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HomeMy WebLinkAbout2014 01 13 Consent 300 Street Light Base Rate 2014 COMMISSION AGENDA Informational Consent X ITEM 300 public Hearings g Regular January 13, 2014 KL RS Regular Meeting City Manager Department REQUEST: The Community Development Department, Urban Beautification Services Division, is requesting authorization to increase the City Standard Street Light Base Rate from $13.41 to $13.70 per month pursuant to a revised rate schedule from Duke Energy, effective January 1, 2014. The revised rate represents an increase of$.29 per base street light as compared to the previous rate. SYNOPSIS: The city's street lights are leased from Duke Energy at a flat monthly rate inclusive of all maintenance and replacement costs. On April 13, 1998, the Commission adopted the `standard' street light consisting of one (1) 30 / 35' concrete pole attached to one (1) high pressure sodium 100 watt cobra fixture. This street light configuration is provided as a minimum standard along public roadways throughout Winter Springs. The cost for a standard street light is revised annually by Duke Energy and used to calculate a `base' street light rate for quarterly reimbursements to neighborhood groups who have a Neighborhood Street Sign and Light Improvement Agreement (NSSLIA) with the city. Currently, the city has an inventory of approximately 2,350 street lights and eleven (11) neighborhood groups are participating in the NSSLIA Program. Active Decorative Street Light Program (NSSLIA) participants as of January 2014 are as follows: 1. Winding Hollow HOA - 144 Units 2. Glen Eagle HOA - 117 Units 3. Stone Gable POA - 28 Units Consent 300 PAGE 1 OF 3-January 13,2014 4. Moss Cover HOA - 6 Units 5. Jesup's Reserve COA - 35 Units 6. Mt. Greenwood HOA - 28 Units 7. Highlands HOA - 90 Units 8. Tuscawilla Lighting and Beautification District- 635 Units 9. Winter Springs Village HOA - 68 Units 10. Jesup's Landing HOA (Construction in progress) -39 Units 11. Amberly HOA- 12 Units CONSIDERATIONS: In December of each year, Duke Energy makes available to the City a revised rate schedule for street lighting that will become effective January 1st of the upcoming calendar year. On January 1, 2014, a rate adjustment took affect which increased the monthly cost of our standard base street lights by $.29 each. Such cost revisions are comprised of rates and fees which have received approval from the Florida Public Service Commission (FPSC) and are not negotiable by the end user. Based upon Duke Energy rates approved by the FPSC and published in the rate schedule effective January 1, 2014, the City Standard Street Light Base Rate should be adjusted from $13.41 to $13.70 per month. This rate revision will result in an increase in cost to the City of approximately $8,500 for one (1) year of service, as compared to the previous rate, if no additional rate adjustments occur. FISCAL IMPACT: In addition to providing basic street light coverage on public streets throughout the city limits, the city is required by agreement to reimburse the base rate of each streetlight in our Decorative Streetlight Program, on a quarterly basis, to all qualified NSSLIA participants. The NSSLIA reimbursements are payable from Street Light Fund Line Code (1526-54312). As a result of the January 2014 Duke Energy price increase of $.29 per standard street light, the city will pay approximately $8,500 more annually, if no additional changes are made to the rate structure. COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney/Staff, and is available on the City's Website, LaserFiche, and the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City's Website, LaserFiche, and the City's Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas/Agenda Item information, Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. NSSLIA participants will be sent a notice of rate increase upon Commission approval of the new base rate. Consent 300 PAGE 2 OF 3-January 13,2014 RECOMMENDATION: The Community Development Department, Urban Beautification Division, recommends that the City Commission approve the revised Street Light Base Rate of$13.70 per month, effective retroactively to January 1, 2014. ATTACHMENTS: None Consent 300 PAGE 3 OF 3-January 13,2014