4. Resolution 5677 - Resolution of Intent and Call for Public Hearing - Light Maintenance DistrictCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
To: Mayor Johnson and Kalispell CiLy Council
From: Doug Russell, City Manager(
Re: Resolution of Intention and Call for Public Hearing - Light Maintenance
District Modification
Meeting Date: June 2, 2014
BACKGROUND: At the work session on April 28, 2014, staff presented information related
to forecasted revenues and expenditures, and policy components for the light maintenance
district. This district operates our traffic signals and street lights. Additionally, staff presented
service level options related to these respective municipal activities.
The presentation from that night is attached.
During the work session, Council provided staff guidance to move forward with the option of
enlarging the light maintenance district to be a citywide district, rather than only applying to
those within 300 feet of a light pole.
This option would not impact those properties that are currently being assessed. It would,
however, add assessments ($0.003/sf) to properties that are not currently being assessed and are
not served by a private lighting system located in the City right-of-way.
For those properties that are not currently being assessed, yet are served by a private street
lighting system in the City right-of-way, the assessment would be half ($.0015/sf) of the total
assessment.
It is projected this adjustment would allow for the operation of the light maintenance district to
continue through FY24, and includes the installation of 5 new luminaries a year in those areas of
town that are without street lights.
As part of the consideration of the district adjustments, notification and public hearing processes
are applicable and will begin with the passage of the proposed resolution that establishes a date
for the public hearing.
RECOMMENDATION: It is recommended Council adopt the Resolution 5677 scheduling a
public hearing on July 7, 2014, for the proposed modification to the Light Maintenance District.
RESOLUTION NO. 5677
A RESOLUTION OF INTENT TO EXPAND THE LIGHT MAINTENANCE DISTRICT OF THE
CITY OF KALISPELL, SETTING A DATE FOR A PUBLIC HEARING ON THE PROPOSED
EXPANSION AND DIRECTING THE CITY CLERK TO GIVE PUBLIC NOTICE OF SAID
HEARING.
WHEREAS, the City of Kalispell, pursuant to the authority provided to it under MCA 7-12-4301 et seq.,
has established a Light Maintenance District, for which real property within the city that is
within 300 feet of a city maintained street light is assessed costs for the maintenance and
operation of the street lighting system; and
WHEREAS, the assessments for the Light Maintenance District have not been increased for eleven years
although the costs of operation and maintenance of the system have risen significantly and
the projected expenses and revenues of the light maintenance district reveal that the current
level of assessment on properties within the boundaries of the existing district will not
allow the city to continue to provide the level of service to its street lighting system that it
has historically maintained; and
WHEREAS, all city residents derive significant benefit from street lighting in the city regardless of
whether or not a streetlight is located within 300 feet of their property; and
WHEREAS, some city residents live within subdivisions with streetlights in the City right-of-way paid
for and maintained by the homeowner associations representing these city residents; and
WHEREAS, the City Council finds that it is in the best interests of the city and its residents to consider
expanding the Light Maintenance District to include all properties that are within the limits
of the city upon an annual schedule as follows:
Properties within the light maintenance
$ 00.003 per square foot
district that are not served by a private street
lighting system in the Cityright-of-wayCapped
at five acres for vacant land
Properties within the light maintenance
$ 00.0015 per square foot
district that are served by a private street
lighting system in the Cityright-of-wayCapped
at five acres for vacant land
WHEREAS, prior to initiating any expansion of the Light Maintenance District, the city is required,
pursuant to MCA 7-12-4329, to hold a public hearing on the matter after giving due and
proper notice of said hearing, and to maintain a list with the City Clerk setting forth the
proposed assessments per parcel.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL,
AS FOLLOWS:
SECTION 1. The City Council shall set a Public Hearing on the 7th day of July,
2014, at 7:00 o'clock p.m. in the Council Chambers, City Hall,
Kalispell, Montana, to accept comments on a proposed increase to the
Light Maintenance District as set forth in the recitals above.
SECTION 2. The City Clerk and City Attorney are hereby authorized and directed
to make, publish and distribute notices of said Public Hearing in
conformity with MCA 7-12-4329 and to maintain within the City
Clerk's office a list in which shall be described the lot or parcel of
land assessed, with the name of the owner thereof listed, if known,
and the amount levied thereon set opposite.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 2ND DAY OF JUNE, 2014.
