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The acquisition of Illinova by Dynegy Energy Services, Inc., resulted in the decision by Dynegy <br /> to remove itself from its ownership and maintenance responsibilities for the Oakwood Lighting. <br /> Dynegy informed the City of this decision and its proposal to transfer the agreement to another <br /> party. City staff in considering the proposal from Dynegy questioned whether the City might <br /> save money by terminating the agreement and assuming the ownership and maintenance <br /> responsibility for the Oakwood Lighting itself. The basis for this thought was that the Traffic <br /> Operations Section in the Department of Engineering & Infrastructure is adequately equipped <br /> and staffed to perform this type of work without having to add personnel or equipment and not <br /> adversely affecting the section's ongoing duties and responsibilities. It was decided by City staff <br /> to evaluate the cost of continuing to have the Oakwood Lighting managed by a private party <br /> versus the City assuming control. <br /> Three basic options were evaluated. The first option was continuing to contract out the Oakwood <br /> Lighting. The second option is based on the City having to replace one lighting unit per year. <br /> This is considered a moderately conservative estimate of the City's cost to assume ownership. <br /> The third option is based on the City having to replace every lighting unit during the remaining <br />' life of the agreement and is considered to represent a high end cost to the City. The cost for each <br /> option is as follows: <br /> OPTION 1 (Privately Contracted) <br /> Annual Service Cost($11,300/year for 37 years) $418,100 <br /> Energy Costs (Est. $4,300/year for 37 years) $159,100 <br /> Total Cost $577,200 <br /> OPTION 2 (CitYOwned, 1 UnitlYear Replaced) <br /> Annual Operations & Maintenance costs (Average$5,000/year $185,000 <br /> for 37 years) <br /> Contracted Maintenance (Average 1 every 5 years at$5,000 $40,000 <br /> each for 37 years, 8 total) <br /> Replacement Unit(Purchase 1 unit per year at$1,600 each for $59,200 <br /> 37 years, 37 total) il <br /> Energy Costs (Est. $4,300/year for 37 years) $159,100 I <br /> Total Cost $443,300 ' <br /> OPTION 3(City Owned. Replace 150 Units in Contract Life) <br /> Annual Operations & Maintenance costs (Average$5,000/year $185,000 <br /> for 37 years) <br /> Contracted Maintenance (Average 1 every 5 years at$5,000 $40,000 <br /> each for 37 years, 8 total) <br /> Replacement Unit(Purchase 150 units at$1,600 each) $240,000 <br /> Energy Costs (Est. $4,300/year for 37 years) $159,100 <br /> Total Cost $624,100 <br /> Several factors that are difficult to accurately estimate or to enter into the long term ownership <br /> costs include: <br />