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Home My WebLink About2009 12-07 City Council Special Meeting Packet (2)AGENDA MAPLEWOOD CITY COUNCIL SPECIAL CITY COUNCIL MEETING 7:00 P.M. December 7, 2009 Council Chambers, City Hall A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. PUBLIC HEARING 1. 7:00 p.m. — 2010 Budget Proposal — Budget Hearing (Formerly Called Truth In Taxation Hearing) a. Staff Summary Of Proposed 2010 Budget b. Mayor Longrie's Proposed 2010 Budget c. Public Comment d. Resolution Certifying Taxes Payable In 2010 e. Resolution Adopting 2010 Budget E. UNFINISHED BUSINESS 1. 2010 Budget Action Items: a. Resolution Approving Extension Of Electric Franchise Fee And Declaration Of Intent To Raise Fee b. Write Off Uncollectible Ambulance Bills For 2007 c. Resolution Approving Certification Of Special Assessments For Unpaid Miscellaneous Charges d. Resolution Approving Certification Of Special Assessments For Unpaid Ambulance Bills F. NEW BUSINESS G. ADJOURNMENT THIS PAGE IS INTENTIONALLY LEFT BLAND Agenda Item D -1A AGENDA REPORT TO: City Manager, Jim Antonen FROM: Charles Ahl, Assistant City Manager /Public Works Director Robert Mittet, Finance Director SUBJECT: 2010 Budget -Levy Options and Unmet Needs DATE: December 2, 2009 INTRODUCTION The City Council will be conducting a public hearing in considering the 2010 Budget. Staff will be presenting information on the options available for considering in setting the levy for taxes to property in 2010. We anticipate that this item should be considered by the Council as follows: 1. A presentation by staff on the proposed budget as recommended by Management. 2. A presentation by Mayor Longrie on an alternative budget that she has indicated will be available for consideration by the Council. 3. Receipt of public testimony on the proposed budget for 2010. 4. A resolution approving the amount to be levied for 2010. 5. A resolution approving the 2010 Budget Document. BACKGROUND Outlook for 2010 Budget The City is mandated to keep their levy at a minimal increase based upon state legislation. The recommendation is to raise the levy up to the maximum allowed by that statute. The levy limit requirement limits the increase to $138,674. However, there are provisions for additional increases allowed under recent legislation. The staff proposes that the City pursue a special levy to refund the budget for the 2008 Unallotment of MVHC of $244,473 and 50% of the 2009 Unallotment of MVHC of $257,432. This would add $501,905 to the overall levy for 2010 of funds that the state of Minnesota has used to balance their budget out of the Maplewood levy from these years. It should be noted that the second half (50 %) of the 2009 unallotment has not technically been eliminated because payment is not scheduled to be made until December 2009, and thus, a special levy cannot be designated at this time. In 2009, the City was allowed to raise the levy by 3.9 %, but the Council decided to reduce that amount to 2.1%. This means that although the 2010 levy increase is limited to under 1% at 0.87% increase, the base is higher and funds are still available. An increase of 45% of these funds is proposed and generates $153,232 over the 2009 levy. A summary of these amounts is: • Mandated increase is set at 0.87% = $138,674 • 2008 un- allotment by state of MVHC = $244,473 • 50% of 2009 un- allotment of MVHC = $257,432 • Unused 2009 levy limit funds a@ 45% = $153,232 • TOTAL LEVY INCREASE AT 5.0% = $793,811 The City Manager is recommending that the City Council certify this amount for 2010 taxes. The total levy, as proposed in September, remains proposed at $16,670,046. Packet Page Number 3 of 40 2010 BUDGET PAGE TWO The levy is divided as follows: Operations Debt Service Community Center Recreation Programs Fire Truck Replacement Total $12,510,344 3,624,702 220,000 265,000 50,000 $16,670,046 Staff has not received any written citizen comments that speak to a range of levy increases from 0% to the 7% proposed in September. The Finance Director and Assistant City Manager have received five calls, one of which was dealing with special assessment pre - payments, two with concerns on property values and two with concerns on employee wage increases related to the five percent levy increase. Attached to this memorandum are the results of an informal poll of cities' proposed levy increases. This poll was conducted by the Brooklyn Center Finance Department. Staff has taken the liberty of adding some of our neighboring communities. This indicates, subject to other cities' adjustments, that Maplewood is working hard to keep property tax rates low. Options to Consider to Address 2010 Budget Issues The staff prepared two proposed budget analysis based upon a zero levy increase and a 5 -7% increase. Impacts of the zero based option are: Zero Based Levy Option This option was prepared assuming that there would be no increase in taxes to the General Fund in 2010. The staff prepared draft budgets based upon this scenario. The outcome would result in ten positions within the City remaining unfilled [retirements and vacancies would not be filled, but no layoffs would be required]. These positions include 2 in the Police Department, 4 in Public Works, 2 in Parks /Recreation area, 1 in Information Technology and 1 in Building Maintenance at MCC. Additionally, the demonstrated need to add firefighter paramedics would not be met, along with cuts to animal control, squad car replacement, a delay in replacement of a fire truck, and other impacts that are shown in the attached listing of Unmet Needs. The largest impact is on the programs for Parks and Recreation, which have been diminished in past years, and due to retirements will be down from a high of 7 employees to a proposed 2.5 employees assigned to these programs. The needs are estimated by the staff at over $2,100,000. The average residential property in Maplewood has seen a decrease in the taxable value, which if all taxing agencies have no change in their levy will result in a $90 to $112 reduction in property taxes in 2010. Employee Contract Expenses Contracts signed with all the employee groups in 2008 covered expenses for 2009 and 2010, including 3% cost of living increases each year. A summary of the expenses for increases within those contracts is: • Cost of 2009 COLA 3 % Increases = $320,000 • Cost of 2010 COLA 3% Increases = $330,000 • Total all Funds (68% is tax supported) $650,000 Packet Page Number 4 of 40 2010 BUDGET PAGE THREE Within those contracts, and as part of 2009 agreements, each bargaining groups has agreed or has agreed in principal to the following contract concessions: • 2009 Health care changes = $122,000 • 2009 Mandatory Leave = $210,000 • 2010 Health care changes = $218,000* • 2010 Mandatory Leave = $210,000 • Total all Funds (68% is tax supported) $760,000 o * - Labor -Mgmt Cmte