IRON MOUNTAIN — A conversion to LED street lights in the city of Iron Mountain will carry a significant upfront cost but will produce an overall 20-year savings of roughly $420,000, City Manager Jordan Stanchina said.

The city council agreed Monday to go forward with the plan, using American Rescue Plan Act funds to cover an estimated upfront cost of $137,700 to replace 770 fixtures. In addition, the monthly rate will be higher for the first seven years, adding about $14,400 annually to the city’s electric bill.

The investment can be paid off in less than 12 years, after which the city will save a full $52,000 annually, Stanchina said.

Mayor Dale Alessandrini asked if the new lights will be brighter than the current ones, with Stanchina responding, “They’re going to be equivalent.”

The initial increase in the monthly charge, which will go from $11,649 to $12,847 for the first seven years, allows We Energies to build up capital for maintenance, including replacing fixtures as they burn out, Stanchina explained.

We Energies owns the street lights and the wattage charge paid by the city is established by the Michigan Public Service Commission. MPSC sets the rate on LED conversions as well.

The city had discussed a conversion back in 2018, but the upfront cost made it daunting. With $765,022 in ARP funds available, an investment now makes sense to produce a long-term savings, council members agreed.

Local governments have until the end of 2026 to use the pandemic aid included in an economic stimulus bill President Joe Biden signed in March, but commitments must be made earlier. Beside the upfront cost, ARP funds might cover the extra monthly charge at least through the early years of the conversion, Stanchina said.

Also, the city will seek a one-time rebate through Efficiency United, an energy waste reduction program sponsored by Michigan utilities. Light-emitting diodes are promoted as being about 50% more energy efficient than traditional lighting technologies.

A schedule for the conversion is pending.

Another 31 street lights, mainly on Stephenson Avenue, are city-owned, so the city would have to convert them on its own, if desired, Stanchina said.

In other action Monday, the council:

— Received a request from Superior Selections for a marijuana dispensary license. Superior qualified under the city’s application system in 2019 for one of five growing and processing permits but fell short in the dispensary competition. Currently, Rize and Lume Cannabis have the only retail licenses. The council, after hearing Superior co-owner Dan Kreider and others discuss the success of the company’s cultivation center at 106 E. Smith St., agreed to schedule a committee meeting to discuss marijuana licensing.

— Will consider the renewal of a memorandum of understanding with Bird for scooter rentals. Last summer, Iron Mountain was the first city in the Upper Peninsula to have the GPS-monitored electric vehicles available and the program exceeded the company’s expectations, Stanchina said. The city has no financial involvement and rentals are processed through a cell phone app. In August, a 39-year-old Green Bay, Wis., man died after crashing a Bird scooter while riding on an Iron Mountain sidewalk, but that has not dissuaded the international firm from wanting to continue with local rentals.