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Ellsworth to buy streetlights from Versant and convert to LEDs, council approves municipal lease
Summary
Council authorized a municipal lease and contract award to RTE Energy Solutions to acquire and convert streetlights to LED, projected first-year savings around $43,000 and a 3–4 year payback; staff to execute agreements with Versant Power and municipal leasing consultants for a project not to exceed $400,000.
The City of Ellsworth voted to proceed with a municipal purchase and LED conversion of streetlights that staff say will reduce annual lighting costs and give the city ownership and maintenance control over fixtures.
IT systems administrator Jason Ingalls presented the results of an RFP process and recommended awarding the project to RTE Energy Solutions. Consultant Mark Carter (RTE) told the council the conversion would reduce energy usage by roughly 70% and cut Versant maintenance pass‑throughs, projecting about $43,000 of net savings in year one and a simple payback of approximately three to four years. The total project investment was capped at $400,000 consistent with a final investment‑grade audit.
Staff recommended financing through a 7‑year municipal lease with a $1 buyout at the end of the term and a non‑appropriation clause; municipal leasing consultants offered marginally better rates than a local bank option. Councilors asked for language clarifying annual appropriation responsibility; the council added an amendment making lease payments subject to annual appropriation out of the streetlight account.
Council authorized the city manager to execute necessary agreements with Versant Power, RTE Energy Solutions and Municipal Leasing Consultants and to proceed with the lease‑purchase financing for an amount not to exceed $400,000. Staff said ownership of the fixtures will allow future options such as adding municipal sensors or other assets to poles.