saved $132,000 Debt Service Funds It has been previously disclosed that the City payments toward debt incurred a reduction in state payments through the Market Value Homestead Credit of $165,080. In addition, a reduction in the levy toward debt service was approved for 2008 as a one -time reduction. It is proposed that the levy be increased by $313,047 to remain consistent with the necessary contribution for sustainability over the next 3 -5 years. IMPACT TO MEDIAN HOME The impact of the proposed levy increase of 5.0% is mitigated by a 6.7% decrease in the property value of a majority of Maplewood homes. Attached is a chart of levy impacts for Cities within Dakota, Ramsey and Washington Counties based upon the various school districts. Impacts on Maplewood: c Median value home has decreased in value: • 2008 median value = $220,100 • 2009 median value = $205,400 o Yearly impact by median home by School District: • NSP- Mplwd- Oakdale = - $40.00 • Roseville = +$19.00 • White Bear Lake = +$45.00 TAX SHIFT FROM RESIDENTIAL TO COMMERCIAL - INDUSTRIAL PROPERTY The reduction in property value for residential property in comparison to Commercial- Industrial values results in the impact of levy increase shifting back to Commercial- Industrial properties. As noted below, Residential homestead property paid only 41 % of Maplewood taxes in 2000 and 2001; however, changes in tax capacity calculations and accelerated growth in the residential property value market have changed that percentage to the upper 40's% and into the 50% range. The reduction in residential values while Commercial — Industrial values in Maplewood will place a great burden of taxes back to these categories as shown below. Packet Page Number 5 of 40 2010 BUDGET PAGE FOUR o Trends in Net Tax Capacity by Class: • 2000: Residential — 41 %; Commercial - Industrial — 52% ■ 2001: Residential — 41 %; Commercial - Industrial — 52% • 2002: Residential — 50 %; Commercial - Industrial — 40% ■ 2003: Residential — 50 %; Commercial - Industrial — 41 % • 2004: Residential — 51 %; Commercial - Industrial — 39% ■ 2005: Residential — 54 %; Commercial - Industrial — 34% • 2006: Residential — 53 %; Commercial - Industrial — 36% ■ 2007: Residential — 52 %; Commercial - Industrial — 36% • 2008: Residential — 49 %; Commercial - Industrial — 40% ■ 2009: Residential — 47 %; Commercial - Industrial — 42% O Note: the year noted is for the next year's tax Levy Dollar Trends Attached is a showing the percentage of the taxes that has been dedicated to various departments 1 divisions over the past five years and as proposed for 2010. A brief explanation of each category is: • Police Department: The Police Department is proposed to remain at approximately 40% of the taxes collected. As the levy has grown over the past five years, the Police Department has grown accordingly and remained at this 40% level. The levy has increased by $3,235,406 since 2005, and 34% of this increase has been dedicated to the Police Department, which has grown by $1,102,332 during this same period. • Debt Contribution: The debt levy has grown just slightly more than the growth in the levy by 3.66% even though the City has greatly advanced a number of projects for street improvements. The debt levy has grown from 20.98% of the levy in 2005 to the proposed level of 21.74 %. • Fire Department: The contribution of the levy has remained steady in the past five years, although there was a one -time contribution toward an ambulance in 2005 that impacts the overall numbers. The Fire Department contribution will grow from 9.20% in 2009 to 10.45% in 2010 with the addition of two firefighter — paramedics. • Administration /Legal /Finance /IT: These function divisions of the city will require 10.12% of the levy in 2010. This is down from 10.80% in 2005. The increased cost over these years amounts to a 1.5% annual growth. • Public Works: The Public Works Department is proposed to require 5.44% of the levy in 2010. This is a decrease from 10.04% in 2005 and reflects the reduction in personnel and increased revenue by the engineering staff. The overall department supported by the General Fund grew by $388,323 in these years, however, revenue growth exceeded the expenses; although it is noted that three existing positions within Public Works will remain vacant in 2010. • Miscellaneous transfers: this category provides for the various functions necessary on a single or one -time basis, such as capital projects, like parking lot repairs, or legal settlements and carryover funds for city reserves. This is proposed to beset at 3.95% in 2010 and has varied significantly each based upon each year's situations and special budget needs. Packet Page Number 6 of 40 2010 BUDGET PAGE FIVE Parks /MCC /Recreation Programs: The various programs under Park and Recreation category are proposed to be funded at 5.82% in 2010. A breakdown of the individual areas show that Park Administration has from a high of 4.55% in 2005 to a low of 1.47% in 2008. It is proposed that this category be increased in 2010 to 2.91 %. Overall, Parks spending, excluding MCC and Recreation Programs is $140,109 less in 2010 than in 2005. The MCC and Recreation programs have varied over the past five years, but are proposed at 2.91 % for 2010. Community Development: This department's programs have shown a great change over the past five years. In 2005, the Community Development Department programs contributed a positive impact of $585,526 to the General Fund, reducing the need for taxes. Conversely, these programs will require $282,010 of tax dollars in 2010 or 1.69 %. This is a reflection of a changing community from a growth mode to one that requires added code enforcement for existing activities. While the Department expenditures have been reduced since 2005, the revenue collected is about 50% partially due to the slowdown in our economic and development activity. Citizen Services: The programs within Citizen Services supported by the General Fund will require 1.30% of the levy in 2010. In 2005, these programs contributed $39,715 and did not require any tax support. The growth in these programs in the past five years have been within the City Clerk and Marketing programs and involve the addition of new duties to the staff. Summary of Tax Levies Attached is a chart that shows the tax levies for Maplewood over the past ten years along with the trends within our tax capacity based upon property class. The Maplewood levy and tax rate for the past ten years is: Summary of Tax Levies from 2000 to 2009 YEAR Levy Amount City Tax Rate 2000 $ 7,215,660 20.466% 2001 $ 8,471,410 19.971% 2002 $10,348,230 35.436% *- change tax class 2003 $11,927,880 36.319% 2004 $12,831,520 35.685% 2005 $13,434,640 34.229% 2006 $14,106,370 32.101% 2007 $15,546,450 31.950% 2008 $15,546,450 30.800% 2009 $15,876,235 32.572% 2010 $16,670,046 33.462% (est.) Packet Page Number 7 of 40 2010 BUDGET PAGE FIVE Recommendation The action before the City Council will be to conduct the public hearing after hearing the budget proposals. Action items included consideration of adopting the budget as proposed by the staff. If there are changes that the Council desires in the amount of the levy or allocation of funds, the Council should table action for setting of the levy and approval of the budget until December 14, 2009. Staff recommends approval of the following two resolutions: a. Resolution Certifying Taxes Payable in 2010 b. Resolution adopting 2010 Budget Attachments: 1. Unmet Needs List 2. Chart of Metro Communities tax plans, Star Tribune November 29, 2009 3. Levy Dollar Trends by Department 4. Tax Levies 2000 — 2009 5. Resolution Certifying Taxes Payable in 2010 6. Resolution Adopting 2010 Budget 7. Levy Certification — Final Taxes Payable in 2010 8. Breakdown by Debt Service Fund 9. Brooklyn Center Finance Department survey results 10. 