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4. Resolution 5696 - Resolution of Intent - Light Maintenance DistrictCTTY©F -Z�r .� City of Kalispell Post Office Box 1997 - Kalispell, Montana i 59903 _ MDNTAA Telephone: (406) 758-7701 Fax: (406) 758-7758 y NA To: Mayor Johnson and Kalispell City Council From: Doug Russell, City Manager Re: Resolution of Intent and Call for Public Hearing on Proposed Rate Adjustments- Light Maintenance District Meeting Date: November 17, 2014 BACKGROUND: At the July 7, 2014, regular meeting, council held a public hearing on proposed rate adjustments for the light maintenance district, which manages our traffic signals and street lights. Specifically, the adjustment entailed enlarging the district to encompass the entire city, rather than only applying to those properties within 300 feet of a light pole. At the public hearing, concern was expressed by representatives of subdivisions that have private streetlight systems in the city right-of-way. This concern prompted an additional work session to review the concerns and discuss the concept of public benefit received across the city. In reviewing the public benefit associated with the light district, Public Works staff identified lights associated with arterials, collectors, school routes, hospital routes, traffic lights, decorative lights, and lights associated with municipal parks, including the golf course. In comparison to the district as a whole, a little over 50% of the lights and costs associated with them are attributed to a public benefit location. Additionally, discussion at the work session provided direction to increase the overall assessment, as it has been 2003 since the last increase was implemented. Council also asked staff to use a shorter horizon than 10 years for making assessment decisions while maintaining revenues over expenditures. As such, an assessment of $385,000 provides for a forecasted budget of 6 years length to have positive revenues over expenditures. Using these guidelines of expanding the district to encompass the entire city; the proposal being provided increases the light maintenance rate from $.00300 per square foot to $.00330 per square foot for parcels within 300' of a street light, and a 50% assessment of $.00165 per square foot for those not within 300' of a street light which includes subdivisions with private light systems in the city right-of-way. 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. ALTERNATIVES: Council can elect to not pass the resolution of intent, or propose modifications as council may desire. RECOMMENDATION: It is recommended that council adopt the resolution calling for a public hearing on December 15, 2014, for the proposed modification to the Light Maintenance District. A RESOLUTION OF INTENT TO AMEND THE LIGHT MAINTENANCE DISTRICT OF THE CITY OF KALISPELL BY EXPANDING ITS BOUNDARIES AND RAISING THE ASSESSMENT ON CERTAIN PROPERTIES, SETTING A DATE FOR A PUBLIC HEARING ON THE PROPOSED AMENDMENT 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 i within 300 feet of a city maintained street light is assessed costs for the maintenance an operation of the street lighting system; and I 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 the City Council .& A - should therefore consider whether or not all residents should pay some assessment for this benefit of street lighting; 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 the City Council should therefore consider whether or not these residents should pay an assessment amount that is reduced from the amount paid by residents within 300' of a City maintained street light; and WHEREAS, through the above described expansion of the Light Maintenance District and increasing the assessment from $0.003 per square foot, capped at five acres for vacant land, to $0.0033 per square foot, capped at five acres for vacant land, the district will be able to maintain the current level of services that the city residents and their visitors are now enjoying; and WHEREAS, the City Council finds therefore that it is in the best interests of the city and its residents to consider amending the Light Maintenance District to include all properties that are within the limits of the city upon an annual schedule as follows: Properties within 300' of City maintained $ 0.0033 per square foot street light Capped at five acres for vacant land Properties not within 300' of City $ 0.00165 per square foot maintained street light Capped at five acres for vacant land WHEREAS, prior to initiating any expansion of the Light Maintenance District, the city is require pursuant to MCA 7-12-4329, to hold a public hearing on the matter after giving due an 1 proper notice of said hearing, and to maintain a list with the City Clerk setting forth th proposed assessments per parcel. I] 