Mark Johnson
Mayor
ATTEST:
Theresa White
City Clerk
LIGHT MAINTENANCE
Level of Service and Budget Review
4/23/2014
4
4 Street Light Background
• Light Maintenance District
• Tax levied proportionally on an area basis for real property in the city that is within
Soo feet of a City street 1 g ht
• Amount $.0030 per square foot of lot or parcel per year
Caps assessments for vacant [and at 5 acres
Includes Lights Located in
• City Streets
• Alleys
Parks
• i.oTraffic Lights
N Parking Areas
N Benefits of Lights
• Driver Safety: Street lights increase visibility
• Pedestrian Safety: Street lights make it easier to see dangers
• Public Safety: People tend to feel safer in lit areas. People are not as vulnerable to
being victimized
• Increase Nighttime Business: Dark area looks deserted; a well -lighted area looks
cheery and inviting, so street lights might be good for business.
2
4/23/2014
Non -metered Lights
• Not metered
- Flat rate/month for each
light
- Large luminaires
• Flathead Electric
Maintains the Lights
- Damage, ballasts, light
bulbs
• 1, 221 1 ig hts
• FE performed audit and
mapped lights to verify
City's account
Legend
KalbwO Street Lights as of January 3013
2 I Metered Lights
Luminaires, decorative
�, lights, decorative bollards
— �— (15 different types)
• City owns and maintains
entire light
L — Lights are categorized and
f s metered for electrical use
585 City owned metered
lights
— 496 in Downtown area
— 47 in Reserve Loop
i -
— 28 in Meridian Road
— 14 Hospital Area
(Windward Way, Sunny
L
Side, Heritage Way)
_
-
Maintenance
— Bulbs, Ballasts, Poles, Wiring
3
4/23/2014
Cost Reductions for FY 15 Budget
�. Re -categorized meter accounts to Municipal accounts
• Decreased annual electrical fee by $5,622
2. Performed audit of properties
• Initial inventory identified $2o,000 annual additions in revenue
3. Reduced allocated staff time
• 1 FTE to o.5 FTE decrease Personal Service by $21,335
• Reduced staff time spent preforming activities for Light
Maintenance
• Eliminated proactive rehabilitation of downtown decorative
lights
4 Identified Parks and Recreation areas supported by Light
Maintenance Fund
Potential reduction in electrical of $9,419
T
4/23/2014
Budget
BEGINNING CASH
REVENUES
hlaiNuianoc Ass mints
ldisc, Penalty, Interest
TOTAL. AVAILABLE
EXPENDITC]M
Personal Scnias:
Alatcrials and Services:
T0101 Capital Qullay @lsch & r(pip)
Dcbt Servicc: loan mpayrncnl
TOTAL AVULABLE
IIN DI NG CASH
FY 2015 and 5Year
Projection
ACTUAL
Est BUDGET
Proposed
Projected
Projected
1
Projec Projected
Projected
FY12113
F Y13/14
FY14115
FY15116
FY16/17
FY17118 W FY18119
F Y1917A
S160,503 S152.664 S94,656 S70.180
S40.276 $5397 (S34.652) (857.8281
$320,000
$300,000
$280,000 —
$260,000
$240,000
$220,000
$200,000
FY11/12
S236,730 S236,000 S256,000 $257.280 S259.853 $262.451 S265,(M S267,727
58322 $108.731 S1,275 $1.900 $I.900 $I.900 S1,900 $1,900
54DSS55 $497.39S W1.931 5329.360 5302.028 S269.748 $232,323 $211.799
548,907
S761985
S55,647
S57,253
S58,909
S60,618
$62381
$64,201
$203.837
$200.040
$203.858
$209.585
$215.476
S221,536
$227.770
S234,183
$147
$101,27S
$0
80
$0
80
SO
SD
SO
$24,438
S22.246
S22.246
$=246
S22.246
SD
SD
$252,891
S402,739
$281,751
$299.085
5296.632
S304A00
$290.151
$298383
$152.664 VWA56 S70.180 5 10. 176
Current Assessment Review: Projected 2013-2020
FY12/13 FY13/14 FY14/1S FY15/16 FY16/17 FY17/18 FY18/19 FY19/20
tASSESSMENT REVENUE
f-EXPENDITURES
J
4/23/2014
Level of Service Options
1. Reduce Services to Meet Current Revenue
Resources
�. Maintain Current Level of Service - Increase
assessment
3. Increase Level of Service from Current Levels -
Increase assessment
4. Increase Level of Service from Current Levels -
Assess all City Parcels
-10
6
4/23/2014
Option 1: Reduce Services to Meet Current Revenue Resources
Reductions
• Reduce allocated staff time from i.
