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5.4. SR 07-07-2008REQUEST FOR ACTION To Item Number Ci Council 5.4. Agenda Section Meeting Date Prepared by Adminstration ul 7, 2008 Ter Maurer, Public Works Director Item Description Reviewed by Consider Options for Highway 10 Lighting Reviewed by Action Requested Direction from the City Council on how to proceed with replacement of the lighting along TH 10 through the downtown area from just east of Main Street to approximately Proctor Avenue. Background/Discussion As the Ciry Council is aware, the City of Elk River has an agreement with MnDOT requiring ongoing maintenance, operation, and replacement when necessary for the lighting along TH 10 in the downtown area. The lighting has reached the end of its useful life and is programmed for replacement in 2008. The 2008 CIP has a line item of $100,000 for the replacement of the lighting. I have been working with Bryan Adams of the Elk River Municipal Utilities, trying to determine the most cost-effective way to replace the lighting. Bryan has been very helpful in preparing the estimate which lead to the 2008 CIP line item and has also recently had his crews remove two lights so that the bases and bolts could be evaluated. Through that evaluation, it has been determined that it is likely the bases will all be reusable, along with the existing electrical wiring. Three options were considered for method of replacement. They are as follows: A. Competitively bidding the project After analysis, this option was disregarded since it would require preparing a certified set of plans by an electrical engineer and a specification for the competitive bidding process. Since the bases and electrical wiring appear to be in good condition, replacement of the poles and fixtures should be a relatively simple process that is not suited to the competitive bidding process. B. City acting as the general contractor and Elk River Municipal Utilities providing the labor for removal of the old lights and installation of the new lights With this option, the City would purchase the poles and fixture directly from a manufacturer and provide them to the Municipal Utilities. The ERMU crews would be used for removal of the old light material and installing the new lights. The city would subcontract with a signing company to provide lane closures along the highway for a safe working environment. Attached is a memo from Bryan Adams, estimating that it would require approximately 28 working days for his crew to complete the project, with an estimated cost of $34,000. We have also received quotes from a lighting supplier on three styles (good, better, best) from a standard light to a more decorative light. When Bryan's costs, the material costs, and the traffic control costs are added together, this option is more expensive than the third option listed below. C. Have Connexus Energy install the lights and contract with them to own and maintain the facilities Leo Offerman of Connexus Energy has met with Bryan and I several times and has provided the attached proposal to rebuild the lighting system completely along TH 10, assuming the bases and electrical system are reusable. He has provided three options. The first option is a light very similar to the standards that axe used on Twin Lakes Road and in the Industrial Park and commercial areas along Twin Lakes Road. To completely remove the old system and install a new lighting system using this standard would cost $78,382. This includes removal and disposal of the old equipment, traffic control, material, and labor. Connexus Energy would then own the system. The Elk River Municipal Utilities would continue to provide energy since it is their service area, and the City would agree to pay $5.00 per light per month for ongoing maintenance, such are re-Tamping, replacing ballasts, and replacing fixtures if they are knocked down. Mr. Offerman has also included an Option 2 for a slightly more expensive pole and fixture which is shown on the attached graphic. The cost of that material and fixture is $100,866 for the same complete project. Option 3 in the proposal is decorative lights which would cost $185,000. With the Connexus Energy proposal, we would no longer need to provide City staff and/or Elk River Municipal Utilities staff to work in the highway right-of--way for the purpose of changing bulbs or ballasts. It would seem that this would be a benefit to the City, as traffic continues to grow along the highway corridor and both the City and Utilities' staff are not fully trained or equipped to work in such a busy roadway. With any of Mr. Offexman's proposed light standards, banner arms could be added for a cost of approximately $150 per banner arm. If a banner arm is desired on both sides of a light pole, the cost would be $300 per pole. Banner arms could also be added at a later date. The banner arms could simply be strapped onto the fixture in a matching material with a wind collapsible design that could be supported by any of the poles in Mr. Offerman's proposal. Financial Impact The CIP has $100,000 programmed for the replacement of the lights on TH 10. Option 1 in the proposal from Connexus Energy, with or without banner arms, would be under this amount. Option 2 with banner arms would be approximately $9,000 over the budgeted amount. Option 3 is substantially over the budgeted amount. S:\EngineerImpxovProj\2008 Improvement Projects\TH 10 Lighting\07 07 08 cc memo.doc Page 2 Attachments Memo from Bryan Adams, ERMU Proposal from Connexus Energy Pictures of light fixtures Options 1, 2 and 3 in the Connexus Energy Proposal Action Motion by Second by Vote Follow Up S:\FngineerImprovPxoj\2008 