2009 Proposed Budget (under separate cover) Packet Page Number 8 of 40 ro 0 m E n� G U N N U1 w 4 Q • .r� U I s a • • a i i i i • • • • ! ! i i i i i i ! ! • • ! ! i i i i i i \ \ f � i • • • • i i i \ \ � i i •# •# s# i \ • • 1 •♦ i i i ! i ! ! ! • ! ! ! ! i i ! ! • • • • ! i ! i i i i •# i i • i • ! ! i i i i • • • • • • ! ! i i i i i i i s# • • • ! ! i i i i i i ! ! • • ! • i i i i i i \ i • \ i s • • s • s ! ! ! ! ! ! ! s • ! ! ! • i i i • • • • • • 1 1 • i i • \ i •# • i \ • •# i i Packet Page Number 9 of 40 Metro communities chart their tai _ b .s a County officials have calculated potchtial property tax bills for homes of median value in more than 80 metro -area communities (with at least 5,000 residents), For each community, the figures reflect property -value changes determined by assessors earlier this year, as well as the proposed maximum tax levies set by local governments in September. Separate calculations were made for cities whose boundaries include more than one school district. The figures do not include local tax increases approved by vot ers in November, or levy reductions proposed since September. 2008 2009 Proposed Percent Tax City or township School median 2009 median 2016 change Percent increase/ (with population district value totattax - value totaltax in market change decrease greaterthan 5,000) number (dollars) (dollars) (dollars) (dollars) value in tax (dollars) r AppieValley' 191 i $235,500 $2,565 $217,600 $2,500 -7.6 2.5 - $64• 196 $235;500 $2,514 $217,600 $2,513 - - 0.0% $0 Eagan 191 $257,000 $2,514 $239,400 $2,506 - 6.9 °lo -u.s to -: zb 196 $257,000 $2,459 $239,400 $2,520 -6.9% 2.5% $62 197 $257,000 $2,096 $239,400 $2,075 -6.9 A.0% $21 Friri)ngon 19 „$223;2011 .; "` a. Hastings 200 ,., $203,600 $2,253 $1$$,000 $2193 73% ' $61 )ttvr (srtly Hghts 19£ $2;300 $2,479 .$213,404?; „ $2;4 197 $23f1,300 2142 "$21,400< $2t844 113:5 °k€ 4 9° $38 $150 $238,300 €$213ADO° $4 akevitle , = 192 $272,100 $3,360 $251,000 $3,331 7 . 8 °'0 -03 429 194 $272,100 $2,858 .$251,000. $2,777 -7.8 2.8 °l0 $81 196 $272,100 $2,795 $251,000 $2,817 7.8% 0.8% $22 IvtutNi(3ta lrts „" $3 4 ... $31094 , =;$ 16,200', ., ±2 . 7,7° °3 z, 1 • , .197 Rosemount 196 ... $253,800 $2,808 $230,900 $2,710 9.0 ° l0 3.5 °l0 -$98' 199 $253,800 42,568 $230,900 $2,464 -9.0% -4.1 -$104 . 200 - $253,800 $2,731 $230,900 $2;572 -9.0% - 5.8 °l0 -$158 West St. Paul „ 197 $204,500 $1,923 $185,700 $1,914 -9.2% 0 .5% Heights White Bear Twp. 'Cot Grove Hugo 121 $275;600 $3,209 $262,200 $3,261 -4.9 1.6 /o 1 $299,150 $3 $278,$00 $3,345 7 - 10.8% 621 $252,600 =7iI79 $299,150 $3,060 $27$,$00 $3,066 $171 624 $2731100 ,: $247{42.,,;'$26432011, $2,646 1$2;8116_ T 39 ., $255;700 $2,593 $22$,000 $2,465 624 �� 7t1n 7.740 X228.000 $2.634 -3.4% Heights White Bear Twp. 'Cot Grove Hugo 121 $275;600 $3,209 $262,200 $3,261 -4.9 1.6 /o $52 623 $275,600 $2,916 $262,200 i2 $2,9,99 4 9 0 10 2 8% $83 °11 ; ":,26°0 „ "' • 74- 621 $252,600 $2,717 $245,300 $2,888 - 2.9 °l0 63% $171 624 $252,600 $2,646 $245,304 $2,882 -2.9% 8.9% $236 _ , 624 624 $249,800 $2,570` ( .$241,400 $2,721 -3.4% 5.9% $150 200 $221,300 $2,122 $209,300 $2,112 -5.4 -0.5% -$10 833 $221,300 $2,376, .$209,300 $31 • >,44 109 .$311700 42,337 $2,005 54 °l0 ,, 82%,., 17°/0 1401 624 $236,000 $2,235 $219,800 $2,185 -M% -2.2 -$5o 831 $236,000 $1,925 $219,800 $1,804 -6.9% -63% -$122 832 $236.000 12.344 ° $219,800 $2,243 -6.9 -4.3% -$101 622 $2$0,300 $2,723 $ZRaMe P WNUMbgYUP13 of 4'19•' J° -:p'.L 833 $280,300 $3,011 $266,300 - $ ,029 •5,0 °l0 0.6% $18 834 $280,300 ' $2,461 . $266,300 $2,479 -5.0% 0,7 °l0 $18 = N � E C G U Q Q q O GO a-+ M U J X t0 H O 00 O d' N to O m N M V)} CD d' O O h CD r-i th if ) m N cD r 0 Ln r-i i!} O It I'D d Ln r-i t!� O if ) d li} r1 t/} O r- m 0 r-i d' r-i tt� O d' rf M d M r1 th V) W x Q J d O F- Packet Page Number 11 of 40 N N N d LO Ln 0 0 0 40 m � r�i 00 t0 O tD r` c p = {° N tD Ln Ln w M CD O CD O o m m (D t Ln rl Ln H 00 -H (N 'i!} t N V - N •ttf it} � i ih O w r" Ln N N Q N l0 N m N 00 to Gd r m m .n t0 m Ln 0) 00 0 00 M ct Ln -i r-4 Ln Q 9 0 0 0 0 0 0 0 0 0 0 M ct Ln N N Ln M O 't r- It r-I 00 d' M W m Q 01 r•1 O O V) a) rn Q M N IH IH N 0 0 0 0 0 0 0 0 0 to to O d M M N N 00 r 00 N r1 r` 00 rl� 1 Vt M Q 0 0 0 0 Ln Ln N M r-1 O N w ri M r I N Ln d rH w I�t o M M re Ln Ln M M 00 r� N 00 C l vi Ln M O O Q m N Q N 0 0 0 0 0 0 0 0 0 O0 O d' N Co to lfl N � W N - H 00 0 0 -H O r-1 r\ Q r O m m 00 w m t-i O N r` 0) M 00 N M M 00 .-1 CO M 00 N It l0 0) rn 00 Q 00 -q rn r-I c.o 00 Ln --i o ' N 0 0 0 0 0 0 0 0 0 O 00 rl O r-1 h to O M M M M r- O M M M Ln Q o o M o 0 1 It 0 Q rt N r-i c-i ri N 4t U C u� 4- C M Q to O Q d 0 N Y U > N yy LL' tt7 0 U tJ.I ~ U s- N i N } C '= N 0 7 (6 0 t/) W L.L w 4} N 4� \ ' i •V E N a N L a iA 4" 0 iz d U 0 q O GO a-+ M U J X t0 H O 00 O d' N to O m N M V)} CD d' O O h CD r-i th if ) m N cD r 0 Ln r-i i!} O It I'D d Ln r-i t!� O if ) d li} r1 t/} O r- m 0 r-i d' r-i tt� O d' rf M d M r1 th V) W x Q J d O F- Packet Page Number 11 of 40 M J Co a X H O 0) O E ao CO N aD o d U) U) o q d O O _ L LL V) (DD O �/ ry U - d O Co m E w u- a� L{) E C) .Q i 6 C� 4 U w U LL n Q0 t d M N M CO N a) c Co = a) N M LC) G U Col LO C�, CD LO -0 O O O O CD N O O N QO C5 M Co N O CO N NT V) M r r M U) r 0 0 r O O d CO d CO ' NN M00 d' It O t-- M N r � r r M r r M LC) r Cfld Od O d 0 0 CD CA d Cd d r d r O Co Co Co M d O N M 6) N C0 CO M CO r r O r Co d r N M d r M d' r Lol'o -0 CD CD CD CD -0 0 0 CD CD M CD NT I- CD CEO N N Co Co CO Nd L r M d r- M (N r Co It M N M r "tj d M 0 0 Co LO CD d d NO U') N O ,- CD M d C Co C)7 r N d 00 M Cif N N r MIO O O O o 0 CD L() d Co Co t0 O O N r M 06 _ N N M r r- M d C77 C}) N 07 rr r 6) T Co M CO N r r (NJ CD CD CD O N 0 0 Co CD U') Co M Co N d CD M Co � N N M N CD CO L o CO r O r r d d d O o 0 O Co O Co r 0 r CD Co d U) 't N d dM ti 0? 