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HomeMy WebLinkAbout2015 01 26 Consent 302 Street Light Base Rate for 2015COMMISSION AGENDA ITEM 302 REQUEST: Informational Consent X Public Hearings Regular January 26, 2015 KS KL Regular Meeting City Manager Department The Public Works Department, Urban Beautification Division, is requesting authorization to increase the Standard Street Light Base Rate reimbursement from $13.70 to $13.72 per light per month pursuant to a revised rate schedule from Duke Energy, effective January 1 st, 2015. The revised rate represents an increase of $0.02 per base street light as compared to the previous rate. SYNOPSIS: The City's street lights are leased from Duke Energy at a flat rate inclusive of all maintenance and replacement costs. The adopted City standard street light consists of one 1) 30 / 35' concrete pole attached to one ( 1) high pressure sodium 100 watt cobra fixture. The cost for a standard street light is revised annually by Duke Energy and used to calculate a base street light rate for quarterly reimbursement to homeowner's associations (HOAs) that have a Neighborhood Street Sign and Light Improvement Agreement (NSSLIA) with the City. These HOAs have decorative streetlights and are reimbursed by the City for the base rate. The HOA pays the difference between the base rate and the cost of the decorative lighting. CONSIDERATIONS: On April 13th, 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 reimbursement to homeowner's associations (HOAs) that have a Neighborhood Street Sign and Light Consent 302 PAGE 1 OF 3 - January 26, 2015 Improvement Agreement (NSSLIA) with the City. These HOAs have decorative streetlights and are reimbursed by the City for the base rate. The HOA pays the difference between the base rate and the cost of the decorative lighting. Currently, the City has an inventory of approximately 2,350 street lights and eleven (11) neighborhood groups that have entered into a NSSLIA. Those HOAs that have signed a NSSLIA as of January 2015 are as follows: 1. Winding Hollow - 144 Units 2. Glen Eagle - 117 Units 3. Stone Gable - 28 Units 4. Moss Cove - 6 Units 5. Jesup's Reserve - 38 Units 6. Mt. Greenwood - 28 Units 7. Highlands HOA - 90 Units 8. Winter Springs Village - 87 Units 9. Amberly - 12 Units 10. Jesup's Landing -46 Units 11. Seven Oaks -36 Units 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. Such cost revisions are comprised of rates and fees which have received approval from the Florida Public Service Commission (FPSC). Based upon Duke Energy rates approved by the FPSC and published in the rate schedule effective January 1, 2015, the City Standard Street Light Base Rate should be adjusted from $13.70 to $13.72 per light per month. This rate revision will result in an increase in cost to the City of approximately $564 for one ( 1) year of service, as compared to the previous rate, if no additional rate adjustments occur. Below is a summary of the Duke Energy base rate changes over the past five years. Year Base Rate 2010 $14.02 2011 $13.79 2012 $13.91 2013 $13.41 2014 $13.70 2015 $13.72 The monthly base rate of $13.72 is calculated as follows: • Rental of pole and fixture =$8.69 (set fee established by Duke) • Maintenance fee =$1.72 (set fee established by Duke) • Fuel and Energy = $0.0691 (set fee established by Duke) X 42 kWh (constant based on output of standard fixture) =$2.90 • State Gross Receipts Tax (GRT)= 2.5641% X $2.90 (fuel and energy cost) = $0.0744 • Municipal Franchise Fee = 5.839% X $2.90 (fuel and energy cost) +$0.0744 GRT= $0.1737 • Municipal Utility Tax =10% X $1.08 (energy) + $0.0744 GRT + $0.1737 franchise fee + $0.29 fuel charge (42kWh X State Rate of $0.006990)= $0.1618 Consent 302 PAGE 2 OF 3 - January 26, 2015 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 001 -15- 1530 - 540434. As a result of the January 2015 Duke Energy price increase of $0.02 per standard street light, the City will pay approximately $564 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. RECOMMENDATION: The Public Works Department, Urban Beautification Division, recommends that the City Commission approve the revised Street Light Monthly Base Rate of $13.72 per light, effective January 1 st, 2015. ATTACHMENTS: None Consent 302 PAGE 3 OF 3 - January 26, 2015