Consider Recommendation to City Council Regarding Connexus Energy's Special Assessment for Sunwood Drive Reconstruction

Up to 25 percent of project funding for the Sunwood Drive Reconstruction project is proposed to come from special assessments to benefiting properties.  A total of nine properties were identified as benefiting properties with this project.  One of the nine properties is Connexus Energy whose primary access for their service vehicle fleet uses their access onto Sunwood Drive.

Connexus Energy has never formally objected to their preliminary assessment, but they have voiced concerns with their assessment on several occasions, and have met with Staff numerous times to discuss their assessment.  However, Connexus Energy is now requesting to discuss their assessment with the Public Works Committee prior to the Assessment Hearing scheduled for October 10, 2017.

Attached is a copy of the Sunwood Drive Reconstruction project Feasibility Report which discusses how special assessments were calculated for this project, and includes a preliminary assessment map and roll as approved by the City Council.  Also attached is a copy of the City's Special Assessments Policy.
   
Staff is preparing a brief presentation to summarize how special assessments were calculated for this project, including the Connexus Energy parcel.  Mike Bash, Vice President and Chief Financial Officer for Connexus Energy, will be in attendance and will be prepared to present additional information to the Committee to explain why they believe their preliminary assessment should be reduced.

Staff anticipates approximately 30 minutes will be needed for this case.

Observations:
It is important to note that contributing traffic volumes and/or vehicle types were not considered in calculating assessments for any of the benefiting properties.  Based on vehicle impacts of all existing benefiting properties, Connexus Energy's service vehicle fleet likely has the greatest negative long-term impact on the service life of Sunwood Drive.

Staff has discussed and reviewed Connexus Energy's concerns and arguments regarding their assessment on several occasions and believes that the assessment proposed is defensible and in accordance with state law.  Consequently, we do not recommend reducing their  assessment prior to the Assessment Hearing. 

If Connexus Energy's assessment is reduced, all other assessment amounts will need to be reviewed and adjusted accordingly and concurrently, which could delay the Assessment Hearing and increase the City's overall contribution to the project.

Alternatives:
Alternative #1 - Motion recommending City Council adoption of special assessments for the Sunwood Drive Reconstruction project consistent with the preliminary assessment calculations outlined within the Feasibility Report.

Alternative #2 - Motion recommending City Council adoption of special assessments for Sunwood Drive Reconstruction project based on the following assessment calculation adjustments; __________________________.

Reducing special assessment amounts for this project would increase the City's contribution for this project.

Staff recommends alternative #1.

No action is required at this time.  Staff will include a copy of the minutes from this meeting as an attachment to the City Council case to be presented prior to the Assessment Hearing on October 10, 2017.