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ITEM 4.1 Street light chargesY O otSego F MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR. MEETING DATE: Administration Adam Flaherty, Finance Director March 13, 2017 PRESENTER(s): REVIEWED BY: ITEM #: Adam Flaherty 4.1 AGENDA ITEM DETAILS RECOMMENDATION: It is recommended by staff that the City Council approve the corresponding resolution which will impose the 2017 service charges within the above standard street lighting district. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes BACKGROUND/JUSTIFICATION: Chapter 6, Section 8 of the City Code establishes both a Standard Street Lighting system and an Above Standard Street Lighting system. An above standard street lighting system is essentially a system that exceeds basic illumination standards, and is required by City Code within commercially developed sub- divisions within the Sanitary Sewer Service District. The costs of operating and maintaining the standard street lighting system shall be financed as part of the General fund, with levied taxes upon all taxpayers of the City. The costs for operating the above standard street lighting systems shall be funded through the establishment of a special service district, in accordance with Minnesota Statute §428A.02. The special service district encompasses all of the benefitting properties. The charges for operation & maintenance shall be charged in accordance with charges incurred to the City and estimated costs for future maintenance & replacements, and will be established annually. The map of the special service district boundaries is attached, and there have been no proposed changes to the respective boundaries since 2015. Wright County data indicates that there are 44 parcels within an area of 133.41 developed acres with installed lighting. This developed area currently includes 104 street lights. Based upon review of actual electric charges incurred over the past years, it is proposed that the charges imposed upon the special service district for 2017 will be $10,000, which will cover the estimated electrical charges for 2017. Through 2015, the special service district charges also included a sum to cover future maintenance and replacements of the above standard street lighting system. There is no sum included in the 2017 charges for this purpose. As can be noted within the Street Light fund cash flow illustration, there is currently $115,528 of funds available should there be any maintenance in 2017. This balance would not be sufficient to meet the future full-scale replacement when the current lights meet their service life. City staff is currently evaluating alternatives for future replacements of the lighting system. Should the system continue to be owned and operated by the City, the sum for maintenance and replacement will be added back to the 2018 budget. SUPPORTING DOCUMENTS: ATTACHED NONE • Map — Above Standard Street Lighting Special Service District Boundaries • Street Light Fund — Cash Flow • Resolution 2017-19 • Exhibit A P0SSIRI F MOTION Please word motion as you would like it to appear in the minutes. -Motion to approve Resolution 2017-19, Imposing charges for 2017 within the above standard street lighting special service district. RI inr.FT INFORMATION FUNDING: BUDGETED: #225—Above Standard Street Light District Yes W :�� Iliq mm I DATA SOURCES: WRIGHT COUNTY SURVEY DEPT., MNDNR, & CITY OF OTSEGO KI -d egqIPROJECTSIGISIOT901-20161OT901-2016 Above Sta 2016 ABOVE STANDARD STREET LIGHTING SERVICE DISTRICT CITY OF OTSEGO CITY OF se o MINNESOTA 77TH w 161 W 36 LEGEND m PROPERTIES WITHIN 2016 ABOVE STANDARD STREET LIGHTING SERVICE DISTRICT DATE: MARCH 2016 City of Otsego 140,000 120,000 100,000 80,000 ..... 