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HomeMy WebLinkAboutUnbudgeted Expenditure - Purchase Light Emitting Diodes - LEATY OF HUNTINGTON BEA, - o? T, Ftz*?P/ MEETING DATE: 3/5/01 DEPARTMENT ID NUMBER: PW 01-020 Council/Agency Meeting Held: 03- 05 — 0) Deferred/Continued to: pproved ❑ Conditional) Approved ❑ Denied )SA .Ci CI r 's Signature ouncil Meeting Date: 3/5/01 Department ID tuber: PW 01-020 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator �qREPARED BY: Robert F. Beardsley, Director of Public SUBJECT: Appropriate Funds for the Purchase of Light Emitting Diodes (LED) for Traffic Signals Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the City Council approve the appropriation of $509,000 for the purchase of energy efficient light emitting diode (LED) modules? State grant funds available through Southern California Edison (SCE) will reimburse the purchase. Funding Source:. $509,000 from Gas Tax unappropriated fund balance, and $120,000 is budgeted in Measure "M" Fund (Traffic Signal Improvements 21390007.84400), for a total cost of $629,000. Recommended Action: Motion to: 1. Appropriate $509,000 from the Gas Tax fund to a new business unit for the purchase of LEDs for traffic signals. Alternative Action(s): 1. Do not approve the purchase of the LEDs. An annual savings of an estimated $190,000 would not occur. Analysis: The California Public Utilities Commission (PUC) has established a traffic signal program to encourage the retrofit of incandescent traffic signal lamps with LED modules to save energy. PUC funding of $509,000 is available to the City of Huntington Beach through SCE for the purchase of the LEDs. This project will provide energy efficient LED modules for all red and green vehicle indications as well as all pedestrian indications at each of the City's 116 traffic signals. Yellow vehicle indications are not being replaced because of the minimal energy savings. In addition, LEDs will be installed at all flashing yellow and flashing red 01-020 March 5 kato (LEDs) -2- 2/23/01 12:07 PM 6.0 10-1 t . _QUEST FOR COUNCIL AC'► N MEETING DATE: 3/5/01 DEPARTMENT ID NUMBER: PW 01-020 beacons. LEDs will be installed by City forces. The program must be completed by June 1, 2001 to obtain 100% of the rebate. Traffic signals currently use 135-watt incandescent lamps in each signal indication. The energy required would be reduced to about 10 watts for each LED. This results in energy savings of about 2,920,000-kilowatt hours, or about $190,000 annually at $0.065 per kilowatt-hour. In the preventive maintenance program, City crews replace incandescent lamps on a two- year cycle. Current replacement costs are $5,500 annually. The LED modules have a five- year warranty and a useful life of eight years. However, when replacement is required, a budget of approximately $600,000 will be necessary. Staff recommends the annual allocation of $90,000 from the energy savings to an LED replacement fund. The savings will increase with the anticipated rise in energy costs and the anticipated decrease in the cost of LEDs. Without annual funding into a dedicated replacement program, an allocation of $600,000 will be required every five to seven years. As the traffic signal replacement program is currently a General Fund expense, and the General Fund will realize the energy savings, this is the appropriate funding source. The LED modules meet all Caltrans' and the Institute of Transportation Engineers' specifications. LED modules appear brighter than the current incandescent lamps and consume only 7% of the energy of incandescent lamps. The City signal system hardware is compatible with the LED modules, and will allow for uninterrupted operation of the system. Public Works Commission Action: On February 21, 2001, the City's Public Works Commission reviewed the proposed use of LEDs and recommended that the City Council proceed with this project (Vote: 7 - 0) Environmental Status: This project is categorically exempt pursuant to the California Environmental Quality Act, Section 15301(c). Attachment(s): RCA Author: Brohard:jm 01-020 March 5 kato (LEDs) -3- 2/23/01 12:07 PM ATTACHMENT #1 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Ray Silver, City Administrator From: Clay Martin, Acting Director of Administrative Services Subject: FIS 2001-26 Appropriate Funds for the Purchase of Light Emitting Diodes (LED) for Traffic Signals Date: February 23, 2001 As required by Resolution 4832, this Fiscal Impact Statement has been prepared "Appropriate Funds for the Purchase of Light Emitting Diodes (LED) for Traffic Signals." If the City Council approves this request (total appropriation $509,000), the estimated unreserved, undesignated Gas Tax Fund Balaq September 30, 2001 will be reduced to $3,773,000. Clay M,3rftin, Actin_ erector of Administrative Services REQUEST FOR LATE SUBMITTAL (To accompany RCA's submitted after Deadline Department: Public Works Subject Funds for LED purchase Council Meeting Date: 3/5/011 1 Date of This Request: 2/26/01 REASON (Why is this RCA being submitted late?): Funding required FIS even though grant is being reimbursed. R10 . ......... J EXPLANATION (Why is this RCA necessary to this agenda?): Project must be completed by June 1s`. ....... .. ...... Wk CONSEQUENCES (How shall delay of this RCA adversely impact the City?): Project will be delayed, and possibly not completed in time for full reimbursement. d%,,J3.AO SignatuNe;­-"' /7 a -Approved 0 Denied JI, Department Head Ray Silver City Administrator DocumenN 07/14/94 RCAtOUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Appropriate funds for the purchase of Light Emitting Diodes for traffic signals COUNCIL MEETING DATE: March 5, 2001 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attomey) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attomey) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Attached Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (Initial) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: