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Council hears presentation on proposed seven‑year streetlight contract with AES/MBL
Summary
City staff presented a proposed seven‑year regional contract for street lighting with AES and Miami Valley Lighting, described assessment methods across 43 lighting districts, and outlined projected rate increases (highest: 5.5% in 2026); council members asked about billing mechanics and alternatives.
City staff presented a background briefing on street‑lighting districts and a proposed seven‑year contract negotiated through a 24‑community consortium with AES and Miami Valley Lighting.
The presenters said most of Riverside's 43 lighting districts were inherited from Mad River Township and that districts are created by citizen petition, council action or new‑development design plans. The key operational point for residents: the city or the district pays maintenance and the cost is assessed to parcels that receive direct benefit.
The proposed contract is seven years, retroactive to Jan. 1 through Dec. 31 of the contract's final year, with negotiated rate increases the presenter summarized as 5.5% in 2026, then 4%, 3.25% and 2.75% in subsequent years. Presenters said the consortium buying power reduces costs compared with a single city negotiating alone.
Billing and mechanics: presenters explained assessments are calculated per district and billed annually in arrears as part of an assessment ordinance; residents typically see the assessment on their property tax statement rather than as a separate monthly charge. A "lump sum" settlement for prior months would be itemized by district on that assessment, staff said. If the council chose not to adopt the consortium contract, staff said options include negotiating independently (likely higher cost) or discontinuing lighting for some areas.
Council members asked whether the number of districts drives cost; presenters said it does not—the number of poles (units) and the energy/maintenance for those units drives the cost. Staff also noted that new developments with private streets may pay via homeowners associations rather than municipal assessments.
Next steps: staff indicated the legislation for the annual streetlighting assessment ordinance will return to the council for formal consideration at the May 4 meeting.
