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CASE #
<br />PRIORITY STREET LIGHTING PROGRAM
<br />By: Jess 'le Hart, Finance Officer and Steve Jankowski, City Engineer
<br />Background:
<br />The issue of priority arterial street lighting was discussed at the Finance Committee meeting on June 28, 1994,
<br />July 26, 1994, and most �ecently on April 25, 1995. At that meeting, the following actions were taken:
<br />' 1) Staff was directed to re- prioritize the A - D priorities so as to verify that all A priorities were appropriately
<br />identified, based bn the development of the City, since the prior list was prepared.
<br />2) Based on the neW list, Staff was directed to calculate the cost of installing all A priorities and billing this
<br />cost directly to ally residential properties within the City, utilizing the 20 -year amortization.
<br />As a refresher, the costs to install certain levels, or all levels, of the priority street lights are detailed in the table
<br />below. The costs includo�the initial installation, annual operation and maintenance costs, and the capital recovery
<br />costs. These numbers reflect the changes made to the list of priorities.
<br />II
<br />Number Cuipulative Total Tota1
<br />' Priority Of No.of Installation Cumulative Annual Annual Cost Annual Cost
<br />j�ghrs Install. Cost O&M Amort. 10 Yrs, Amort. 20 Yrs.
<br />' Existing 28 28 0 0 2,520 2,520 2,520
<br />A 27 51 23,220 23,220 4,950 8,410 7,316
<br />B 19 !72 16,340 39,560 6,660 12,559 10,621
<br />' C 17 1 789
<br />14,620 54,180 8,190 16,263 13,711
<br />D 70 157 60,200 114,380 14,970 32,033 26,145
<br />] Developer contributed installation costs of $18,625
<br />2 $90.00 per light Onnually
<br />3 Capital cost amoftized over 10 years at 8% interest plus O &M costs
<br />4 Capital cost amortized over 20 years at 8% interest plus O &M costs
<br />the cost per residential property if the City were to bill at the various levels, assuming
<br />The following tables de4
<br />that the installation would all be completed prior to the beginning of any billing process. It is anticipated that
<br />there will be a one year delay from the beginning of the installations to the point in time when the billings would
<br />' begin. Included in the to billable costs is an installation carrying cost amount that will be recovered over a three
<br />year period. At the end cif the three years, the rate will be reviewed and adjusted accordingly. It is anticipated
<br />that increases in operation and maintenance costs would offset any decrease due to the carrying costs being
<br />recovered.
<br />Table 1 is based on a 10 year amortization of cost recovery.
<br />TABLE 1
<br />Tot& Installation Total Annual
<br />Annual lCost Annual Carrying Billable Billing
<br />Priority Arnort. loYrs, Billing Cost Cost1 Q S Households f=
<br />' Existing 2,520 5,880 0 8,400 4,900 1.72
<br />A 8,4110 5,880 168 14,458 4,900 2.95
<br />B 12,559 5,880 251 18,690 4,900 3.82
<br />C 16,2 3 5,880 325 22,468 4,900 4.59
<br />D 32,033 5,880 641 38,554 4,900 7.87
<br />i
<br />] Based on 4,900 households at 30¢ per household per quarter
<br />2 Carry costs to be �ecovered over 3 years at 6%n
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