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In addition, there is a $717,700 market value based referendum levy for 2009 payable in 2010 to finance the debt service on the 2002 Open Space Refunding Bonds and the 2000 Fire Safety Bonds. 3. The net tax capacity based levy of $2,907,002 for Debt Service and the market value based referendum levy of $717,700 total $3,624,702. This results in a total certified levy of $16,670,046. The breakdown by Debt Service Fund follows as Exhibit A: Packet Page Number 13 of 40 Agenda Item D1a Attachment RESOLUTION - -- ADOPTION OF THE 2010 BUDGET WHEREAS, the City of Maplewood is required to prepare an annual budget; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, that: The 2010 Proposed Budget shall become effective beginning January 1, 2010. Packet Page Number 14 of 40 COUNTY, CITY AND SPECIAL TAXING DISTRICT LEVY CERTIFICA�ent D1a FINAL TAXES PAYABLE IN 2010 •- _City of Maplewood_ (Governmental Agency) I NET TAX CAPACITY BASED LEVIES I 1) General $ 12,510,344 2) Debt 2,907,002 3) Other (Please Specify) 4) Community Center Fund 220,000 5) Recreation Programs Fund 265,000 6) Fire Truck Replacement Fund 50,000 7) 8) 9) 10) Total Net Tax Capacity Based Levies (Total 1 through 9) 1 $ 15,952,346 MARKET VALUE BASED LEVIES 11) Fire Safety Bonds — 2000a $ 314 12) Open Space Bonds — 2002D 402,800 13)Total Market Value Based Referendum Levies 14)Total Certified Levy (Total 11 & 12) 1 $ 717,700 {Total 10 L13) '' $_= I, the authorized representative of the above mentioned Governmental Agency, certify that the foregoing information is accurate to the best of my knowledge. Signature of Authorized Representative Phone Number of Contact Person Title Date \TNT\Pay 2009 \1evycert Packet Page Number 15 of 40 Agenda Item D1a Attachment City of MAPLEWOOD $6,085,299.21 - $2,460,597.21 $3,624,702.00 I hereby certify that the above schedule of bond levies to be spread on the payable 2010 tax rolls agrees with the City records and is true and correct. Copies of any resolutions which increase or reduce these levies are attached. Signed: Date: Packet Page Number 16 of 40 ADDITIONS OR CERTIFIED ORIGINAL DATE PAYABLE 2010 REDUCTIONS BY DEBT BOND ISSUES ------------------ - - - - -- ------- PRINCIPAL - - - - -- ----- ISSUED - - - - -- DEBT LEVY -------- - - - - -- RESOLUTION -------- - - - - -- LEVY ----- - - - - -- ------------------------ ------- GO IMP REFUNDING 1998B - - - - -- ----- 1,275,000 - - - - -- 1- Sep -98 -------- - - - - -- 106,467.00 -------- - - - - -- 0.00 ----- - - - - -- 106,467.00 GO IMP 1999A 940,000 1- Oct -99 56,336.00 - 56,336.00 0.00 GO FIRE SAFETY 2000A 3,540,000 1- Jun -00 314,979.00 -79.00 314,900.00 GO IMP 2001B 3,280,000 1- Oct -01 0.00 0.00 0.00 GO IMP 2002A 4,815,000 1- Aug -02 252,380.00 0.00 252,380.00 GO IMP REFUNDING 20026 3,345,000 1- Nov -02 469,560.00 - 149,560.00 320,000.00 GO TI REFUNDING 2002C 5,185,000 1 -Dec -02 732,940.00 - 200,000.00 532,940.00 GO O SPACE REFUND 2002D 3,425,000 1- Nov -02 402,780.00 20.00 402,800.00 GO IMP 2003A 3,650,000 1- Aug -03 163,668.00 0.00 163,668.00 GO REF 2004A 2,940,000 1- Apr -04 308,760.59 - 308,760.59 0.00 GO IMP 2004B 13,010,000 1- Aug -04 304,962.32 - 74,962.32 230,000.00 GO TAX ABMT 2004C 5,025,000 1- Aug -04 181,355.00 - 51,355.00 130,000.00 GO IMP 2004D 700,000 1- Aug -04 56,443.00 0.00 56,443.00 GO IMP 2005A 2,115,000 1- Aug -05 54,565.00 - 54,565.00 0.00 GO EQUIP CERT 2006B 290,000 1- Apr -06 70,980.00 0.00 70,980.00 GO IMP 2006A 6,085,000 1- Apr -06 369,965.22 - 99,965.22 270,000.00 GO IMP 2007A 10,060,000 1- Jul -07 709,906.35 - 209,906.35 500,000.00 GO IMP 2007B 5,090,000 15- Oct -07 376,683.99 - 176,683.99 200,000.00 GO IMP 2008A 9,970,000 1- Jul -08 679,228.64 - 679,228.64 0.00 GO IMP REFUNDING 2008B 1,070,000 1- Jul -08 86,196.00 - 12,072.00 74,124.00 GO IMP REFUNDING 2009A 4,680,000 1- Apr -09 387,143.10 - 387,143.10 0.00 $6,085,299.21 - $2,460,597.21 $3,624,702.00 I hereby certify that the above schedule of bond levies to be spread on the payable 2010 tax rolls agrees with the City records and is true and correct. Copies of any resolutions which increase or reduce these levies are attached. Signed: Date: Packet Page Number 16 of 40 Agenda Item D1a Attachment Property Tax Comparison Data for Taxes Payable FY 2009 and Proposed Taxes Payable FY2010 Pay Pay Pay Pay Pay Pay Pay 2008 2009 Taxable 2009 2010 $ 910 2009 TC 2010 TC 2 009 2010 City Population Tax Capacity Levy Levy Increase Increase Levy Levy Extension Rate Extension Rate North St. Paul 11,929 9,248,647 2,978,015 3,560,009 581,994 19.54% 2,502,806 3,083,671 22.125 30.181 Columbia Heights 18,137 13,355,599 7,702,363 9,075,425 1,373,062 17.83% 7,702,530 9,075,425 47.430 56.888 Vadnais Heights 13,069 14,123,325 3,005,330 3,527,553 522,223 17.38% 3,005,330 3,527,553 19.051 24.076 Crystal 22,167 17,076,268 8,423,789 9,372,802 949,013 11.27% 7,916,924 9,165,502 38.290 44.111 Roseville 34,345 46,322,408 13,138,860 14,300,000 1,161,140 8.84% 12,314,179 13,475,000 24.550 27.544 Richfield 33,676 29,206,520 14,304,539 15,288,021 983,482 6.88% 14,304,539 15,288,021 42.530 47.951 Fridley 26,422 27,701,940 9,472,487 10,120,162 647,675 6.84% 9,170,139 9,805,762 28.660 32.233 Brooklyn Park 75,156 60,841,677 30,090,348 31,885,808 1,795,460 5.97% 28,590,289 30,393,028 39.650 44.325 Robbinsdale 13,598 11,309,068 5,374,593 5,664,783 290,190 5.40% 4,965,133 5,462,059 37.000 40.540 Brooklyn Center 30,330 19,982,183 12,893,208 13,568,972 675,764 5.24% 11,504,044 12,504,044 47.525 52.372 Maplewood 36,717 42,544,252 15,876,235 16,670,046 793,811 5.00% 15, 472,892 ',15,952,346 32.570 35.302 Little Canada 9,771 10,041,005 2,475,331 2,598,546 123,215 4.98% 2,475,331 2,598,546 21.278 23.250 Shoreview 26,036 31,423,644 8,643,625 9,005,000 361,375 4.18% 8,643,625 9,005,000 25.130 27.597 Woodbury 56,128 88,326,696 26,364,482 27,212,990 848,508 3.22% 24,670,800 25,519,308 28.474 nJa Maple Grove 59,932 85,563,400 28,666,835 29,561,631 894,796 3.12% 28,666,835 29,561,631 31.260 33.816 White Bear Lake 24,679 25,747,815 4,556,518 4,666,000 109,482 2.40% 4,556,518 4,075,833 15.300 16.519 Golden Valley 20,326 33,320,799 16,124,650 16,327,725 203,075 1.26% 16,125,269 16,327,725 45.910 48.180 Oakdale 27,034 31,121,637 9,727,488 9,787,598 60,110 0.62% 9,727,488 9,787,598 30.593 nJa Packet Page Number 17 of 40 THIS PAGE IS INTENTIONALLY LEFT BLAND Packet Page Number 18 of 40 Agenda Item E -1 a Memorandum To: James W. Antonen, City Manager From: H. Alan Kantrud, City Attorney Bob Mittet, Finance Director Date: December 2, 2009 Re: Resolution Approving Extension of Electric Franchise Fee and Declaration of Intent to Raise Fees PROPOSED FEE INCREASE At the November 9, 2009 City Council meeting, staff requested an increase of $0.25 per month per household in the electric franchise fee. Council requested additional information on the rates and corresponding increases in commercial /industrial customers. Current and proposed monthly charges