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 15th day of December, 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 17th DAY OF NOVEMBER, 2014. Mark Johnso Mayor I Aimee Brunckhorst City Clerk JYM 0 Ll W DI NOTICE OF PUBLIC HEARING ON PROPOSED EXPANSION OF LIGHT MAINTENANCE DISTRICT NOTICE IS HEREBY GIVEN, that on the 15th day of December, 2014 at 7:00 p.m., in the Council Chambers, City Hall, 201 Ist Avenue East, Kalispell, Montana, the City Council of the City of Kalispell shall hold a Public Hearing on a proposal to expand the Light Maintenance District boundaries and raise the assessment on those properties within 300' of a City maintained street light from $0.003 per square foot, capped at five acres for vacant land, to $.0033 per square foot, capped at five acres for vacant land. The proposal would expand the Light Maintenance District to include all properties that are within the limits of the City of Kalispell upon an annual schedule as follows: Properties within 300' of City maintained street light $ 0.0033 per square foot -Capped at five acres--fo-r vacant land Properties not within 300of City maintained street $ 0.00165 per square foot light Capped at five acres for vacant land Any person wishing to address the proposed expansion may appear at this hearing and mak oral statements or present same in writing. Written comments may also be submitted for counc, consideration by delivering the same to the City Clerk at 201 First Avenue East, Kalispell, M 59901, or by email to cityclerk@kalispell.com prior to the hearing. I If there are questions that might be answered by telephone please call (406) 758-7852. Aimee Brunckhorst City Clerk Publish: November 26, 2014 December 3, 2014 December 10, 2014 0 ft-A Jvl LIGHT MAINTENANCE 11/17/2014 Light Maintenance Background • Light Maintenance District is Tax levied proportionally on an area basis for real property in the City that is within 300 feet of a City street light tt Amount $.0030 per square foot of lot or parcel/ year u Cap assessments for vacant land at 5 acres • Parcel Assessment Summary ts City tota I = 9,509 • Currently assessed within 300'= 7,372 (yellow) • Not within 300'= 2,3.37 • Private street light in ROW = 1,105 (pink) North Kalispell Light Maintenance Service • Includes Lights Located in t City Streets 9 State Routes (intermittently) t Alleys t Parks loTraffic Lights €i Parking Areas • Services performed a Electricity costs ( Flathead Electric flat rate lights) IF Electricity, operations, and maintenance costs (metered lights) • Community Benefits of Lights 9 Driver Safety: Street lights increase visibility .t Pedestrian Safety: Street lights make it easier to see dangers 1i Public Safety: People tend to feel safer in lit areas. People are not as vulnerable to being victimized is Increase Nighttime Business: Dark areas look deserted; a well -lit area looks cheery and inviting, so street lights might be good for business DOWNTOWN LIGHTING MAP Community Benefit Light Determination • Lights Located on High -use Areas and Traffic Routes 0 State Hwy Routes (Principal Arterials): are main thoroughfares in the street network. Principal Arterials primarily connect to other principal arterials or to the interstate system. a Minor Arterials: are high -capacity urban streets. The primary function of an arterial street is to deliver traffic from collectors to Highways, and between urban centers. a Collectors: are another primary road in the street network, which collect traffic from local streets in residential and commercial neighborhoods and channel the traffic into the arterial system. a School Routes: primary routes to access all schools from primary roads. a Hospital Routes: primary routes to access Hospital from primary roads. a Traffic Lights: ioTotal 9 Golf Course: Recreational (six lights total) • Decorative Downtown Lights • Parks $ Woodland a Lawrence 0 Depot a Lions LIGHTING DISTRICT MAP t g-T, North Kalispell Legend a+ Trsifie U*1p i� Unm. cetgnrs2n14 n Metered Litt is 2014 Kalispell Streets - MAJORART€RIAI, SUS HCHWAY - -H1 CHWAY MINCIRAR1E [N, U)i 1. F GTOR _ LOCAL I CJoty unts ! 