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Page 2 of 3 <br /> <br /> <br />Xcel Energy provides two types of service rates, Standard Service vs. Pre-Pay <br /> <br />For the Standard Service rate, the customer (Arden Hills) pays a lower initial installation cost <br />compared to the Pre-Pay option but a higher monthly operational cost. With the Standard Service <br />rate, Xcel Energy repairs all damage to the equipment of the lighting unit, including full <br />replacement, at no additional cost to Arden Hills for the life of the service agreement. The life of <br />the service agreement is in place for as long as the lighting unit exists. <br /> <br />For the Pre-Pay rate option, the customer (Arden Hills) pays a higher initial installation cost <br />compared to the Standard Service option but a lower monthly operational cost. With the Pre-Pay <br />rate, Xcel Energy repairs all damage to the equipment of the lighting unit at no additional cost to <br />Arden Hills for the first 25 years of the lighting unit. After 25 years, if any damage occurs and/or <br />repairs are needed due to the age of the equipment, Arden Hills is responsible for the cost for full <br />replacement of the lighting unit. Once the unit is replaced, the 25-year timer restarts. The <br />intention of this option is for the customer to budget for these replacements during the first 25 <br />years of the lighting unit. <br /> <br />Staff is requesting direction from the City Council on the lighting palette and rate option to <br />include within the Public Works Design Manual. Below are the different combinations of options <br />available. <br /> <br />Budget Impact <br /> <br />For the TCAAP development, specifically, the responsibility of costs is dependent on the <br />location of the lighting unit. Ultimately, the City will be billed by Xcel Energy for all of the <br />lighting. The City would be able to recoup some of these costs through development agreements <br />or other charges/fees. <br /> <br />Street Light – Cobra/Aluminum Pole <br />Pre-pay option - $10,000 for initial installation; $7.92 monthly rate for operating. <br />Standard Service - $7,000 for initial installation; $27.87 monthly rate for operating. <br /> <br />Trail light options: <br />Style A – Fiberglass/Traditional <br />Pre-pay option – $8,000 for initial installation; $5.59 monthly rate for operating. <br />Standard Service - $6,000 for initial installation; $23.91 monthly rate for operating. <br /> <br />Style B – Columbus/Lantern or Modern <br />Pre-pay option only – $10,500 for initial installation; $5.59 monthly rate for operating. <br /> <br />Style C – Washington/Lantern or Modern <br />Pre-pay option only – $10,500 for initial installation; $5.59 monthly rate for operating. <br /> <br />Attachment C, shows the cost of each option over a 26-year period for each of the above options. <br /> <br />Provided with direction from City Council, City Staff will update the lighting palette and rate <br />option within the Public Works Manual accordingly.