are as follows: Current Rates Proposed Rates Residential, Street Lighting & Muni Pumping $0.50 $0.75 Small Commercial & Industrial — Non - Demand 1.00 1.50 Small Commercial & Industrial — Demand 6.00 9.00 Large Commercial & Industrial 45.00 67.50 These increases represent a 50% across - the -board increase in the rates. The rate increase will generate annual revenues in the Street Light Utility Fund of approximately $90,000. Staff proposes that this additional revenue be used for underground burial of power lines in the Gladstone redevelopment area. It is anticipated that the City Council will be asked to approve bond financing in an approximate amount of $600,000 to be repaid with the franchise fees resulting from this increase. Packet Page Number 19 of 40 Upon City Council approval of the rate increases, staff will notify Xcel Energy of the proposed increase. Per section 9 of the existing Ordinance, attached as Attachment 1, the City is required to implement the new rates by a second ordinance. We are then able to pass the Ordinance with the new rates after 60 days has elapsed. Excel has internal procedures in place that require them to approve increases on an increasing level of scrutiny based on the percent- increase requested. An increase over 5% of the current rate requires approval from the main (Denver) office as well as external notification to the end - consumer, assuming Excel chooses not to absorb the increase without cost to its customers. The "internal" timeframe Excel provides itself for this process is 60 days (hence the 60 day period in the Ordinance), so it is anticipated the new rates would become effective in March 2010. EXTENSION OF FRANCHISE FEE AGREEMENT The City has an existing Ordinance for collection of the franchise fee. This is accomplished through our Ordinance authorizing the imposition of the fee and collection of the same from Excel. This agreement will expire at December 31, 2009 unless extended through City Council resolution. A new Franchise Agreement is not required for this extension. Our existing Ordinance is attached for your review as Attachment 2. RECOMMENDATION Staff requests the following actions: a) Approve resolution ratifying existing franchise fee agreement and rate implementation Ordinance #854 for two additional months 'WiroI b) Approve resolution of intent to adopt new rates as detailed in proposed Ordinance (attached as Attachment 3) Attachments: 1. Resolution to ratify existing franchise fee agreement and rate implementation 2. Resolution of intent to adopt new rates 3. Ordinance 852; 4. Ordinance 854; 5. Proposed Implementation Ordinance 2 Packet Page Number 20 of 40 Agenda Item Eta Attachment RESOLUTION EXTENDING THE SUNSET PROVISION OF ELECTRIC FRANCHISE FEE IMPLEMENTATION ORDINANCE 854 WHEREAS, the City of Maplewood has adopted and enacted Ordinance 852 which established electric franchise fees, and WHEREAS, City staff has reviewed the electric franchise tax rates and has determined that an an increase in those rates is proper and necessary for the ongoing utility and maintenance within the City's right of way and WHEREAS, the City needs to extend the sunset date of the current fee schedule from December 31, 2009 to February 28, 2010 in order to provide enough time to properly adjust the rates. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, that: The sunset provision as provided for in section subdivision 7 of Ordinance 854 is hereby extended from December 31, 2009 to February 28, 2010. Packet Page Number 21 of 40 Agenda Item Eta Attachment RESOLUTION OF INTENT TO RAISE ELECTRIC FRANCHISE FEE RATE WHEREAS, the City of Maplewood has adopted and enacted Ordinance 852 which established electric franchise fees, and WHEREAS, City staff has reviewed the electric franchise tax rates and has determined that an an increase in those rates is proper and necessary for the ongoing utility and maintenance within the City's right of way and WHEREAS, pursuant to Ordinance 852, section 9.2, the City needs to REPEAL the existing Implementation Ordinance (854) that set the fee rates and ADOPT a new Implementing Ordinance with new rates. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MAPLEWOOD, MINNESOTA, that: It is the intent of the City to adjust the franchise fee rate schedule as authorized through the existing franchise ordinance and notice is hereby given that not less than 60 days from December 7, 2009 the City shall repeal Ordinance 854 and intends to adopt a new Ordinance with the following rates: Residential, Street Lighting & Muni Pumping $0.75 Small Commercial & Industrial — Non - Demand $1.50 Small Commercial & Industrial — Demand $9.00 Large Commercial & Industrial $67.50 Packet Page Number 22 of 40 Agenda Item Eta Attachment ORDINANCE 852 ELECTRIC FRANCHISE ORDINANCE CITY OF MAPLEWOOD, RAMSEY COUNTY, MINNESOTA An ordinance granting to Northern States Power Company, A Minnesota Corporation, d /b /a Xcel Energy its successors and assigns, permission to construct, operate, repair and maintain in the City of MAPLEWOOD, Minnesota, an electric distribution system and transmission lines, including necessary poles, lines, fixtures and appurtenances, for the furnishing of electric energy to the City, its inhabitants, and others, and to use the public ways and public grounds of the city for such purposes. THE CITY COUNCIL OF THE CITY OF MAPLEWOOD, RAMSEY COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: City. The City of Maplewood, County of Ramsey, State of Minnesota. City Utility System. Facilities used for providing non - energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government which preempts all or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission. Company. Northern States Power Company, a Minnesota corporation, d /b /a Xcel Energy its successors and assigns. Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use. Notice. A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to the General Counsel, Suite 3000, 800 Nicollet Mall, Minneapolis, MN 55402. Notice to the City shall be mailed to the City Clerk, City Hall, 1830 County Road B East, Maplewood, MN 55109. Either party may change its respective address for the purpose of this Ordinance by written notice to the other party. Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public. Packet Page Number 23 of 40 Agenda Item Eta Attachment Public Way. Any street, alley, walkway or other public right -of -way within the City. i 'ii• ! i � 1. 2.1 Grant of Franchise City hereby grants Company, for a period of 20 years from the date passed and approved by the City, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Ways and Public Grounds of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement. 2. 