Tuesday, November 9, 2010

Due Process in Improvements

Public Improvements are something of a challenge in Breezy Point. By this I mean the improvements of roadways and drainage in particular. The process under state law is found in Chapter 429 and involves a number of steps. This process is generally referred to as the assessment process. Accomplishing the steps is mechanical but provides for due process and the ability to allow those parties involved the ability to be heard.

The reason I state that it is challenging, is the building of improvements costs money. Doing so means property owner assessments. With the current state of the economy there are a good many parties who can’t afford the additional costs of an annual assessment. Typically assessments are spread between 10 and 20 years. Interest is charged on these assessments much like a loan for your mortgage. The annual payments are then split between the two tax payments that are made with your property taxes.

This summer we had one petition move forward with the paving of Owl Circle. Given the size of the project it didn’t attract many bidders, only 2 bids were received. Also due to the size of the project unit prices were not as attractive as we had hoped for. Never the less, even though the project exceeded the estimate some of the property owners were anxious to see the project move forward. The project was built and assessed.

Another project petitioned for was that of paving and drainage improvements to Violet lane. This project was larger in scale with an estimated cost of $236,000. The project included drainage issues and soils corrections which added to the cost. Looking at the project to find an equitable way to spread the costs resulted in a proposed front foot cost and two assessment rates depending on the extent of work involved. It is important to look at any improvement project with an eye towards fairness. Any process you use in assigning costs could be questioned as there is no perfect system but there shouldn’t be winners and losers in the outcomes.

A public hearing was held for this project and a good number of involved parties were at the hearing. Most spoke against the project citing a number of concerns, the largest being that of costs. After looking at how the assessments would affect them some of the property owners withdrew their petition for improvements. This brings the threshold for council action up to require a 4/5 vote as a council would then be ordering the improvements outside of a valid petition. Property owners can petition a project with 35% of the frontage being represented. Without that, the council can move the project forward but it takes a higher majority vote rather than a simple majority.

It was determined that the project would not continue towards construction. The city invested time and money in looking at the costs and project details but without that it is difficult to know what to tell people about expenses.

We have one other petition that has been presented for consideration, that of Papago Circle. This project also involves drainage in addition to paving. The process continues with the feasibility report which will help the council, as well as the involved residents, address the impact they may experience.