FTE to 0.5 FTE from TSS
• Reduce maintenance and operationa
costs
Consequence
■ Reduce level of service
• Maintain lights as budget permits
• No proactive improvements to
Decorative Downtown lights
• Not able to install new lights as
requested and warranted
FY 18 Negative Ending Cash
Projected Budget Expenditure Exceeds Total Available Cash
7
4/23/2014
Option Z:Maintain Current Level of Service
Reductions
• Reduce allocated staff time from i
FTE to 0.5 FTE from TSS
• Maintain Maintenance & Operational
Costs
Assessment Increase
• Requires a io% FY zS, io% FY 3.6
• Supports Level of service just beyond FY23124
• Provide little budget to repair typical light malfunctions
Consequences
• Maintain level of service
■ Maintain lights as budget permits
• No proactive improvements to
Decorative Downtown lights
• Not able to install new lights as
requested and warranted
8
4/23/2014
Option2: Assessment Increase
ACTUAL
BUDGET
I Proposed
Projected
Projected
Projected
Projected
Projected
Projected
Projected
Projected
Projected
FY12113
FY13114
FY14115
FY15116
FY16117
FY17118
FYI&19
FY19120
MOM
FY2V22
FY22M
FS'"
BEGn-N'fYGCASH
S160.503
5152.661
S94.656
SO-465
S105327
S113514
S128A74
S134779
S132.469
S121.293
slo',
REVENUES
10%
10%
SSBiaa .. Ases %
5236,730
5236,000
F 5281d00
1309760
5309,760
5309,760
5309,760
5309,760
5309,760
5309,760
5309,760
5309,760
Mix, Pe.Ok, lwe
58.322
$108.731
SIX$
$11900
$i.9D0
!iQxm
S1.900
S1.900
SI,900
SI,900
SI,900
SI,900
TO -I :A 1, A VA I LA III, F
Sa05.555
Se97.395
$377.531
Sa01.125
U16.987
5425.174
S425A60
S4e0.13e
S4e6.-M
S4aa.129
S02.953
S412.6$0
1•:\PEN )111-R}_S
Yennn:.l sr,;—
S481907
5761985
$SS,d47
$57,253
5581909
S%Al1t
562,381
S64,300
W079
$68,017
$W19
572,086
�Iz,. W4 and Services
SMA37
s200.0a0
$210,i73
$216,026
S?=2,046
$22A 38
5230.6M
S241,155
SA7,891
S2$00
$261,9ss
$269,273
I..l (7* . l0.,6 y (M.h & Equip)
$147
5101?75
SO
$0
SO
s0
s0
S0
s0
SO
SO
$0
DeN sue — 6.. a7.—I
So
Sza,ais
s22�'46
522519
S22519
S22S19
$0
SQ
s0
50
SO
k:•
TOTALAVAILABLE
$25-'.891
$.'J0.'39
2?A O66
$2$O.798
$30,474
$$11.374
$296."7
5305.355
5313.%')
5322.0$
5331.%6
ENDING CASH, 5152.664 $94.656 S89A65 S105,327 5113.114 5113.800 5128A74 S13CTM S132A69 S121193 5100.990 571191
Option 2 Assessment Review: Projected 2013-2024
$360,000
$340,000
$320,000
v $300,OD0
~ $280,000
$260,000
$240,000
5220,000 SW
$200,000
FY11/12
FY12/11 FY13/10 FY19/15 FY15/16 FY16/17 FY17/18 FV18/19 FY19/20 FY20/21 FY21/22 FY22/21 FY21/24
tASSESSMENT REVENUE
EXPENDITURES
9
4/23/2014
Option 3: Increase Level of Service from Current Level
Recommendation
• Maintain dedication of full timeTSS (:L FTE)
• Maintain M &❑ co5t5
• Maintain lighting costs for parks
• Proactive replacement of Decorative Downtown
lights
• Abilityto add new lights if and when requested
and justified
• Equipment Replacement Fund
Assessment Increase
• Requires a 1S% increase in FY 15 and FY 16, Zo OA
increase in FY 17, and 3% increase in FY18
• Supports level of service just beyond FY23/24
Consequences
• Ability to maintain fights immediately
• Phased rehabilitation of decorative
