Subject:
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Service Lighting Agreement with Duke Energy for the Downtown Palm Harbor Street Lighting District.
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Recommended Action:
Recommended Action
Approval of the Service Lighting Agreement with Duke Energy for the Downtown Palm Harbor Street Lighting District (DPHSLD).
• Resolution 25-11 and Ordinance 25-4 authorized creation of DPHSLD on January 28, 2025.
• Resolution 24-98 authorized use of Uniform Method for collecting Non-Ad Valorem Assessments for DPHSLD on December 17, 2024.
• Estimated one-time cost for construction of DPHSLD infrastructure is $400,000.00, funded by Municipal Services Taxing Unit Special Project Funds.
• Estimated first year cost for maintenance, rental, and energy is approximately $40,948.80 funded by a non-ad valorem assessment of the 42-parcel district.
• DPHSLD assessment roll will be presented by Tax Collector to Board of County Commissioners for approval on or before September 15, 2025.
• Funding for the $400,000.00 portion of the agreement is included in current year budget the General Fund - General Government MSTU. Funding for the maintenance, rental, and energy is included the Fiscal Year 2026 Budget Request of the Street Lighting Districts Fund.
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Strategic Priorities:
Healthy and Safe Communities
2.2 Enhance community safety
Smart Service Delivery
4.1 Optimize County energy use
4.2 Achieve and maintain a high level of customer satisfaction.
Summary:
Summary
This action executes a Lighting Service Agreement with Duke Energy for the DPHSLD. The estimated one-time cost for construction of infrastructure is $400,000.00.
The estimated first year cost for maintenance, rental, and energy is approximately $40,948.80.
On December 17, 2024, the BCC approved the advertisement of Resolution 24-98, intending to use the Uniform Method for the servicing of the DPHSLD as permitted by Section 197.3632, Florida Statutes. On January 28, 2025, a public hearing was held to adopt the DPHSLD. The Fiscal Year 2026 Tax Roll will be presented to the BCC on or before September 15, 2025.
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Background Information:
Street lighting in downtown Palm Harbor was one of the top five (5) recommendations of the Downtown Palm Harbor Master Plan update through the public engagement process, beginning in 2015. Current street lighting is unmaintained and inadequate to illuminate the sidewalks and on-street parking in all areas of the downtown business district. The proposed Street Lighting Plan, engineered by Duke Energy, will install 95 LED streetlights, and will provide the proper amount of lighting per national standards.
In 2016, the Board of County Commissioners approved Resolution 16-90 delegating to the County Administrator the authority to enter into an Agreement with the Downtown Palm Harbor Merchants’ Association, Inc. (DPHMA) for a Historic Palm Harbor Street Lights and Landscaping project funded by the Deepwater Horizon Settlement. The DPHMA did not fulfill the terms of the Agreement. The 35 streetlights and landscaping improvements went unmaintained after being installed. The Greater Palm Harbor Chamber of Commerce has voluntarily paid the cost of the electric service for the streetlights that remain operating.
Fiscal Impact:
The cost to create the DPHSLD, including public hearing advertisement and associated mailed notices will be paid by the property owners in the DPHSLD as part of the first year’s SLD assessment. Advertising costs will not come from the General Fund or be a part of the annual assessment after the first 12 months.
The first twelve (12) month direct annual economic impact of the Ordinance 25-4 on the 42 property owners in the assessment district for maintenance (performed by Duke Energy), equipment rental, and energy cost is estimated to be $1,100.00 per year, totaling $40,948.80.
A one-time cost of constructing the DPHSLD infrastructure is estimated to be $400,000.00 and will be funded by the Municipal Service Taxing Unit (MSTU) Special Project Funding Reserves.
Funding for the $400,000 portion of the agreement is included in current year budget the General Fund - General Government MSTU. Funding for the maintenance, rental, and energy is included the FY26 Budget Request of the Street Lighting Districts Fund.
Staff Member Responsible:
Thomas Almonte, Assistant County Administrator
Kelli Hammer Levy, Director, Public Works
Partners:
Property Appraisers Office
Tax Collector
DPHMA
Attachments:
Service Lighting Agreement
Ordinance 25-4
Resolution 25-11
Resolution 24-98
Assessment Area Map