass a resolution receiving the report and provide preliminary notice of the improvement. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 13 RELEVANT LINKS: C.Initial considerations Overall the law requires two public hearings commonly known as an improvement hearingand an assessment hearing; in between these two public hearings councils may order the improvement, decide how to construct the project and tabulate an assessment roll. This Guide outlines some initial considerations, describes the improvement hearing, discusses ordering and constructing the improvement; and subsequently addresses the assessment hearing. 1.Determining benefit districts Determining what area benefits from improvement projects, or the area against which the city will levy assessments, is a major policy decision for the city council. The benefit district (or assessment district) varies with the kind of improvement. For some improvements, such as a new water tank, The special See Section I-B: the area benefited might be very large. In levying an assessment to finance benefit test. the tank’s construction, for example, the council might assess the entirearea the tank services. The special benefit test still applies. City staff, city engineers, consultants and attorneys may provide the basis for council to determine what area or district to assess for a specific improvement because that area benefits fromthe improvement. 2.City’s share Minn. Stat. § 429.061, subd. At any time before or after the city actually incurs expenses for the 1. improvement, the council must pass a resolution determining how much the city plans to pay (above and beyond what it may decide to pay for city- owned property in the assessment area) andseparate from amounts to be assessed. Cities may assess the cost of an improvement to property benefited Resolution LMC model, Declaring Cost to Be whether or not any part of the cost of the improvement is paid from the Assessed and Ordering county state-aid highway fund, the municipal state-aid street fund or the Preparation of Proposed Assessment (Form 12). trunk highway fund.Best practice suggests the council work with an Minn. Stat. § 429.051, appraiser and an attorney to determine the appropriate city share of a In Re Mackubin applied in St. ,279 Minn. 193, 155 particular project. N.W.2d 905 (Minn. 1968). The special See Section I-B: The council must also decide, with consultation from staff and consultants, benefit test. which cost allocation methodology most nearly equates costs and benefit. Such methodology is often described as unit or area charges and involves classification of assessed properties. (The third prong of the benefit test requires a uniform assessment applied to the same class of property, in the assessed area). Methodology may address the treatment of corner and odd- shaped lots.Many cities have adopted a policy of paying for all intersections, crosswalks, curb returns, and similar parts of public improvement projects not immediately fronting on private property. Other communities distribute the samecosts over the benefited area. League ofMinnesota Cities Information Memo:8/18/2017 Special Assessment ToolkitPage 14 STAFF CREATED AMENDMENTS TO SECTION 8.01, 8.04 AND 8.05 (2/16/18) FRIDLEY CITY CHARTER CHAPTER 8. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS Section 8.01. THE CITY PLAN. The present zoning and comprehensive plans shall be the plans for future physical development of the City. Plans may be altered from time to time. To alter a zoning plan, the City Council shall hold a public hearing and notice published fourteen (14) days prior to hearing with notices sent to affected property owners. The comprehensive plan may be altered in accordance with Minnesota state law. It The plans may include provisions for: (Ref Ord 1310) Zoning; Platting and development of new areas; Planning and location of public works of art; Public buildings; Parks; Playgrounds; Bridges; Public transportation services and facilities; Other public facilities; Designing and improving streets; Designing and improving public places; and Other matters which may seem essential to the City plan. Section 8.02. ENFORCEMENT OF CITY PLAN. The Council shall have all necessary power full authority, acting through the City Manager, to enforce complete adherence by all persons to the plans adopted as provided above, and to adopt and enforce a comprehensive zoning ordinance. The Council shall have power to pass ordinances to regulate: the use of private property,; the height of buildings,; and the proportion of the area of any lot which may be built upon; and to establish building lines. Such power authority shall be exercised to promote public health, safety, morals, welfare and convenience. Section 8.03. PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS. The City shall have the power authority to make any and every type of public improvement not forbidden by the laws of the State and to levy special assessments to pay for all such improvements as are of a local character, in accordance with Minnesota State Statute Chapter 429, Local Improvements, Special Assessments. The amounts assessed to benefited property to pay for such local improvements may equal the cost of the improvements, including all costs and expenses connected therewith, with interest, until paid, but shall not exceed the benefits to the property. Section 8.04. LOCAL IMPROVEMENT REGULATIONS. STAFF