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lights are improving quickly and rates are coming down. Mr. Offerman explained that their LED <br />rate was created in 2010 as well as a maintenance component. However, it is a work in progress <br />and Connexus will have a complete LED rate review this fall, starting in September, and he <br />thinks the rate will come down. Mr. Offerman explained that the maintenance rate includes <br />everything, including vandalism, wire failure, dig ins, and location of wires. It was noted that <br />knockdowns average three per year on Sunwood and cost $6,000 to $8,000. He reviewed the rate <br />of bulb failure (less than 15% of the maintenance portion of the rate) and stated it is <br />disappointing that the LED rate design isn't considerably lower. The first rate for 100 LED is <br />higher than 100 halo lights because LED replacement is a whole solid -state fixture versus a light <br />bulb or ballast. However, Connexus is able to reduce costs through extended warranties. Mr. <br />Offerman stated he thinks it will come down, perhaps as much as one dollar, during the rate <br />review since the cost of fixtures has come down over the past year. He stated he also thinks that <br />within several years, all new outdoor lighting will be LED. If Ramsey wants to do LED now, it <br />will not have retrofit costs in several years. Mr. Offerman advised that LED is also white light <br />so a change in lights will not be noticeable to the average person. He recommended the Council <br />consider LED lighting because that is the way industry is going and asked if an agreement can be <br />reached subject to the rate being reviewed within 90 to 120 days. <br />Councilmember Strommen indicated the rates include full coverage. <br />Mr. Offerman concurred and noted locating services is also a cost. He indicated that Connexus <br />owns and maintains 21,000 lights and some areas have more knockdown costs than others. <br />Councilmember Backous asked if it would make sense, since the lighting will not look much <br />different, to go with Option 2 and then as Metal Halides need to be replaced, do so with LED. <br />Mr. Offerman agreed that would make sense because today he cannot make the case that it pays <br />to take down a working Metal Halides light and replace it with LED. <br />Mayor Ramsey noticed the lights are differently shaped. <br />Mr. Offerman stated he would notice the difference but few others would notice. <br />Councilmember Wise asked if there are Federal programs of which the City could take <br />advantage. <br />Mr. Offerman stated he has not found any stimulus grants but the cost of LED fixtures is <br />becoming lower. He indicated the City of St. Peter used some stimulus money to retrofit its <br />Main Street streetlights to LED, paying $1,200 /fixture that now costs $600 /fixture. He advised <br />there is a Connexus Energy rebate but he does not know of outright grants. <br />Councilmember Tossey arrived at 5:44 p.m. <br />Councilmember Elvig stated his only concern is color difference and it sounds like that is no <br />longer an issue. He stated he has no problem using LED for new installs if the LED fixture is <br />close in cost. <br />City Council Work Session / July 24, 2012 <br />Page 2 of 10 <br />