2.2 Effective Date; Written Acceptance This franchise agreement shall be in force and effect from and after passage of this Ordinance, its acceptance by Company, and its publication as required by law. The City by Council resolution may revoke this franchise agreement if Company does not file a written acceptance with the City within 90 days after publication. 3. 2.3 Service and Rates The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 2166.40. 4. 2.4 Publication Expense The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company. 5. 2.5 Dispute Resolution If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law. SECTION 3. LOCATION, OTHER REGULATIONS. 1. 3.1 Location of Facilities Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein. Electric Facilities shall be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise agreement. Company may abandon underground Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project. 2. 3.2 Field Locations Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. 3. 3.3 Street Openings Company shall not open or disturb any Public Way or Public Ground for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar Packet Page Number 24 of 40 Agenda Item Eta Attachment facilities or work. Company may, however, open and disturb any Public Way or Public Ground without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees. 1. 3.4 Restoration After undertaking any work requiring the opening of any Public Way or Public Ground, Company shall restore the same, including paving and its foundation, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for two years thereafter. The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Way or Public Ground in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City's permission to install, replace or maintain facilities in a Public Way. 2. 3.5 Avoid Damage to Electric Facilities Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. 3. 3.6 Notice of Improvements The City must give Company reasonable notice of plans for improvements to Public Ways or Public Ground where the City has reason to believe that Electric Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Ways and Public Grounds upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Way or Public Ground is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities. 3.7 Shared Use of Poles Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City. SECTION 4. RELOCATIONS. 4.1 Relocation of Electric Facilities in Public Ways If the City determines to vacate a Public Way for a City improvement project, or at City's cost to grade, regrade, or change the line of any Public Way, or construct or reconstruct any City Utility System in any Public Way, it may order Company to relocate its Electric Facilities located therein if relocation is reasonably necessary to accomplish the City's proposed public improvement. Except as provided in Section 4.3, Company shall relocate its Electric Facilities at its own expense. Packet Page Number 25 of 40 Agenda Item Eta Attachment The City shall give Company reasonable notice of plans to vacate for a City improvement project, or to grade, regrade, or change the line of any Public Way or to construct or reconstruct any City Utility System. If a relocation is ordered within five years of a prior relocation of the same Electric Facilities, which was made at Company expense, the City shall reimburse Company for non- betterment costs on a time and material basis, provided that if a subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconstruct at its own expense its Electric Facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvement. 1. 4.2 Relocation of Electric Facilities in Public Ground City may require Company at Company's expense to relocate or remove its Electric Facilities from Public Ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. 2. 4.3 Proiects with Federal Funding Relocation, removal, or rearrangement of any Company Electric Facilities made necessary because of the extension into or through City of a federally -aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as supplemented or amended. It is understood that the right herein granted to Company is a valuable right. City shall not order Company to remove or relocate its Electric Facilities when a Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non - betterment costs of such relocation and the loss and expense resulting therefrom are first paid to Company, but the City need not pay those portions of such for which reimbursement to it is not available. 3. 4.4 No Waiver The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right -of -way acquired by easement or prescriptive right before the applicable Public Way or Public Ground was established, or Company's rights under state or county permit. SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Ways and Public Grounds of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 1. 6.1 Indemnity of City Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public Ways and Public Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. Packet Page Number 26 of 40 Agenda Item Eta Attachment 2. 6.2 Defense of City In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City; and Company, in defending any action on behalf of the City shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to Company for failure to specifically preserve a right -of -way under Minnesota Statutes, Section 160.29. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 9. FRANCHISE FEE. 1. 9.1 Fee Schedule. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company, the City may impose on Company a franchise fee, for the sole purpose of recovering the cost to maintain and operate street lights and traffic signals, by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not 9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least 60 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. Section 2.5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Terms Defined. For the purpose of this Section 9, the following definitions apply: 9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or determined in Company's electric tariffs on file with the Commission. Packet Page Number 27 of 40 Agenda Item Eta Attachment 2. 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. 3. 9.4 Collection of the Fee The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. exceed the following amounts. Customer Class Fee Per Premise Per Month Residential $0.50 Small C & I — Non- Demand $1.00 Small C & I — Demand $6.00 Large C & 1 $45.00 Public Street Lighting $0.50 Muni Pumping —N /D $0.50 MuniPumping — Demand $0.50 SECTION 10. PROVISIONS OF ORDINANCE. 1. 10.1 Severability Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part; and if any section, provision, or part shall Packet Page Number 28 of 40 Agenda Item Eta Attachment be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 2. 10.2 Limitation on Applicability This Ordinance constitutes a franchise agreement between the City and Company as the only parties and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 11. