The D.C. Council on Tuesday approved a $309 million contract to upgrade the city’s 75,000 streetlights with high-efficiency LEDs and Wi-Fi access points, signing off on what will be the first and so far the only public-private partnership that D.C. has undertaken.
Under the novel contract, Plenary Infrastructure D.C., a local offshoot of a large Australian firm that specializes in what are known as P3 contracts, will finance and finish the streetlight upgrades by 2025, maintaining the lights for another 13 years after that. D.C. will repay the company for the work over the life of the 15-year contract.
Beyond the environmental benefits of LED streetlights and and installation of 239 Wi-Fi access points in neighborhoods with low internet connectivity, proponents say the P3 contract — which has been in the works since at least 2016 — includes provisions linking pay to performance, and will allow the work to be done more quickly and for less money than a traditional contract.
“The D.C. Smart Street Lighting Project presents an historic opportunity to deliver upgraded smart infrastructure while saving the District approximately $76 million,” wrote Mayor Muriel Bowser to the council ahead of the vote.
But as with any large contract, the P3 was the focus of a fierce lobbying battle, this one waged by M.C. Dean, the Virginia-based company that has long held the contract to upgrade and maintain the city’s streetlights. Speaking at a council roundtable last week, Bill Dean, the company’s president, said the P3 would cost more than a traditional streetlight contract and leave the city open to significant financial risk. And hanging over the contract’s consideration was the experience of Maryland in its own P3 to build the Purple Line, which is years behind schedule and costing significantly more than expected.
Those arguments found an ally in Council Chairman Phil Mendelson, who called the use of a P3 to upgrade streetlights “bullshit,” saying it would simply be cheaper for the city to borrow money itself and find a contractor to get the work done.
“We are spending more money than we need to,” he said during Tuesday’s debate. “This contract is an embarrassment… and we’re being fooled by these tricks.”
But Mendelson himself was seen as a questionable critic of the contract; his re-election campaign’s treasurer is M.C. Dean’s principal lobbyist, and he accepted a $1,500 campaign contribution from Dean last year. Councilmember Mary Cheh (D-Ward 3), the P3 contract’s main proponent, pointed out that connection during the debate.
“All you’re doing is taking what they fed you,” she said. “There’s no basis in their numbers.”
Other lawmakers cited what they said were the benefits of the P3 contract, including remote monitoring of streetlights that will tell the company when they aren’t working.
“There are built-in accountability mechanisms for maintenance. Imagine what that will do for your 311 requests,” said Councilmember Charles Allen (D-Ward 6), referencing the current system that requires residents to report streetlight outages to the city.
“When it comes to constituent services… having a better streetlight system that is remotely monitored, these are things we should be doing in the District,” said Councilmember Brianne Nadeau (D-Ward 1). “The more we can automate our systems… the better.”
The streetlights are also expected to have environmental benefits. According to D.C., replacing the fixtures will cut energy use for streetlights in half, cutting back some 38,000 tons of annual greenhouse gas emissions. Still, some critics worry that the LED lights will create too much light pollution and disturb both human sleep patterns and local wildlife.
The contract ultimately passed with 10 lawmakers voting in favor, and only Mendelson and Councilmember Vince Gray (D-Ward 7) opposed. Councilmember Kenyan McDuffie (D-Ward 5) recused himself from the debate and vote because his cousin is linked to one of the subcontractors on the project. (“He made this decision because it is critical that the residents of D.C. know that their government operates with the utmost integrity,” his office said in a statement.)
“I certainly understand the mistrust some may be feeling about this contract. I had skepticism about the scope, skepticism about the cost,” said Councilmember Christina Henderson (I-At Large) before casting her vote in favor. “I kicked the tires as much as I could… there are great benefits in the structure.”
Martin Austermuhle