Council selects Duke Energy lighting lease for Town Park walkways after net-present-value comparison
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Summary
Council voted 4-1 to accept Duke Energy—s proposal to install 14 pedestrian-scale LED lights on park walkways under a lease that spreads cost over time; staff presented an NPV comparison showing similar lifetime costs for Duke and a local contractor.
The Town Council voted to accept Duke Energy—s proposal to provide 14 LED pedestrian-scale lights for walkways connecting Town Park parking, the crosswalk to Lynnville Road and the new farmhouse grounds. Council considered two proposals: an Oak Ridge Electric up-front installation estimate of $44,045 for bollard-style lighting, and Duke Energy—s leased traditional acorn-style pedestrian poles with a monthly lease fee.
Town staff and the finance officer ran a net-present-value (NPV) comparison that showed similar lifetime costs: about $96,500 (Duke Energy) versus about $101,000 (Oak Ridge Electric) over a 25-year analysis. Duke Energy also provided a contract showing a minimum 10-year lease at $417 per month for the poles; council asked about whether electricity was included and staff clarified the contractual arrangements and metering.
Councilmembers discussed risk and long-term maintenance. One councilmember said Duke—s turnkey lease reduces town maintenance and long-term risk compared with owning and maintaining fixtures. After discussion, the council approved the Duke Energy proposal by a 4-1 vote.
Why it matters: The chosen leased approach spreads upfront capital costs and assigns long-term fixture maintenance and replacement risk to Duke Energy under the lease; the decision will shape pedestrian lighting at Town Park and the farmhouse community center and influence future utility costs and maintenance responsibilities.
Background and next steps: Staff will execute the Duke Energy contract, arrange installation and coordinate timing with the parking-lot lighting changes already planned for Town Park. The council—s NPV analysis and the contract terms (including minimum 10-year lease) will be retained in the project file.