Title
Resolution to Approve Contract with DTE Energy for LED Streetlight Pilot Project ($41,267.00)
Memorandum
The attached resolution authorizes an agreement with DTE Energy for the conversion of fifty-eight (58) conventional streetlights to LED (Light-Emitting Diode) fixtures which will save the City $5,594.00 annually and reduce annual greenhouse gas emissions by 13 metric tons CO2-equivalent. The agreement covers the conversion of these streetlights to LED and a reduced rate for those streetlights for the duration of the agreement.
In 2008, a group of University of Michigan students raised safety concerns to the City about the streetlighting in the Hill Street-Packard Street-East University Avenue neighborhood. Meanwhile, city staff and DTE Energy staff have been looking for a location for a pilot LED streetlight project. This pilot project will provide DTE Energy an opportunity to compare perceptions of safety for conventional and LED streetlighting, while also reducing the City's streetlighting expenses. This is also an important step toward increased cooperation between the City and DTE on LED streetlights.
Costs for converting these streetlights are being shared 50/50 between the City and DTE Energy's Energy Optimization Program. Funding for the City's $22,388.00 share is available in the FY2010 Approved Field Operations Street Lighting General Fund operations and maintenance budget. In addition to the initial contribution to construction costs, the City will pay a reduced annual charge of $6,293.00 for the converted streetlights for the initial three-year term of the agreement, bringing the total contract amount to $41,267.00.
After the initial three years, the contract continues month-to-month until:
· DTE and the City mutually agree to end the contract;
· DTE or the City has provided twelve (12) months written notice; or
· The Michigan Public Service Commission (MPSC) approves an applicable LED streetlight tariff.
After this contract is con...
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