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ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 27, 2025 14 replacement and full maintenance covered for the extent of the service agreement. He stood for questions. Councilmember Weber asked if Xcel would own and insure these if they are hit by a car. Public Works Director/City Engineer Swearingen confirmed. It is their equipment. The street light combination is already known. He is seeking direction on the trail lighting. He said style A can only be combined with a traditional lamp. Styles B and C are more decorative poles that can have a lantern or the modern style luminary. First discussion should be to determine if Council would prefer fiberglass or a more decorative pole. Next would be to discuss the payment option. The decorative poles are only available with the pre -pay option. If Council choose the fiberglass pole, either payment option can be chosen. Councilmember Weber asked for explanation about the table on the last page of the agenda information. He said it outlines $10,000 initial cost, with $792 a month is $33,000. Is that the replacement cost would be in year 26? Public Works Director/City Engineer Swearingen confirmed. He calculated that by taking the $10,000 initial cost and added 3% inflation over 25 years. He said an LED lamp lasts anywhere from 10-15 years. You can assume something will happen with the light around the 25-year mark and Xcel will say full replacement is needed. It could last 30 or 40 years, but there's no way to know for sure. With hundreds of poles out there, we should assume worst case scenario for budget. Councilmember Weber asked why there is no 3% inflation included in the standard service. Public Works Director/City Engineer Swearingen said the City will never pay for the full replacement of the pole with the standard service. The City would pay for the initial installation and then for the life agreement, repairs and replacement will be covered. For trail lighting, that only applies to the fiberglass pole. Councilmember Holden asked where the $33,000 came from. Public Works Director/City Engineer Swearingen said it is the initial cost, plus the monthly rate. He assumed replacement costs at year 26. After 25 years it's the City's responsibility to replace the entire unit, if anything goes wrong. That can be a lamp going our or a car striking the pole. Councilmember Holden asked why the standard service isn't higher. Public Works Director/City Engineer Swearingen said standard service, we don't need to account for replacement costs. It's fully covered by Xcel for the life of the agreement. Councilmember Holden asked what happens when the agreement ends. Public Works Director/City Engineer Swearingen said if the light is there, the agreement is in place. Unless the City removes the unit completely. Councilmember Weber asked if there is a removal fee.