60,000 40,000 Street Light District 20,000 - lid, 2009 2010 2011 2012 2013 2014 2015 2016 2017 Expenses Revenues +Cash Balance - Ending Cash Flow Summary i� Revised: March 6, 2017 Actual Actual Actual Actual Actual Actual Actual Forecast Budgeted 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenues Charges for Services $ 17,660 $ 24,082 $ 24,981 $ 24,209 $ 34,889 $ 34,476 $ 27,006 $ 12,401 $ 10,000 Development Fees - - - - - - - 7,400 - Investment Interest - 373 483 692 - 1,223 623 - - Total 17,660 24,455 25,464 24,901 34,889 35,699 27,629 19,801 10,000 Expenses PersonalServcies - - 951 511 796 - - - - Supplies - - 2,255 111 524 - - - - Utility Fees 297 15,173 9,761 10,474 10,713 9,683 9,500 9,326 10,000 Services & Other Charges - - - 587 - - - - - Capital Outlay - - - - - - - 7,400 - Total 297 15,173 12,967 11,683 12,033 9,683 9,500 16,726 10,000 Cash Balance - Beginning - 17,363 26,645 39,142 52,360 71,527 95,889 110,670 115,528 Balance Sheet Effects - - - (3,689) (1,654) (3,348) 1,783 Revenues 17,660 24,455 25,464 24,901 34,889 35,699 27,629 19,801 10,000 Expenditures (297) (15,173) (12,967) (11,683) (12,033) (9,683) (9,500) (16,726) (10,000) Cash Balance- Ending $ 17,363 $ 26,645 $ 39,142 $ 52,360 $ 71,527 $ 95,889 $ 110,670 $ 115,528 $ 115,528 Street Light District Fund 140,000 120,000 100,000 80,000 ..... 60,000 40,000 20,000 - lid, 2009 2010 2011 2012 2013 2014 2015 2016 2017 Expenses Revenues +Cash Balance - Ending CITY OF OTSEGO COUNTY OF WRIGHT STATE OF NI NNESOTA RESOLUTION NO: 2017-19 IMPOSING CHARGES FOR 2017 WITHIN THE ABOVE STANDARD STREET LIGHTING SPECIAL SERVICE DISTRICT WHEREAS, Minnesota Statute §428A.02 and Otsego City Code Chapter 6; Section 8, the Otsego City Council held a public hearing at their regular meeting on March 13, 2017 to consider imposing charges for 2017 within the Above Standard Street Lighting Special Service District; and WHEREAS, upon review of the Above Standard Street Lighting Special Service District and its boundaries, the proposed charges, other evidence received, the public hearing was closed and the City Council passed upon all objections to the proposed charges. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: That the schedule of proposed service charges as set forth in Exhibit A attached hereto and made a part thereof, is hereby accepted and shall constitute the special service district charges against the parcels identified for 2017. 2. That the special service district charges shall be payable in equal monthly installments extending over a period of one year and will be included on the monthly utility bill. 3. Any party objecting to inclusion of its property in the special service district, objecting to the levy of the charges on that property because it is exempt, or objecting to the levy of the charges on the basis that it does not benefit the property and filing a written objection of the same is entitled to a determination on that objection within thirty (3 0) days from the hearing and has a right to appeal to the District Court from the City's determination within thirty (30) days from the date of said determination pursuant to Minnesota Statutes 428A.02, Subdivision 5. ADOPTED by the Otsego City Council this 13th day of March, 2017. ATTEST: Cil 11'Z17��L�1.1�� Jessica Stockamp, Mayor Tami Loff, City Clerk MOTION made by Council Member and SECONDED by Council Member IN FAVOR: OPPOSED: City of Otsego Exhibit A Street Lighting - Special Service District 2017 Charges Y PID Owner Mailing Address City State ZIP Acreage Charges 118-057-001010 Bank of Elk River 