City staff raised a long-term issue July 8 about the city's streetlight assets: many developer-installed lights will exit warranty/service arrangements with Xcel after about 25 years and the city must decide whether to assume ownership and lower monthly rates or leave poles under Xcel ownership at higher operational cost.

Handler said roughly $3 million in streetlight assets exist in the city and replacing them on current lifespans would equate to roughly $125,000 per year when amortized. Staff presented two broad choices: (1) remain with Xcel ownership/servicing and pay a higher monthly fee, or (2) assume ownership of poles and fixtures now that developers often install them for the city, which yields a lower ongoing monthly charge but requires capital outlay and asset-management planning.

Council discussed equity options for funding replacements: a citywide levy (spread across all taxpayers) or a dedicated streetlight utility fee that could be structured to charge more where lights are concentrated or to exempt rural areas that prefer no lights. Council asked staff to return with a cost comparison (own vs lease) and an analysis of how other cities structure charges.

Handler said staff would pursue a more detailed analysis and bring back options for council consideration, noting the city has time to plan because most replacement need accelerates after 2038 for many lights.

"If council is generally, potentially agreeable to the concept of a streetlight utility, we will do more of the legwork," Handler said. The city will also plan outreach because many residents are unaware warranties and service obligations expire.