HomeMy WebLinkAbout2009-06-23 Council Work Session MINUTES
OF THE STUDY SESSION OF THE
EDINA CITY COUNCIL
HELD AT CITY HALL
JUNE 23, 2009
7:30 A.M.
Mayor Hovland called the meeting to order at 7:45 a.m. in the Community Room of City Hall.
Answering rollcall were: Members Bennett, Housh and Mayor Hovland. Member Swenson entered
the meeting at 7:50 a.m. Member Brindle was absent. Staff present included: Gordon Hughes,
City Manager; Heather Worthington, Assistant City Manager; Wayne Houle, Public Works
Director/City Engineer; John Wallin, Finance Director; Eric Roggeman, Assistant Finance Director;
Sharon Allison, Engineering Secretary; and Debra Mangen, City Clerk.
Mayor Hovland said the purpose of the study session was to review the possibility of establishing a
City Street Light Utility or beginning to collect franchise fees from Xcel Energy and CenterPoint
Energy.
Staff outlined key points of a potential street light utility. It was noted there was a desire to cover
the annual approximate $500,000 cost of the electrical bills paid by the City for street lighting
historically paid by the General Fund. The first year would cover one-half of the expense in order
to establish a cash reserve in the Street Light Utility Fund. Staff reviewed rates charged by other
Minnesota cities with Street Light Utilities and presented Edina's potential residential and
commercial rates both for operating costs only and for operating costs plus capital costs. Example
bills were reviewed.
Council's discussion included: reason not historically used in the past, commercial vs. residential
rates, levels of street lighting throughout the city, if 2010 would be the correct year to initiate this
program, whether or not to fund capital costs, if the inclusion of capital costs would lead to more
residents desiring street light improvements with neighborhood street reconstruction, lighting
levels, energy efficiency of street light system, where funds realized from a street light utility could
be spent, city authority to enact street light utility and delinquent bills.
Staff also reviewed the possibility of initiating franchise fees such as paid by the cable television
provider Comcast with the City's other two franchisees Xcel Energy and CenterPoint Energy.
Discussion included: legal authority to collect franchise fees, terms of existing franchises, potential
use of funds collected as franchise fees, and amount of potential fees.
Council will need to review each option and think about the philosophical implications involved in
each one. Utilizing one or the other fee would allow the 2010 budget to be balanced without cuts
to current service levels or programs. More discussion and detailed information will be taken up at
future meetings.
Mayor Hovland adjourned the meeting at 9:20 a.m.
Respectfully submitted,
ebra Ma en, City Clerk
Minutes approved by Edina City Council, July 7, 2009.
James . Hovland, Mayor