SUBJECT: General Business
Title
A Resolution of the Board of Trustees of the Town of Erie Approving an Agreement with Tanko Lighting for a Streetlight Inventory Audit Services
Body
DEPARTMENT: Public Works
PRESENTERS: Tyler Kesler, Sustainability & Water Conservation Specialist
Alex Wurzel, Senior Energy Advisor, Tanko Lighting
TIME ESTIMATE: 20 Minutes
only required for non-consent items
FISCAL SUMMARY:
Cost as Recommended: $36,174.60
Balance Available: $56,700.00
Budget Line Item Number: 100-70-110-560100-000000
New Appropriation Required: No
STAFF RECOMMENDATION:
Recommendation
Approve the resolution authorizing the agreement with Tanko Lighting to complete an inventory/audit and financial analysis of acquiring the streetlights in the Town of Erie.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Xcel Energy and United Power own and maintain most streetlights throughout the Town. Most of these streetlights are energy inefficient high pressure sodium fixtures, not the more efficient LED fixtures. Xcel and United charge the Town to operate and maintain these streetlights.
In June, the Town engaged Tanko Lighting to conduct an initial study for the Town to evaluate the costs and benefits of acquiring all existing streetlights in Town from Xcel and United, converting the streetlights to LEDs, and assuming responsibility for maintaining the streetlights on an ongoing basis. Tanko representatives presented the results of this initial study to the Board on June 16, 2020.
That initial study, which cost $3,000, made assumptions about the age and wattage of existing streetlights in Town and on projected maintenance expenses. Based on those assumptions, the study concluded the Town could save about $220,000 annually on energy and maintenance costs, recover the estimated $2 million acquisition and conversion cost in about 10 years, and result in net savings of about $2.4 million over a 20-year period. Thus, the initial study suggests acquiring the streetlights in Town is a good opportunity for the Town to reduce total operating costs associated with streetlights in Erie.
In addition to reducing the Town’s costs, there are additional potential benefits associated with acquiring the streetlights. Those potential benefits include:
• Reducing energy consumption and associated greenhouse gas emissions
• Improving street lighting conditions, which could improve public safety
• More readily deploying Wi-Fi and other communication networks for Town operations, residents, and visitors
• Potentially generating generation from private network and cell providers seeking to lease space on streetlight poles
• Ability to monitor and transmit weather data to local stations, residential and commercial smart irrigation control clocks, and detect air and water quality in real time
• Ability to install decorative and special events banners and lease digital signage for Town messaging
• Minimizing light pollution
With the likely savings, and all these potential benefits, staff believes the Town should now engage Tanko to conduct a comprehensive inventory and audit of the streetlights owned by Xcel Energy and United Power to more precisely quantify the likely savings and to inform possible negotiations with Xcel and United for the Town to acquire the streetlights. There are roughly 1,800 streetlights throughout the Town. The proposed inventory/audit will identify all streetlights in Town, record their location in a Town accessible GIS format, record the age and condition of each light fixture, determine their value, evaluate retrofit viability, calculate potential energy savings, and identify potential co-benefit opportunities (from the list noted above).
This inventory/audit will provide critical information should the Town choose to pursue negotiations with Xcel Energy in 2021. It will also help further the Town’s ability to achieve Sustainability Master Plan Energy Use Sector Targets, Priorities, and Strategies for optimizing energy use in Town.
When the inventory/audit is complete, the next phase would be to consider engaging Tanko to assist the Town with negotiations with Xcel and United for the Town to acquire the streetlights. Tanko has extensive experience nationally in such negotiations. Tanko’s proposal includes provisions to initiate and lead negotiations with the utilities, in coordination with the Town Attorney and Town staff. If the Board chooses to engage Tanko for this work, staff would prepare a contract amendment once the inventory/audit is complete. Payment to Tanko for that engagement would be contingent on Tanko securing from Xcel and United offers to acquire the streetlights that the Town finds acceptable. If Tanko does not secure an offer the Town determines is acceptable, then no payment would be due from the Town.
Tyler Kesler, the Town’s Sustainability & Water Conservation Specialist, as well as Alex Wurzel, Senior Energy Advisor from Tanko Lighting, will be available when the Board discusses this matter to address any questions.
Fiscal Impact:
$36,174.60. This amount is based on a projected inventory of 1,827 streetlights at $18.00 per light, with a 10% contingency for additional lights discovered during the audit.
Board Priority(s) Addressed:
X Attractive Community Amenities
X Prosperous Economy
X Well-Maintained Transportation Infrastructure
X Safe and Healthy Community
X Effective Governance
X Environmentally Sustainable
X Fiscally Responsible
ATTACHMENTS:
1. Resolution
2. Agreement for Professional Services
3. Tanko Lighting Ownership & Audit Proposal
4. Streetlight Ownership & Feasibility Study Results
5. Sustainability Master Plan_Energy Use Sector