Title
Approval of Street Light Replacement on US Highway 127 North (Neecham Street to Interstate 40)
Body
SUMMARY: The street lights along Hwy 127 North from Neecham Street to Interstate 40 are very old, and the City pays VEC to maintain these lights. The price of a ballast sometime exceeds the cost of a replacement LED. Almost anytime VEC troubleshoots a light that isn’t working, the cost of labor and materials exceeds the cost of replacing the fixture with an LED fixture.
It is estimated that the full replacement of the fixtures from would cost $71,166.00. The payback in electrical cost is estimated to be seven years and the lights have a ten-year warranty. Staff believes the payback would drop to about four years because there would be virtually no maintenance. VEC also owns 36 of the lights and prefers that the City take over ownership of the lights at a depreciated cost of $213 each for a total ownership cost of $7,668.
BUDGET ACCOUNT: 110-43100-950-007
Recommended Action
NECESSARY COUNCIL ACTION: Approve moving forward with the project with VEC invoicing actual cost on quarterly basis and approve the purchasing of the 36 VEC owned lights.