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<br />certain amount for inflation because Northern States Power will <br />raise their rates over the life of this assessment. We called <br />that Alternative Plan 1. Mr. Popovich will be speaking of this <br />in greater detail. But that ends up to a cost of about $4 a <br />year per lot for 20 years plus interest. <br /> <br />However, no one else can get these fourteen lights. The <br />best they can do is six, so we went to Alternative Plan 2 that <br />said the full cost we have to pay, plus inflation, times the <br />14 poles - and this is Alternative 2 - and that would end up <br />to an assessment of just under $21 a year per lot plus interest, <br />but I didn't think that was quite fair to you people either <br />because you aren't getting the benefit of some at large costs <br />that the city is willing to pay normally to anyone else in the <br />city, so we came up with Alternative Plan 3 and what that says is <br />if you lived elsewhere you could have six lights and weld pay <br />$55 for each, and it was my opinion we should give you credit <br />for that and that cost above this amount for the remaining <br />eight lights would have to be assessed against your property. <br />Again, including inflation, this would be about $13.50 per year. <br /> <br />These are the three basic alternatives. I have talked to <br />Northern States Power since this report was written because (I) <br />while they said inflation would be about 2% a year, they have <br />requested a 25% rate increase; (2) to see if we couldn't reduce <br />the number of lights which would be saving you expense and <br />still come up with a good street lighting system. The result <br />was they were hesitant to go too much below, but I prevailed if <br />they went to every third lot line instead of every second one. <br />That ends up with the number of poles down from 14 to 11. If <br />any of you have gone through the Heatherwood area, that 11 pole <br />system would be roughly equivalent to what's in Heatherwood <br />today and you find there are some dark spots between the lights <br />but it provides acceptable lighting standards. <br /> <br />I would be surprised if Northern States Power would go <br />less than 11 lights because they would feel it's not giving them <br />the return on their system and not meeting their standards. I <br />would recommend that Alternative 3 be followed, if the project <br />goes through, as the most fair. <br /> <br />COUNCILMAN CURLEY: That's 11 lights per year. <br /> <br />MR. HONCHELL: You can reduce this down about a dollar <br />per light. Since it would be three less, that would be a little <br />over $10 if there were 11 and weld have to run the numbers <br />through again but if we reduced one pole you could take off one <br /> <br />3 <br />