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HomeMy WebLinkAboutStreetlight Update - City Council Study Session SupplementalSUPPLEMENTAL COMMUNICATION Meeting Gate: %;§- — � /� Agenda Streetlight Overview • Streetlights are a significant cost to the City - $1.8 million per year and rising (proposed 3% rate increase annually) • Street lighting is the most visible of all energy costs to residents and businesses Streetlight Overview - Types of Streetlights • LS-1 — SCE owned and operated (unmetered) — 12,000 • Advantages — SCE provides maintenance and service • Disadvantages — High rates, annual rate increases, and no local control over upgrades or service issues • LS-2 — City owned and operated (unmetered) — 2,000 • Advantages — Lower unmetered rate, local control on upgrades and maintenance • Disadvantages — Maintenance of poles falls upon the City 2 Energy Expenditures FY 14/15 Energy Expenditures $2,386,765 ❑SCE owned street lights (LS-1) ❑ HB owned unmetered $1,813,748'' street lights (LS 2) j❑ HB owned metered street lights (LS-3) ■ Everything else $42,962 $163,712 SCE Rate Projections $IS W $,O.00 Q $1500 is v $10.00 sn 55.ao Saco 15.1 year year year year year year year year year year year year year year year 1 2 3 4 5 6 7 8 9 10 11 12 13 1415 ■ Energy $2.83 $2.94 $3.06 $3.18 $3.31 53.44 $3.58 $3.72 $3.87 $4.03 $4.19 $4.36 $4.53 $4.71 $4.90 $5.10 ■SCE facilities $8.81 $9.16 $9.53 $9.91 $10.3 $10.7 $11.1 $11.5 $12.0 $12.5 $13.0 $13.5 $14.1 $14.6 515.2 Information based on CPUC rate case data - from WRCOG K Cost Analysis: Coalition for Affordable Streetlights (CASE) • HB joined CASL in 2011 • Coalition of cities —Moreno Valley, Rancho Cucamonga, Murrieta, and Torrance • CASL and SCE reached a settlement agreement in 2012 • Over $440,000 in avoided costs from rate increases through our CASL partnership • SCE changed its policy to amicably sell utility owned street lights —This has now changed. Benefits of LED Streetlights • Increased visibility • Better color rendition • Less maintenance — 80% reduction in fixture maintenance costs • More than 50% reduction in energy use 4 Streetlight Comparison High Pressure Soditim Light Lmitting Diode Color Orange White Life Expectancy 24,000 hours 100,000 hours (-6 years) (-20 years) Energy Use 39 50-75% less than kWh/fixture/month HPS LED Retrofit - 4-12Years Payback SCE Accepts YES YES Annual Streetlight Cost Comparison Stsb.bb situ. 'C' Sy on bb ■ {rrr.<dnar 4rpl::crn•rnt SSO C.C.- a __D Waintene.-ce ■SCF F-crgV ■SCE Fac lilies 5"0 66 52u bt) C..-rent Cost pe- Pine Post Acct.isMun rid LSD Retrofit i LS D i _5 2 B:- Cash Flow Projection CKy of Kundngton Beach © ito©00000a�� — irrrrazrr z rrrrrr��t��o r� rzrrr azrrrr� �� L ttiirr�t��t�tt�ttatt�f t��t�tt��ttitttet� rt,rr�rtintt�m�ar����t��®nrritirirr��s�s «a����rrirrs�rrrrrrs�rrzris��rrirrrrs���r�r� rrz�r r�� r�m� rir o ri® Streetlight Acquisition and LED Retrofit Acquisition and 1.14) Retrofit Budgetary Lstimates (101'ear SCE Acquisition of Assets (11,181 streetlights) Program) $4,358,350 Transfer of Ownership (ID Tagging and Database) $420,105 LED Streetlight Retrofit $3,695,338 SCE Energy Rebates ($702,907) 10Year Finance Costs $911,026 Acquisition and Retrofit Subtotal Strectlight Maintenance Estimates $8,681 912 (101'ear) Maintenance Total (Approximate Estimate) $3,000,000 Acquisition, LED Retrofit and Maintenance Total $11,681,912 Acquisition & Retrofit • Advantages • Reduced street light costs (energy and reduced rate) • Improved system maintenance and reliability • Maintenance cost savings (LED fixtures last 20 years) • Management control over expenditures • Improved customer service • Disadvantages • Acquisition of streetlights from SCE is expensive • City would assume on -going maintenance/customer service • LED upfront cost of retrofit is expensive 7 Acquisition: SCE Initial Valuation • Guaranteed max. price $450/pole • — 11,181 poles eligible for sale • —$4.3 million purchase price • Requires PUC approval (3 month process) • SCE is halting acquisition program, thus the purchase process must be completed by August 31, 2016 Revenue Generating Opportunities • Wireless/Broadband Capabilities Philips Connected City • Enables select smart cities to speed the deployment of increased wireless capacity and connectivity. • Philips can install new "Smart" street lighting poles in the City that house telecommunications network equipment. This results in: • New, energy efficient LED street lighting — possibly at no cost • Access to the best wireless data network capacity possible. • Improved, de -cluttered cityscape. • Rapid deployment of new high-speed, high capacity, wireless networks. Street Lighting Becomes Digital Real Estate Rendering of a "smart Pole" 9 City of Los Angeles Rendering Conclusion • City's energy program has been successful in focusing on City buildings and City owned streetlights. The City has been a leader. • Cut 5,000,000 KWh of waste from buildings through re- commissioning and cool roof projects • Phase I Streetlight Retrofit - annual savings $140,296 and savesl.5 m kWh • Achieved platinum partner status with SCE • Streetlight acquisition • Small initial annual savings ($70,000-120,000) • Significant annual savings after pay-off (1 lth year - $1 million and 20 years $12 million) • Improved customer service and management control • 30 cities in the queue to purchase their lights Complete analysis and obtain City Council Approval Finalize Financim, Plan Begin Purchase Process CPUC Filing 3-6 rnonflis (Advice Letter) August 31, 2016 Deadline. 'lake Over Lioht: (one year process) IV