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HomeMy WebLinkAbout2020 02 24 Consent 301 - Streetlight Reimbursement Rate • CONSENT AGENDA ITEM 301 noora=a CITY COMMISSION AGENDA I FEBRUARY 24, 2020 1959 REGULAR MEETING TITLE Streetlight Reimbursement Rate SUMMARY The City's streetlights are leased from Duke Energy at a flat rate. The adopted City standard streetlight consists of one 30/33' concrete pole attached to one high pressure sodium 100 watt cobra fixture. The fuel and energy cost for a standard streetlight is revised annually by Duke Energy and used to calculate a base streetlight rate for quarterly reimbursement to the 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. The reimbursement rate for the TLBD is less than the rate for other participating communities because the TLBD utility account is under the name of the City of Winter Springs. Therefore, they are not charged municipal utilitytax by Duke Energy.Consequently,they are not reimbursed forthe municipal utility tax. Currently, participating are TLBD (636 streetlights) and the communities below. 1. Winding Hollow - 144 lights 2. Glen Eagle -117 lights 3. Stone Gable - 28 lights 4. Moss Cove - 6 lights S. Jesup's Reserve -38 lights 6. Mt. Greenwood - 28 lights 7. The Highlands - 90 lights 8. Winter Springs Village - 87 lights 9. Amberly -11 lights 10. Jesup's Landing - 46 lights 11. Seven Oaks - 36 lights 12. I nteg ra 360 - 20 1 ig hts 13. The Blake - 36 lights 14. Tuskawilla Crossings -1S0 lights (estimated) In January of each year, Duke Energy makes available to the City a revised rate schedule for street lighting that will become effective January 1 of that calendar year. Based on Duke Energy rates effective January 1, 2020, the City standard streetlight base rate should be adjusted from $13.68 to $13.70 per light/per month for all communities excluding the TLBD. The TLBD rate should be adjusted from $13.30 to $13.32 per light per month as the TLBD does not currently pay municipal utility tax and is therefore not reimbursed for said tax. Consideration of the rate revision alone would, at full capacity, result in an increased cost to the City of approximately$3S0 annually. RECOMMENDATION Staff recommends the City Commission approve a $.02 increase to the 2020 streetlight reimbursement rates, bringing the rate for TLBD to $13.32 and $13.70 for the other communities with decorative streetlights. The increase is in accordance with the revised rate schedule from Duke Energy, effective Januaryl, 2020. AGENDACONSENT