lighting system
• Ability to Install 1 new light as requested
and warranted
• Maintain lighting cost for parks
• Designated Capital Equipment
Replacement Fund (Boom truck)
10
4/23/2014
Option 3: Assessment Increase
6E:(.1 N N I NG CASH
Makkt=uc Asses nts
Misc, Pe11a1ly, Nleml
TOTAL AVAILABLE
EXPENDITURES
V afenals and Srnioes:
I oral Calival []inlay (Mach & Egtdp)
DclA Senior. loan relnrpir
TOTAL AVAILABLE
ENDING CASH
ACTUAL IEsl BUDGET) Prnpmed I Projected I Prnjected I projected I Projected I Projected I projected I projected I Projected I Projected
$160.503 $152.664 S94.656 S46.393 533.988 S46.532 S61084 S88.72i S106_653 S114593 S112.249 S99.321
IS"e 15%
10%
o
S236,730
$236,000 F T294400 T338 60
S372416
$38388 $383.598
S383.58
$383,588 $383,589
S383,588 $393.588
W22
S108.731 S1175 S1.900
S1.900
S1,900 SL900
T1.900
$1.900 SI.900
S1.900 S1?riff
$405,555
$497395 $390,331 $386,853
$108,301
$432A21 $446,573
S474,211
Sa92,1 a S500,082 _
S497,738 I'g. a6i
$48,907
$76985
$9"0
03,101
"S,762
598,507
$101,338
$104,25S
$107,270
$110,378
$113,585
$116,594
$203,837
MAO
$221,173
$227.246
$233,491
$239,911
$246,512
W3300
$260,279
$267,454
$274,833
S282,420
$147
5101,275
$0
$0
90
90
$0
$0
SO
m
$0
$0
SO
S24,438
$22,246
$22518
$22518
$22,513
$0
$0
SO
SO
$0
$0
$252.891
$402.739
S343,938
$352,965
$361.771
$370.936
S357350
$367558
$377.549
$387.832
S398,417
W9.314
SM-664 S94.656 S46393 $33.996 $46.532 M1.084 S68.723 S10-6.653 S113593 $112.249 S99321 $75,495
Option 3 Assessment Review: Projected 2013-2024
$450,000
$400,000
$350,000
$30D,000
$250,000
$200,000
$150,000
FY11112
FY12113 FY13114 FY14115 FY15/15 FY15117 FY17118 FY18I19 FY19120 FY20121 FY21122 FY22123
ASSESSMENT REVENUE
tEXPENDITURES
11
4/23/2014
Option 4: Increase Level of Service from Current
Level -Light Assessment for Entire City
Level of Service Expenditures
• Full time TSS salary
• Maintain O & M Costs
• Lighting Supplies
• Repair and Maint Service
• Decorative Light Rehab 6Jyr
• Electricity
• Capital Outlay
• Machinery and Equipment replacement
• Installation, new luminaireslyr
Assessments
• Cost/Per Square Ft - .003 $Jsf
• Vacant land cap at 5 Acres
• 50% reduction for properties within
subdivision with private street light
systems
12
4/23/2014
Option 4: Assessment Summary
• Level of Service requires assessment revenue of
$401,00❑
• Ensures LOS is provided beyond FY 23/24
• Parcel Assessment Summary
• City total = 9,450
• Currently assessed = 6,995 (.003$Jsf)
• Add Non -private street light system = -,543 (.003 $1sf)
• Add Private street light system = giz (.0015 $Jsf)
• Total annual assessment including all parcels =
$4-10,000
W:
Legend
7Y+6 t�n..r nwnw dorv�. auw.a
`i3 bd•d v�K�a N arn.Mtl
OSZ Awn•.al _.,g. P+ ,W% v.r
• 4wn.wr•e IgFb
nkOY.N rgja
.L �tnt
13
4/23/2014
Option 4:Light Assessment for Entire City
ACTUAL
BUDGET
I BUDGET
I IlmWwd
I ProJeewd
I IlmWwd
I ProJeewd
I ProWwd
I ProWwd
I Prole led
ProJecred
ProJecred
FYIW13
)F'YI3n4
FYlm15
EY L'Jl6
FY &17
BY17118
FYI&V
BY147211
PYPIY21
FY21�x2
PY22173
BY7_V24
BEGrVN-D;G C AS] I
SM 165
S151se.
