Title
Consider and take action on a resolution authorizing an agreement between Texas-New Mexico Power Company (TNMP) and the City of League City for the acquisition of streetlights and related facilities in an amount not to exceed $2,976,821 and related matters (Assistant Director of Public Works-Operations and Executive Director of Development Services)
Background:
Approval of this item will authorize an agreement between Texas-New Mexico Power Company (TNMP) and the City of League City for the acquisition of streetlights and related facilities in an amount not to exceed $2,976,821, and authorizing the City Manager to execute the agreement and related closing documents of the Asset Purchase Agreement (APA).
Under the APA, the City will purchase TNMP-owned streetlights and related facilities within the City and assume responsibility for their operations and maintenance following the agreement’s 21-day transition period. City ownership will allow the City to manage maintenance, repairs, and future lighting improvements directly. This project is included in the FY2026-2030 Reinvestment Capital Improvement Program.
The City’s consultant performed an audit of Streetlight inventory which identified 5,875 fixtures owned and maintained by TNMP, 791 by CenterPoint, and 54 by the City. This acquisition applies to TNMP facilities identified in the final inventory audit, agreed to by both parties. CenterPoint-owned Streetlights are not included in this agreement.
Facilities to be acquired: The APA provides for the transfer of streetlight fixtures mounted on distribution poles, standalone streetlight poles with fixtures, and wiring located on public property or in the public ROW within the City’s municipal boundaries. TNMP will retain the distribution poles and electric distribution system. The City will acquire the lighting equipment that is mounted on TNMP’s distribution poles.
Purchase price and closing: The APA identifies an estimated purchase price of $2,826,821...
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