HomeMy WebLinkAbout2.a. Review Draft Street Light Utility
E X E C U T I V E S U M M A R Y
City Council Work Session: September 3, 2019
AGENDA ITEM: Discuss Street Light Utility Ordinance AGENDA SECTION:
Discussion
PREPARED BY: Logan Martin, City Administrator
Jeff May, Finance Director AGENDA NO. 2.a.
ATTACHMENTS: Draft Street Light Utility ordinance APPROVED BY: LJM
RECOMMENDED ACTION: Discuss draft Street Light Utility ordinance and provide direction.
BACKGROUND
As previously discussed at the July and August work sessions, the 2020 Budget includes the establishment
of a Street Light Utility. If established, a Street Light Utility fee would be charged to each business and
homeowner, allowing the City to recover its costs for electricity and maintenance on the street light system.
Final rates are still be solidified, however the City would aim to simply recover its costs and prepare for any
current or future maintenance needs. The 2020 Budget shows a revenue generation of $220,000, which fully
offsets electrical costs and maintenance funds for the street light system. This amount is generated by
charging approximately $7.50 per quarter, per single-family property, with some multiple of that for lager
multi-family, commercial and industrial properties. The exact amount will be determined by staff within the
next few weeks, once more analysis is completed.
Rosemount is currently one of the only cities in Dakota County without a Street Light Utility. Apple Valley,
Burnsville, Lakeville, Farmington and Eagan all have streetlight utility fees ranging from $5.38 to $9.60 per
quarter. As with the other utility funds (water, storm, and sewer), utility rate payers would see a new line
item on their quarterly utility bills that delineates the amount owed for the street light network.
Attached is a draft ordinance establishing this utility, drafted by City Attorney Tietjen. Staff will provide
further detail to facilitate a discussion at the work session. It is recommended that the City discusses this
issue in an upcoming public meeting, along with hosting a public informational session prior to formally
adopting a Street Light Utility.
RECOMMENDATION
Staff requests the City Council provide direction on any needed modifications to the draft Street Light
Utility ordinance.
CITY OF ROSEMOUNT
ORDINANCE NO. ____
AN ORDINANCE AMENDING TITLE 4 OF THE CITY CODE,
ADDING NEW CHAPTER 6
THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA ORDAINS AS
FOLLOWS:
Section 1. Rosemount City Code is amended by adding a new Chapter 6 to Title 4 as follows:
CHAPTER 6
ARTICLE A. STREET LIGHTING SYSTEM
4-6A-1: POLICY AND PURPOSE: The City Council has determined that it is in the best
interests of the residents of the City to operate a Street Lighting System in the City to promote the
general safety and welfare of the residents pursuant to Minnesota Statutes § 412. 221, Subdivision
7. In order to pay the costs of the establishment, construction, repair, replacement, maintenance,
enlargement, and improvement of the Street Lighting System, it is hereby determined by the City
Council that every parcel of property, whether residential, commercial, institutional, or industrial,
benefiting from the safety and convenience of the Street Lighting System shall pay a street light
utility charge. It is further determined to be the policy of the City that payment for said services
shall be established and collected in a fair, reasonable, and equitable basis.
4-6A-2: ESTABLISHMENT OF STREET LIGHTING UTILITY: There is hereby
established a street light utility for the purpose of paying the costs of the establishment,
construction, repair, replacement, maintenance, enlargement, and improvement of the Street
Lighting System and to charge for and collect the costs thereof from the Benefiting Properties
pursuant to authority in Minnesota Statutes § 429.101.
4-6A-3: LIABILITY: The City shall not be liable for injury or damage to persons or property
caused by any deficiency or failure in supply of electricity for the Street Lighting System whether
occasioned by shutting off the system for the purpose of making repairs or connections, weather -
related incidents, or from any other cause whatsoever.