Improvement Projects\TH 10 Lighting\07 07 08 cc memo.doc Page 3 ^~/ Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 June 16, 2008 To: Lori Johnson, City Administrator From: Bryan Adams, Elk River Municipal Utilities General Manager Subject: Hwy 10 Street Lighting Phone: 763.441.2020 Fax: 763.441.8099 In December 2006, I assisted your engineering department in developing a plan and cost estimates to replace the lights on Hwy 10. In May of 2008 we removed two street lights on Hwy 10 to determine if the existing foundations and electric system are in good enough condition to be reused. After inspecting the foundations and electric system, it appears both are in good condition and can be reused. Per our discussion at the June 10, 2008 Elk River Municipal Utilities Commission meeting, we are to give you a proposal to remove and reinstall these highway lights. We would propose to remove and reinstall the 26 lights (8 single and 18 double arms) on a time and material basis with an estimated cost of $34,000 per the following. 1) City of Elk River will purchase the lights, poles, and bases etc., delivered to our facility. We can assist you in the pole selection 2) City to provide traffic control and flagmen if necessary. 3) Above estimate is based on using existing foundations and wiring. If a foundation cannot be used due to bad anchor bolts or wiring issues develop, ascrew-in steel anchor base plate will be used at additional cost along with wiring modifications. Concrete patching of median may also be necessary at additional cost. 4) The existing lighting system is divided into four electric zones. We are proposing to complete one zone at a time to ensure at least part of the Hwy 10 corridor is always lit. 5) This work should be completed 28 working days or 5 to 6 weeks. If you need additional information, do not hesitate to call. • ~~ ~C^OI NNEXUS® ~. ~LJ ~~~ ''~ ~ Your Community Energy Partner Mr. Terry Maurer City of Elk River 13065 Orono Parkway Elk River, MN 55330 Dear Mr. Maurer, 14601 Ramsey Boulevard Ramsey, Minnesota 55303 763-323-2600 Fax: 763-506-9541 1-800-642-1672 www. connexusenergy.com info C~3 connexusenergy.com June 24, 2008 I have prepared the following options for Connexus Energy to install outdoor lighting on Hwy 10 in Elk River to replace the existing median lights. In addition to the initial installation, Connexus Energy will. retain ownership of the lighting fixtures and will provide complete maintenance of the lights under a monthly maintenance only rate. The electric power for the lights will be provided by Elk River Municipal Utilities. The installation costs shown below are a preliminary estimate prior to the final design standards subject to MNDOT approvals. Option 1 8 -Single 250 Watt HPS Commercial Shoebox (Connexus Standard) fixtures on 30' square fiberglass- poles, bronze color. 18 -Double 250 Watt HPS Commercial Shoebox (Connexus Standard) fixtures on 30' square fiberglass poles, bronze color. Total $78,382.00 Option 2 8 -Single 250 Watt HPS Round Commercial fixtures on 30' round aluminum poles, natural aluminum color. 18 -Double 250 Watt HPS Round Commercial fixtures on 30' round Aluminum poles, natural aluminum color. Total $100,866.00 Option 3 8 -Single 250 Watt HPS Decorative fixtures (to be determined) on 30' round aluminum poles, custom color by customer. 18 -Double 250 Watt HPS Decorative fixtures (to be determined) on 30' round aluminum poles, custom color by customer. Total (This is a price estimate for a wide variety of decorative options) $185,000.00 Connexus Energy will provide normal maintenance for the outdoor lighting fixtures, including knockdown replacement, relamping, pole painting, component replacement, and all other repair or replacement of light fixtures. After twenty-five (25) years, if Connexus Energy determines, in its discretion, however, that either replacement or significant repair of the system is necessary due to the age of the system, the Customer will reimburse Connexus Energy for such replacement or significant repair costs. ~O^,A'~Y1 ~C® 14601 Ramsey Boulevard ,~~1( ~(~L../~V J Ramsey, Minnesota 55303 763-323-2600 Fax:763-506-9541 Your Commun Ener Partner 1-800-642-1672 ~Y 9Y www.connexusenergy.com info @ connexusenergy. com The maintenance rate does not cover fault finding or repair of the existing lighting conductor or repair or replacement of the existing concrete bases. The monthly maintenance rate varies depending on the style of fixture chosen due to the difference in replacement costs. The monthly maintenance rates for the lights are: Option 1: $5.00 per light per month Option 2: $6.00 per light per month Option 3: $7.00 per light per month **The above rates are subject to approval by Connexus Energy management at the time an installation agreement is finalized. The response time for light out repair calls will be within 4 business days. The lights will be installed to utility specifications and will operate on a dusk to dawn schedule. The above installation costs are based upon our best practices. If job site conditions beyond our control prevent normal installation procedures, additional charges may be applied. The costs shown above are based on summer construction, do not include restoration, or winter charges for work provided after November 1St Please indicate your acceptance of this proposal by returning a signed copy via Fax # 763-506-9541, or a-mail: leoo@connexusenergy.com I hope that this information is satisfactory for you. Do not hesitate to contact me if you have any questions. Sin r Specify Option Leo O n Accepted by: Utility Services Representative Date: ~ ~`~ o N oPi ~~ ~ ~. GI~TI J N „ ~ !~P Try 3 ~~ ~: ..~ ~~ z,, 6Pnv-r- 3