HomeMy WebLinkAboutItem 4.06 NewStrLightingDedication (2)
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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.
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ITEM NO.~ COPIES TO: PG&E FILE ~
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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
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