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Approval of a Professional Services Agreement with Tanko Streetlighting, Inc. for Streetlight Purchase, Conversion to LED, & Maintenance Support in an Amount not to Exceed $825,528; and Authorization for the City Manager, or Her Designee, to Execute the Agreement.
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ADMINISTRATIVE COMMENTS:
Municipal ownership would allow Lewisville to manage streetlights as a public right-of-way asset rather than a bundled utility service, shifting from utility-owned tariffs (with embedded maintenance and other charges) to a customer-owned rate structure that drives long-term savings and better service. Paired with systemwide conversion to Light Emitting Diode (LED) lamps, the City can reduce monthly energy costs and secure predictable, unit-priced maintenance through independent contracting. City control also strengthens accountability through accurate inventory and billing, defined maintenance standards, and faster response times, reducing payments for lights that are out, removed, or inventoried incorrectly. Tanko Lighting’s Streetlight Ownership Feasibility Study, presented to City Council on August 4, 2025, evaluated three options and supports staff’s recommended Option 1: acquire lights from Texas New Mexico Power (TNMP) and Denton County Electric Cooperative, Inc. (CoServ), convert to LED, and provide ongoing maintenance. With approximately 5.5% of lights currently converted (most are High Pressure Sodium (HPS), the study estimates an investment of $2,701,941 upfront for ownership transfer will yield over $7M in savings over 20 years and a 5.3-year payback. The proposed not-to-exceed contract amount is $825,528 for Phases 1-3 and one year of Phase 4, with two optional 12-month Phase 4 renewals; funding is available in the Streetlight Replacement and Ownership Capital Project.
RECOMMENDATION:
That the City Council approve the agreement and authorize the City Manager, or her designee, to execute the agreement as set forth in the caption above.