1 2014 k". Ught Pamt s � \\ 21114 Parceh to hr Added�"+ Kalispell gala P.I. AB mt d v7Quylll I Community Benefit Light Percent Breakout FY 2014 Street Light Assessment Flat Rate Street Lights Community Benefit Costs Wattage FEC Montly Charge Amount Monthly Cost Yearly Cost 400 W $ 17.50 3 $ 52.50 $ 630.00 200 W $ 11.25 103 $ 1,158.75 $ 13,905.00 170 W $ 11.25 1 $ 11.25 $ 135.00 100 W $ 8.87 299 $ 2,652.13 $ 31,825.56 70 W $ 8.87 6 $ 53.22 $ 638.64 TOTALS 412 $ 3,927.85 $ 47,134.20 Metered Streets Lights Community Benefit Monthly Cost Yearly Cost Hospital Area (Sunny View and Heritage) 12 $ 30.79 $ 369.48 Meridian Road 31 $ 331.78 $ 3,981.36 Reserve Loop 50 $ 502.34 $ 6,028.08 Downtown Dec Lights/Traffic Lights 387 $ 1,110.42 $ 13,325.04 TOTALS 480 $ 1,975.33 $ 23,703.96 Parks and Recreational Sites Monthly Cost Yearly Cost Lawrence Park 6 $ 62.09 $ 745.08 Woodland Park 60 $ 537.18 $ 6,446.16 Depot Park 2 $ 187.51 $ 2,250.12 Lions Park 1 $ 8.87 $ 106.44 Buffalo Hill Golf Course 6 $ 53.22 $ 638.64 TOTALS 75 $ 848.87 $ 10,186.44 Amount Monthly Cost Yearly Cost Totals 967 $ 6,752.05 $ 81,024.60 � Total Community Benefitted Annual Electrical Charge Total Light Maint Electrical Charge for Fiscal Year 14 Percent of Ann Elect Charges that is Comm Benefit Or $ 81,024.60 $ 157,982.00 51.3% Total Number of Flat Rate Lights 1,221 Total Number of Metered Lights 585 Total 1,806 Total Community Benefit Lights Percent of total number that is Comm Benefit (967/1806) 967 53.5% 50%of the Light Maintenance Fund is utilized to operate and maintain lights that are community benefited. Level of Service Costs Level of Service Expenditures • Full time TSS salary • Maintain O & M Costs • Lighting Supplies-$18,000 • Repair and Maintenance Service-$15,000 • Decorative Light Rehab 6/yr- $4,500 • Electricity-$16g,000 • Capital Outlay • Machinery and equipment replacement-$10,000 • Installation of 5 new luminaires/yr- $30,000 • Annual Assessment Revenue required to sustain fund for six year- $385,000 SS Replacing lit Luminaire n Reserve oop FY 14/15 Budget -1oYear ProJjection PROJECTED REVENUE AND FUND SUMMARY BEGINNING CASH 10100 CASH: 10120 Replacement Account REVENUES 363010 Maintenance Assessments 363040 Penalty & Interest 364030 Misc. 381050 Inception of Loan 371010 Interest Earnings TOTAL AVAILABLE Street Lighting (10100) Capital Outlay -replacement (10120) Debt Service ENDING CASH 10100 CASH: 10120 Replacement Account 1. Expenditure FY 15/16 mirror FYI-3/14 2. Rev increase 0.25%/year 3. Expenditure increase 2.8%/year 4. Sustainable fund for six years ACTUAL ACTUAL BUDGET FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 $160,503 $152,664 $107,536 $48,192 $59,361 $61,893 $55,521 $62,217 $59,454 $46,941 $24,382 ($8,531) ($52,111) $0 $0 $0 $10 000 $20 000 $5 000 $15 000 $25,000 $35 000 $45 000 $55 000 $65 000 $75 000 $160.503 $152.664 $107.536 $58.192 $79.361 $66.893 $70.521 $87.217 $94.454 $91.941 $79.382 $56.469 $22.889 $236,730 $235,822 $236,000l $385,00 $385,963 $386,927 $387,895 $388,864 $389,837 $390,811 $391,788 $392,768 $393,750 $1,406 $782 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $5,888 $14,282 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $97,651 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,028 $527 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $275 $245,052 $349,064 $237,275 $386,275 $387,238 $388,202 $389,170 $390,139 $391,112 $392,086 $393,063 $394,043 $395,025 $405,555 $501,728 $344,811 $444,467 $466,599 $455,096 $459,691 $477,357 $485,566 $484,028 $472,445 $450,512 $417,914 $252,744 $282,740 $294,373 $342,860 $352,460 $362,328 $372,474 $382,903 $393,624 $404,646 $415,976 $427,623 $439,597 $147 $100,329 $0 $0 $25,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,123 $22,246 $22,246 $22,246 $22,246 $0 $0 $0 $0 $0 $0 $0 $252,891 $394 192 $316,619 im, $365,106 $399 706 $384 574 $372,474 $382,903 $393 624 $404 646 $415,976 $427,623 $439,597 $152,664 $107,536 $48,192 $59,361 $61,893 $55,521 $62,217 $59,454 $46,941 $24,382 ($8,531) ($52,111) ($106,683) $0 $0 $10,000 $20,000 $5,000 $15,000 $25,000 $35,000 $45,000 $55,000 $65,000 $75,000 $85,000 $152,664 $107,536 $58,192 $79,361 $66,893 $70,521 $87,217 $94,454 $91,941 $79,382 $56,469 $22,889 ($21,683) $4So,000 $400,000 $350,000 $0:000 $25250000 $200,000 $150,000 FY12/13 Revenue vs. Expenditure Graph H FY13/14 FY14/15 FYi5/i6 FY16/17 FY17/i8 FY18/ig FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 Assessment Adjustment Summary • Assessment Structure -Two Criteria a Parcels within 300' of light at .0033 $/sf a Parcels NOT within 300' of light at .00i.65 $/sf • Level of Service Requires Assessment Revenue of $385,000 a Ensures LOS is provided for six years • Parcel Assessment Summary IF City total = 9,509 • Currently assessed within 300'= 7,372 • Not within 300'= 2,137 • Includes parcels with private street light in ROW =1,o32 1 1 1 Proposed Proposed NOT Current w/in 300' Min 300' ScIFT 0.00300 0.00330 0.00165 $/Year $/Year $/Year Typical SFR 8,632 $25.90 $28.49 $14.24 Typical SFR 6,098 $18.29 $20.12 $10.06 Typical SFR 13,000 $39.00 $42.90 $21.45 Commercial 20,000 $60.00 $66.00 $33.00 Vacant Cap at 5 Acre 217,800 $653.40 $718.74 $359.37 Parcels NOT Private Lights Parcels within 300' within 300' in ROW Yearly Total Increase all to meet Level Of Service # Parcels 7,372 1,105 1,032 9,509 Parcel within 300'-full SQF 89,866,012 41,991,014 13,234,445 145,091,471 Parcel not within 300'-50% Rate/SQFT 0.0033 0.00165 0.00165 Parcel with lights in ROW-50% Contributes-$296,558 $69,285 $21,837 $387 680