CREATED AMENDMENTS TO SECTION 8.01, 8.04 AND 8.05 (2/16/18) The City Council may prepare and adopt a comprehensive ordinance, prescribing the procedure which shall determine all matters pertaining to the making of local improvements thereafter, and such ordinance shall supplant supercede all other provisions of law on the same subject and may be amended only by an affirmative vote of at least four (4) members of the City Council. Such ordinance shall provide for such notice and hearing in the ordering of improvements and the making of assessments therefore as shall be necessary to meet the State of Minnesota constitutional requirements the initiation of local improvements upon property Such ordinance shall allow for initiation of a local improvement by: 1.Apetition signed by a majority of the owners bordering the proposed improvement *; or 2.By the city council initiating a local improvement and ordering a feasibility report. also require a petition of a majority in number and interest of the owners of property to be assessed for such improvement, or improvements, for the initiation thereof; provided that the City Council may proceed upon its own initiative hereunder and under such ordinance by resolution adopted by four/fifths (4/5) affirmative votes of the City Council after a proper notice and hearing. (Ref. Ord. 776) (*State law requires at least 35% of property owner signatures) Section 8.05. PUBLIC WORKS HOW PERFORMED. 1.Public works including all local improvements, may be constructed, extended, repaired or maintained either by contract or directly by day labor. Before receiving bids the City Manager shall, under the direction of the City Council, have suitable plans and specifications prepared for the proposed material or project and estimate of the cost thereof in detail. The award of any contract shall not exceed the real measure of benefit which is the increase in the market value of the land because of the improvement. amounting to more than what is allowable under Minnesota state statutes shall require an affirmative vote of at least four (4) members of the City Council. When the best interest of the City will be served thereby, tThe City Council may organize a public works department and may provide the public works department with suitable equipment to perform their duties. (Ref. Ord. 1310) (Is there a contract limit under MN Statute? -no there is not a contract limit, however, the amount of the special assessment cannot exceed the benefits to the property, which is addressed in Sec. 8.03) 2. The right is reserved to the City Council, upon the recommendation of an engineer, acting through the public works department, to bid on any work to be let by contract. All contracts shall be let to the lowest responsible bidder who is qualified in accordance with Minnesota State Statutes. The term "lowest responsible bidder" shall be interpreted as giving the City Council the right to accept any bid which it determines to be most advantageous to the City. The City Council shall reserve the right to reject any or all bids in accordance with Minnesota State Statute Chapter 429. The City shall require contractors to furnish proper bonds for the protection of the City, the employees and material person.in accordance with Minnesota state law. (Ref. Ord. 776) 2018 Charter Commission Membership Name/AddressPhonee-mail addressAppointedTerm Expires Braam, Gary (h) 763-571-9582 gbraam@msn.com 06-01-04 (1) 05-31-2008 1436 66 th Avenue (w) 763-528-1214 02-05-08 (2) 05-31-2012 55432 02-13-12 05-31-2016 05-27-16 05-31-2020 Brillhart, Kelli 651-247-6084 K340029@gmail.com 2018 09/19/2021 830 W Moore Lake Dr (w) 763-505-4888 55432 Crandall, Zach (h) 612-240-0427 zcrandall@hotmail.com 05-27-16 06-01-2020 th 6200 6 Street NE (w) 612-849-8318 55432 Findell, Donald (h) 763-571-0467 donfinder@aol.com 6-16-97 (1) 05-11-2001 6850 Siverts Lane (c) 612-867-9954 2-21-01 (2) 05-01-2005 55432 5-4-05 (3) 05-01-2009 2-4-09 05-01-2013 05-24-13 05-01-2017 05-01-2021 Manuel Granroos (h) 763-571-0811 mannyjg2389@gmail.com 10-21-14 09-02-2018 1114 63 rd Ave NE (c) 612-710-0332 Fridley, MN 55432 Richard Johnston 7637-772-7556 johnstonrr@msn.com 02-15-2017 09-19-2021 456 Rice Creek Blvd Fridley, MN 55432 Ted Kranz (h) 763-571-4387 Tkranz1@comcast.net 8-11-06 (1) 04-22-2010 6701 Monroe Street NE 03-29-10(2) 04-22-2014 55432 10-21-14 04-22-2018 Bruce Nelson 763-439-3659 binelson@comcast.net 02-15-2017 04-22-2018 st 168 71 Way NE 2018 04-22-2022 Fridley, MN 55432 Rick Nelson (c) 612-963-2487 rickvan16@hotmail.com 05-12-11 02-13-2012 4624 2 ½ Street NE 02-13-12 02-21-2016 55421 05-27-16 02-21-2020 David Ostwald 763-572-3865 10-21-14 02-21-2017 dostwald@tonkawa.com 6675 East River Road (c) 763-234-2950 02-21-2021 Fridley, MN 55432 Barb Reiland 763-571-0801 barb642@mac.com 02-13-12 02-21-2013 5623 W Bavarian Pass 05-21-13 02-21-2017 55432 02-21-2021 Reynolds, Pam (c) 763-222-9386 fnpam@hotmail.com 5-12-05 (v) 05-01-2007 1241 Norton Ave NE 3-22-07 05-01-2011 55432 04-04-2011 05-01-2015 05-04-2015 05-01-2019 Valerie Rolstad (h) 612-799-5993 A2busymam4u@hotmail.com 02-15-2017 05-01-2017 1100 Lynde Drive 05-01-2021 55432 Soule, Cynthia (h) 763-572-9666 csoule@primetherapeutics.com 6-16-97 (1) 05-01-2009 7838 Firwood Way (c) 612-414-5319 05-01-2013 55432 05-01-2017 05-01-2021 Starck, Avonna (h) 612-423-6939 Avonna.caroline@gmail.com 05/22/15 (1) 05/04/2019 650 67 th Avenue NE (W) 612-301-9194 55432 02/06/18