Submitted by: Dealon Lacroix
Submitting Department: Public Works
Agenda Section: Action
Item Title:
title
Streetlight Purchase Authorization
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Suggested Action:
recommendation
I move that the Mayor and Council authorize the City Administrator to negotiate and enter into an agreement with PEPCO for the purchase of streetlights within the incorporated City boundary, pending legal review.
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Summary Background:
In the FY 2023 Legislative Session the Maryland General Assembly passed the County and Municipal Street Lighting Investment Act that allows local governments to acquire streetlights from their local electric utility. City staff participated in several group meetings with other municipalities to discuss PEPCO’s proposals and costs. Following the meetings, City staff engaged the services of Tanko Lighting to analyze, evaluate, and manage the lighting upgrade process. Tanko presented their initial results to the City Council where it was recommended that the City move forward with an upgrade of the lights with PEPCO maintaining ownership and responsibility for maintenance under a revised streetlight rate tariff.
In late 2024 PEPCO proposed a new streetlight rate tariff. This new rate structure changed the cost of PEPCO owning and maintaining the streetlights. Tanko revised their analysis of the City's costs and these new results show that it would be in the best financial interests of the City to aquire the lights from PEPCO then convert to LED, saving the City an estimated $4 million over 20 years with an upfront investment of approximately $1 million. These results and any final agreement with PEPCO would be predicated on Maryland Public Service Commissions acceptance of the currently proposed streetlight rate tariff.
Next Steps:
Negotiate and enter into agreement with PEPCO. The purchase will return to Council for approval of the expenditure.
Fiscal Impact:
TBD
City Administrator Comments:
Recommend support.
Community Engagement:
N/A
Strategic Goals:
Goal 3 - Promote a Safe and Vibrant Community
Legal Review Required?
Pending