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate. If an amendment is agreed upon, this Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of final passage by the City of the amendatory ordinance. This franchise supersedes any previous electric franchise granted to Company or its predecessor Passed by the Maplewood City Council on September 27, 2004. Ayes - All Packet Page Number 29 of 40 Agenda Item Eta Attachment ORDINANCE 854 AN ORDINANCE IMPLEMENTING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D /B /A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF MAPLEWOOD. THE CITY COUNCIL OF THE CITY OF MAPLEWOOD DOES ORDAIN: SECTION 1. The City of Maplewood Municipal Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Maplewood City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide electric services within the City of Maplewood. (a) Pursuant to City Ordinance 852, a Franchise Agreement between the City of Maplewood and Northern States Power Company, a Minnesota corporation, d /b /a Xcel Energy, its successors and assigns, the City has the right to impose a franchise fee on Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns, in an amount and fee design as set forth in Section 9 of the Northern States Power Company Franchise and in the fee schedule attached hereto as Schedule A. Subdivision 2. Franchise Fee Statement. A franchise fee is hereby imposed on Northern States Power Company, a Minnesota Corporation, d /bla Xcel Energy, its successors and assigns, under its electric franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the Xcel Energy January, 2005 billing month. This fee is an account -based fee on each premise and not a meter -based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for electric service to that premise. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by this ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. Subdivision 3. Payment. The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 9.4 of the Franchise. Subdivision 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Xcel Energy will surcharge its customers in the City the amount of the fee. Subdivision 5. Record Support for Payment Xcel Energy shall make each payment when due and, if required by the City, shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. Packet Page Number 30 of 40 Agenda Item Eta Attachment Subdivision 6. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement. Subdivision 7. Effective Date of Franchise Fee The effective date of this Ordinance shall be after its publication and sixty (60) days after the sending of written notice enclosing a copy of this adopted Ordinance to Xcel Energy by certified mail. Collection of the fee shall commence as provided in Subdivision 2. Subdivision 8. Sunset Clause This ordinance shall automatically sunset on December 31, 2009, unless the City Council acts to renew or extend the fee at least six (6) months prior to the sunset date. The City Council may unilaterally renew or extend the fee on the same terms and conditions. Without waiver of any rights under Minnesota law, the City Council shall seek agreement from Company if the City intends to change the fee rate or fee design. SCHEDULE A Franchise Fee Rates: Electric Utility The franchise fee, for the sole purpose of recovering the cost of street lighting, shall be in an amount determined by applying the following schedule per customer premise /per month based on metered service to customers within the City: Customer Class Residential Small C & I — Non - Demand Small C & I — Demand Large C & I Public Street Lighting Muni Pumping —N1D Muni Pumping — Demand Fee Per Premise Per Month $0.50 $1.00 $6.00 $45.00 $0.50 $0.50 $0.50 Franchise fees are to be collected by the Utility at the rate listed below, and submitted to the City on a quarterly basis as follows: January — March collections due by April 30. April — June collections due by July 31. July — September collections due by October 31. October — December collections due by January 31. Packet Page Number 31 of 40 Agenda Item Eta Attachment ORDINANCE NO. AN ORDINANCE IMPLEMENTING A ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D JB JA XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY OF MAPLEWOOD. THE CITY COUNCIL OF THE CITY OF MAPLEWOOD DOES ORDAIN: SECTION 1. The City of Maplewood Municipal Code is hereby amended to include reference to the following Special Ordinance. Subdivision 1. Purpose. The Maplewood City Council has determined that it is in the best interest of the City to impose a franchise fee on those public utility companies that provide electric services within the City of Maplewood. (a) Pursuant to City Ordinance , a Franchise Agreement between the City of Maplewood and Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, its successors and assigns, the City has the right to impose a franchise fee on Northern States Power Company, a Minnesota corporation, d/b ja Xcel Energy, its successors and assigns, in an amount and fee design as set forth in Section 9 of the Northern States Power Company Franchise and in the fee schedule attached hereto as Schedule A. Subdivision 2. Franchise Fee Statement A franchise fee is hereby imposed on Northern States Power Company, a Minnesota Corporation, d /bja Xcel Energy, its successors and assigns, under its electric franchise in accordance with the schedule attached here to and made a part of this Ordinance, commencing with the Xcel Energy March, 2010 billing month. This fee is an account -based fee on each premise and not a meter -based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for electric service to that premise. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by this ordinance have more than one premise, each premise (address) shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. Subdivision 3. Payment The said franchise fee shall be payable to the City in accordance with the terms set forth in Section 9.4 of the Franchise. Subdivision 4. Surcharge The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Xcel Energy will surcharge its customers in the City the amount of the fee. Packet Page Number 32 of 40 Agenda Item Eta Attachment Subdivision 5. Record Support for Payment Xcel Energy shall make each payment when due and, if required by the City, shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. Subdivision 6. Enforcement Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with Section 2.5 of the Franchise Agreement. Subdivision 7. Effective Date of Franchise Fee The effective date of this Ordinance shall be after its publication and sixty (60) days after the sending of written notice enclosing a copy of this adopted Ordinance to Xcel Energy by certified mail. Collection of the fee shall commence as provided in