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