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HomeMy WebLinkAbout4.06 NewStrLightingDedication .. I "" e e CITY OF DUBLIN AGENDA STATEMENT City Council Meeting Date: March 14, 1994 SUBJECT: Dedication of New Street Lighting Systems to City of Dublin Report by: Public Works Director Lee Thompson EXHIBITS ATTACHED: (' Resolution RECOMMENDATION: ~AdOPt resolution FINANCIAL STATEMENT: Street lights owned by the City rather than by PG&E will incur a lower billing rate for energy. For example, the per-month billing rate for LS-1 (pG&E owned) 70-watt high pressure sodium (HPS) street lights ranges from $7.75 to $10.87 depending on ~ of installation. The per-month billing rate for the same l1ghts on the LS-2C (City owned; minimal PG&E maintenance) schedule is $4.086. The City does incur some maintenance costs on the LS-2C lights; however, the rate differential more than makes up for those maintenance costs. DESCRlPfION: At the present time, street lighting systems which are installed by developers in residential tracts are dedicated to PG&E. These lights are constructed to PG&E' s standards, and PG&E provides a limited amount of design for the underground portion of the installation and connection to the service points. Once the installation is completed, the street lighting systems become the property of PG&E and are maintained by PG&E under the LS-1 (full maintenance) rate schedule. The energy cost for the lights is paid by the City after the tract is accepted. Prior to incorporation, the standard installation for a PG&E street light in Dublin was a light on a wooden utility pole. Local jurisdictions (cities or the County) have since required some type of upgrade in the form of a metal pole and the undergrounding of electrical service, which was an additional cost for construction of the lights and therefore became a "capital gift" to PG&E. This additional value was known as Contribution in Aid of Construction or CIAC. In 1986, the Federal government determined that the CIAC was taxable, similar to a gift tax, and required PG&E to pay a 37.5% tax on the CIAC. PG&E therefore passed that 37.5% CIAC tax along to the developer. If street lighting is dedicated to the City rather than to PG&E, the developer would not have to pay the CIAC tax. Any additional cost to the developer in the form of design or City plan check and inspection costs would be outweighed by the benefit of eliminating the 37.5% CIAC tax. The City would also benefit as the recipient of the dedication. Staff recently reported to the City Council regarding a Joint Powers Agreement among Alameda County and the 11 cities in Alameda County for the purpose of purchasing existing street lights from PG&E. As was discussed in the December 13th report, it appears that after an initial payback period, the cost to the City's Street Light Maintenance Assessment District would be significantly less if the City owned the lights than under the present PG&E ownership. If the lighting systems were dedicated to the City, there would be no payback costs. Staff is therefore recommending at this time that the City Council adopt a resolution requiring dedication of all new street lighting facilities on public streets to the City of Dublin. a: (9394) !march lagstsllt ---------------~~----~--------------------------------~---------------------------- ~ I lr)r_ ~ l. E: FI ~ ITEM NO.~ COPIES TO: PG&E FILE ~ ... '" e e RESOLUTION NO. -94 A RESOLUTION OF THE CITY COUNCIL OF TIlE CITY OF DUBLIN REQUIRlNG DEDICATION OF NEW SlREET LIGHTING FACILITIES TO THE CITY OF DUBLIN WHEREAS, it is desirable and in the interest of public safety to have street lighting installed on public streets; and WHEREAS, it is of economic benefit to the City of Dublin to own the street lights and street lighting systems; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby require dedication to the City of Dublin of all street lights and street lighting systems installed henceforth on public streets. PASSED, APPROVED, AND ADOPTED this 14th day of March, 1994. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk a:(9394) \march \resosrlt