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Brentwood City Commission Agenda
Meeting Date: 07/12/2021  
Resolution 2021-86 Agreement with Path Company LLC for Streetlight Project Development Study
Submitted by: Kirk Bednar, Administration
Department: Administration  
Information
Subject
Resolution 2021-86 Agreement with Path Company LLC for Streetlight Project Development Study
Background
Streetlights in Brentwood, with few exceptions, are owned, operated, and maintained by the two electric utility systems that serve the city - Nashville Electric Service (NES) and Middle Tennessee Electric (MTE).  The City pays for the electricity used to operate the lights as well as an investment charge for the equipment and for maintenance costs.  The annual expense for streetlight operations is slightly less than $400,000.

While most streetlight installations in new subdivisions today are LED lights, the City has over 3,000 legacy lights that are older style high pressure sodium bulbs.  These bulbs use more electricity and have a shorter life span compared to LED bulbs, which creates higher cost for the City and more maintenance issues and complaints from residents. 

City staff has had an interest in pursuing a LED streetlight retrofit project for several years, but until recently neither of the utility systems serving Brentwood were open to discussions about such a project.  Earlier this year, the City of Goodlettsville completed a successful citywide retrofit project in conjunction with NES.  Using the Goodlettsville project as a model, staff began having conversations with the PATH Company, an Energy Services Company (ESCO), that coordinated the Goodlettsville project with NES and also has experience with several other streetlight retrofit projects across Tennessee and the entire TVA service area.  Representatives from PATH made a presentation to the City Commission this spring discussing the aspects of a potential streetlight retrofit project.

The proposed agreement with PATH does not commit the City to undertaking a streetlight retrofit project.  This agreement is a Project Development Agreement under which PATH will perform certain services related to auditing existing streetlight infrastructure, reviewing historical city costs associated with streetlight systems, negotiations with the two electric utilities, and development of a financial analysis of a potential retrofit project with each utility.  Specific tasks to be provided by PATH under this agreement for each utility provider include:
  1. Utility Rate and Structure Negotiation
    1. Negotiate new LED rate changes on behalf of the City.
    2. Negotiate attachment fee with local utility provider (if applicable).
  2. Data aggregation
    1. PATH will utilize historical data (24-36 months) to accurately evaluate the current streetlight energy profile.
  3. Site Assessment
    1. Conduct a walk-thru of the City’s streetlights and interview the owner/operator, providing a summary of any problems or needs identified.
    2. Measure key operating parameters and compare to design levels, as necessary.
    3. Inventory all streetlights and record fixture specifications.
  4. Energy and Financial Analysis
    1. Estimate the approximate breakdown of energy use.
    2. Estimate the combined costs, savings, and financial performance indicators from implementing the retrofit project.
The cost of these services is $50,000.  However, if the City decides to move forward with the retrofit project with one or both utility providers, this $50,000 cost will be rolled into the overall installation contract price and funded accordingly through projected streetlight cost savings.

ESCO services are considered professional services under Tennessee state purchasing laws and do not require a competitive procurement process.  Staff is recommending the agreement with PATH based on their overall experience with streetlight retrofit projects, but more importantly because of their prior experience in negotiating with NES as part of the Goodlettsville project.  They have also already had preliminary discussions with MTE regarding the potential framework for a project in Brentwood and other surrounding communities.
Staff Recommendation
Staff recommends approval of Resolution 2021-86.
Fiscal Impact
Amount : $50,000
Source of Funds: Capital Projects Fund
Account Number: 311-43100-1030
Fiscal Impact:
Funds for this project development agreement are programmed in the FY 2022 Capital Projects Fund budget.
Attachments
Resolution 2021-86
Contract No. 2021-028
Path City Commission PowerPoint
Signed Resolution
Signed Contract

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