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Consent   1.M.
Regular City Council Meeting
Meeting Date:
07/14/2014
TITLE
Resolution of Intent to Create and set a public hearing date for SILMD 313
PRESENTED BY:
David Mumford
Department:
Public Works
Presentation:

PROBLEM/ISSUE STATEMENT

Vintage Estates Subdivision is currently constructing additional phases and the developer wishes to provide street lighting to the subdivision.  Passage of this Resolution of Intent is the first step in the legal process of creating a lighting maintenance district to pay the costs of the new lighting. Passage of this Resolution of Intent will trigger the mailing of legal notices to the affected property owners and set a Council public hearing at the August 11, 2014, City Council meeting.

The new lighting will match the style of poles and fixtures used in the first phase of the subdivision. The new lights will use LED lamps which are more energy efficient than the high pressure sodium (HPS) lamps used in the first phase.  The fixtures, poles, and wiring will be owned and installed by Yellowstone Valley Electric. A monthly ownership fee designed to recover the equipment and installation costs over a 30 year period is added to the power company's monthly energy and maintenance bill. The full cost billed to the City for the lighting is passed on to the property owners in the light district as an assessment on their property taxes. The estimated annual cost for an average 13,000 square foot lot is $172.   Due to the difference in time between when the new lighting will be turned on and the first tax assessments are collected, the first year assessment may be higher or lower than the estimated annual assessment.

ALTERNATIVES ANALYZED

The Council may:

• Pass the Resolution of Intent to create SILMD 313 to provide a source of funding for operation and maintenance of the streetlights and set a public hearing for August 11, 2014; or
• Do not pass the Resolution of Intent or set a public hearing date. If the Council does not adopt the Resolution, the property owners cannot be assessed for operation and maintenance of the streetlights and the subdivision developers will be required to evaluate an alternate solution to pay for ongoing energy and maintenance.

FINANCIAL IMPACT

All costs of installing, maintaining and providing energy for the lighting are paid from assessments against the properties within the light district.  There is a City park within the area being added to the District, with an estimated annual assessment of $811.  The park assessment is the only direct cost to the City.

RECOMMENDATION

Staff recommends the City Council approve a resolution of intent to create SILMD 313 and set a public hearing for August 11, 2014

APPROVED BY CITY ADMINISTRATOR

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