At the February 20 meeting of the Preston City Council, a motion to convert the city’s 422 street lights to LEDs was approved unanimously. The city will take advantage of rebates offered by the Southern Minnesota Municipal Power Agency (SMMPA).
Jim Bakken, Public Works, explained the street lights are operated by the city’s public utility, but the city pays the utility for the electricity used. Most of the cost for the city is regained through its street light fee which is part of a resident’s utility bill ($2.35 per month).
The energy savings with LEDs will be significant. The city has four different types of fixtures. The rebates offered by SMMPA will pay roughly 50% of most of the new fixtures. The total project cost will be about $100,000 for the fixtures and the labor to install them.
Preston Public Utilities will donate about $35,000 in labor and equipment that will be necessary for the conversion. SMMPA rebates come to about $33,000. The final cost to the city will be just under $34,000.
The city expects to save $15,000 to $16,000 per year in energy costs. These savings will allow the city to recoup the cost of the conversion in just over two years.
The street light fee generates about $24,000 per year. After the upgrade, only an estimated $11,000 per year will be needed to pay the city’s energy expense for street lights. City Administrator Joe Hoffman suggested, that after the initial cost of the conversion is realized (2.2 years), the council may consider reducing the street light fee.
Process to acquire Crown Hill Cemetery to begin
Bakken detailed the estimated cost to the city to take on the annual maintenance of the Crown Hill Cemetery. Mowing over an estimated 26-week period is expected to cost over $4,000 with city labor. He added another $1,200 to cover 10% of the cost for mower replacement. Other general maintenance including snow removal was roughly estimated to cost $2,000. Total maintenance of the cemetery could cost the city about $7,300 per year.
Income from the sale of burial plots, columbarium, interment fees, and some memorials may bring in approximately $3,000 per year. Members of the cemetery board have made it clear that they can’t afford to keep operating and doing the necessary maintenance of the cemetery. They have not been able to do any improvements in recent years. The remaining blacktop in the cemetery is almost non-existent.
Hoffman suggested establishing a cemetery commission to pull a framework together. Legalities have to be considered. We need to lay out expectations of the city and the current cemetery board. Councilman Robert Maust said the founding fathers of this community started that cemetery.
Mayor Kurt Reicks suggested the cemetery board continue to operate and maintain the cemetery through this summer. By late in the summer a framework can be put into place. Funding for cemetery maintenance could be put into next year’s budget. By consensus, the council decided to set up a cemetery board, similar to the park board, to start the process.
Other business in brief
• City Attorney Dwight Luhmann reported that he had spoken to Robert Doherty about extending the city’s option on the land that could be a future site of a veterans home. Doherty suggested $15,000 to extend the option for an additional year. Luhmann noted that the uncertainty of the project is an issue for Doherty, who wasn’t ready to commit beyond a one-year extension. If the city exercises its option to purchase approximately 15 acres of land from Doherty, the $15,000 will come off the purchase price of $210,000. If the option is not exercised within one year, the $15,000 will belong to Doherty.
Luhmann noted the city has held an option on the property for four years up to now. A motion to purchase the option for an additional year for $15,000 was approved with the understanding that the $15,000 would reduce the purchase price by that amount if the option was exercised.
• The Motel TIF District (Country Trails Inn and Suites) was decertified as the debt associated with the TIF District (District 5) is satisfied. The TIF District was created in 1996. Going forward, all property taxes generated within the district will be distributed in the same manner as all other property taxes.
• Maust asked if the city can take out a bond early to pay for a 2019 street project in order to take advantage of lower interest rates over the life of the bond. He expects rates to increase significantly over the coming year.
City Engineer Brett Grabau reviewed a tentative schedule for a 2019 improvement. A feasibility study would be authorized in June, an advertisement for bids in February 2019, construction to begin in the spring, and final completion to occur in the spring of 2020. He suggested Bakken and Hoffman could walk some of the streets with him and then put together ideas for a project later this spring. Hoffman said he will discuss the possibility of taking out a bond early to take advantage of lower interest rates with Mike Bubany.
• Approval was given to advertise for a summer helper to assist with general maintenance. The city and utility each hire a summer helper.
Leave a Reply