4-6A-4: APPLICATION: No statement contained in this Chapter shall be construed to
interfere with any additional requirements that may be imposed by any other entity. In addition,
no statement in this Chapter shall be construed as preventing any special agreement or arrangement
between the City and an individual User.
4-6A-5: DEFINITIONS: Unless otherwise provided here, the definitions in Title 1, Chapter 3
of this Code apply to the terms in this Chapter.
BENEFITING PROPERTY: Any property located within 150 feet of a City street light excluding
property described in Title 4, Chapter 6, Article B, Section 6.
STREET LIGHTING SYSTEM: All systems, works, instrumentalities, equipment, materials,
supplies, lights, poles, wires, cables, conduits, and all other parts and appurtenances of the
foregoing which are useful or used in connection with the operation and maintenance of the street
lights.
USER: The owner and occupant of any Benefiting Property.
4-6A-6: SUPERVISION BY PUBLIC WORKS DIRECTOR/CITY ENGINEER: The
Public Works Director/City Engineer, or designee, shall have control and gen eral supervision of
the Street Lighting System including service connectors in the City. The Public Works
Director/City Engineer shall be responsible for administering the provisions of this Chapter to the
end such that a proper and efficient Street Lighting System is maintained.
4-6A-7: AUTHORITY:
A. Access: The Public Works Director/City Engineer, or other duly authorized employees of
the City bearing proper credentials and identification, shall be permitted to enter all
properties for the purposes of, but not limited to, inspection, observations, measurement,
sampling, repair, and maintenance of any portion of the City’s Street Lighting System in
accordance with the provisions of this Chapter.
B. Tampering: No person shall maliciously, willfully, or negligently break, damage, destroy,
uncover, deface, or tamper with any structure, appurtenance, or equipment which is part of
the Street Lighting System.
C. Safety: While performing necessary work on the Street Lighting System the Public Works
Director/City Engineer, or duly authorized employees of the City, shall observe all safety
rules applicable to the premises.
4-6A-8: PENALTY: Any person violating any of the provisions of this Chapter shall become
liable to the City for any expense, loss, or damage sustained by the City by reason of that violation.
In addition, any person found to be violating any provisions of this Chapter shall be served by the
City with written notice stating the nature of the violation and providing a reasonable time limit
for the satisfactory correction thereof. The offender shall, within the period stated in the notice,
permanently cease all violations. Any person who shall continue any violation beyond the
specified time limit shall be punished as provided in Title 1, Chapter 4. Each day in which any
violation occurs shall be deemed as a separate offense.
ARTICLE B. STREET LIGHTING CHARGE SYSTEM
AND STREET LIGHT UTILITY FUND
4-6B-1: FUND ESTABLISHED:
A. The City hereby establishes a Street Lighting Charge System to recover costs associated
with the operation, maintenance, and replacement of the Street Lighting System. The Street
Lighting Charge System will be administered in accordance with Title 4, Chapter 6, Article
B, Section 2.
B. The City hereby establishes the Street Light Utility Fund as a separate and dedicated
income fund to receive all revenues generated by the Street Lighting Charge System, and
all other income dedicated to the operation, maintenance, and replacement of the Street
Lighting System. The Street Light Utility Fund will be administered in accordance with
the provisions of Title 4, Chapter 6, Article B, Section 2.
4-6B-2: ADMINISTRATION:
A. In accordance with federal and state requirements, the City Finance Director, or designee,
shall maintain records necessary to document compliance with the Street Lighting Charge
System. The City Finance Director shall be responsible for maintaining a proper system of
accounts suitable for determining the operation, maintenance, and replacement costs of the
Street Lighting System.
B. All revenue collected from Users of the Street Lighting System will be used to off-set all
expenditures incurred for annual operation, maintenance, and replacement of the Street
Lighting System.
C. All revenue generated by the Street Lighting Charge System, and all other income pertinent
to the Street Lighting System, shall be deposited in the Street Light Utility Fund.