630 Main Street NW Elk River MN 55330 3.48 260.85 118-093-001010 Donna K Peterson Prop, LLC 1715 Sterling Drive Minnetrista MN 55364 4.22 316.32 118-096-001010 Mayimy, LLC 15751 85th Street NE Otsego MN 55330 2.72 203.88 118-096-001020 Edco Products, Inc. 8700 Excelsior Blvd Hopkins MN 55343 2.00 149.91 118-096-001030 Edco Products, Inc. 8700 Excelsior Blvd Hopkins MN 55343 2.00 149.91 118-096-001040 Crag Enterprises, LLC 403 Main Street Elk River MN 1 55330 5.481 410.76 118-098-001010 Otsego Mall, LLC 2 Enterprise Ave NE, Suite D4 Isanti MN 55040 2.39 179.15 118-173-001010 Shells Holdings, LLC 9075 Quaday Ave NE Otsego MN 55330 1.00 74.96 118-173-001020 ABP, LLC 4104 Hayes Street Anchorage AK 99503 1.39 104.19 118-173-002010 T&L Land Co, LLC 16340 Ferret Street NW Ramsey MN 55303 1.23 92.20 118-173-002020 RPHR Investments, LLC 9785 Troy Lane NE Maple Grove MN 55311 1.77 132.67 118-178-001010 Ken &Julie Nathe 19080 Lincoln Street Elk River MN 55330 4.72 353.80 118-186-001010 Elk Inn Partners, LP 800 Bering Drive, Suite 350 Houston TX 1 77057 4.261 319.32 118-219-001010 Marketplace West II, LLC 7365 Kirkwood Court N, Suite 335 Maple Grove MN 55369 1.00 74.96 118-239-001010 TCF National Bank 1405 Xenium Lane N Plymouth MN 55441 1.01 75.71 118-239-001020 Target Corporation PO Box 9456 Minneapolis MN 55440 14.08 1,055.39 118-239-001030 Otsego GRC, LLC 2550 University Ave W, Suite 416 St. Paul MN 55114 3.48 260.85 118-239-001040 Otsego GRC, LLC 2550 University Ave W, Suite 416 St. Paul MN 55114 1.16 86.95 118-239-000090 21st Century Bank 9380 Central Ave NE Blaine MN 55434 7.35 550.93 118-252-002010 21st Century Bank 9380 Central Ave NE Blaine MN 55434 5.14 385.28 118-252-003010 21st Century Bank 9380 Central Ave NE Blaine MN 55434 4.46 334.31 118-252-003020 21st Century Bank 9380 Central Ave NE Blaine MN 55434 2.72 203.88 118-252-004010 21st Century Bank 9380 Central Ave NE Blaine MN 55434 8.73 654.37 118-257-001010 Karen S. Anderson Trust 221 1st Avenue NE, Apt 34 Minneapolis MN 55413 0.96 71.96 118-257-001020 Karen S. Anderson Trust 221 1st Avenue NE, Apt 34 Minneapolis MN 55413 0.71 53.22 118-258-001010 Klein Bank 1550 Audobon Road, Suite 200 Chaska MN 55318 1.201 89.95 118-262-000010 CP Otsego Partners, LLC 20980 Rogers Drive, Suite 600 Rogers MN 1 55374 2.30 172.40 118-262-001010 RTP Investments, LLC 10253 County Road 127 Nisswa MN 56468 1.24 92.95 118-264-000010 521 Land Company, LLC 508 Freeport Avenue NW, Suite A Elk River MN 55330 10.34 775.05 118-264-000030 Otsego Developments, LLC 7365 Kirkwood Court N, Suite 335 Maple Grove MN 55369 1.79 134.17 118-264-000040 Otsego Developments, LLC 7365 Kirkwood Court N, Suite 335 Maple Grove MN 55369 1.55 116.18 118-264-001010 521 Land Company, LLC 508 Freeport Avenue NW, Suite A Elk River MN 553301 3.95 296.08 118-266-001010 TCO Otsego Property Co, LLC 4200 Dahlberg Drive, Suite 300 Minneapolis MN 55422 2.38 178.40 118-282-001010 Main Street Otsego Dev, LLC 7365 Kirkwood Court N, Suite 335 Maple Grove MN 1 55369 2.43 182.15 118-282-001020 WFC III, LLC 7365 Kirkwood Court N, Suite 335 Maple Grove MN 55369 2.29 171.65 118-290-001010 P&F Properties, Inc. 17171113th Ave N, Suite A Dayton MN 55369 6.17 462.48 118-300-000010 Quantrelle, LLC 1900 Silver Lake Road NW, Suite 110 New Brighton MN 55112 2.05 153.66 118-300-001010 Quantrelle, LLC 1900 Silver Lake Road NW, Suite 110 New Brighton MN 55112 3.19 239.11 118-301-000010 RTB, LLC PO Box 332 Elk River MN 55330 1.781 133.42 118-301-001010 WFC II, LLC 7365 Kirkwood Court N, Suite 335 Maple Grove MN 55369 1.29 96.69 118-500-154101 21st Century Bank 9380 Central Ave NE Blaine IMN 55434 2.00 149.91 TOTAL 133.41 10,000.00