Subdivision 2. Subdivision 8. Sunset Clause This ordinance shall automatically sunset on February 28, 2015, unless the City Council acts to renew or extend the fee at least six (6) months prior to the sunset date. The City Council may unilaterally renew or extend the fee on the same terms and conditions. Without waiver of any rights under Minnesota law, the City Council shall seek agreement from Company if the City intends to change the fee rate or fee design. Passed and approved: .2010. Mayor Attest: City Clerk SEAL 2 Packet Page Number 33 of 40 Agenda Item Eta Attachment SCHEDULE A Franchise Fee Rates: Electric Utility The franchise fee, for the sole purpose of recovering the cost of street lighting, shall be in an amount determined by applying the following schedule per customer premise /per month based on metered service to customers within the Citv: Customer Class Residential Small C & I — Non - Demand Small C & I — Demand Large C &I Public Street Lighting Muni Pumping N/D MuniPumping — Demand Fee Per Premise Per Month $0.75 $1.50 $9.00 $67.50 $0.75 $0.75 $0.75 Franchise fees are to be collected by the Utility at the rate listed below, and submitted to the City on a quarterly basis as follows: January — March collections due by April 30. April — June collections due by July 31. July — September collections due by October 31. October — December collections due by January 31. Packet Page Number 34 of 40 AGENDA NO. E — 1 b AGENDA REPORT TO: James W. Antonen, City Manager FROM: Robert Mittet, Finance Director RE: WRITE OFF UNCOLLECTIBLE AMBULANCE BILLS FOR 2007 DATE: November 30, 2009 PROPOSAL It is proposed that the uncollectible 2007 ambulance bills in the amount of $2,063,083.38 be written off and that the Finance Director be authorized to make these write offs. BACKGROUND As a preface to the rest of this memorandum, please note that, as of November 1, 2008, responsibility for ambulance billing was outsourced. Going forward, more of the following steps will be the responsibility of the third party firm. Past practice has been to write off uncollected ambulance accounts receivable once they are two years old so for the next year, the Finance Department will have a continuing role in the collection process. The following four steps are used to collect payments on ambulance bills: 1. First Notice Ambulance charges are billed on a daily basis upon receipt of a run sheet. The first notice requests: (1) payment in full unless covered by insurance, (2) insurance information and consent forms for those having insurance. 2. Second Notice If the bill remains unpaid 30 days after the first bill, a second notice is sent to those who have still not paid or did not send in requested insurance information. 3. Third Notice If the bill remains unpaid 60 days after the first bill, further attempts are made to contact the patient and the hospital for information. 4. Final Notice If no contact can be made with the person billed, research is done to determine if the amount due can be certified to the person's property taxes or collected using the Minnesota Revenue Recapture Program. This program permits the City to receive payments by intercepting income tax refunds, property tax credits or refunds, lottery winnings over $600 and political campaign refunds. 5. If the bill remains unpaid, it is sent to a collection agency for collection. The collection agency writes up to four letters and makes phone calls. After 30 days, the collection agency calls us and asks for approval to send the unpaid accounts on to full collection and possible court proceedings. The 2007 ambulance bills proposed to be written off have been processed through these five steps. Further collection efforts are not feasible. Packet Page Number 35 of 40 The following graph shows the collection rates for 2004 — 2007_ AMBULANCE BILL COLLECTION RATES AS OF 11 -30 -09 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% RECOMMENDATION It is recommended that $2,063,083.38 of ambulance bills be written off as uncollectible and that the Finance Director be authorized to write off uncollectible accounts annually. Packet Page Number 36 of 40 2 2004 2005 2006 2007 AGENDA NO. E — lc TO: James W. Antonen, City Manager FROM: Robert Mittet, Finance Director RE: RESOLUTION APPROVING CERTIFICATION OF SPECIAL ASSESSMENTS FOR UNPAID MISCELLANEOUS CHARGES DATE: November 30, 2009 ju * • The alarm ordinance adopted by the Council on 8 -28 -95 includes a provision that unpaid false alarm charges shall be certified as special assessments. Between October 1 st and November 23 rd , letters were sent advising companies and homeowners that their unpaid invoice(s) for false alarm charges and abatements along with 8% interest would be added to their property tax bill, for next year if payment was not made within 30 days. A few payments were received in response to these letters. The remaining unpaid bills in the amount of $11,340.87 should be certified as special assessments. RECOMMENDATION It is recommended that the attached resolution be adopted to certify $11,340.87 of unpaid miscellaneous charges for collection with 2010 property taxes with interest at the rate of eight percent on the total amount for one year. Packet Page Number 37 of 40 RESOLVED, that the City Clerk is hereby authorized and directed to certify to the Auditor of Ramsey County the following miscellaneous charges totaling $11,340.87 for collection with the taxes of said property owner for the year 2009, collectible in 2010, with interest at the rate of eight percent (8 %) on the total amount for one year. Resolution number: Packet Page Number 38 of 40 AGENDA NO. E— 1d TO: James W. Antonen, City Manager FROM: Robert Mittet, Finance Director RE: RESOLUTION APPROVING CERTIFICATION OF SPECIAL ASSESSMENTS FOR UNPAID AMBULANCE BILLS DATE: December 1, 2009 ju * • Between October 1 St and November 23 rd , letters were sent advising homeowners that their unpaid invoice(s) for ambulance bills along with 8% interest would be added to their property tax bill, for next year if payment was not made within 30 days. A few payments were received in response to these letters. The remaining unpaid bills in the amount of $2,952.91 should be certified as special assessments. RECOMMENDATION It is recommended that the attached resolution be adopted to certify $2,952.91 of unpaid ambulance bills for collection with 2010 property taxes with interest at the rate of eight percent on the total amount for one year. Packet Page Number 39 of 40 RESOLVED, that the City Clerk is hereby authorized and directed to certify to the Auditor of Ramsey County the following ambulance bills totaling $2,952.91 for collection with the taxes of said property owner for the year 2009, collectible in 2010, with interest at the rate of eight percent (8 %) on the total amount for one year. Resolution number: Packet Page Number 40 of 40