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MINUTES <br /> OF THE STUDY SESSION OF THE <br /> EDINA CITY COUNCIL <br /> HELD AT CITY HALL <br /> JUNE 23, 2009 <br /> 7:30 A.M. <br /> Mayor Hovland called the meeting to order at 7:45 a.m. in the Community Room of City Hall. <br /> Answering rollcall were: Members Bennett, Housh and Mayor Hovland. Member Swenson entered <br /> the meeting at 7:50 a.m. Member Brindle was absent. Staff present included: Gordon Hughes, <br /> City Manager; Heather Worthington, Assistant City Manager; Wayne Houle, Public Works <br /> Director/City Engineer; John Wallin, Finance Director; Eric Roggeman, Assistant Finance Director; <br /> Sharon Allison, Engineering Secretary; and Debra Mangen, City Clerk. <br /> Mayor Hovland said the purpose of the study session was to review the possibility of establishing a <br /> City Street Light Utility or beginning to collect franchise fees from Xcel Energy and CenterPoint <br /> Energy. <br /> Staff outlined key points of a potential street light utility. It was noted there was a desire to cover <br /> the annual approximate $500,000 cost of the electrical bills paid by the City for street lighting <br /> historically paid by the General Fund. The first year would cover one-half of the expense in order <br /> to establish a cash reserve in the Street Light Utility Fund. Staff reviewed rates charged by other <br /> Minnesota cities with Street Light Utilities and presented Edina's potential residential and <br /> commercial rates both for operating costs only and for operating costs plus capital costs. Example <br /> bills were reviewed. <br /> Council's discussion included: reason not historically used in the past, commercial vs. residential <br /> rates, levels of street lighting throughout the city, if 2010 would be the correct year to initiate this <br /> program, whether or not to fund capital costs, if the inclusion of capital costs would lead to more <br /> residents desiring street light improvements with neighborhood street reconstruction, lighting <br /> levels, energy efficiency of street light system, where funds realized from a street light utility could <br /> be spent, city authority to enact street light utility and delinquent bills. <br /> Staff also reviewed the possibility of initiating franchise fees such as paid by the cable television <br /> provider Comcast with the City's other two franchisees Xcel Energy and CenterPoint Energy. <br /> Discussion included: legal authority to collect franchise fees, terms of existing franchises, potential <br /> use of funds collected as franchise fees, and amount of potential fees. <br /> Council will need to review each option and think about the philosophical implications involved in <br /> each one. Utilizing one or the other fee would allow the 2010 budget to be balanced without cuts <br /> to current service levels or programs. More discussion and detailed information will be taken up at <br /> future meetings. <br /> Mayor Hovland adjourned the meeting at 9:20 a.m. <br /> Respectfully submitted, <br /> ebra Ma en, City Clerk <br /> Minutes approved by Edina City Council, July 7, 2009. <br /> James . Hovland, Mayor <br />