HomeMy WebLinkAbout2012-06-05 Wk Session MINUTES
OF THE WORK SESSION OF THE
EDINA CITY
HELD AT CITY HALL
JUNE 5, 2012
5:05 P.M.
Mayor Hovland called the meeting to order at 5:35 p.m. in the Community Room of City Hall.
Answering rollcall were Members Bennett, Brindle, Sprague, Swenson and Mayor Hovland.
Staff attending the meeting: Jennifer Bennerotte, Communications and Technology Services Director;
Wayne Houle, Director of Engineering; Ari Klugman, City Manager Intern; Karen Kurt, Assistant City
Manager, Debra Mangen, City Clerk; Scott Neal, City Manager; Brian Olson, Public Works Director;
and John Wallin, Finance Director. Rusty Fifield and Tammy Omdal, Consultants from Northland
Securities were present.
Mayor Hovland noted the purpose of the work session was to review Infrastructure Finance and
potential franchise fees.
Rusty Fifield of Northland Securities made a presentation explaining some funding alternatives. He
utilized data from current projects and projected different scenarios using seven options: 1) 80% of
street costs assessed, 2) 50% of street costs assessed, 3) 20% of street costs assessed, 4) maximum
assessment capped at $9,000/unit, 5) Flat $7,000 per unit, 6) 25% of total project costs assessed and
7) Current methodology but with a 15-year term and 1% interest mark-up over bonding costs. The
financial ramifications of each methodology were reviewed and discussed. Discussion points
included: ways to improve communication with residents regarding improvement projects, the
relationship of work performed to the value of the project and the homeowners' ability to pay,
negative arbitrage, perceived value of reconstruction projects, potential effect on City's bond rating if
special assessment terms were lengthened, clarification of who pays costs for service updates from
main to house, gathering citizen input through some kind of forum.
Manager Neal reviewed with the council the potential revenue that would be generated if franchise
fees were implemented on the City's utility providers of gas and electricity. It was noted a franchise
fee was already in place for cable television. Mr. Neal explained that together franchise fees for both
gas and electricity could generate about $900,000 which could then be used to fund the expansion
and improvement of the City's non-motorized transportation network. He reviewed in detail how the
funds would be utilized and how to implement franchise fees. Following discussion the Council
directed staff to proceed with the necessary steps for implementing franchise fees.
Mayor Hovland declared the meeting adjourned at 6:50 p.m.
Respectfully submitted, �)A
Kangen, ity CI r
Minutes approved by Edina City Council,June 19, 2012.
James B. Hovland, Mayor