TITLE
Consider an ordinance amending Chapter 25, Streets, Sidewalks, and Miscellaneous Public Places by establishing a Street Maintenance Fund and providing for collection of street maintenance fees.
SUMMARY
DATE: December 4, 2018
TO: Ronald L. Olson, City Manager
FROM: David A. Olson, Executive Director of Public Works
SUBJECT: Ordinance establishing a Street Maintenance Fund and providing for the collection of street maintenance fees
BACKGROUND AND FINDINGS:
On October 23, 2018 the City Council re-engaged in a discussion surrounding the funding of street maintenance. City staff through the basis of both third party and in house studies developed the following departmental needs:
After thorough discussion and consideration by City Council, staff was directed to provide an ordinance establishing a street maintenance fee to increase revenues as necessary to provide the recommended adjustment to the pavement treatment budget. This ordinance also establishes a special revenue fund, Street Maintenance Fund, to ensure the funds collected are used for street maintenance activities. Furthermore, it sets the recovery rate of the street maintenance fee at 26.35% of the current system cost or $1.70 per month per single family equivalent.
While the ordinance will become effective immediately, the implementation phase will take approximately 6 months to properly integrate the new fee into the billing system. The collection of this fee will start in the July 2019 billing cycle.
THE ALTERNATIVES CONSIDERED:
The alternatives considered are as follows:
1. Reconsider the previous motion of direction regarding street maintenance funding and continue discussion on the topic.
2. Adopt the ordinance establishing a Street Maintenance Fund and Street Maintenance Fee.
Which alternative is recommended? Why?
Alternative 2 is recommended because this alternative was selected by a motion of direction during a City Council workshop on November 13, 2018.
CONFORMITY TO CITY POLICY:
This conforms to all state, federal, and local policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
This item is estimated to generate a revenue of $1,639,402 annually.
Is this a one-time or recurring expenditure?
This is a recurring revenue.
Is this expenditure budgeted?
This revenue is not contained in the adopted budget.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
N/A
RECOMMENDATION:
City staff recommends that the City Council approve the ordinance amending Chapter 25, Streets, Sidewalks, and Miscellaneous Public Places by establishing a Street Maintenance Fund and providing for collection of street maintenance fees.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Ordinance