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Home My WebLink About1998-12-16 PACKET 04.F.REQUEST OF CIIY COUNCIL ACTION COUNCiL AGENDA flAEETING ITEM # DATE 12(16/98 E~/. �� PREPARED BY Finance Liz Johnsan ORIGIiVATIiVG DEPRRTMENT STAFF AUTHOR <��.��<<��..<��..«...«��...��<�.��<.��«�� COUNCIL ACTION REQUEST Adopt resolution establishing rates far street light energy and maintenance charges and repealing resolution 97-215 [.'��,1��:7xK�7 �l�il��1�7_�iL�P►i Adopt resolution establishing a$2.50 per quarter charge to customers of City owned street lights in order to generate reserve funds for the street light repair and replacement program. BUDGET IMPLICATION: $ $ BUDGETED AMOUNT ACYUAL AMOUNT FUNDING SOURCE ADVISORY COfVIMISSION ACTION ■ ■ ■ ■ ■ ■ ■ PLAN►VING PUBLIC SAFETY PUBLIC WORKS PARKS AND RECREATION HUMAN SERVICES/RIGHTS ECONOMIC DEV. AUTHORITY DATE REVIEWED ❑ ❑ ❑ � ❑ ❑ ❑ APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUNtENTS ❑ N1EN10iLETTER: (� RESOLUTBOtJ: ❑ ORDINANCE: ❑ ENGINEERING RECOMMERlDATlOM: ❑ LEGAL REGOMNIEfVDATION: ❑ OTNER: i �+ ♦ + � �; , _, ) � ; ., , ��-� ' �� %�" �, %� �� s; , � --� City ,4dministrator Date .��<��„��*�<.��«..��.��..� COUNCIL AC7ION TAKEfV: ❑,4PP�20ilE� ❑�E�i�a � oTH��a Memorandum To: Honorable Mayor and City Council Ryan Schroeder, City Administrator From: Elizabeth Johnson, Finance Director�✓ Date: 12/09/98 Re: Quarteriy charge for street light repair program Introduction City Council should consider approving a change to the street light utility rate ;ture as discussed durin� the budget review sessions and the truth in taxation I'he �ity �ouncil recommended a 5 cent decrease to the middle usage water rates in Recember 199'7. This action was to provide a minimal impact on the homeowner by etiucing the water rate and allowing for inflationary increases in the sewer rate and an ncrease in the street light rates. The changes were: December 9, 1998 Discussion It was noted during the July 30, 1998 budget discussions, which aze attached, that the Street Light Enterprise Fund would be incurring costs to re-wire direct wired lights and replace lights. The current rate structure would not provide for sufficient funds to address these needs. Street light user chazge revenues, without the repiacement charge, would be approximately $297,300. Total expenditures are budgeted at $371,300, including depreciation. Therefore, the cunent fee structure would not provide enough operating income to generate sufficient reserves for the repair program. An additional chazge of $2.50 per quarter would generate appro7cimately $74,800, which would help balance the fund and provide for funds for the repair and replacement program. The per quarter charge would affect only those customers who aze benefited by City owned street lights. Requested Action Adopt resolution establishing rates street light energy and maintenance charges and repeal resolution 9�-215. RESOLUTIOIV N0. 98- RESOLUTION ESTABLISHING STREET LIGHT ELECTRICAL ENERGY AND MAINTENANCE CHARGES; REPEALING RESOLUTION 97-215 WHEREAS, Chapter 22, Articie IV, Section 22-21 of the Cottage Grove City Code authorizes and directs the City Council to establish charges for the operation and maintenance of the municipal street light system, by resolution. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that after due consideration and deliberation, the City Council hereby repeals Resolution no. 97-215 and establishes the following cnarges: 1. Residential NSP-Owned: That the special charge for the operation and mai�tenance of the municipal street lighting system for each every residential lot benefited by street lights which are owned by Northern States Power shall be established at $16.56 per quarter. 2. Residential City-Owned: That the special charge for the operation and m�int�nance eaf the municipal street lighting system for each every residentia! !o± benefited by street lights which are owned by the City shall be established at $7.57 per quarter. 3. Commercial Citv Owned: That the special charge for the operation and maintenance of the municipal street lighting system for those commercial lots which are benefited by commercial street lights owned by the City shall be established at $1.28 per front foot per year. 4. Residential Street Liahtinp Surcharcre: That the special charge for the street light repair program of the municipal street lighting system for those residential lots which are benefited by street lights which are owned by the City shall be estabiished at $2.50 per quarter. BE IT FURTHER RESOLVED, that the charges shali become effective for those biliing on or around January 1, 1999. Passed this 16th day of December, 1998. John D. Denzer, Mayor Attest: Caron M. Stransky, City Clerk Special Meeting — July 30, 1998 Cattage Grove City Council Page 2 � Community Development Director Lindquist reviewed the planning, historic preservation, inspections, surface water, and engineering proposed budgets. There was consensus to schedule a Council workshop to discuss the CityVision Task For�e report and recommendation in September, and meet with the Task �orce in October. There was disc�ssion on the reduction in personnel recommended in the Building Inspectio�s budget. Council briefly discussed the hiring of an in-house engineer and the existing engineering consuiting contract. Consensus was to discuss the entire engineering function during a future Workshop Session. Public Works Director Les Burshten reviewed the pubiic works administration, street maintenance, signs and striping, snow/ice control, forestry, equipment replacement, recycling, water operation, sewer operation, street lights, and fleet service proposed budgets. Council directed Staff to obtain quotes for the collection and removal of solid waste from City property and for the annual Spring Clean up. Burshten noted that the recommended street maintenance budget does not include the requested hiri�g of an additional laboredequipment operator. Ne requested Council consideration to add the position to the budget. Council discussed existing subdivision tree planting program and concurred with the proposai to provide planting just off the boulevard in the front yard. There was discussion on the level of funding provided for replacement of ' boulevard trees in existing subdivisions. Council consensus was to c,on#inue to fund the replacement progeam but to purchase bare root versus burlap trees. Council discussed the proposed funding source to rewire 86 city-owned streetlights estimated to cost $73,000. tt was suggested that the rates for streetiights be averaged at $12.07 per quaRer for city-owned and NSP owned customers. Following discussion, Council consensus was to add a$2.50 per quarter surcharge for city-owned streetlight customers only. The Council reviewed the City Clerk/Elections, Finance/MIS, and Administration budgets. There was discussion on providing assistance to the Personnel Director in the recn�itmen4 of personnei to fl11 vacant positions. '