Sw.sse
Sl _'�'�l,
Sl ss:titi
Sl':u
5180.181
Sx1
519530]
S['�•ti,
RY..A'FNI"E:S
+tinevaoceAnnammla
3�473P
S�g000
Si01,93]
SW1933
S,P1933
SW1933
S,P1933
SW1,9:0
Si01,931
SW1,9:0
3
SS
51P19=0
1.wl
rO7ALAVAII ABLE.
Lp5.555
E ..3"
Etl7.651
E53IM
swb
E577._87
S%4,,7G3
&6D4, 33
SE31,457
SE IMI
SE01120
5679.103
FXPE NIMI URES
PmwLL55*•cn
Ss5,90T
376,9d5
SP0,510
590,101
SPS?S2
SPS.507
5101,13E
51 04_'5E
5107.270
5110,575
5113Su
5116.s�:
]fantiflf.ud Sen•tn.
331�837
3'�]D,OW
33.�1T3
3�17�
12181 0
S S�BP
5_71[91
5'_95I796
5�7�06
3'95p�
3301933
i311.1[•.
T-1 C.Pil.7 Nu.,(] t,"OF)
E1I7
E30117
fD
!D
SD
SO
fD
SO
W
SO
W
f0
[lrhttimier lrw rryaa�g5q
T[I7 A1. AVAILABLE
L'S169]
W,739
L367.938
U77.3[5
S39R405
SM.E
E 4,,P55
s4K, 7
E113,101
EI 6M7
5437,M
ENDING CASH
15_sC!
656
132003i
&]7 W
MOW
SII&M
Option 4: Assessment Review Projected 2014-2024
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
FY11/12 FY12/13 FY13114 FY14/15
FY15116 FY16/17 FY17/18 FY18119 FY19/20 FY20121 FY21/22 FY22/23 FY23124
—ASSESSMENT REVENUE
—trE]fPEN�ITURES
14
4/23/2014
Assessment
Comparison
• Option Difference SFR
• Opt 1: none
• Opt 2 : $5.431yr
• Opt 3: $12.9o/yr
• Opt 4: none, but
additional parcels
assessed per current
rate
u Lion t : xeauce service to rvieet. k-urrem Kevenue Kesource
ssessment Increase %
Current
00/a
0%
ff%
0%
0%
ssessme., ISq FT
0.003
0.003
0.003
0.003
0.003
0.003
Sq FT
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
Typical SFR
8,632
$25.90
$25.90
$25.90
$25.90
$25.90
$25.90
Commercial
20,000
$60.00
$60.00
$60.00
560.00
$60.00
$60.00
u tion L: n+iamtain Lurrent level ar servtee
Increase %
Current
10%
10%
wo
wo
0%
�css-'n'�Assess'=,tIS FT
0.0030
0.0033
0.0036
0.0036
0.0036
0.0036
Sq FT
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
Typical SFR
8,632
$25.90
$28.49
$31.33
$31.33
$31.33
$31.33
Commercial
20,000
$60.00
$66.00
1 $72.60
1 $72.60
1 $72.60
$72.60
on 3: Increase bevel of Service from Current Levels
sment Increase % Current 15010 15% 10% 3% 00/0
sment ISq FT 0.0030 0.0035 0.0040 0.0044 0.0045 0.0045
Sq FT FY 13-14 FY 14-15 FY 15-16 FY 16.17 FY 17-18 FY 18-11)
Typical SFR
8,632
$25.90
$29.78
$34.25
$37.67
$38.80
$38.80
Commercial
20,000
$60.00
$69.00
$79.35
$87.29
$89.90
$89.90
1D-
4/23/2014
4
4
4
Decorative Globe Light Rebuilds
• 85 Decorative Globe Fixtures
• Constructed in 3.98o's
425 bulbs [5 bulbs each]
• 8 currently rebuilt on the streets:
2 on 3rd St W
• 6 on ist St E& W
• Power Usage
• Incandescent watt usage: i795o watts per hour =17.95 kwh
• LED watt usage: 5737 watts = 5.74 kwh
• Kwh rate is S.05028
• lnCandescent price per hour: so.96
• LED price per hour: s0.32
• Light Use 3,47o hours a year (turned on & off bya photocell)
• $3,400 per year to run incandescent average run time
• si.2x0 per year to run LED average runtime
S z, z go p e r yea r savi ng s on avera ge run tim e
• LED bulbs
• More obrationftold resilient then incandescent bulbs
• Last too,cooplus hours, compared to to,000(incandescent)
• Improvin the head placement and hardware to make these lights
easlerlfas�er to service
1 L