D. The City Council shall annually determine whether or not sufficient revenue is being
generated for the effective operation, maintenance, replacement, and management of the
Street Lighting System. The City Council shall also determine whether the User charges
are distributed proportionally to each User in accordance with Title 4, Chapter 6, Article
B, Section 3. The City shall thereafter, but not later than the end of the year, reassess and
as necessary revise the Street Lighting Charge System then in use to ensure the
proportionality of the User charges and to ensure the sufficiency of funds to maintain the
City and performance to which the facilities were constructed.
4-6B-3: RATES AND CHARGES:
A. Each User shall pay its proportionate share of operation, maintenance, and replacement
costs of the Street Lighting System.
B. Street lighting charges shall be determined and fixed according to the provisions of this
Chapter and established in the City’s Fee Schedule. The Fee Schedule may be amended
from time to time to include subsequent changes in street lighting rates and charges.
C. Any additional costs caused by intentional, willful, or malicious damage to the Street
Lighting System, shall be borne by the offender, at no expense to the City.
D. Installation Costs: The City may pay such portion of the costs of installation of the Street
Lighting System as the City Council may determine from general ad valorem tax levies or
from other revenues or funds of the City available for that purpose. In the event the City
Council elects not to pay all of the installation costs, the remaining unpaid portion shall be
assessed against the Benefiting Property owners as a public improvement following a
public hearing and in full accordance with the provisions of Minnesota Statutes Chapter
429.
E. SFR Unit Basic Charge: The City Council shall set a monthly basic service charge to be
applied to all single family resident accounts (the SFR Unit Basic Charge). Each account
that is not a single family resident account shall pay a basic service charge that is a multiple
of the SFR Unit Basic Service Charge. The multiple will be based on the linear feet
adjacent to a Benefiting Property’s property boundary that benefits from a street light
within 150 feet divided by 80 feet which represents the minimum lot width of a single
family residence. The multiple will be rounded to the nearest whole number with (.5’s
rounded to the next whole number and a minimum unit assignment of 1).
F. Appeal of SFR Unit Basic Charge Multiplier: The City Administrator or designee may
increase or decrease the units applied if it is determined the units are based on inaccurate
linear feet data. Decisions on units made by the City Administrator may be appealed to the
City Council by written notice of appeal to the City Administrator. Notice of appeal must
be in writing and received by the City Administrator by the date prescribed in the notice of
determination. The date prescribed by the City Administrator shall be no less than twenty-
one (21) days following the date the City Administrator mails the notice to the User.
G. Rates due and payable by Users, if any, located beyond the territorial boundaries of the
City shall be determined by special contract.
4-6B-4: BILLING:
A. Bills for street lighting charges shall be issued on a monthly basis, in conjunction with
water and sewer billings, to all Benefiting Properties. Bills are due and payable on or before
the 20th day of the month following the month in which the bill is sent.
B. All payments received after the close of business on the 20th day of the month will be
assessed a penalty as defined by ordinance. Any prepayment or overpayment of charges
may be retained by the City and applied on subsequent charges.
C. All bills and notices shall be mailed or delivered to the address of the Benefiting Property’s
owner. If a Benefiting Property’s owner is not the occupant of the Benefiting Property, the
owner may provide notice to the City that bills and notices should be sent to the non-owner
occupant at the address where service is provided.
4-6B-5: NON PAYMENT:
Any street lighting charges unpaid shall be certified when deemed appropriate by the City
and assessed against the Benefiting Property on which the charges have incurred, and
forwarded to the County Auditor for collection with propert y taxes.
4-6B-6: EXEMPTIONS:
All public right of way, City-owned property and vacant land parcels shall be exempt from
street light utility charges.
Section 2. This Ordinance shall be in effect following its passage and publication.
ADOPTED this _______ day of _______________, 2019, by the City Council of the City of
Rosemount.
CITY OF ROSEMOUNT
____________________________________
William H. Droste, Mayor
ATTEST:
______________________________
Erin Fasbender, City Clerk