Title
Resolution to Authorize a Municipal Street Lighting Purchase Agreement with DTE Energy and to Appropriate Funds for the Conversion of 378 - DTE Owned Mercury Vapor Street Lights to LED ($65,354.00) (8 Votes Required)
Memorandum
Please find attached for your consideration a resolution that will authorize the municipal street lighting agreement with DTE Energy (DTE) to convert 378 Mercury Vapor Street Lights within the City limits to LED. The estimated costs for the City's share of this work is $65,354.00.
Of the 378 streetlights:
* 4 overhead DTE owned and maintained street lights on wood poles will be converted from 100 watt Mercury Vapor to 58 watt LED
* 367 overhead DTE owned and maintained street lights on wood poles will be converted from 175 watt Mercury Vapor to 58 watt LED
* 1 overhead DTE owned and maintained street lights on wood poles 250 watt Mercury Vapor will be converted to a 136 watt LED
* 1 overhead DTE owned and maintained street lights on wood poles will be converted from 400 watt Mercury Vapor will be converted to a 136 watt LED
* 3 underground DTE owned and maintained street lights fed by underground cable will be converted from 400 watt Mercury Vapor to a 136 watt LED
* 2 underground DTE owned and maintained street lights fed by underground cable will be converted from 1000 watt Mercury Vapor to a 238 watt LED
In order to convert the above lights to the appropriate LED, the City of Ann Arbor will need to pay a portion of the construction costs, but will then reap the financial value associated with lower energy consumption from the more efficient lights. The estimated financial breakdown is:
Project Cost: $88,790.00
Less DTE Labor Contribution: $23,436.00
Total Upfront Cost: $65,354.00
EO Rebate Issued After Construction: $11,362.00
Final Cost to Convert After Rebate: $53,992.00
Current Annual Invoice: $89,382.76
Future Annual Invoice: $55,620.19
Annual Savings: $33,762.57
Payback: ...
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