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FC CASE PRIORITY STREET LIGHTING PROGRAM By: Jessie Hart, Finance Officer and Kirk Skoog, Community Development Intern Background: On February 11, 1997, the Road and Bridge Committee instructed Staff to request a proposal from Anoka Electric Cooperative for the installation of 17 priority C street lights. This request has been completed and the proposal has been received. The costs to install the priority street lights are detailed in the table below by level. The costs include the initial installation, annual operation and maintenance costs, and the capital recovery costs. These numbers reflect the existing lights, the proposed priority C lights, and furore priority D lights. Total3 Number Of Cumulative Installation Cumulative Annual2 Annual Cost Priority ~ No.of Cost Install. Cost O & M Amort, 20 Lights Yr$, Existing 78 78 55,582~ 55,582~ 7,020 12,684 C 17 95 12,503 68,085 8,550 16,170 D 70 165 60,200 128,285 14,850 27,922 1 Developer contributed installation costs of $18,625 are included in total installation cost 2590.00 per light annually 3Capital cost amortized over 20 years at 8% interest plus O&M costs The following table details the cost per residential property if the City were to bill at the various levels, assuming that the installation would all be completed prior to the beginning of any billing process. It is anticipated that there will be a one year delay from the beginning of the installations to the point in time when the billings would begin. Included in the total billable costs is an installation carrying cost amount that will be recovered over a three year period. At the end of the three years, the rate will be reviewed and adjusted accordingly. It is anticipated that increases in operation and maintenance costs would offset any decrease due to the carrying costs being recovered.