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HomeMy WebLinkAbout15 District Street Lights Agenda Item # 15 RUCKEE DONNER Public Utility District WORKSHOP To: Board of Directors From: Stephen Hollabaugh Date: September 16, 2009 Subject: Discussion on District Street Lights 1. WHY THIS MATTER IS BEFORE THE BOARD This workshop was requested by the Board. 2. HISTORY A workshop was held at the August 19, 2009 Board meeting. The District has had street lights and security lights within the District for decades. Street lights are lighting systems installed along public and government corridors. Security lights are lighting systems installed on private and commercial property. The District Code Title 7, Chapter 7.52, (Street and Security Light Service) was approved by the Board in November 2008. The following is an excerpt from Chapter 7.52 concerning Rates: 7.52.020 Rates 7.52.020.1 The unmetered street/security light rate is listed in the Miscellaneous Fees Schedule. 7.52.020.1 (A) All new street lights shall be metered. 7.52.020.1 (B) The District intends to research and locate customers and owners of record for each street light and assign appropriate billing. If there is no corresponding customer or owner of record, the street light may be removed. The District has been reviewing all opportunities to maximize efficiency and benefit to our customers. The un-owned streetlights are costly to our customers due to the unfunded energy usage. The environmental benefits from reduced energy usage and light pollution are substantial. 3. NEW INFORMATION The District has been researching and locating customers concerning streetlights and removinq those street liqhts that do not have an owner of record. In 2009, the District has removed 26 un-owned streetlights for a total of 4600 watts removed. An inquiry was made by the Board about how much it would cost to create a Street Lighting Assessment District. Staff put together an estimate of what this may cost. Some of the assumptions of the cost included LAFCO fees (if applicable), engineering study, mapping facilities, legal costs, capital costs to install 500 new energy efficient installations, administrative costs-setup and ongoing costs. The assumption of 500 new street lights assumed that 350 installations would be on existing poles and 150 installation would require new pole installations. Assessment District Formation Costs: LAFCO fees (if applicable) $ 25,000 Engineering Study 125,000 Mapping Facilities 25,000 Legal Costs 50,000 Capital Cost of Street Light installations - 500 lights 1,500,000 Contingency 25% 431,250 Total $2,156,250 Ongoing Costs: Energy Costs (per year for 500 efficient installations $ 27,000 Operation costs - annual maintenance 30,000 Administrative costs 25,000 Contingency 25% 20,500 Total $ 102,500 First Year Grand Total $2,258,750 If the District were to finance this project the following is an estimate of the payments: Assumptions: $2,200,000 financed, 10 years, 6% interest, 13086 customers Annual payment equals $299,000 per year or$22.84/year/customer. The Board also requested that staff begin to develop a public outreach plan to gauge our customers interest in the District forming a street lighting Assessment District. This outreach plan would likely include developing a web-based survey with extensive outreach and advertising to raise awareness of the District's efforts. A budget for developing and implementing this outreach plan is being investigated. 4. FISCAL IMPACT This workshop does not have any fiscal impact to the District. 5. RECOMMENDATION Receive this report and provide comment and direction. Stephen Hollabaugh Michael D. Holley Assistant General Manager General Manager